All Forum Posts by: Soup Nikk

@Chris Seveney Thanks for your inputs. Can the deal be discounted if the GPs were investing their own $ too?

Hey Folks,

I am currently evaluating an RV park deal. Needed some guidance on the fees for this kind of real estate and whether the offered pref and LP/GP split actually makes sense or is it too high/low? Please find some details below

Acquisition fee - 5%

Asset management fee - 3% of gross income

construction & oversight mgmt fee - 5% of rehab budget

disposition fee - 1.75%

guarantor fee - 2.5% of loan amount

Pref is 10% with 60/40 split unto 15% IRR and 50/50 there on.

This is my first deal in the RV space so not sure what's the norm, so would really appreciate some guidance/feedback. # of fees looks standard but the % are slightly higher than what I have seen in the past (1-3% being normal).

@Scott Trench

@Bobby Larsen

@Chris Seveney

AVAF3 is doing ok so far. DSCR is 1.26 in May. Distributions are coming through. There are 3 properties in this fund. Occupancy is 90+ on 2 and 89% on 1. The debt on AVAF3 was fixed terms.

@Lucia Rushton I’m interested in this as well and currently evaluating them. Would love to know if anyone else has any insights and/or experience investing in these Nada city funds.

@Marty Summers would love to connect and learn more. I’ve sent a connect request on BP

I’m currently invested with a few Syndication teams and would love to chat and compare notes and learn from each other.

@Matt A. Thanks for the feedback. What other operators or syndication teams have you invested with? Would love to connect chat and learn from your experience.

@Percy N. Thanks! And you are absolutely right. The yields will accrue and will be made whole. Good thing is the team does not anticipate any capital calls at all.

But 75% as you mentioned seems very high. Didn’t realize that was the case. Thanks for sharing.

@Charles Seaman thanks for your response. Yes the rate caps were somewhere at 4% or so. I cannot remember. However, no new capital calls will be made and yields are accrued while they are paused and will be made whole.

How have you structured your deals as far as debt is concerned? Are you doing any new deals in this market or the cap rates are not allowing for it?

@Chris Seveney thanks for your response. Yes the communication is excellent. And the yield accrues while it’s paused. They also ensured that no new capital calls will be made.

How’s your funds performing and how was the debt structured for your deals.

I’ve been invested in the Ashcroft syndication fund since 2021. The GPs recently paused the class B distributions on account of high debt service fees and obligation.

They had purchased rate caps and that helped pay for some of the fees. However the main reason for pausing was to raise cash in order to buy new rate caps (at much higher rates than 2021).

Has anyone seen similar issues on their syndication deals (from before feds increased rateS) and is this a red flag or a one off scenario given the unprecedented rate hikes.

Otherwise they’ve been really good and communicating really well and with full transparency. I am also considering investing in their new fund this year, since as operators they are reputed and have a great track record and also can get some great deals in their pipeline.

Would love to hear feedback from other investors.