Johnscreekcapital

Creating Wealth
THROUGH
Mobile Home Park Investments

Diversify Your Portfolio with Mobile Home Parks

WHY SHOULD YOU INVEST IN SMALL MOBILE HOME PARKS?

Our Vision

Johns Creek Capital, LLC plays a major role in solving America's affordable housing crisis

Our Vision

Johns Creek Capital, LLC plays a major role in solving America's affordable housing crisis

Begin The Journey to Financial Growth

HOLD TIME

2-8 Years

Generally, we have a short holding period of 2-5 years which could go up to 8 years depending on marketing conditions.

IRR

12 - 20%

All of our deals have a 12-20% projected IRR and above

EQUITY MULTIPLE

1.2X - 2X

Total capital returned upon exit

RETURN STRUCTURE

First: 100% to Investors until an 8% preferred return is achieved
Second: After an 8% preferred return is achieved, then 70% to Investors and 30% to the Sponsor
Third: After a 12% return is achieved, then 60% to Investors and 40% to the Sponsor
Fourth: After a 16% return is achieved, then 50% to Investors and 50% to the Sponsor

Blue Ocean Strategy

There are two ways to create blue oceans:

It is referred to a market for a product where there is no competition or very less competition. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure.

“He who works all day, has no time to make money.”
John D. Rockefeller
"90% of all millionaires become so through owning REAL ESTATE"
Andrew Carnegie

Our acquisition strategy

HOLD TIME

We underwrite and observe the deals for a month and get the best ones with the highest returns.

QUALIFICATION

We have developed a proprietary Algorithm to qualify deals. When evaluating a deal, we use 15 major parameters with difference weights assigned to them.

PROPOSAL

We exclusively buy properties that have a steady cash flow and a great potential for growth.

Acquisition

We have processes in place to conduct due diligence, negotiations, and immaculate closing.

Distributions

We do monthly distributions to the investors.

Exit

After 2-5 years of holding period, we sell or refinance the asset. Investors get their capital back, plus all profits earned distributed based on our waterfall structure.

Our Business
Strategy

The Business Strategy is anticipated to follow a proven system developed at Johns Creek Capital and is divided into three phases or periods. Each period has specific goals and objectives and although there are many unforeseen circumstances which may occur, most of our parks under management have seen success when these attributes are followed.

Soon after acquisition, we communicate with the existing tenant base to establish our expectations regarding rent payments, park rules and regulations, upcoming rent increases, and park improvements. During the Stabilization Period, costs typically increase, and distributions are minimal as deferred maintenance issues are addressed and cosmetic value-add improvements are made.

In addition, several front-end costs are incurred such as insurance down payments, finance and accounting setup and legal fees, as well as the costs associated with various registrations and permit applications. Depreciation schedules and cost indexes are also established during this time and the tenant base is often brought back into alignment with our rental process. Although Sciota Woods is cash flow positive day one, the implementation of these systems and processes are anticipated to last six to 12 months yielding increased profitability as we move to the next period of ownership.

During this period, the rent structure approaches market conditions and smaller less expensive value-add activities take place as cash flow allows. The Maximization Period is expected to last an additional 12 months leaving three to five years which constitutes the Optimization Period.

The Optimization Period is designed around a focus on creating strategic value. To be effective, strategies need to account for market uncertainties and regulatory fluctuations. Changes in the mobile home park industry, as well as regional and local housing trends in the Johnson City area will be reviewed to develop more refined market insights during the remaining years of ownership. In addition, as the park moves through the Optimization Period, an analysis of the investment in terms of tax consequences are given greater scrutiny. Is the community a good candidate for refinancing, a like-kind exchange, or a sale? The management team also looks at various ways of driving additional growth, thereby optimizing both the community’s value and investor returns.

Proven Track Record

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Our Acquisition Strategy

Based on historical data, we are always improving and refining our acquisition process. So, we have an internal algorithm that consists of 15 major important parameters of what we look at when we buy a park. That is always changing, and that is always evolving.

The acquisition process is, ever-evolving. It would be interesting to discuss a couple of other parameters that we look at. For example, the market. The market is, it doesn’t have to be in the center of a major MSA, a metropolitan area. But it has to be closer to some economic hubs. It has to be a town that has some dynamics going in the town to make sure that there are enough customers for that.

Another thing is the spread. It’s the difference between the interest rate and the cap rate. When the cap rates were high and the interest rates were low, it was very attractive. Right now, the interest rates are rising which means to cap rate tends to be a little bit higher. So, the spread is extremely important because if you don’t have a spread, you don’t have a lot of meat on the bone. There’s no money to be made.

One of the major parameters is if there are park on homes, what is the status of the title? That could be another nightmare. So, those of you in mobile home parks, park on home titles can be a nightmare to deal with because if the seller doesn’t a clear title, the title company doesn’t care. They only care about the title of the property, not necessarily the homes.

Our due diligence process acquisition. Due diligence would have about three phases. Phase one was before we started spending money – tracking permits, verifying income, because if the income is not there, the deal is not there.

The second phase is when you start sending money, getting inspection reports. And their stages when you have the final negotiation, final wrapping up.

Above are some of the major parameters. So those are good goals if you use them correctly.

Our Acquisition Strategy

Based on historical data, we are always refining our acquisition process. Our internal algorithm consists of 15 major parameters of what we look at when we buy a park. Below are some of the most important parameters.

The park does not need to be located in the center of a major MSA, but it has to be closer to certain economic hubs. We prefer markets with over 100k in population and $100k in medina housing prices.
It’s the difference between the interest rate and the cap rate. We prefer deals with at least a 3-point spread.
We prefer parks with mostly, if not 100%, tenant owned homes. Mobile home parks is a parking lot/aland business so we must operate it as one. Tenant owned homes are owned by the tenants themselves and they simply pay us a lot rent each month. The biggest advantage of this model is that tenants take care of all repairs and expenses inside the homes.
We prefer parks on public utilities, all sub-metered or billed back to tenants.

Our Acquisition Strategy

Based on historical data, we are always refining our acquisition process. Our internal algorithm consists of 15 major parameters of what we look at when we buy a park. Below are some of the most important parameters.

Utilities

We prefer parks on public utilities, all sub-metered or billed back to tenants.

The Spread

It's the difference between the interest rate and the cap rate. We prefer deals with at least a 3-point spread.

Tenant Owned Homes vs. Park Owned Homes

We prefer parks with mostly, if not 100%, tenant owned homes. Mobile home parks is a parking lot/aland business so we must operate it as one. Tenant owned homes are owned by the tenants themselves and they simply pay us a lot rent each month. The biggest advantage of this model is that tenants take care of all repairs and expenses inside the homes.

The Market

The park does not need to be located in the center of a major MSA, but it has to be closer to certain economic hubs. We prefer markets with over 100k in population and $100k in medina housing prices.

HISTORICALLY RESILIENT
ASSET CLASS

ONE INVESTMENT

Mobile Home Parks as an asset class has a demonstrated track record of Net Operating Income (“NOI”) growth across many historical market cycles

LET US DO THE WORK

HOW IT WORKS?

WE BUY

We find, underwrite, negotiate, conduct due diligence, finance and manage each asset.

YOU INVEST

Investors become members through an investment. This is not a REIT or Stock.

WE MANAGE THE PROPERTIES

We perform all property management and asset management tasks.

DISTRIBUTIONS OCCUR

We seek to make monthly distributions to investors. We issue k1s every year for investor tax benefits.

FEATURES

LOW CORRELATION (BETA)

Mobile Home Communities have demonstrated a low correlation to the broader market.

TAX BENEFITS

The use of accelerated depreciation, normal depreciation, cost segregation, and enjoying tax-free income may result in tax benefits to investors.

RETURN OF CAPITAL

The sale disposition of mobile home parks can provide investors with capital gains, depreciation, cash flow, and growth opportunities.

POSITIVE CASH FLOW FROM DAY ONE

We acquire assets with positive cash flow from day one, setting the deal up for success from the beginning.

LOW CORRELATION (BETA)

Mobile Home Communities have demonstrated a low correlation to the broader market.

TAX BENEFITS

The use of accelerated depreciation, normal depreciation, cost segregation, and enjoying tax-free income may result in tax benefits to investors.

RETURN OF CAPITAL

The dispositions of mobile home parks may provide investors with return of original capital invested and equity growth.

OUR PORTFOLIO

We are a community of real estate investors who share the desire to have passive income without being tied down by the responsibility of property management.

LOOKING TO ACHIEVE FINANCIAL FREEDOM & CREATE TRUE WEALTH?

Johns Creek Capital, LLC has the expertise and connections to help find you the highest returns for your investment dollars.

Your Connection To
PASSIVE REAL ESTATE INVESTING

It starts with one short strategy call with us. Start building generational wealth today and create passive income streams for your family.

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