This is a financial model designed to plan out the acquisition of up to 40 mobile home parks (MHPs) over time, operating them for up to 16 years, and then exiting for a defined exit cap. The exit can be at any month and doesn’t have to be 16 years.
Final results flow into three separate joint venture schedules:
- Preferred Equity
- Soft Preferred Equity (IRR Hurdles)
- Preferred Return
The waterfall distributions schedules above are all independent of each other and are designed to easily compare different funding / distribution structures of the entire operation and how returns may differ between the Sponsor (GP) and Investor (LP).
Assumptions were set up so each Mobile Home Park has its own configurations for acquisition cost, development, debt / equity funding, revenue, and expenses.
For each of the 40 parks, build-out assumptions include:
- Park Name
- Start Month
- # of Months Until Rev. Starts
- Operations Begin (formula)
- Annual NOI Entry Cap Rate
- Entry Acquisition Cost (formula)
- Construction/Other Cost
- Total Acquisition Cost (formula)
- Debt? (yes/no)
- Debt (per LTV defined on 'Control' tab) (formula)
- Equity (formula)
- Unit Count
- Starting Weighted Avg. Lot Rent
- Lot Rent Growth (year 2-4)
- Stabilized Rent Growth (per year)
- Initial Occupancy
- Vacancy Improvement per Month
- Stabilized Occupancy
- 3rd party contractors
- Turn Over
- Repairs & Maintenance
- Marketing & Advertising
- Management Fee
- Administrative / Other
- Water Sewer
- RE Taxes
- Property Insurance
- Extra Field 1
- Extra Field 2
- Extra Field 3
- Extra Field 4
- Annual Expense Growth
A monthly and annual pro forma detail show the total initial investment, operating activity (down to Net Operating Income) debt service, and exit value for each of the 40 mobile home parks individually. This is all aggregated into a final total Net Operating Income and cash flow.
Note, for any MHPs that were defined as being financed with debt, there is a global driver for the terms of each loan (defined once and apply to all loans). Also, you can globally choose the debt configuration life and this includes if there is a refinance event at a certain point in time for each of the parks that had debt funding. The terms of this are defined once and apply to each park individually based on when the park started operations / required an investment.
The dynamic nature of this model is really useful if the user needs to plan out scaling multiple purchases of parks over time and wants to easily apply complex logic to each acquisition in order to see an aggregate result.
Note, a full version (up to 40 MHPs) and a lite version are included. The lite version has up to 5 MHPs and everything else is the same.