The Wise Choice Fund LP
Thank you for your interest in the Wise Choice Fund. We have prepared this FAQ to help address commonly asked questions.
Property Locations

1

Ranger RV Park
1424 West Loop 254, Ranger, Texas, 76470

2

Douglas Forest River RV Park
106 Douglas Road Rt. 16 Webster, MA 01570

3

K River RV Park
415209 E. 1842 Rd, Moyers, OK 74557
Deal Structure
Asset Class
The deals involve purchasing existing RV parks or becoming a General Partner (GP) with partners in RV park deals. The structure could involve outright purchase, long-term seller financing, or partnerships.
Value-Add Opportunities
Each park offers multiple value-add opportunities, giving the opportunity to 3-5x the value of the park, its annual NOI, and overall value through improvements and upgrades.
Attractive Investments
RV parks can be attractive investments due to their consistent and stable income streams, especially in desirable tourist or vacation destinations.
Wise Choice Fund LP

1

Limited Partnership
Wise Choice Fund LP is a Wyoming Limited Partnership, where investors can become Limited Partners in the park deals the fund finances.

2

Deal Sourcing
The fund was created to fund deals acquired through outreach to park sellers, often involving seller financing terms where the seller receives up to 30% upfront and the rest over time as the park performs.

3

Land Ownership
The fund acquires and gains control of the land or real estate in every deal.
Trends in the Space ( Value Add Opportunity)
Focus on RV Parks
1
Current Focus
As of 2024, the fund is focusing solely on acquiring RV parks.
2
Rationale
RV parks are the second-best cash-flowing asset in real estate, after storage unit facilities.
3
Future Plans
The fund also has plans to acquire mobile home parks and parks that combine RV sites with mobile homes, but the current focus is on RV parks.
Why Texas Is Our Current Main Market Investment?

1

Location
Texas is a vast state with diverse landscapes, including deserts, forests, and coastal areas, attracting tourists and travelers, making it an ideal location for RV parks.

2

Tourism
Texas is a popular tourist destination, attracting visitors from all over the world to explore its natural beauty, historical sites, and cultural attractions.

3

Outdoor Recreation
Texas offers a wide range of outdoor recreational activities, such as hiking, fishing, boating, and wildlife watching, making RV parks convenient bases for outdoor enthusiasts.

4

Snowbird Destination
Many retirees and seasonal travelers, known as snowbirds, migrate to Texas during the winter months, creating a demand for RV park accommodations.
Investing Nationwide, Not Just in Texas
Nationwide Portfolio
Our fund invests in RV parks across the United States, not just in Texas. We seek opportunities in diverse locations to provide investors with geographical diversification.
Year-Round Occupancy
We focus on acquiring RV parks that maintain occupancy of at least 6 months per year, ensuring stable and consistent cash flows for our investors.
Avoiding Seasonal Markets
We carefully avoid RV parks located in cold climates or highly seasonal tourist destinations to minimize the risk of significant occupancy fluctuations.
Average Rents Per State
Zoning and Approvals
Zoning Complete
Zoning, city approvals, and permits are 100% complete because the fund generally buys existing parks.
Half Built, Half Full
The acquired parks are typically half built and half full, with no online advertising or booking.
Improvement Potential
This presents an opportunity for improvements and growth in occupancy and revenue.
Project Timeline

1

Stabilization
The first plan of attack is to stabilize the park, fix what's broken, and turn things around.

2

Phase 1 Improvements
In the first year, the focus is on fixing low-cost, deferred maintenance items.

3

Phase 2 Improvements
In year 2, upgrades, repairs, and installation of more spaces for park-goers are typically undertaken.

4

Phase 3 Improvements
Phase 3 improvements, usually after year 3, involve beautifying the park and making it more appealing.
Project Timeline Duration
Typically, the project timeline spans 4-7 years, with 5 years being the most common duration.
Debt Terms and Loan Assumptions
At Wise Choice, the fund only pursues deals with park sellers that offer terms or seller financing. Often, the only money paid to the seller at closing is to pay off an existing loan or provide moving funds.
All-In Cost
Each park's all-in cost varies, but generally, 30% of the funds raised go to the seller, and the remaining portion is allocated for park improvements.
Skin in the Game
Brian Rice, Shane Thompson, and his Trust have invested $360,000 of their own capital to acquire RV parks through the fund.
Improvements
For current offering a final builder is in the process of being selected by the local partner to the parks. Two builders are currently bidding on the project to ensure top-tier execution and construction standards. The builder will change based on the state and park location for future deals.
Property Management
Wise Choice and its partners have selected Outdoor Hospitality as the onsite management company for the RV parks.
Investment Options
Direct Investment
Invest directly as a Limited Partner through the Wise Choice Investor Portal.
Schedule a Meeting
Book a Zoom meeting with the Wise Choice team to answer any final questions.
1031 Exchanges
At this time, Wise Choice Fund LP cannot permit 1031 exchanges into the fund. This option may be available in the future.
Retirement Account Investments
Investors can invest through retirement accounts such as self-directed IRAs and solo 401(k)s, as long as the funds are available for investment discretion and can be deployed in a timely manner.
Investment Period
The investment period is estimated to be 4-7 years, with buyout opportunities available.
Minimum Investment
The minimum investment for Class A Limited Partners is $50,000, earning a minimum 8% return with a 40/60 waterfall preferred equity split.
Fees

1

Marketing Fee
1%

2

Asset Management Fee
2% of equity raised

3

Acquisition Fee
2% of total invested

4

Legal and Accounting
1%

5

Disposition Fee
2% of sale price at the final sale
Limited Partner/General Partner Split
Class A Members
$50,000 or more initial investment, earn 8% with a 40/60 preferred equity split.
Class B Members
$100,000 or more initial investment, earn 10% with a 60/40 preferred equity split.
Class C Members
$250,000 or more initial investment, earn 12% with an 80/20 preferred equity split.
Investment Tiers
Details on the project's investment tiers were not provided in the input.
Anticipated Returns
Returns will vary per investments with ranges of 1.5-3.5 times the funds invested over an average of 5 years.
Depreciation Benefits
The U.S. Congress is considering legislation affecting bonus depreciation rates for real estate projects, impacting projected returns. If proposed changes pass, bonus depreciation will be 80% in 2026. Without changes, it will decrease to 20% in 2026 and phase out thereafter. Limited partners (LP) receive 75% of the project's depreciation benefits. The initial Certificates of Occupancy (COs) are anticipated at the end of 2025, thus depreciation is projected to be reflected in 2026 K1's.
Distribution Commencement
Given the focus on stabilization first, distributions will not commence until the second quarter after an investor's investment in the fund, and well on a path towards stabilization. The majority of investor returns will be earned in Years 2-4.
Cap Rates
The fund is generally acquiring parks at cap rates around 10-15%, with the expectation that the cap rate will decrease as the park's value is raised through improvements and stabilization.
Exit Cap Rate
The exit cap rate is lower than the build-to cap rate because it is based on the anticipated market conditions at the time of exit. A lower exit cap rate suggests that the property's value is expected to appreciate over time, which can lead to a higher return on investment when the decision to sell or refinance is made.
Average Rent Assumptions
The average rent assumptions are park rents that get $40 - $60 per night upon acquisition. With stabilization and value-add improvements, the fund seeks to improve those nightly rentals with dynamic pricing and more amenities pushing rents to the 55-105$ depending location and amenities.
FAQ Continued (click here)