The Company purchases existing mobile homes, renovates them and then resells them to qualified buyers using five-year amortized mortgages
Jacksonville, Florida – Park Place Communities (PPC) is raising up to $1 million in capital from accredited investors under SEC. Reg. D with as little as $1,000 to finance new large-scale affordable home projects. The residential real estate company purchases existing mobile homes with funds raised through crowdfunding, renovates them and then sells them to qualified buyers using five-year amortized mortgages. The first round of financing will be used to renovate more than 125 units.
Park Place Communities Tapping Real Estate Equity Crowdfunding to Finance Affordable Homes
“The home buyer makes monthly payments for five years at 12-percent interest,” said Andrew Lanoie, Park Place Communities’ CEO. “This allows home buyers to purchase the mobile home for about the same monthly cost as renting an apartment.”
PPC is currently raising money via IHT Realty’s Real Estate Crowdfunding Portal. The real estate crowdfunding site helps individual sponsors raise capital for their acquisitions and will be assisting PPC’s customers in securing funds as it looks to expand its operations by acquiring an additional 15,000 to 20,000 mobile homes over the next few years.
“There is a huge demand for affordable housing right now and there are not enough parks to fill that void,” Lanoie said. “Right now, there are roughly 50,000 affordable housing parks in the United States.”
As the U.S. population continues to increase, the need for affordable housing will continue to rise. It’s simple supply and demand. In 2013, there were close to 2.3 million births added to the U.S. population, but less than 1 million new homes were constructed.
And with housing costs projected to rise by 5.4 percent from July 2016 to July 2017 — according to a study by CoreLogic Home Price Index — mobile homes are becoming a practical alternative.
“As the wage gap in the United States widens, there has been a shift towards lower paying jobs, which leads to an increase in demand for affordable housing,” Lanoie said.
According to the most recent report by the Social Security Administration, 36 percent of U.S. wage earners make less than $20,000 per year and 50 percent earn less than $30,000 per year.
“With 10,000 Baby Boomers retiring every day, 47 percent of which don’t have any retirement savings, affordable houses are their last opportunity of home ownership,” said Dan Summers, IHT Realty’s, CEO.
PPC currently owns 13 affordable housing parks in eight states with nearly 1,000 total home pads.
The company is building a $1 million mortgage pool to issue fixed-rate mortgages to buyers. It is offering a debt investment opportunity secured by a first lien, which is also backed by a corporate guarantee with a 10 percent interest rate paid to investors.
“Mobile home parks are one of the most stable and predictable investments during a recession and recovery and contrary to popular belief, mobile homes are not really mobile,” Lanoie said. “It costs over $3,000 for a resident to move their home out of a park, which is the reason 98-percent of mobile homes will remain in the same location.”
IHT Realty Crowdfunding LLC offers investors the opportunity to capitalize on the demand for affordable residential and multifamily real estate properties across Northeast Florida.
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Robert Hoskins
(512) 627-6622
@Crowdfunding_PR
Crowdfunding PR, Social Media & Marketing Campaigns 
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