20% Cap Rate Deal

20% Cap Rate Deal


I have secured a $2.7M debt piece on the deal attached and are gearing for a close this coming Friday although it is possible to get a 10 day extension from the seller (receivership judge).

Their majority equity partner from Chicago just backed out, and from my understanding they’ve exhausted their funds during my borrower’s due diligence period. Great timing as we secured the debt this Wednesday.

The borrower’s are friends of mine who are proceeding and are now needing passive investors.

Current NOI is $73K/month, and the new debt will require $36K/month so plenty of room there.

That said, attached is my writeup for a $300K-$650K, less could be possible.

Anticipated terms on that investment are in the 12%+ preferred coupon/note range and 10%+ equity participation in the deal.

Exit strategy is likely a 4-6 month flip to a group who has put an “As-Is” offer of $4.5M on the asset.

Michigan is rough, but the assets are performing and there is plenty of upside with the 46% occupancy and a 23% current cap based on their purchase price.

You’ll like the fact the last bank lent $18M on the two parks and these guys are buying them both for $3.65M. Welcome to my world.

If you have an interest please let me know and I can tell you more.

Again, these are never a solicitation rather an update on the deals we are working on, of which you have expressed interest in being kept informed. If you would like to be removed, please let me know. As always, no need to respond.

Thanks and have a good weekend.