Park Place Communities
Renovation Program Secured with 1st Lien
Debt • AFFORDABLE HOUSING

Min. Invest

$5K

Target Hold

2.5 Yr.

Return On Investment

12%

PROGESS - 20% PLEDGED
PROGESS - 0% FUNDED

Investment Summary

RealtyeVest has a stake in all real estate investments offered in our marketplace.

RealtyeVest, formerly IHT Realty Crowdfunding, is offering investors the opportunity to capitalize on one of the fastest growing industries in real estate. Right now, there are only about 50,000 affordable housing parks in the country. Park Place Communities (PPC) is taking a major step toward growing the stock of affordable housing in the United States. RealtyeVest will be assisting PPC in securing funds, as it looks to expand its operations and acquire an additional 15,000 to 20,000 mobile homes over the next few years.

PPC is a national “Top 100” owner-operator of mobile home communities in the country. The company currently owns and operates 13 mobile home communities across eight states, with an inventory of more than 920 total lots.

This exclusive $1-million offer is a debt investment opportunity secured by a first position lien. PPC is seeking capital in order to facilitate a million-dollar note pool to issue five-year amortization notes with a 30 month balloon. IHT Realty Fund 7, LLC will raise the $1-million funds through a series of $150,000 tranches, which will be released to PPC in exchange for a note and mortgage secured by a first position lien. The lien is backed by a corporate guarantee from PPC with a 12 percent interest rate paid to investors. The mortgage will be issued by PPC Construction to IHT Realty Fund 7, LLC for 30 months.

PPC Construction, the construction brand of Park Place Communities, renovates existing mobile homes and sells them to qualified buyers using seller financing. Qualified buyers are then able to purchase a mobile home for about the same monthly cost of renting, knowing that at the conclusion of the five-year mortgage term, the buyer will own their mobile home outright.

As the demand for more affordable homes rises, the company has a waiting list of buyers ready to take advantage of this opportunity.


Risk Disclosures:

The offering materials to be reviewed and considered by investors with respect to this offering include the information described in the website content relating to this offering (as amended and supplemented through and until the closing of the transaction) and the subscription agreement relating to such securities (see the "Documents" tab). We refer to all of this information collectively as the "Property Information Package". Investors should review the Property Information Package in its entirety before investing and should consult with appropriate legal, tax, and investment advisors. Please note that RealtyeVest is not serving as your fiduciary or advisor with respect to this opportunity.

Below are certain risks associated with this investment that should be carefully reviewed prior to any investment in this opportunity:

Forward-Looking Statements: Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated,” “projected,” “forecasted,” “estimated,” “prospective,” “believes,” “expects,” "plans,” “future,” “intends,” “should,” “can,” “could,” “might,” “potential,” “continue,” “may,” “will,” and similar expressions to identify these forward-looking statements. Similarly, the financial forecasts contained herein and in any other offering materials are based on numerous assumptions. Although these assumptions are believed to be reasonable, they are all subject to uncertainty. Non-Transferability of Notes: The transferability of the Company's Notes is restricted both by the subscription agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer the Notes. There is also no public market for the Notes and none is expected to be available in the future. Moreover, although there is a defined redemption date for the preferred equity investment in the Fund, an extension option may be exercised and in any event, there can be no assurance that the investment will be liquidated at or promptly after such maturity date (as it may be extended). Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.

Real Estate Market Risk: Investments related to real estate are subject to market valuation risks that may be caused by changing economic and local market conditions such as local real estate market conditions, prevailing interest rates, the rate of unemployment, the level of consumer confidence, the value of the U.S. dollar, energy prices, changes in consumer spending, the number of personal bankruptcies, disruptions in the credit markets and other factors. Such conditions are beyond the control of the Company and of the Fund. Real estate markets are affected by many factors, such as general economic conditions, supply and demand for real estate investments, interest rates, the availability of financing, and other factors, all of which are beyond the control of both the Company and the Fund.

Borrower Credit Risk: The Company’s obligation to make payments on a Note will not be guaranteed for the length of the term corresponding to the borrower’s loan. The Company (and thus investors) will be relying on the borrower for the execution of its business plan in a way that enables the sponsor to repay the principal of the corresponding borrower loan. The borrower may not have a significant record of performance and may be unable to sell or refinance the underlying property in a way that enables the borrower to fulfill its obligations under the corresponding borrower loan. The borrower loan is being made with respect to a property that does not generally meet the financing criteria for conventional mortgages from institutional sources. Credit risk is inherent in the mortgage lending industry, and there can be no assurance that the creditworthiness of the borrower will be sufficient to assure the full repayment of the underlying borrower loan. The Company does not guarantee payment of the Notes or the corresponding borrower loan, and the Notes are not obligations of our borrower.

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Property Summary

PPC Construction has made available 13 homes in the first tranche of offerings. These homes are located in two separate communities.

The first community, West End Mobile Home Park, is a beautiful 62-lot community surrounded by trees and rich green landscape. Located only two hours from Nashville, the community is close to lakes and great camping spots in Hopkinsville, Kentucky. The city of Hopkinsville has a growing population of 32,205 and has tremendous access to the arts, culture, sporting events, shopping and recreational opportunities, while maintaining a strong sense of community.

The second community, Green Acres Mobile Home Park, offers the perfect balance of affordability and lifestyle, and provides residents with a friendly neighborhood atmosphere in Emporia, Kansas. Green Acres offers access to parks, sports activities and some amazing fishing spots with a growing population of 24,799. Community amenities include on-site laundry, playgrounds, a basketball court and several shopping centers within two miles of the park.

The experienced and professional management staff provides residents with exceptional service that makes our community a relaxing, fun and safe environment for residents of all ages.

Property Name: Park Place Communities
Property Type Affordable Housing

Market Overview

DOWNLOAD MARKET OVERVIEW

The desire for yield from tangible assets has resulted in a highly competitive landscape for real estate assets. Today managers compete for the same pool of assets in the same markets with the same business plan. Good luck. An alternative to this space is investing in predictable income streams from Mobile Home Parks (MHPs). Affordable housing such as MHPs satisfies a massive market demand while providing bond-like income streams, durability of cash flows, low volatility, low capex, and long term tenancy found in few other real estate asset classes. In short, MHPs represent a compelling investment opportunity with potentially greater yields, lower risk, and less institutional competition in a highly fragmented market.


RETURNS

  • MHPs offer the lowest cost investment per unit of any real estate asset class with potentially higher risk-adjusted returns. Credit risk is spread across a large tenant pool. Any credit exposure is often offset by income gains from new tenants.
  • MHPs are true tangible assets with strong returns and long-term capital preservation — all while providing an affordable housing option, the most basic fundamental human need, to America.
  • MHPs are land leases with additional income features. Not really “Mobile Homes” means little to no turnover in parks. Statistics show that most owners stay for the long-term, and it's expensive to move from the park. Rarely does a Mobile Home leave its site.

WINNING DEMOGRAPHICS

  • As the population continues to age and also grow, the need for affordable housing strengthens.
  • Single-family home affordability continues to decline and is at an all-time low, while the aging populations retires.
  • Over 50% of Americans are living on less than $600/week.

SUPPLY AND DEMAND

  • New Mobile Home Parks are largely not being developed. Sprawling metropolitan areas are crowding out many Mobile Home Communities, and municipalities' zoning restrictions discourage development of new parks.
  • On a net basis, MHPs decrease in supply nearly every year as properties are converted to higher and better uses as areas gentrify.
  • The lack of new supply further increases demand and represents opportunity to fill existing parks with new units and tenants.
  • As the U.S. wage gap continues to increase, there has been a shift towards lower-paying jobs, which leads to an increasing demand for affordable housing.
  • Baby Boomers on fixed incomes are retiring in record numbers, creating a greater demand for affordable housing that will only continue to grow.

LONG-TERM DEMOGRAPHIC SHIFTS TOWARDS LOWER INCOME HOUSEHOLDS

  • Lack of savings and earnings is fueling the affordable housing market.
  • 10,000 Baby Boomers retire each day with an average social security benefit of just $1,294 per month.
  • 75% of retirees have less than $30,000 in their retirement accounts, and the bottom 50% have zero measurable savings.
  • 55% of mobile home owners reported annual household incomes less than $30,000.

MARKET TRENDS AND TENANT PROFILE

  • Manufactured Housing is the last dream of homeownership for Americans.
  • 75% of owners expect to stay in their Mobile Homes for 5 years or longer, and a large percentage expect never to sell.
  • Of those planning to move or sell, 34% expect a Mobile Home to be their next residence (up 3% from 2008 Market Facts).
  • MHPs are one of the most stable and predictable investments during a recession and recovery. 68% own or are buying their Mobile Homes; 24% rent.

MHP DEMAND DRIVERS

MISMANAGEMENT & OPPORTUNITIES

  • Many MHPs are owned by legacy investors who are not professional landlords. 'Mom and pop' operators mismanage everything from income potential to operational standards. PPC improves the tenant experience and mitigates operational risks thereby delivering more reliable income streams.
  • Often ‘mom and pop’ owners have not invested to upgrade their parks and attract a stable, long-term tenant base.
  • When rents are below market, PPC is essentially buying at a discount and is able to come in and slowly bring rents to market and realize significant gains along the way.
  • Many park owners face difficulties in bringing new homes into their parks to attract new tenants. PPC is exploring several partnerships that will allow it to not only bring in brand new homes but also do so with little to no costs. PPC’s ability to cultivate these types of partnerships give it an advantage over ‘mom and pop’ owners for whom this would be too capital intensive. ‘Mom & pop’ sellers looking to retire and extract capital.

CASH FLOWING LAND BANK

  • Mobile Home Parks are unique real estate assets whereby the tenants can own their own homes but pay ‘lot rent’ to the Mobile Home Park owner who owns the land.
  • When tenants own their own homes, the cost of maintaining the home is passed on to the tenant and not the park owner.
  • Since tenants own their homes, there is the increased likelihood of pride of ownership that makes the park a more enjoyable place to live.

THE “PENALTY” FOR MOVING OUT

  • Whereas many multifamily landlords might offer concessions to incentivize tenants to stay and reduce turnover costs, MHPs have an advantage in that for a tenant to move their home out of a park typically costs the tenant $5,000-$7,000. In fact, after the second year, close to 98% of Mobile Homes will remain in the same location.
  • Some tenants choose to 'vacate their homes,' in which case the owner may acquire a new asset that, with a few upgrades, can be sold to a new tenant.
  • The penalty for moving also gives landlords increased leverage when it comes to raising lot rents.

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