Why RV Park - are a great investment opportunity!
- Value Add Asset
- RECESSION-READY INVESTMENT
- FULLY FUNDED! Class B-1 Targeted Returns: 11% Annual Cash-On-Cash
- Class B-2 Targeted Returns: 15-20% IRR, 7-10% cash-on-cash
Let’s Get You Started…
INSIGHT ON THE CAMPFIRE FUND
INVESTMENT Highlights
Investment Type 506(c) Reg D For Accredited Investors
Fully Funded!
Class B-1 Structure
11% Annual Cash-On-Cash
B-1 Targeted Returns
$50,000
Minimum Investment
7% Preferred Return
Class B-2 Structure
15-20% IRR
B-2 Targeted Returns
5-7 Years
Projected Hold Period
Asset Class: RV Parks and Campgrounds
Strategy: Purchase 15-20 RV Parks across the Southeast US, hold for 5-7 years, then exit after adding value and improving operations
Class B-2 Structure: Earn a cumulative 7% preferred return, but also participate in the profits upon dissolution of the properties. Profits are split above the preferred return 60% LP / 40% GP. This share class has a lower preferred return but provides greater profit participation upon disposition.
Class B-2 Targeted Returns: 15-20% IRR, 7-10% cash-on-cash as properties are stabilized.
Distribution Timing: Quarterly
Tax Planning: Cost Segregation Studies will be performed whenever beneficial and feasible.
Climb Capital Team
OUR SUCCESSFUL TRACK RECORD
STRATEGY OVERVIEW
Purchase 10-20 RV Parks In The Sunbelt
Self Manage And Implement Operational Efficiencies To Increase NOI
Quarterly Cash Flow Distributions. 5-7 Year Holds
WHY INVEST WITH CLIMB CAPITAL?
PROVEN TRACK RECORD
We don’t rush into deals but wait for the right opportunity based on our experience and conservative projections. We thoroughly
research, underwrite, inspect and manage each property to ensure its success. We have 11 full cycle deals and millions of realized investor profit.
VERTICAL INTEGRATION
We source on and off market deals, manage properties and assets, and improve the properties we buy from the inside out.
Climb Capital is dedicated to providing a complete process that leaves properties better than we found them and builds
wealth for our investors.
TALENT & TEAM DRIVEN
A deal is only as strong as the underlying systems and team running
it. We put an emphasis on hiring top talent and training employees on
all aspects from acquisitions to property management. This provides a
collaborative environment that promotes growth and understanding of
what needs to be done to reach our goals. We follow the Entrepreneurial
Operating System (EOS) to ensure our business runs smoothly.
RELATIONSHIP FOCUSED
From families and friends to employees, customers and
investors… All relationships are important to us.
Real Relationships + Climb Capital Processes
= RESULTS
WHY RV PARKS?
DIVERSE CUSTOMER BASE
RV parks offer the unique ability to target a wide range
of individuals. Due to changing macro trends toward remote work and an emphasis on outdoor recreation, 22% of RV owners
re now between the ages of 18-34 with the largest demographic being5-54 year olds.
RECESSION READY
In the case of a recession,
we believe RV parks will
continue to be a strong
investment. During
COVID-19 when many
other asset types were
negatively affected, RV
parks showed increased
occupancy. They also
offer the ability to flex for
affordable housing and
provide low economic
overhead in land
ownership. We acquire
parks that have both
transient and monthly
renters to add diversity.
INDUSTRY FRAGMENTATION
Over 70% of RV Parks
are independent
mom-and-pop owners.
This leaves room for
operational efficiencies
such as improved
management,
expense reduction,
implementation
of utility bill back
programs, and adding
amenities customers
desire, all of which
drive up NOI.
VERSITILE REVENUE STREAMS
On top of the
traditional nightly and
monthly pad rent,
you can implement
additional revenue
streams including but
not limited to: AirBnB
revenue from cabins,
propane & firewood
sales, laundry income,
wifi upgrades, and
golf cart/kayak/boat
rentals.
EXIT FLEXIBILITY
RV Parks offer
the option for an
outright property
sale, refinance,
portfolio sale, land
development, replatting for partial
sale, franchising etc.
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frequently asked questions
RV PARKS
What is the difference between mobile home parks and RV parks?
Mobile home parks have long term tenants at a low price point, often considered affordable
housing. RV parks are destination mini-resorts attracting a temporary user base and provide a
shorter term hospitality service. We still own only the land, but our tenant base generally has a
vacation mindset instead of a resident mindset.
Do you build new parks or buy existing ones?
Right now, there are existing RV parks owned by small independent operators with inefficient
systems, additional land to expand, and insufficient capital to up fit their properties. We will
look to develop our own parks in the future but at the moment we will continue to purchase
under-performing parks and install our processes with relative ease.
Are you worried about rising gas prices?
No, we don’t see this as a significant threat. Pricing may affect the way people drive and travel
as a whole, but people are always going to take vacations – they may just choose to take a
weekend trip to an RV Park nearby, rather than going on an elaborate vacation across the
country. This is why we buy in the Sunbelt and close to population centers.
What types of NOI value add opportunities are there?
We add amenities like man-made lakes, in-ground pools, and club houses. We buy parks with
additional land so we can add more pads and we buy tiny homes to install in the parks so
we can rent additional rooms on short term rental sites. We are usually buying RV parks with
inefficient management and marketing which allows us to make their booking process easier
and raise our nightly rates. Since most of our guests are short term customers perceived small
increases in price do not affect the customer but have a significant increase in the NOI and
valuation.
Why is this pivot great for Climb Capital?
C class Multifamily is becoming competitive, saturated, and the margins are thinning. We
don’t mind moving to RV parks as it let’s us capitalize on a fast growing opportunity before it becomes mainstream.
FUND SPECIFIC QUESTIONS
When is the deadline for my investment?
We will collect 50% of your investment upon commitment. Throughout our capital raise, we will
do multiple capital calls as needed.
When is the fund final close out (end), and when do I get my principle returned?
The fund will remain open until it is fully funded or June 1st, 2023 whichever comes first.
Principle is returned at capital events like property sales or refinances.
Can I invest more into the fund later?
Yes.
Do I see reporting on the individual properties or on the Fund as a whole?
Yes, we will send out thorough monthly reports and updates to our investors for each of the
properties.
Do I get any tax benefits from investing in the Fund?
You will receive your pro-rata share of the portfolios aggregate deprecation. We will also
pursue accelerated deprecation strategies where it’s most suitable. We recommend that you
always consult your tax advisor for your specific tax benefit analysis.
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