Jefferson Lilly leads a team of four individuals who manage and maintain our investments and assist with acquisition and consulting due diligence. Prior to forming Lilly & Company in 2007, Jefferson held various consulting and sales positions with Bain & Company, Viacom, Openwave, and Verisign. He received his BA from the University of Pennsylvania, and his MBA from the Wharton School of Business.
2007 – Present
We own and operate an all-ages community in the Oklahoma City Metro area. Capital invested was for down payment, followed-on with capital for infrastructure upgrades, and new manufactured homes for additional residents to stabilize the property.
Over the previous seven years we have more than tripled Net Operating Income by: purchasing, transporting, and rehabbing 28 mobile homes to increase occupancy 42%; raising rents 64%; tightening credit standards for prospective residents; managing operating costs down to industry-leading ratios (28.2%); recruiting and training a new property management team; creating effective web and print advertising campaigns; making a significant investment in the water infrastructure; and working with City regulators to re-write pending legislation to better protect our property rights.
We have grown revenues 253% while maintaining industry-leading expense ratios, thus generating in excess of a 30% IRR on equity capital over 6 years.
2013 – Present
We have recently purchased a small community in the Oklahoma City Metro area. We secured 100% bank financing and acquired the property at a 12% cap rate. Our plan through the end of the FY 2013 is to improve NOI by 50% (the equivalent of an 18% cap rate). We anticipate achieving these results principally through expense reduction (billing for water), with additional, but more modest upside from revenue improvement (better tenant screening, property marketing, and rehabbing park-owned mobile homes).
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While acquiring mobile home parks remains our primary focus, we do consult to a select few clients, especially when our services may lead to an acquisition or partnership in a property.
Seniors Mobile Home Park
Northern California, CA
2010 – 2013
We consult to this owner of a 100+ space seniors community. We have hired a replacement management team for this client, and recommended and arranged a new $3.0mm refinancing of the existing mortgage, improving monthly cash flow by $3,100. We have improved Net Operating Income 15% by: recruiting and training a new property management team; creating effective web and print advertising campaigns; making significant investment in the gas, electric, and water metering infrastructure; advising management on procedures for taking control of abandoned mobile homes; purchasing, transporting, and rehabbing four mobile homes to increase occupancy; coordinating lobbying efforts with other park owners regarding rent control and other proposed City legislation.
All-ages Mobile Home Park
Southern California, CA
We advised a high net worth investor prior to her investment in a Trust Deed on a seniors mobile home park. We conducted due diligence on the property’s occupancy, tenant base, management, competitive positioning in the marketplace, legal structure of the investment and fairness of proposed terms, and researched and screened attorneys for further advice on remaining legal issues.