MJG Development Group
Company Overview
MJG Development Group is an Orange County, CA based company developing affordable housing units using brand new manufactured homes to be located in Riverside County. The company is headed by Michael Gilling who has several years experience in assisting with the capital and business development of renewable energy projects and logistical skills. The company will focus its initial operation of Phase 1 to developing 4 -6 homes on a single lot/parcel of land to prove the financial viability of this development.
The company anticipates each development will provide substantial returns due to the cost effectiveness and quick build time from the manufacturer and the relative low cost of available land to develop.
MJG Development Group has engaged a wholesale distributor of manufactured homes to be the provider for this development as they offer a wide variety of models and floor plans to fit the needs of every approved applicant/renter.
As a startup company MJG Development Group will seek initial capital for its planned Phase 1 of development from private investors and/or real estate funding groups.
Objectives & Strategies
Build & develop affordable manufactured homes on individual lots
Make homes available to counties for use under HUD’s Section 8 Affordable Housing program
Show cost effectiveness of new manufactured homes
Market Opportunity
With over 300 people on the approved applicant waiting list for housing assistance in the proposed development area alone, and over 13,000 in Riverside County, we expect the rental units to be occupied on a regular basis.
The cost to develop Phase 1 is estimated at $500,000.00 which will cover the land, homes, and infrastructure. Future costs may decrease due to established utilities located at or near our planned development.
Estimated Development Costs:
Land: $50,000
Homes: $350,000
Utilities: $50,000
Misc: $50,000
TOTAL: $500,000
- Management is currently seeking locations in Riverside County, CA for its Phase 1 of development.
- The company anticipates purchasing lots/parcels of 1 acre or more and then subdividing them for the individual homes.
- Assumes that MJG Development Group will purchase all of its manufactured homes from one company in hopes of obtaining better pricing for future developments.
Company Executive
Michael Gilling, Owner & Project Manager
Michael Gilling has several years of experience in assisting with the capital and business development of renewable energy projects as well as logistical skills developed from two decades of service with companies like Disneyland, America West Airlines (now American Airlines), and Delta Airlines to oversee, co-ordinate, and facilitate his duties as owner and project manager of MJG Development Group. He has spent several years as a mortgage broker refining these skills in dealing with the many different people, departments, and entities involved in the complex mortgage process.
In 2012 Mr. Gilling formed MJG Energy Group with the purpose of helping private energy companies raise capital for their renewable energy projects.
From 2010 through 2014 Mr. Gilling was a Reservist serving as a Disaster Assistance Employee with FEMA (Federal Emergency Management Agency, a division of the Dept. of Homeland Security) and was deployed for 60 days during Hurricane Sandy. He also graduated from the N. Orange County Police Reserve Academy, Class 33, in 1988.
Company Summary
Company Background
The company was formed earlier this year with the goal of providing high quality affordable homes to be used for Section 8 housing.
Who is our Customer?
Any county in the state that uses HUD’s Section 8 affordable housing program is a potential customer/client.
MJG Development Group is confident that once funding is secured this project can be fully developed and all units rented within 8-12 weeks. We feel that this development model can be duplicated with great success.
Execution Plan
Tasks Accomplished
- Created MJG Development Group
- Working with local real estate agents for suitable parcels to develop
- Inspected several parcels of land in Riverside County, CA
- Estimates from general contractors for setup & utilities
- Collected all necessary information on building codes & permits
- Spoke with manufactured home representative on costs and delivery times
- Working with Riverside County and non-profit organizations to obtain approved housing assistance applicants.
SWOT Analysis
Strengths:
- Inexpensive and availability of land
- Brand new home under full warranty
- Established need of affordable housing in the area /county
- Direct deposit of rents from the county
Weaknesses:
- Unforeseen real estate market trends
- Stigma of “Section 8 housing” renters
Opportunities:
- Little competition for this type of development
- Development formula can be duplicated over and over with great success
- Future developments can offer a variety of home sizes to fit the housing needs of the county
Threats:
- Copy cat developers
- Rising costs of land
- Increased costs of the homes
EXIT STRATEGY
MJG Development Group will payback the original investment with subsequent fundings via PE, VC, commercial loan, etc. and is open to a joint venture option.