We buy RV and Mobile Home Parks.
The WISE CAPITAL INCOME AND GROWTH FUND
Minimum of 8% preferred quarterly distribution
targeted up to 28% IRR.
We Acquire cash flowing, income producing real
estate with a focus on RV and Mobile Home Park assets,
a diversified portfolio rather than single identified asset due to fund structure.
Robust pipeline of active properties from which we choose from.
Favorable GP Waterfall Incentives for LPs:
Class A - 8% with 40/60 equity split
Class B - 10% with 60/40 equity split
Class C - 12% with 80/20 equity split
equity split on sale of assets with a targeted 28% IRR
with a target of 2.5x multiple.
I can earn 5% in my Money Market Account right now
And at 5% is going away.
The federal reserve will probably cut four times this year, so you’ll be making 4% by the end of the year, and 3% by the end of next year.
With inflation at 3-20%, you’re making nothing.
Plus you lose depreciation benefits to write off existing income, And you pay ordinary income taxes instead of capital gains. How is this a good move? Plus... We can pay you 8-12% at minimum.
Multifamily values are going down, not up. Why should I invest?
The exact same argument was used in 2008. Read any book investing, and it tells you that you’re much more likely to make money when you buy during a down cycle, then buying it a peak. How are discounts possible in an overvalued boom market that investors were throwing money at two years ago?
But the good thing is, we Invest in RV and Mobile Home Parks, which is still the best cash flowing asset class in Real Estate, even during bad economic times.
And your friends are creating the opportunity for you to make money. Their investments were made when the market was at its peak, and properties were overvalued. As interest rates went up, and values went down, their cash flows disappeared. And that’s why properties today are 20 to 30% cheaper. Their loss is your gain.
However, that's in Multi-family, we specialize in RV Parks and Mobile Home Parks with virtually low on going maintenance, so we dont do cash Calls.
Yes it is. But less than $100 billion of that cliff applies to multifamily. And that ~$100 billion is roughly 3-4% of the value of all multi family properties in the United States. We’re not saying there isn’t an impact, there is. But that impact is what is giving us the discounts. Every market expert is projecting that by the end of 2024 or earlier, prices will hit bottom as the multifamily portion of the debt cliff fades and a new cycle starts.
That’s fine. Even the greatest investor in the world (Warren Buffett) could never figure out the bottom. So his technique is to start buying when things are cheap and keep buying as they get cheaper. This way his investments are averaged between cheap and bottom, both of which are great scenarios. Every other great Investor says the same thing. No one can time the bottom. Including you.
However just know, were buy for cash flow!
Thats awesome, because we don't do cash calls, what we raise for park acquisitions includes value add improvements for Phase 1 and sometimes Phase 2.
Over the last 80 years, there’s no evidence that interest rates will stay up if inflation goes down. The federal reserve wants to reduce interest rates as quickly as they can. 20 months ago inflation was at 9.1%. Today, it’s reported at around 3%. The high rate interest rates have done their job and it’s now time to bring them down.
Since interest rates started going up, the commercial industry, which has a very prudent bankers, started to see loan value slashed, which resulted in prices smoothly declining by 20 to 30%. Single-family properties are up one percent in the last 18 months. So, which one do you think is overvalued?
It’s been crazy for decades. Read the news from the 90s or the 2000s and you’ll notice the two parties were in Armageddon mode back then too. The United States recent energy dominance means that it actually needs to be the world reserve currency a lot less than it did 12 years ago. And we remain, by far, the technological Mecca of the world. Our position is stronger than social media clickbait makes it out to be. In the end, Investing is about tuning out the noise, not drowning in it.
Its about finding those Cash Flowing properties and making them even better...
The vast majority of investments today are using fixed debt. If inflation goes up in the future, you would be a beneficiary as the mortgage would be fixed, but rents would spike with higher inflation, just like they did in 2021 and 2022. Why are you afraid of this scenario?
The properties we acquire would still cash flow with amazing Cash on Cash Returns...
Distributions may occur on a quarterly basis and are typically distributed within 45 days after the close of a quarter.
What kind of reporting will I actually receive ?
Quarterly you can expect to receive a brief fund update. Annually, you will receive a K-1, as well as an internally generated annual financial statements.
No that is not possible through the 506c Fund.
When do I start to accrue returns ?
An investors account begins to accrue a return 45 days after the date of acceptance into the Fund.
Can I leverage Bonus Depreciation. Yes
In a 506(c) fund, bonus depreciation is a tax incentive that allows investors to depreciate a larger portion of certain assets in the year they are placed in service. The amount an investor can take for bonus depreciation would depend on several factors including the type of assets involved, the specific tax laws in place, and any limitations or restrictions outlined in the fund's operating agreements or prospectus.Typically, bonus depreciation allows for the immediate expensing of a percentage of the cost of eligible assets.
However, it's important to consult with a tax advisor or financial professional familiar with the specifics of the fund and the current tax laws to determine the exact amount an investor can take for bonus depreciation in any given situation.
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Regulation D 506c Mandated Legend:
For this Fund of Funds, we can only accept Accredited Investors
"Any historical performance data serves as a reflection of past performance.
However, it's crucial to note that past performance does not guarantee future results. Current performance may vary from the data presented. It's important to understand that the Company is not obligated by law to adhere to any standardized methodology when calculating and representing performance data.
Moreover, it's essential to recognize that the performance of the Company may not be directly comparable to that of other private or registered funds or companies.
Additionally, the securities are being offered in reliance on an exemption from registration requirements, thus not mandating compliance with certain specific disclosure requirements.
Lastly, it's worth noting that the Securities and Exchange Commission has not evaluated the merits of or endorsed the securities, the terms of the offering, or the accuracy of the materials."