Financing Mobile Homes
Just Got Easier
Empower Change Through Keyhole Connect
At Keyhole Connect, we're revolutionizing the mobile home financing market, making it simpler and more accessible for investors to contribute to a sector ripe with potential. With a unique approach that blends social impact with financial returns, Keyhole Connect invites you to invest in a change that matters.
About Keyhole Connect
In 2020, after 25 years of investing in non-performing residential second mortgages, I realized it was time for a change. It was during this period that one of our investors, who owned several mobile home parks, approached me with a compelling proposition. They expressed their weariness of being the sole financing source for their borrowers and believed that with my background and strong list of investors, we could excel in the industry.
Driven by this vision, we embarked on a journey spanned several months. We aimed to develop a program that would be fair to borrowers, sellers, and investors alike. As we delved into our initial research, we observed a concerning trend in the market. Many financing companies focused solely on prime borrowers, emphasizing credit scores above 660. However, we recognized that credit scores only partially depict a borrower's financial health.
With a strong commitment to inclusivity, we made a conscious decision to prioritize a holistic assessment in our underwriting process. We expanded our evaluation criteria to include payment history, relationships with creditors, and debt-to-income ratios. By doing so, we ensure a fair and comprehensive evaluation that goes beyond credit scores. Our aim is to provide opportunities to subprime borrowers who have previously been marginalized by traditional lending criteria.
In our view, the subprime market remains underserved and overlooked by our competitors, who exclusively cater to prime borrowers. We see immense potential in this market and believe that by focusing on subprime borrowers, we can make a meaningful impact and create positive change.
By investing in this market, you have the potential to achieve excellent returns and contribute to the financial empowerment of subprime borrowers.
I invite you to explore this opportunity further and consider joining us on this exciting journey. Our dedicated team can provide more detailed information and address any questions or concerns.
Thank you for considering this investment opportunity. We look forward to the possibility of working together and achieving mutual success.
Best regards,
Mobile Homes In America:
A Growing Solution for Affordable Housing
Current Landscape
As of 2021, approximately 21 million Americans, or 6% of the population, reside in mobile homes, highlighting a significant shift towards affordable housing solutions.
Challenges Ahead
The primary challenge lies in expanding mobile home park availability and ensuring access to reputable mobile home financing, which is crucial for sustaining this growth and meeting the needs of potential homeowners.
Economic Factors
The widening gap between apartment rental costs and mobile home ownership (including lot rent) makes the latter more appealing. Mobile homes offer a chance to build equity, contrasting sharply with the transient nature of renting.
Growth Projections
The demand for mobile homes is expected to surge by 15% annually over the next 15 years, underscoring an urgent need for more mobile home parks and reliable financing options.
Affordability Crisis
With the high demand for affordable housing, particularly among low-income families and retirees, mobile homes present a viable solution. Even with higher interest rates, many find the monthly costs manageable within their budget, allowing for home maintenance and stability.
Keyhole Connect Projections
With proper funding, the expectation of doubling the number of financed mobile homes annually is realistic. This growth trajectory suggests that Keyhole Connect can increase its market penetration by enhancing visibility and accessibility.
Navigating the Keyhole Connect Process
Keyhole Connect’s financing program is designed to provide investors with a secure, passive investment opportunity in the growing sector of affordable housing. It is backed by a unique safety net through our Loan Guarantee. This innovative approach aligns the interests of borrowers, investors, mobile home dealers, flippers, and park owners, fostering stability and growth within the mobile home community.
1
Underwriting
Applicants submit a detailed borrower application for financial review by the underwriter. The underwriter evaluates the applicant's financial stability and readiness to take on the responsibilities of park residency and homeownership.
2
Home Insurance
The borrower must secure home insurance, designating the investor as the lien holder on the policy. This ensures that the investment is protected against potential damage or losses, aligning with the interests of both the borrower and the investor.
3
Funding & Closing
The borrower and investor sign the Mobile Home Agreement and the Loan Guarantee Agreement is signed by the park owner and investor. Title on the mobile home is processed and ownership is transferred to the borrower.
4
Loan Servicing
Our comprehensive loan servicing team manages monthly statements, fund collection, bookkeeping, investor distributions, and year-end reporting. In the event of a default, the team handles all necessary procedures.
The Loan Guarantee
The Loan Guarantee feature of Keyhole Connect's financing program offers a unique value proposition to investors, park owners, and borrowers alike. By safeguarding investments against borrower defaults and ensuring mobile homes remain within their communities, Keyhole Connect fosters a more stable and prosperous mobile home market. For investors, this means attractive returns and the confidence that comes with knowing their investment is well-protected.
01
Investor Protection
If a borrower defaults on their loan, the park owner or a designated third party assumes responsibility for the loan as the “Guarantor.” This means they will either reimburse the investor for the current balance owed or continue making the monthly payments on behalf of the borrower.
03
Asset Recovery and Reinvestment
If a borrower defaults, the park owner or third party will undertake the eviction process, refurbish the mobile home, and prepare it for resale. This process protects the investor's interests and contributes to the park's upkeep and community quality.
02
Preventing Asset Removal
Traditional financing methods often lead to public auctions in the case of a default, which runs the risk of the mobile home being removed from the park if sold to an external bidder. Keyhole Connect's Loan Guarantee prevents this scenario, ensuring park owners that their valuable assets will never leave their community.
04
Park Owner Benefits
The Loan Guarantee aligns the interests of park owners with those of investors. Park owners are motivated to maintain high occupancy rates and community standards, knowing they have a safety net that prevents the loss of homes from their parks.
Current Fund Facts
Investment Overview
Keyhole Connect's financing program offers a comprehensive, secure, and profitable avenue for investors to engage in the mobile home market. With competitive returns, a robust underwriting process, and additional security measures like our Loan Guarantee program and DMV-issued titles, our program stands out for its innovation and investor-focused approach.
Accreditation
Requirements
We offer investing for both accredited and non-accredited investors.
Investment
Terms
Terms for each loan vary from 5 to 10 years. Plans to securitize the loans are in the making.
Underwriting
Process
Borrowers undergo a thorough underwriting process to determine if they are financially healthy. This process takes 10-14 days.
Minimum
Investment
Investors may invest from $50,000 to $1,000,000.
Loan
Value
We'll finance between $15,000 up to $75,000. The average financed mobile home is $50,000.
Investor
Returns
Based on our Investors monetary commitment, they can earn returns in the double-digits. Payments to investors are made monthly.
Loan
Structure
All loans are fully amortized, ensuring predictable repayment schedules.
Interest
Rates
Depending on the loan amount and each State’s Usuary cap, interest rates for borrowers range from 14% to 17%.
Home
Insurance
Every borrower is required to have home insurance listing us as the additonal insurer.
SDIRA
Compatibility
Investments can be made with SDIRA accounts.
Loan
Guarantee
Ensuring that in the event of a default, the guarantor assumes the loan, maintaining payments to the investor.
DMV
Title
Each investment is secured with a title issued by the Department of Motor Vehicles.
2024 Loan Statistics
Compilation Date: November 2024
Number of Loans: 118
Number of Loans in Parks: 98
Number of Loans on Private Property: 20
Total Amount Financed: $5,136,308
Average Loan Financed: $43,070
Average Monthly Payment: $729
Average Interest Rate: 14.5%
Average Term Length (years): 8.6
Number of Loans Paid Off: 8
Number of Loans Evicted: 7
Amount of Money Lost by Evictions: $0
At Keyhole Connect, we understand the importance of diversifying our income streams to ensure consistent growth and success. We have identified multiple avenues through which we generate income, allowing us to reach a wider audience and cater to various needs in the mobile home industry.
park
communities
We collaborate with park communities to connect with prospects who are interested in financing a home within their park. Additionally, prospects who find homes through our website also contribute to our income. We are proud to serve both private sellers within park communities as well as those looking for homes on private property.
real estate
companies
Real estate companies, including brokers, also play a significant role in our income generation. They often refer prospects who are in search of mobile homes and require financing. By partnering with these professionals, we are able to expand our reach and assist a broader range of customers.
mobile home
dealers
Mobile home dealers are another valuable income stream for us. Prospects who visit these dealerships seeking to purchase mobile homes, whether for park communities or private property, are often referred to us for financing options. This collaboration allows us to support customers who may not be able to pay the full amount upfront.
infill sales
Infill sales present an exciting opportunity for us to generate income while contributing to the growth of mobile home parks. When a park has vacant lots, the owners approach us to finance the purchase of new or used mobile homes, gradually filling up the park. Our specialized "Infill" program enables us to provide tailored loans for these specific needs.
mobile home
flippers
Lastly, we work with mobile home flippers who purchase low-priced mobile homes and renovate them for resale. While we do not finance the construction period, we do finance prospects referred to us by these flippers who are unable to make a cash payment.
I'm interested in learning more about becoming an investor with Keyhole Connect.
Learn More About
The Keyhole Process
All Videos
All Videos
1. Keyhole Connect Introduction
2. Status of Mobile Home Parks
3. The Loan Process
4. Keyhole Connect's Agreements
INVESTOR
RELATIONS