Bryce explains how in-house financing cuts mobile home park down payments from $60,000 to $10,000 per lot. The model also finances affordable loans for tenants that traditional lenders won't touch. Investors can join the Transformation Fund for 10-13% annual returns.
Who is Catherine Bell?
Maximum of six homes a year, which is way too slow. I mean, we're filling in like literally hundreds and hundreds of mobile home lots. So we need to go a lot quicker than that. So there was those restrictions, plus a whole bunch of other restrictions, and we decided to bring our financing in house and we created a structure which I believe is a win, win, win. So the, the park gets to just pay a down payment instead of paying the whole cost for the home. So instead of paying $60,000 for a new home, the park's only paying about $10,000. So that means we're saving about $50,000 per lot. The tenant gets a true affordable housing loan, which a lot of third party financing companies, they have loans available for tenants, but they can't qualify them because they need something that's more affordable. And so we've created true affordable housing loans. And then also investors who invest in, in our transformation fund, which is our in house financing. Those investors are getting 10 to 13% annual returns, depending on how much they invest. So it's really a win, win, win for our park investors, for our residents who get true affordable housing, and also for our investors in our mobile home financing company.
I love this because again, it's that whole, whole ecosystem, like all the way from beginning to end. So it's really cool. So Bryce really knows what in the world he's talking about, which is really cool about this whole thing.
