7 REASONS WHY

RV RESORTS

INVESTING MAKES

SENSE

RV Resorts Properties yield a strong and steady monthly income

For more than a decade there has been a heightened demand for more affordable housing. People can't afford buying a house, and are turning to living in an RV as a more affordable option.

With inflation, nightly stays fees go up, monthly stays fees go up and cash flow improves.

It's not how much money you make on an

investment but it's what you get to keep that

counts!

The RV Resort asset itself usually appreciates in value over time, especially with improvements put in place to make the property more profitable.

In essence, leverage is using a small

amount of capital to purchase a larger

property.

The basic meaning of the economic term,

‘economy of scale’ is that there is a

fundamental cost-saving benefit to being

bigger

RV Resorts properties yield a strong and steady income. The investors in the fund are essentially getting a percentage of the property’s Net Operating Income (NOI).

The RV Resort advantage over other property assets is that there are no individual leases. And rates can be adjusted dynamically for each property. This means that the NOI can be easily manipulated by appropriate rate increases that continually adjust to market demand. The resulting consistent cash flow profitability distributed to investors.

REASON #1 –

CASHFLOW

REASON #1 –

CASHFLOW

Multifamily properties yield a strong and steady monthly income. As a passive investor you can expect to receive a percentage of the property’s Net Operating Income (NOI).

The multifamily advantage over other property assets is that the individual leases are short term, (typically 6-12 months in duration). This means that the NOI can be easily manipulated by appropriate rental rate increases that continually adjust to market demand. The resulting consistent cash flow is distributed to investors on a regular basis.

Multifamily investors’ cashflow yield is steady and reliable because it is generated mostly from the tenants’ rental payments which are secured by leases. The terms of these leases are set by state and federal regulations.

REASON #2 -

DEMAND

For more than a decade there has been a heightened demand for homes and apartments that was made larger by a significant undersupply.

Will that trend continue? In spite of current economic uncertainty, top U.S. real estate brokerage CBRE has consistently predicted strong positive outlooks for commercial real estate for the last several years.

Demographic and lifestyle trends along with the rising cost of homeownership, means that demand for affordable housing continues to outpace supply.

Fueled by the adventurous spirit of young adults burdened by debt and craving flexibility, RV Resort living emerges as the ultimate choice for those championing simplicity and facing the daunting price of traditional homeownership.

Everyone needs housing, and because of increasing demand for housing, investments in the RV Resort sector will continue to yield a consistent return with minimal risk.

Why do you not need to fear inflation as a passive investor in an RV Resort property?

With inflation, guests fees go up and cashflow improves.

How does that work exactly? As inflation goes up, so does the fees. That means that the revenues of the RV Resort property that you have invested in also goes up.

At the same time the biggest expense for the investment company, the mortgage or loan, is at a fixed rate.

The income of the investment asset is increasing but the biggest expense stays the same.

If inflation happens then it is nothing to fear because it only works in the favor of the RV Resort investor. The fact that RV Resort investment works as a hedge against inflation is yet another reason why RV Resort is a superior investment.

REASON #3 –

HEDGE AGAINST

INFLATION

REASON #3 –

HEDGE AGAINST

INFLATION

Multifamily properties yield a strong and steady monthly income. As a passive investor you can expect to receive a percentage of the property’s Net Operating Income (NOI).

The multifamily advantage over other property assets is that the individual leases are short term, (typically 6-12 months in duration). This means that the NOI can be easily manipulated by appropriate rental rate increases that continually adjust to market demand. The resulting consistent cash flow is distributed to investors on a regular basis.

Multifamily investors’ cashflow yield is steady and reliable because it is generated mostly from the tenants’ rental payments which are secured by leases. The terms of these leases are set by state and federal regulations.

REASON #4 -

TAX BENEFITS

It's not how much money you make on an investment but it's what you get to keep that counts! The RV Resort Fund, and you personally as a passive investor, can reduce your tax bills in real terms.

So what are some of the tax strategies available to the syndication sponsor, that ultimately benefit you as a passive investor in that syndication? The 3 D’s.

REASON #4 -

TAX BENEFITS

It's not how much money you make on an investment but it's what you get to keep that counts! The multifamily syndication, and you personally as a passive investor, can reduce your tax bills in real terms.

So what are some of the tax strategies available to the syndication sponsor, that ultimately benefit you as a passive investor in that syndication? The 3 D’s.

—Deductions

The law allows for the deduction of expenses related to management, maintenance, and repair of the property.

With recent tax laws, there are some windfalls specific to real estate investment.

The biggest of all might be a new 20% deduction for all real estate income that comes through so-called pass-through entities. That includes entities like LLCs, sole proprietors, and S Corps.

—Depreciation

You may be wondering how a property qualifies for a depreciation tax deduction while its value increases?

Simply because the IRS treats property like any other asset. Therefore, regardless of the fact that a RV Resort property is making profits and increasing in value, investors can deduct a depreciation expense from their real estate income tax.

—Deferability

The term 1031 Exchange is defined under section 1031 of the IRS Code. To put it simply, this strategy allows an investor to

“defer” paying capital gains taxes on an investment property

when it is sold, as long as another “like-kind property” is

purchased with the profit gained by the sale of the first

property.

REASON #5 -

APPRECIATION

Although multifamily does not depend on

appreciation but on regular cash flow returns,

appreciation can be the icing on the cake. The

multifamily asset itself is usually appreciating in

value over time and can often be sold for a significant

profit.

Rental income and property appreciation are the

two main ways that you make money from real

estate syndication. When the property is sold, you

receive a portion of those profits.

The company that you choose to place your investment with can add value to a property in a number of ways. One example is by making capital improvements to the property = CAPEX improvements

After improvements are made, more fees can be charged per

stay. The higher fees increase the property’s valuation.

Appreciation is another reason why RV Resort is a superior

investment.

REASON #5 -

APPRECIATION

Although multifamily does not depend on

appreciation but on regular cash flow returns,

appreciation can be the icing on the cake. The

multifamily asset itself is usually appreciating in

value over time and can often be sold for a significant

profit.

Rental income and property appreciation are the

two main ways that you make money from real

estate syndication. When the property is sold, you

receive a portion of those profits.

The company that you choose to place your investment with

can add value to a property in a number of ways. One

example is by making capital improvements to the property.

After improvements are made, more rent can be charged per

unit. The higher rents increase the property’s valuation.

According to the National Association of Realtors, the

average annual appreciation rate has been 6% since 1968.

Appreciation is another reason why multifamily is a superior

investment.

REASON #6 –

LEVERAGE

How can you, as a passive investor in a RV Resorts Fund, use

other people’s money to work for you?

A lever is a simple tool used to lift a heavier weight, with minimal

effort.

The way that you benefit from the principle of leverage as a

passive investor in RV Resorts is that you can pool your

investment funds along with other investors into a much bigger

properties and multiple properties with much higher rewards.

You are, in effect, leveraging your investment with other people’s

money.

Leverage benefits you because you not only get an exponential

return but you also get to share the risk with the bank and other

equity partners.

In essence, leverage is using a small amount of capital to purchase a

larger property. You can get all the benefits of a higher-performing

property without sacrificing all of your capital.

REASON #6 –

LEVERAGE

How can you, as a passive investor in a multifamily property, use

other people’s money to work for you?

A lever is a simple tool used to lift a heavier weight, with minimal

effort.

The way that you benefit from the principle of leverage as a

passive investor in multifamily is that you can pool your

investment funds along with other investors into a much bigger

property with much higher rewards.

You are, in effect, leveraging your investment with other people’s

money.

Leverage benefits you because you not only get an exponential

return but you also get to share the risk with the bank and other

equity partners.

In essence, leverage is using a small amount of capital to purchase a

larger property. You can get all the benefits of a higher-performing

property without sacrificing all of your capital.

REASON #7 –

ECONOMIES OF

SCALE

There is a famous line in the world of boxing that goes something like, ‘the great big man will beat the great little man every time.’ When it comes to property investment there are definitely sound economic reasons for saying that bigger is better.

The basic meaning of the economic term, ‘economy of scale’ is that there is a fundamental cost-saving benefit to being bigger.

How does this apply to

RV Resorts investing?

To give a simple example, if a RV Resort owner has been collecting guests 100's of guests fees for 12 months from a property and then the office roof needs fixing, that’s a much better scenario than collecting 1 rent for 12 months on a single-family property and then the one small roof on it needs fixing.

The bigger roof will cost more to fix but it certainly will not cost 10 times more. Or even if it's a really big roof... it will certainly not cost 100 times more, but in many cases the property owners will have received 100 times the amount in guests fees

REASON #7 –

ECONOMIES OF

SCALE

The basic meaning of the economic term, ‘economy of scale’ is that there is a fundamental cost-saving benefit to being bigger.

How does this apply to

multifamily investing?

To give a simple example, if a multifamily owner has been collecting 10 rents for 12 months from a multifamily property and then the one big roof needs fixing, that’s a much better scenario than collecting 1 rent for 12 months on a single-family property and then the one small roof on it needs fixing.

The bigger roof will cost more to fix but it certainly will not cost 10 times more. Or even if it's a really big roof on a 100 unit property...it will certainly not cost 100 times more, but in many cases the property owners will have received 100 times the amount in rent.

ECONOMIES OF SCALE

It also doesn’t take a rocket scientist to figure out that raising the rent on a single family rental property by $20 a month is not going to help you much.

But doing the same thing on a 200 unit RV Resort property gives you an increase of $48,000 a year in positive cash-flow. And that $48,000 a year in extra cash-flow could potentially raise the value of the property by hundreds of thousands of dollars.

The best real estate investments utilize economies of scale for financial growth and this is yet another reason why RV Resort is a superior investment.