How to Double the Value of an RV Park Business

We'll go here. This is a four lane highway, Highway 1. And the main office is right here on the west side of the highway. And it's very. Because if you. I didn't see the sign when I first pulled in, and that kind of gave me dollar signs. Because every time I see a park on a busy road without a sign, it's like, what are you thinking? Why are you even on this busy road if no one knows you're here? Then when I left the park, I looked closer and I could see that there actually was a sign right up there. So the owner's name is Danny Lawler, and he has this really big auction business and he has this business on his property. So he'll be moving his car, impounded police vehicles, we get to keep the buildings, of course, but he's moving his auction business off the property. Um, and his signage really reflects that. You. You can't even really see these really. It's just God's country. I don't know what Gavel Falls is. I don't know if that's competitor or what, but that's his tiny little sign. And so one of the first items of business is going to be to change that to make a very big billboard here. The. This, this kind of goes hand in hand. But the, the park is like, it has a Shreveport address, but it's not in the city limits of Shreveport. It's in the city limits of Blanchard, which is. Which is a really small town. So when I visited the park, the mayor of Blanchard was there and he was basically selling us on annexing into Blanchard because he would like our tax revenue. And he said, in exchange, we will give you full zoning. You know, do whatever you want with regards to zoning. We'll speed up the approval process, yada, yada, yada. And so we'll be able to put a really big billboard on our property that advertises this beautiful property. So if I go out of Street View, you'll see you pull in here and there's a gate with a keypad. This guy has security lockdown. So gate with a keypad and then you've got some. It's all cement pad sites, which is pretty hard to find even at our parks. There's a lot of gravel. You pull in here through the back. This is a mobile home right here that he rents for like $2,300 a month. So we will own that. I don't know how he fetches that much, but this is where you go to check in. This is like an Overhead awning where you can park, get out of the sun. And there's like a fishing store in here, kind of like a general store. And then you pull in even more. And then this is a big game room with like 12 pool tables and arcades, no kids allowed. And a lot of times we see these and it's like, all right, does anyone actually use this? And he said, yes, it stays very busy. And then these are the, like the police impound vehicles from his auction business. And he'll be moving. So you keep pulling back. And you've got more pad sites. I don't remember what this building is here. Then you have a pool, which is really nice. Let me see if I can. No, I can't pull that down. You got a nice community pool, more pad sites. And I don't know if you saw on Twitter, but he talked about how he has. Some of these pad sites are covered and they fetch 500 more per month. You go back here and this is a hundred thousand dollar kids play area. Like, it's really, really nice. And he went ahead and put an awning over it because it was, it was so hot during the day. So it's really a family friendly park, which I like, because typically family friendly parks don't scare away older people. It's just, it just widens the net of people that might want to go there. You got a nice fishing lake here. He keeps it stocked. And then here they call this the Great Lodge. They rent this out on vrb, only it's not on Airbnb, so we'll change that immediately. It has a really nice pool, even nicer than the community pool that only residents or only guests of the Great Lodge are allowed to stay at. And then I believe this is like an outdoor kitchen, cooking area. On this land, he has his personal property, which he is moving out of. We'll. We'll keep the house. But he's. He's moving. He's building another house half hour away. Got another big stock lake here. And then he has a ton of longhorn cattle out here. And so this is all part of the property. And then the property extends down this road and then I think it ends right here. So these are just neighbors. Um, and the house we are going to rent out on VRBO and Airbnb as well. It's about four years old, marble everything. Really tastefully done. It has like a Michael Phelps swimming pool. Like not a real pool, but a, you know, one of those treadmill pools and that. It's a 5,000 square foot house with a big theater room. Really nice. So you got a bunch of pad sites here, but one of the first things we're going to do is, is add 37 more pad sites. Right. Can't remember if it's right here or right here. And according to Danny, we've seen his waiting list. According to Danny, if you were to add these tomorrow, they would fill tomorrow. Because these pad sites in this location, especially the shaded ones, are the most in demand. So we have a lot of experience doing that. One of our employees, Joe d, he has 30 years experience in land development. It's a great guy. And right there, Jody. Right there, he was. He was there last week as well. So we go back here. All right, so that's half the park. It's 113 acres or so. About half of the acreage is over here. And then we call this the. The west side. And then the east side of the park is right up the road. Do you have a question? I heard something. There it is. All right, so you go right up the road, you pull in here. And this is the nicer part of the park. So you can't tell the topography or the elevation, but this part of the park sits on one of the highest points in northern Louisiana, 277ft, which does not sound like a lot, but for Louisiana is a lot. You can see on the website or the video I posted on Twitter, the drone video. It looks gorgeous. You can see out on this. This is a wildlife management area. You can see out for miles and miles out here. Really, really a gorgeous view. And so there's another gate with a keypad right here. I forget what this building is. More cement pad sites. You have a. Supposedly one of the steepest slides, water slides of this type in the state. And they only operate it for two hours a day because it's. There's not enough kids to keep this open all day, and they do have to pay to use it. So he'll put one of his employees there for a couple hours in the afternoon, and the kids will just go up and down it all day. And then this is the old Great Lodge. It's an older building, but it's well kept. And it has a ton of picture windows that look out over that view. And they rent that out as well on vrbo, but not Airbnb for some reason. This is another lake. They keep it stocked. It has a. A dock going across all sides of it, and they have, like, those paddle boats that you can rent and just kind of tinker around with two glamping teepees that stay rented pretty well. And then this is called an air pillow. And it's, it's massive and it's just a bunch of air pumped up in the ground and the kids jump on it and then they play in the lake. And then this is just a really steep hill. And then if you drive down this road, we've almost seen all of it now you've got a few more cement pad sites. And then these are nice cabins. All of the cabins are stone on the outside. And then they have, they all have hot tubs. And then here you have a bath house because you've got primitive camping here. They need somewhere to go to the bathroom. You've got covered wagons, $48,000 glamping covered wagons with AC. And they're actually really nice and popular. Got four or five of those. And then they all use the bath house. And the bathhouse has these Japanese heated seat toilets with sensors that automatically open and these lights turn on when you approach them. So definitely never seen that in a bathhouse. And then down here you have parking for the people staying in these glamping sites and primitive camping that are like nice elevated pads with stakes, like permanent stakes for you to hook your tent up to. And, and then fire pit more down here. And then this is a very important part of the property because this is where the bike park will. This is where we'll be attached to the bike park. And so it's a 547 acre nature park. It's called One North. They haven't announced the name yet, but two of the representatives were there with me. They took us all over the property. It's going to have an amphitheater, it's going to have a huge lake. They already have a lake, but they're gonna make it bigger and put a cement path around it for, you know, moms, for strollers. And then the, the bike park is going to have like this central hub where you have gravel and you have, you know, black diamond stuff and more family oriented stuff. And there's even going to be a pump park where you can go like off jumps and everything. It's going to be state of the art. Like, I guess there's one big company in like Bentonville which is world headquarters for mountain biking and they're known for designing and developing the best bike parks and they hired them to do it. So they're pulling out all the stops and it's going to be a destination. And this, our park, will literally be the only the only lodging attached to the bike park. So the entrance of the bike park will be. I believe it's gonna. It's gonna. It's called One north because it's on Highway 1. So, yes, I believe Fish Lake. I think this is the lake that they're expanding. Yeah. So the entrance of the park will be right here on the highway. And they're gonna expand this lake, make it bigger, put the path around it. And then this is a steep incline. They're gonna put the amphitheater for music events right here. And then there's, like. There's nothing around here. There's nothing. And so when there's trail races or ultramarathons or bike races or anything, if you don't have an rv, that's fine. You can stay in a cabin. You can stay in a glamping teepee or a glamping wagon. This will be the only place that they could stay. That's. That is literally connected to it all. So they're very excited to have us because they think that we will increase the occupancy of their park and vice versa. It will be a free park, um, funded by the, like, the Louisiana Wildlife Commission and the state. And I don't remember what he said, but we're very, very excited about that because I did not even know this was going in. So it'll be 23 miles of trails. First six miles are going in this year, but they're rolling it out in seven phases, and it won't be completely done for five years, they say. So if you guys have any questions so far, you can go ahead and leave them in the comments and I'll get to those. This is kind of the first section of the webinar that I wanted to touch on. I'll go ahead. While you leave those comments, I'll just kind of zoom out here. This is Shreveport. You've got about a quarter million people up here in Texarkana. That's 58 minutes away. Shreveport's 19 minutes away. Longview and Tyler are, you know, an hour and a half ish away. And then you've got, of course, dfw, good three hours away. So every time we go to Disney or the beach, we always go through Shreveport. So it would make. Make a lot of sense for us to stop over and stay there in our rv. Yeah. So let me go. Got a couple comments here. Okay. Gravel Falls, Gavel Falls Campground. Just redirects to God's country. Interesting. I wonder if that was an older name. Is the mountain biking park a Multi day activity. Not super familiar with it. It doesn't have to be, but it can be. So there used to be a bike park in Shreveport. There's just one and it was really popular and it. But it was privately owned and so they ended up just developing it and putting homes on it. And so there really are no bike parks in this area. And mountain biking is actually more popular than you'd think in this area because north east Texas is pretty hilly. There's a lot of pine trees and there's just good topography for it, but there's not a lot of supply. So you could like, you could easily like Bentonville. People go to Bentonville from all over the world and they'll stay for a week and they'll just hit all the trails. It's. It won't. I'm not saying it'll be anything like Bentonville because in Bentonville there are dozens if not hundreds of awesome trails. But it will justify like 23 miles is quite a bit of track. People staying there for multi days or just going there for a day for a race or for an afternoon. Funding and closing timelines so the closing date for the park is the 15th. We thought we were going to have to push that, but because we didn't have the appraisal back as of two days ago. But we got the appraisal back this morning and it was 676,000 above our purchase price, which was always a good nice surprise. So that's just kind of baked in equity for the GPs and the LPs on day one. So to go back to your original question, July 15th is the closing date that might be pushed a week just because that's how things go a lot. But we like to get all the funds in with a few days to spare just to be safe. But it seems like investors are always kind of stragglers and we always push up against the last minute, but we try to avoid that. So. All right, so I touched on this article about the nature park and I'm going to go to the deck now. So I imagine you've already seen this. Oh, we've got a another question. Can you share the returns? The other parks in close proximity have IR and moic, so I will have to email that out because I don't have that prepared right now. But Anders, I commit to. I will. I'm emailing this webinar out to everyone, whether they're here or not, anyone that RSVP'd, so I will include the answer to that as well. So I know, I can tell you that N B, which is the park. Right. Let me just do this. I don't know if I'm spelling that right. I know the city it's in. So this park that we own in Louisiana, obviously it's not that close, but it's called N B. And that was the first park that I played a role in with Blue Metric. We closed on February 20. Typically, first distributions go out after the first full quarter, which is four days from now. We sent them out early yesterday. We always try to do that. And we met the full pref. We distributed the $73,000. That one is over performing so far, but, yeah, I accidentally lied. I thought this park was closer than almost five hours away. And it is definitely not. It is somewhere around here. Yeah, there it is. Natal Bainey. This is the one of the two parks I referred. I'll try to get financials and send that as well as the one in western Mississippi. Oh, thanks for linking that, Jeff. All right, so I'll go to the deck. That's a picture of. This is the second, the east side of the park that I showed you. There's the air pillow down there, this big steel buffalo that looks really cool. And then the bike park entrance is down there. So it's a $6.5 million raise. We're also borrowing 6.5 million. As GPS, we are putting in collectively 10%. That's the same with every deal. The debt terms on the deal, it is floating rate, but with a ceiling and a floor. So even at the ceiling, the numbers still work. It's 7.75% today with a floor of 5% and a ceiling of 9%. So we're borrowing six and a half in debt and six and a half in equity, which will cover more than all of the value add that we're doing. So we've never done a capital call and we try to raise more than we need so we don't ever have to do a capital call. 10% preferred return, which is at the high end of what we normally do. We're doing that because this is a higher fundraise than what we normally do. Our biggest fundraise ever was a couple months ago, the park it outside of Glacier national park in Montana. That was a $6 million raise and it is performing exceptionally well so far. So we like these bigger raises as long as we're able to buy at our, you know, 9 to 12% cap rate, which we were able to do in both cases. So 10% preferred return, that's usually 8.2.02x target equity multiple 25.66 target IRR. If you're unfamiliar with IRR, that just accounts for the total return. Looking back after we exit the park, either through refinance or a sale, once again, we've never missed a prep payment. This will be our 21st or 22nd park. I've been in the RV mobile home park business for five and a half years. I did it with two partners from 2019 to 2021 in Texas and Oklahoma. And we bought a slightly different asset class. Smaller parks, more long term parks, not really seasonal parks. We only bought parks that didn't need an on site manager. So we sold that whole portfolio in 2021. I started writing about it on Twitter. Everything I learned and then Blue Metric. I met the Blue Metric guys last year. We formed a friendship. I liked what they were doing and I joined them as a co GP and I helped them with deal sourcing. Most, mostly passively. People will DM me off market deals and then with fundraising as well. So I don't play an operational role there. But I'm talking to operations on a weekly basis mostly so I can find out how these parks are doing. Because I like to. They send quarterly updates Blue Metric does to everyone. I like to send monthly updates to people that invest through me just because transparently when you over communicate to investors they tend to reinvest more often. And so I like to do that. Quarterly distributions, usually it's the first full quarter after we close. If there's a lot of value add taking place up front then it can be later than that. But you always know going into it when the first distributions will be. And I'll get to that on this part here in a moment. There will be 50 plus sometimes closer to 62% bonus depreciation a year. One that goes to investors first. Um, there has been recent legislation that will drop that down starting 2025 and so that stinks but it is what it is. I'm going to skip over some of these decks that are just kind of informational. So this talks about the location of God's country, which I already touched on. 89% occupancy rate. That's a blended rate between the short term rentals, the cabins, the glamping and the RV pads. The RV pads have closer to 100% occupancy rate and the glamping and cabins have closer to 60% occupancy rate. Which is the main reason why we're prioritizing expanding the pad sites as opposed to more cabins or glamping. But we think that once we add everything to Airbnb and Hip Camp and Camp Spot, that will be an immediate lift in occupancy. But we're not really accounting for that in the, the underwriting. That will just be a kind of a bonus. Okay, so revenue per site, 11,500, which is a great number because it typically costs, if we were to build a park from scratch today, between 15 on a very, very low end to 35 grand per pad to build new pads. So when you have 12,000 revenue per site per year, that's a pretty, pretty quick pay payback period. We're going to add 75 RV sites in total over the next five years. Assuming that's going to be in phases, assuming that the phases go well and that we're being able to keep them mostly occupied, that will more than double the noi of the park. Today we've got someone joining we the debt service coverage ratio, DSCR is 1.57. Today we project that to be closer to 3 by year 3 because most of the value add will be completed by year three. Danny, the, the pride of ownership and attention to detail that we see in his park, you know, with the, the keypad at the gate and the heated toilets and all these intangibles. The grass stain cut that has also shown his record keeping and his financials. So he has very clean records, which is very appreciated. Occupancy, proximity, nearby attractions. I already talked about all that. That's the game room, glamping teepees. That is the playground before he added the shade cover the pool, the kids play area, the pool tables. This just kind of talks about high level of the park, Shreveport. This is kind of what our whole strategy is. At Blue Metric, we don't outsource our, our management. We're all vertically integrated. We don't outsource our development. Of course we use subcontractors. But Joe D. Is a full time employee of ours and that's a very big part of our strategy is to buy properties that have vacant land and strong occupancy. And for marketing. Right. Those three ingredients are the recipe for success. Increase the marketing, increase the pad sites, increase the occupancy. And more pad sites, more noi hopefully. That's just kind of an org chart. This talks about the RV sector and how it's been growing. There's been a lot of trends in, you know, postco trends that shows the pendulum kind of shifting away from being indoors. The pendulum shifting Away from being on our phones or on screens all the time. And people are getting out more. National parks are swamped more than they ever have been. And that is not going away. State parks are swamped. So we like buying parks that are near state parks, near national parks, near a major lake, not just any lake, but a big attraction lake, or at least on the way to those things, which is similar to what Buc ee's does. Actually, this is why we like RV parks. You know, everything's getting rolled up by private equity. Everything will be rolled up eventually. I just heard a podcast about the guy that rolled up 53 music schools in Denver, sold it for $42 million. Nothing is immune from the roll up and RV parks are certainly no exception. We like this size of RV park a lot because it's kind of in the messy middle where you've got retail buying, you know, zero to $2 million parks. You've got Blackstone private equity. They've been in the mobile home park game for about 10 years. They're starting to get involved in the RV park game, but they don't spend 6 million at a time. They really don't even spend 10 million at a time. They buy really, really big parks. So we're kind of in that messy middle where we're able to get good cap rates. And it's been strong. It's been strong for a while. It won't last forever, of course, nothing ever does. Will it last for six more months or six more years? I don't know. But while it's around, we're going to keep buying. And we're actually pretty careful about where we buy. I talked about national parks and state parks and attractions, but we don't really buy in Texas. We have a couple in Oklahoma because Texas is so liberal with what they allow people to build. It's kind of an oxymoron. It's a very. It's a. Especially the rural parts of Texas is a very red state. And so they're very open to zoning. And if you've ever driven through Houston, you'll know what I'm talking about. Texas is loose with zoning and so we're afraid that if we buy. We just looked at a deal in Abilene, Texas, that was a 13 cap in a big park. Really nice. And we passed because we could literally have three competitors right next door by the end of next year. And that scares the crap out of us, frankly. So we're trying to buy in supply constrained areas that will be supply constrained in the near Future. We're not against Texas. If we were to find an RV park within city limits that already grandfathered in that park. It's easier to find mobile home parks like that than it is to find RV parks. Unless you're. They're long term RV parks and we're really more after parks that could be long term as a hedge against a down economy, but that are more seasonal and or short term. This is our track record. It's a little outdated. John, my partner, the founder of Blue Metric, has been in commercial real estate either as an investor or as an attorney for 20 years undergrad at Duke Law School at Michigan. Smart guy, been involved with several startups. Fun fact, he's one of the founders of Mental Floss, which I didn't even know until we drove to Shreveport together last week. Good guy, smart guy. And then I've been buying real estate in some form or fashion for, for 15 years. I started in college buying single family, single family in Tuscaloosa, Alabama and Huntsville, Alabama. And then I moved to Texas, bought my first RV park in Kiowa, Oklahoma, population 732. Learned a lot of lessons the hard way. So I've only been in the RV mobile park space for five and a half years, but I've been in real estate investing for about 14 or 15. So we SL Blue Metric have bought about $50 million worth of parks and they're worth today, you know, over the last 21 months and today they're worth between 80 and 90 million. So we try to buy right, but also have a lot of value add levers left to pull. This is a map of our parks. The one outlier here in Glacier national park that was worth it because it could be a 20 million dollar park that we bought for 8 million. And it is very, very, very supply constrained. And we're buying the raw land next door to actually expand that. But we did take an expense ratio hit. We took an NOI hit the first year because we replaced the owners with an expensive employee that is only managing that park. And so if we get a couple more parks over there, great. Um, but even with the NOI hit that we took, it's worth buying. So other than that we're primarily in the Southeast. We like all of the states that are touching Tennessee plus Tennessee, Oklahoma was kind of an outlier because we found someone with three parks and it was a great deal and we bought all three of them. So we're able to put one manager in Oklahoma. So this is the whole plan, right? Buy a property year one at a 9 to 12% cap rate that has room to expand, that it has not been marketing well, but still has strong occupancy. We want to refinance by year three, return most or all of investor capital, but keep them in the deal perpetually for, quote, infinite returns. We don't plan to sell individual parks one off because the whole play here is to aggregate everything to compress the cap rate down from 12 to 5 or 6 and to exit to private equity one day, hopefully. If not, then we'll have strong NOI, strong cash flow. And so if you're an LP that joined us on day one, or if you're an LP that joined US the day before we sell, everyone will benefit from even having an ownership in one park that is combined with all of the parks and enjoys a compressed pro rata cap rate. So we've yet to refinance a park. We've gotten some offers at, you know, decent offers, 70% LTV, even up to 75%, 8% debt. It just hasn't made sense. Like the, you know, rates haven't come down. It hasn't made sense to refinance. But we know that we, we could, we just haven't yet. So I just wanted to caveat that that is the plan. But we have yet to actually refinance a park. So that's the Grand Lodge. I was talking about 10% preferred returns. Talked about that already. These are our debt terms. I talked about that. Quarterly distributions. So the investors get up to, you know, 100% of the first 10% return, 60% of, you know, the first 15% from 10 to 15% and then 5050 after 15% IRR, 50% minimum accredited only. We are very strict about that. These are the financials. So Danny did 836k last year in NOI. We're projecting a drop this year because we're replacing the owner. The owner is the manager here. We're replacing him with a manager. And so the expense ratio will go from 32 to 39% and then we will see it drop over time as we add more gross revenue. And I don't even think we're, we're like accounting or underwriting for adding more parks in the area. We're just accounting for the park being ran more efficiently as the top line grows. So there's some financials there. This kind of talks about our schedule for when we're going to roll out more pad sites. This is what projected returns look like on a $100,000 investment. You can See the refinance pop right there. So in this case, if things go well, lots of ifs, the investor will receive more than what they put in by year three, but then stay in the deal for continued returns. Talked about that. And that's the team and that is it. Let me see if I have more notes. I see there's a few questions, so let me go back to my notes, see if I missed anything. So yeah, we're also not accounting for occupancy increasing because of the bike park. Like we, that's not in the financials. It's not in the projections. The projections look like our other parks projections. We're just banking on our playbook. We've never bought a park that was about to have a bike park go in next door. Maybe the bike park really doesn't affect things much. You know, maybe it's a dud. So we're not accounting for that in the financials, but we, we're fairly confident that it will affect our occupancy in a good way. Yeah, I think that's all I have. So let me go to the questions here. Only have three. Does the 25% IRR take into account all the projected additions, RV sites? Yes, yes it does. It includes all that expansion. Do you build the cabins in house as well? It depends. Typically not. So we actually just bought 48 Fort Wilderness cabins from Disney. I say cabins. It's a single wide mobile home that has like a, a cabin facade on the outside. We just placed the first one at our park in the Smoky Mountains, Peace valley. And the 47 we're going to place all over the country. Montana, Mississippi, Tennessee, all over. We are always open to new like affordable housing options. We're looking at these things called bunkies, made in Canada. They're 15,000 for one park. We're looking at ever rooms which one of our co GPS owns a tiny, like a luxury tiny home company. Those will be more Lakeside. Those cost 150,000. And then we're looking at things that cost 15,000 and then things that cost 47 or 48,000 like the Fort Wilderness cabins. So we're, we're doing the primitive campsites ourselves because that's easy. In Montana we just added plug and play cabins that were locally built. So as I'm talking myself through this, I don't, I don't think we're building these cabins ourselves. I can't think of an instance where we built them ourselves from the ground up. We're typically buying them and placing them on site. All Right. What are the main risks with this property? What would be the IRR in this scenario? Great question. So the biggest risk that we see in all of our properties is capex and expense ratio being not what we project. So we did have the second park we ever bought is called Newport. It was, we, we didn't, we were not thorough enough on our electrical inspection and we ended up having to close third of the park because the electrical was insufficient. Thought it was 50amp, it was 30amp. And so that the repairs were, you know, 20, $30,000, which didn't completely ruin everything. But what really hurt our performas were closing down a third of the park for months. And so we're since much more, we've since been much more thorough on our electoral inspections. That's the biggest miss that we've had of all the parks in our portfolio. We don't have any. That will be like a complete loser. The Newport park is behind projections on the noi, but the investors will still come out ahead in the end, we're turning it around. But all that to be said, there's always a risk with the septic or wastewater treatment plant, whatever it is like one of the biggest questions that we have to fix or answer when we buy a park is how do we get the poop out? Right. Like that is always one of the biggest problems. If it's on city water, great. If it's on well water, that's usually fine too. Waste is always an issue. Expense ratio not being what we expect is an issue. Owners not disclosing everything and us not learning things until after we buy the park, that's an issue. Things that are not issues that we find in other asset classes. We don't really have occupancy issues in any of our parks, which I really like that not being a core risk. It's of course a risk. You could always happen. Usually it happens when you buy a park and the new supply enters the market, which is what we're trying to control for. The great thing about this asset class is that when the economy is strong, you have more people buying RVs, more people traveling, therefore more short term tenants. Short term tenants are much more profitable, especially when you already have a park manager on site that can manage them. If you have, or if you're already paying someone to manage them, then you want as many nightly tenants as you have as you can have because they pay 60 to 100 a night, whereas a monthly tenant will pay 700 for a month. Right. So three times the gross revenue from a Nightly tenant. So things are really good when the economy's good and you have more profitable nightly tenants. When the economy sours, which eventually of course will, people are buying less RVs and they're living in their RVs full time, which I think most Americans don't even realize how many millions of Americans live in their RVs for years at a time. That's why long term RV parks exist. And so when the economy sours, then you can convert. And I use that word very loosely because there's no conversion process that happens. You just naturally attract more tenants that want to stay on a monthly basis. And in that case, you're more primed to have good occupancy because you have all these amenities that are pointed towards short term tenants. Whereas a more like a long term park down the road that was more geared towards long term park tenants, they don't have all those amenities because typically long term parks don't have as many amenities. And so it's a hedge against the economy. Natural disasters, those are always a risk, of course, especially in places like Louisiana. Flooding, of course, is a risk, but we have insurance that protects us, of course, against damage, liability and loss of income for up to a year. And so all that to be said, the, the biggest risks are usually Capex related and OPEX related. And what would the IRR do in that scenario? It would just be lower than projected. I don't know exactly what, what it could be. It could be a wide range of things. Anders says what rate projections are you making for the refinance in year three and the sale in year five? Rate projections you make for the refinance in year three and the sale in year five? That's a good question. I think I, I'm almost positive we're not underwriting for big rate drops. I believe we're underwriting for 7 to 9% rates at refinance year five. Yeah, I, I don't think we're projecting anything. That's a good question. I think I, I'm almost positive we're not underwriting for big rate drops. I believe we're underwriting for 7 to 9% rates at refinance year five. You. Yeah, I, I don't think we're projecting anything for year five with regards to rates being higher or lower. We think the most likely scenario is just a total buyout because that's what we've seen happen in the industry. All right, well, I don't see any questions. I'll give you guys another minute or so to ask them. But if you are interested, I, I put a link at the top of the comments to the investor portal. You can make an account, you can show soft commitment. There's no obligation to invest until you've signed all of the PPMs and loan docs. You can find the PPNs and loan docs in the portal as well. And you can email me Chris co founders.com with any questions. Would love to have you at the in person tour 8am next Saturday, July 7th. I think I will be there with Danny the owner and yeah, we can go from there. I will also email this out to everyone if you want to. Someone's a total weirdo and wants to re watch this. Jeff says when you sell in five years as a bundle to PE or someone else, how is the return for this specific park expected to be calculated? Some cap rate calculation. Yes. So what we've seen, this is kind of an assumption because we don't have anyone with an offer right right now. But what we've seen happen in the industry to others is you, you basically assign a cap rate to the whole asset and then that cap rate carries down on a park by park basis. And so it would be a very tedious process of taking all the parks and saying, all right, this investor put in 50 grand into this park and this park now enjoys a 6 and a half percent cap rate because it's part of everything. And so this Investor's ownership is 1%, yada yada, his return would be X, Y or Z. So if there are no other questions, thank you for joining. If this is part of a big winner and there's another one as a moderate winner, this park will have a lower return potentially. Let me read that again. So if this park is a big winner and there's another one as a moderate winner, this park would have a lower. Yeah, I mean, yeah, honestly it's, it's, it's just going to be an average. That could happen. But obviously if we had one loser in the portfolio, it wouldn't, wouldn't move the needle as much as if you were invested in one park and it was a big winner and the other 20 or 30 were all losers. That would of course that would drag you down. That is a downside. Yeah. Okay. Well thank you all for joining.