Requity reviews roughly 40 deals for every 1 we ultimately fund, and that selection ratio is the foundation of how we protect investor capital. The discipline behind the portfolio is not a marketing line. It is a documented set of standards every opportunity must clear before it reaches our investors.
What We Screen First
Most deals are rejected within the first 48 hours. We start with the numbers that cannot be fixed through operations, then move to the items a strong operator can improve over time.
- Lot rent position: We measure existing lot rent against the local market to confirm there is room to operate sustainably without pricing out residents.
- Physical occupancy: We favor parks with stable occupancy and a clear path to filling vacant lots, not speculative turnaround bets.
- Infrastructure: Private utilities, septic systems, and deferred maintenance are priced into the deal or grounds for a pass.
- Debt coverage: Each asset must support its financing structure under conservative assumptions.
The Underwriting Standards That Do Not Move
Our bridge financing is interest-only and standardized across borrowers. The rate is not negotiated deal by deal, and our published ceiling of 8.5% to 13% is a level we never exceed. This consistency matters for investors because it removes guesswork from how each loan in the portfolio is structured.
Stress Testing Before Commitment
We model each deal against rent that holds flat, expenses that rise, and a slower fill rate than the operator projects. A deal that only works in a best case scenario does not advance.
If the asset cannot cover its obligations under conservative assumptions, the answer is no, regardless of how attractive the headline numbers appear.
How This Connects to Fund Returns
The Income Fund carries a 10% target return. That is a target, not a guarantee, and the underwriting process above is how we work toward it. Every loan that enters the portfolio has passed the same screening, which is why selectivity at the top of the funnel matters more than volume.
Why Manufactured Housing
We concentrate on mobile home communities because lot rent income tends to be stable and tenant turnover at the land level is low. You can review how we structure these loans on our mobile home park loans page.
- Initial screen on lot rent, occupancy, and infrastructure.
- Conservative financial modeling and stress testing.
- Operator track record review.
- Final committee approval before funding.
Investors who want to see how this discipline translates into a single managed vehicle can review the structure and current standards on our Income Fund page.