Camp Fire Fund – Climb Capital

Why RV Park - are a great investment opportunity!

INSIGHT ON THE CAMPFIRE FUND

INVESTMENT Highlights

Investment Type 506(c) Reg D For Accredited Investors

11% Preferred Return

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-1 Structure: Earn a cumulative 11% preferred return with limited upside upon disposition of the properties, but strong cash flow.

Class B-1 Targeted Returns: 11% annual cash-on-cash

				
						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

22

NUMBER OF DEALS PURCHASED

$5.3M

TOTAL PROFIT PAID OUT BY CLIMB CAPITAL

11

FULL CYCLE
DEALS

$48.6M

ASSETS UNDER MANAGEMENT

INVESTMENT SUMMARY

In the face of inflation, market volatility, and global unrest, savvy investors are searching for assets that yield appreciation and cash flow. Climb capital’s campfire fund is the answer to that search.

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

OFFERING MEMORANDUM

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

Let’s Get You Started…

MEET OUR TEAM

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.