JULY 2022 | INVESTMENT OPPORTUNITY |
|
Hi Folks!!
As the title suggests - we still have a few spots left! See below for what this opportunity is and why we're moving into this space fairly heavily...
And Book a call if you'd like to connect and see if anything we do, is a fit!
(Hint - we also have a full service investor-friendly brokerage that pays amazing splits and offers investment opportunities, a value-add property management company, short sale negotiation firm, weekly live coaching, and run New England's #1 free Networking community - )
HOW can we help you achieve your goals faster as we go into 2023?
~ Nick "AA" Aalerud
___________________________________________________________________________
We have been staying busy analyzing literally HUNDREDS of multifamily, RV Park and Multifamily Opportunities, and we are pleased to present one that finally got through our due diligence phase. Make sure you click "allow images" or "always display images" to get all the goods and links in this e-mail.
WHAT WE'VE BEEN UP TO...
As you may know, we have begun investing in new asset classes such as RV parks and self-storage. RV Parks are similar asset classes to what we know now (multi-families and mobile home parks), with the exception being RV parks have a very strong element of hospitality. We also are continuing to move forward into short-term rentals and lifestyle assets with our Florida and New England localized assets. We do believe that this will create a great opportunity to bring our strengths together.
We at AA Real Estate Group partnered up with some solid guys at Archer Acquisitions and closed on Field and Stream RV Park in Brookline NH in May of 2022! The transition has been solid, with the former ownership helping train up, technology swaps, and us beginning to implement our multi-faceted approach to add value via different income generators and expense reductions to this park. If you're a partner - you'll be getting an update soon - suffice to say we are already above our rental projections for 2022-2023!
With this park, we were able to assist the sellers in their transition to retirement down south, while also adding some much-needed amenities and bringing rates to the market rate for vacationers who are looking for a tranquil place to call home for a day, or a season.
We have been in the Multifamily space since 2011, and as cap rates have compressed and prices rose in that space with it being over-competitive, we made a switch and identified hospitality and value add parks as a unique opportunity, especially with the number of individual owners who want to retire.
|
|
OUR NEWEST ACQUISITION...
We completed Financial & Physical DD, with a closing date of August 12, but we will be extending most likely.
We are looking to raise $800K total for this RV Park in central Massachusetts.
This is most likely an over raise, but as usual, we want to play things safe as well as offer opportunities to you awesome people.
EXEC SUMMARY:
Aging park owner looking to retire and move into a passive role, and eventually retire.
He has offered attractive seller financing terms and has also been VERY cooperative in working with us on the transition. Being active with training, bumping prices for next season, and will be staying on and present for a while post-closing.
They currently bring in around $262K in gross revenues, with under-market rates, but also, a large portion of the park is underutilized.
Our intent is to take over operations, take advantage of unused space by adding yurts, glamping tents, and tent sites, and bring "double sites" to market rate, implementing AirBNB in housing units (which are included), and the biggest one being to transition a majority of "seasonal" rentals over to "transient" (short term), which is customary for RV Parks to do to appeal to vacationers. You'll also see a number of other income-generators in the webinar below.
Our intent WILL BE to refinance in years 3, 4, or 5, depending on how quickly value adds are going (5 years is used in projection to be conservative), to use as a liquidity event for the investors and get them back some of their capital. That said - we will be following the capital markets closely to ensure we do what's in everyone's best interest.
THERE WILL be some capital left as unpaid after the refinance - this will be paid back via cashflows from the property, as well as other liquidity events (IE - sale of a home that's included!) as we are able. Preferred return continues to be paid on all unreturned principal left in the capital accounts.
The Structure:
Starts out with the LP investors getting an 8% preferred (paid FIRST) return on their initial principal,
then a 70/30 cashflow & equity split for returns above 8% and below 12% (LPs at the 70%);
Above 12% returns, the equity & cashflow split is 50/50. This is to incentivize GPs to bring the park to a cash flow machine as soon as possible. LPs get the lion's share during the stabilization period.
If all goes according to plan, we and our investor partners will be getting a portion of our principal back in year 5, while the park will continue to generate cash flow and tax advantages for everyone involved, with high double-digit returns...
Let alone a REALLY COOL place to visit.
|
|
PEACEFUL PINES PARK ACQUISITION |
|
|
|
PP:
Rehab / CapEx (NOT REQUIRED, but for Value Adds):
Current NOI:
(after backing out $150K per year in owner/park manager salaries and personal insurances!)
Future NOI / Year 5:
Future NOI / Year 10:
Future 10 year Valuation Projected:
|
|
$1.61M
$468,625
$97K / year
$228K
$375K
@8.5% Cap: $4.4M
@10%Cap: $3.75M
|
|
|
Below is the link to the Webinar, Photos & Budget and Due Diligence Docs those interested:
|
|
Reply to this e-mail with your questions or with your commitment, so the team can get back to you (possibly faster than I can).
Since this is a smaller raise, we will be structuring this as an LLC Partnership, as we anticipate less than 10 investors. Class A / Class B shares.
Due to the quick turnaround, we are still looking to extend a closing date, but want to ensure we get things moving fairly quickly.
COMMITMENTS are due by August 5th,
FUNDS WIRED for August 12th.
This should be looked at as a longer-term hold, even if we are able to get some capital back in 5 years (possibility), play it safe and make sure you're OK leaving the capital in for 10.
(Note - our goal as GPs, is to hold "indefinitely" while watching the market and capital conditions, so even better if you align with that!)
|
|
REI Unleashed is growing!!
We are so excited to announce that we will now be hosting an additional event each month in Leominster. These events will take place every month on the 2nd Wednesday at 6:00 pm at The Fix Burger Bar!
Our first Leominster event will be on Wednesday, August 10th.
Join us and our panel of very knowledgeable investors including John Bombaci, Jason Regan, Anthony Valera, and our very own Nick Aalerud. They will discuss the steps to ensure your business survives the foreseeable changes that are about to take place in the Real Estate market.
|
|
|
Tue, Aug 9, 2022 6:00 PM EST
How to RECESSION PROOF your REI Business
The Fix Burger Bar,
Leominster
|
|
|
|
|
If you have not had a conversation with me yet on your both short and long-term financial goals please feel free to book a call now. |
|
I enjoy talking with folks about their future goals and it's also the first step for us to get you on our opportunity shortlist. Rarely do our funding opportunities go on social media so be sure to get on our list for all that we have going in multiple asset classes throughout the country.
We are on a MISSION to free minds and retirement plans everywhere - whether you join us as a partner, investor, team member, or just support from the sidelines, we want your energy and support. Let's make the next 5 years LIFE CHANGING for your own portfolio and with your TIME.
|
|
THANK YOU, as always, for being a huge part of our network.
We could not do what we do without you!!
-Nick AA
|
|
|
|
As we revamp our coaching program, REI Accelerated (formerly Complete Dealflow System), we've launched a weekly coaching community called REI Ignition, and a "Fast Track, Done With You, All-in-One" REI Business in a Box (coupled with powerful tools and software) called REI Accelerated.
REI Ignition is a network for wholesalers, fix & flip investors, and landlords looking for a community to share tips with, and with weekly group coaching built in. We share tips on all things wholesaling, renovating, marketing, negotiating, closing, and everything in between. It's a community of investors who want to support each other in turning their real estate hobby into a business. This is the place to get started, to get resources, meet our coaches, and learn about the business. When you're ready to kick it up a notch, ask us about REI Accelerated!
REI Accelerated is an investment in yourself and in your business. It comes with 12-month access to our closed advanced community, as well as access to a set of software and tools you need to jump into the real estate game quickly - and to learn how to scale and build wealth the right way. It comes with powerful peer groups, and "Boardroom" sessions, to hold yourself accountable at the highest level while you're going through the process. The full training and tools we anticipate will be out prior to the end of 2021 - if you are interested, let us know by filling out the application here, and our team will be in touch!
|
|
|
IF YOU ARE RECEIVING THIS MESSAGE, IT MEANS WE / AA REAL ESTATE GROUP, HAVE A SUBSTANTIVE RELATIONSHIP WITH YOU AND YOU ARE ON OUR APPROVED LIST TO SEND OUT OPPORTUNITIES.
THIS IS NOT A SOLICITATION TO BUY OR SELL ANY SECURITIES. IF THIS WAS SENT TO YOU IN ERROR, PLEASE LET US KNOW AND WE WILL REMEDY THE SITUATION.
|
|
AA Real Estate Group - Connect on Social! |
|
|
|
|
|
|
|
