A webinar by Chris Koerner presenting an investment opportunity to buy a KOA Holiday-branded RV park in Polson, Montana. He reviews property features (pool, hot tub, mini-golf, cabins, tent sites, RV pads, dog run, laundry, Wi‑Fi), location benefits (near Flathead Lake, small airport, year‑round operation though seasonally variable), expansion plans (pre‑approved 64 additional pads on city utilities), and unusual title structure (10 individually deeded resort pads—6 included in purchase, 4 optionally purchasable). Financial/transaction details given: listed at $5.8M, buying price $5.5M (stated ~9.5–10% cap), raising $5.5M from investors, 10% preferred return, target 24.3% IRR, planned use of ~50% bonus depreciation in 2024, KOA franchise rights expire Feb 2026. Koerner requests confidentiality during due diligence and describes management, exit/refinance strategy (intend to refinance in 2–3 years; LP capital return within ~3 years; typical hold ~5+ years).
Questions this video answers
Listed at $5.8M; purchased for $5.5M.
10 deeded pads total: 6 included in the purchase (valued ~ $150,000 each); 4 not included but buyer has the right to buy them after close for about $150,000 each.
Expansion plan for 64 additional pads; all on city utilities with approvals already in place.
February 2026.
Raising $5.5M total; offering a 10% preferred return and targeting a 24.3% IRR; planning to take ~50% bonus depreciation in 2024.
Chapters
Well, thank you for coming. I'm excited about this park. It's, you know, once we got that park in Montana, we were kind of on the lookout for a second one. And then, funny story, I'm going to go ahead and share my screen now. Let's see. Also, if you do have questions, just put them in the chat anytime and then I'll. I'll catch up with them. So I tweeted this on June 27, and not thinking anything of it, it was just something to tweet that day. And I, I ranked this park that we're talking about as number four, having no ties, no connection to it. And then a couple hours after this tweet, I got an email from the owners of it. And these are guys that I had, I had spoken with on Zoom before. We had emailed a few times about other RV park stuff, and they were the owners of it. So just kind of a crazy coincidence that I knew nothing about this park when I tweeted about it. And then later that day we were talking about buying it, and now it's under contract. So according to Chris Kerner, it's the fourth most beautiful park in the United States. But disclosure, I did not do very much research for this tweet. I just wanted to tweet something. So it is a beautiful park, though, just kind of a crazy coincidence. So I'm going to start with the broker's deck that they sent us originally, because there's a lot of good info in there that is not in our deck. So this park is really unique for a couple reasons. The, the biggest reason it's unique is that it is a KOA holiday. Now, KOA has three tiers. They have resort, holiday, and then I can't remember what was the third one. Journey, Holiday and Resort. So this is like middle of the pack KOA which is just, it's based on how many amenities they have and how expensive it is. So it's a really, really nice park. You've got mini golf, pool, volleyball, cabins, tent sites, pads, expansion plans for 64 more pads. And of course, you can see beautiful Flathead lake just right down the road. So in going over this, the, the sales price was 5.8. We bought it for 5.5, which is almost a 10 cap. 9.5, 5.8. So it's basically a 10 cap, which is awesome, especially considering the fact that it comes with 10 individually deeded pads that we have the right that will be 10 transferred over to us at close and that we have the right to RESELL More specifically, six of the 10, which are valued at about $150,000 each, will be included in the purchase price and transferred to us. And four of the 10 are not included in the purchase price, but we will have the right to buy them for around $150,000 each after close, should we want to. And so that little quirk about this park is the main reason why the sellers and the broker really kept this on the hush hush. They were afraid that the HOA committee, the people that has that either own these 10 lots or that have the right to buy them, would like, pitch a fit and try to vote together. So they do require a 90% vote to basically say, no, you can't buy these from us. Which is. It would be extremely hard to do, but it would be easier to do if they all knew that the park was being sold. And so although this is listed with a broker, it was not listed online. And they were very, very, very adamant to me, do not tweet about this. Do not talk about this. There's really only downside. So this, when I upload the recording of this, it will be marked as private on YouTube and I act, I ask that you please try to keep it, keep it private. Once we're out of the due diligence, due diligence phase and our earnest money is hard, they don't mind as much that we talk about it. But I still won't be tweeting about. We've been kind of asking around, talking to our investors and we don't think we'll have problems raising money for it anyway. So there's, there's really not a need to tweet about it. So anyway, this is a park and I'm sure you'll have questions about that. So go ahead and ask them in the chat and I will, I will get to them. So, swimming pool, hot tub, pavilion, kitchen area, dog run, basketball, volleyball courts, WI fi, laundry. It's got a ton of amenities and a lot of this. I can send this to you, by the way. I don't think you have this, but I'm happy to send it so you can read it. I just don't want to waste time reading it verbatim. It is an interesting park because it is, it's not seasonal. It's. It's open year round, so it is seasonal in the sense that the occupancy goes way down in the winter time. But unlike, you know, Moose Creek, we close for six months a year, whereas this is open all year. So it's Kind of unique in that way. And even though it's only an hour and a half away from Glacier, the climate is actually quite a bit different here. It's a little more favorable to a year round park. So want to show you a couple quick drone videos just so you can see what it looks like. Paulson is a really nice town. There is an airport right there which we were immediately worried about. But we went through and read all the reviews and there's no complaints about the airport. It's really only small planes flying in and a very low quantity of planes. So it's, it's a non issue from what we understand. I assume you can still see my screen here. It's just very well maintained. Of course if it is a KOA then it, it is held to a certain standard which helps make things easier to maintain. There's some accountability there. And also the KOA rights, basically the franchise licensing rights are expiring in a year and a half, 20, 26. And so we will have the option, should we choose to not pay them 6% of top line revenue and just do our own thing. So not sure what we'll do because we do like koa but it's, it's widely dependent on the location. Certain parts of the country, KOA doesn't have as strong of a brand name or a reputation, but they're still there. For instance, the park in Shreveport that we just closed on, it started as a KOA because they have a six month clause where you can, you can cancel if you don't like it. He started as a KOA and didn't really see think that they were bringing much business to him and so he canceled and he, he's done great ever since. But then we have a couple other parks that are KOAs that do really well and we're able to attribute a lot of bookings from them. All right, all right, so that's just quick drone and picture. Nightly rates are in line with the area. There is room to increase them a little bit, but not a ton. Occupancy ranges between, you know, 30% in the wintertime to 100% in peak summer. It's not 100% all the time in the summer every year, but it has been increasing year over year over year. The occupancy has been getting better. The reason that the seller is selling this park is because they have a capital partner that does not like the idea of having individually deeded parcels. They've got a bunch of other parks in their portfolio and none of them have that except this one. And so they're trying to clean up their portfolio so there's just some pictures of it. And once again, I will send this all to you. Trying to see on this map where Moose Creek is. I believe it's closer up there. And then this is the expansion plan. 64 pads. This has already been drawn up. And what's really nice about this is it's all city utilities. So we don't, we don't need to do much. It's going to be a much more affordable per pad expansion plan than what we're normally used to because water and sewer are city. So we're just going to be able to plug right into that. We already have the approvals and there are no tiny home plans in this, but we will be adding some more cabins and tiny homes because we've been having a ton of success with those at our other Montana park. So you're right down the road from the lake. There's room to. There's a place to paddle board and there's restaurants right down the road. Just a nice area. And that's too hard to see on a screen share. So you can look at that when we're done. Those are comps for rent. See we're right here at the top. 87 to 119 a night. Now this one, the Polson Motor Coach Resort, Those are the 10 pads that are on site. Okay. So that is not a competing part. We are buying both of these and the KOA is basically the parent in this situation with the rights over this one. So those 10 pads are very, very nice. They're well built out and so they command a lot more per night. So yeah, according to this, like we're on the low end compared to the 10 pads that are right there on site. And we're on the higher end compared to competing parks. But these are quite, these are quite a ways away. 12 to 25 miles. And the only other one on the lake is Eagle's Nest right there. Yeah, that's just area information. So I'll send that out. And then if we go to, I want to go to Google Maps first. So you can see here there's two Google Maps listings. The Motor Coach Resort. Are the 10 pads there. 4.5 stars out of from 81 people. And then this one is the 51 pads. 4.4 stars from 300 people. So same business, two different Google Maps listings. That's what it looks like. Believe the resort lots are right up here in the front. They've got A better view of the lake. They have more amenities built up around them. Better location altogether. And you've got the airport right there and the lake just right down there. This is the website for the motor coach resort. You can see it's not KOA branded. When you click to book. It's just kind of a janky contact us form. And then this is the website for the other pads. Koa. So moving over to the deck, this is it. So we're raising 5.5. That includes all the funds needed for the expansion. 10 preferred return aiming for 24.3% IRR. And 50% is the estimated bonus depreciation that we plan to take in year 2024 because that will be dropping on January 1st. So we're trying to get that while we can. That's just kind of a little explainer. A lot of this is repeated in the the deck that I just showed you. Six resort lots expansion plans. KOA agreement expiring in February 2026. So two. Yeah, let's see. Yeah. So one and a half years. Some more pictures. Expansion plans. Just outside of Kalispell. We. So we're keeping the management in place. They are. It's a really, really strong team. But normally if we were buying a park that was not near another park, we would need to add our additional management in on top of that. But since we have park an hour and a half away, which I said in the email, that's the perfect distance for us. We won't need to do that. So you'll usually see on our proformas that we take a year one hit from adding in that management oversight which will not be the case with this park. I think a lot of you have been on previous webinars before or seen them or read the decks. So I don't like, I'm not a big fan on really pushing like the size of the industry or the industry growth just because I feel like that's, that's what people do when they don't have other things that are better, more specific to that asset class to talk about. But of course we are very bullish on the RV sector in general. People are going outside more and more. The pendulum is swinging more away from screen time and more towards outdoor time. National and state park attendance has been soaring and we've got good experience in the space. This will be park number 23 and we love the, we love buying campgrounds that are near a destination. The plan A is always short term rentals, you know, for 50 to $150 per night. Plan B is always long term rentals. If or when the economy dips, you can convert the parks to be more a more stable cash flowing asset that are less profitable but less headache and more stable. So most of our parks are in the southeast. There's two in south central Oklahoma just north of me. Those are managed by the same person and then this will be the second in Montana. We do have a strong track record with our investors. We've never missed an LP payment. The the whole strategy with all of our parks is to refinance in two to three years. We've never done that yet. We haven't had a need to with rates being where they are. We have received refinance term sheets from banks that are someone's trying to join that are favorable, but it's just it financially doesn't make sense for us to refinance yet. Was there a question? Okay, never mind. So that, that's the whole strategy is to return LP capital, all or most of it within three years, but keep them in the deal and stay in the deal for a total of five years or more. A lot of that depends on a potential offer, a potential exit. But we don't plan to sell off individual parks piecemeal because you capture more value when you, you keep it under the same management umbrella. Okay, this is basically what I just said. The other terms. Can you use your ways for me? Aaron? I got it. Okay. Okay. Would you mind muting your mic? Is that Tom? Hey Tom. Let me see if I can do that. All right, Tom should be muted now. Okay, so these are the terms of the deal. 10% preferred return, which if you're new to LP investing, that means that.
