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.
Problems in the RV Market
Overcrowding
The image depicts the overcrowding issues faced in the RV market, with RV parks becoming increasingly cramped and lacking adequate space for individual units.
Aging Inventory
The image illustrates the problem of aging and deteriorating RV inventory, with many units on the market being outdated and in need of significant repairs or replacement.
Underwriting Model
1
Proprietary Model
Our underwriting models are proprietary, so we do not provide excel files.
2
Detailed Walkthrough
However, we have recorded a detailed walkthrough of the model that explains all of the project's assumptions, estimates, and anticipated returns.
General Strategy
1
Acquire Parks
The General strategy is to acquire parks using creative financing with seller carry portions.
2
Stabilize
After acquiring the parks, the next step is to stabilize them.
3
Build Out
Once stabilized, the strategy involves building out the parks.
4
Sell for Profit
The ultimate goal is to sell the built-out parks in the future for a 2-5X multiple.
Funding Timeline
1
Document Submission
Investors are requested to fund their investment within 10 days of document submission and confirmation by the Wise Choice Fund Team of their spot in the fund.
2
Accreditation Process
This timeline includes the investor accreditation process (instructions in the investor portal) before wire instructions are provided via the portal.
3
SD IRA Investors
Investors undertaking an investment via a SD IRA that require time to work with their custodians have an additional two weeks to fund if needed.
Investor Demand
Exceeding Available Equity
It is important to note that Wise Choice accepts investments on a first to fund basis. Should investor demand exceed the amount of equity available, a waitlist will be established.
Waitlist Priority
Investors' place on the waitlist is based on the timestamp of document submission, with priority given to those who submit documents first.
Replacement Process
Should investors in the deal not fund within the allotted time period, they will be removed from the deal and replaced with an investment on the waitlist.
Investor Liability
Capital Contributions
Investors' liability generally will not exceed the amount of its Capital Contributions.
Undistributed Profits
Investors' liability also includes their share of any assets and undistributed profits of the Partnership.
Contractual Obligations
Investors' liability extends to their obligation to make other payments expressly provided for in the Limited Partnership Agreement.
Wrongful Distributions
Investors' liability includes the amount of any distributions wrongfully distributed to them.
Tax Treatment
Tax Advisor Recommended
Wise Choice Fund is not a tax advisor. Wise Choice recommends investors reach out to their tax advisor to understand the tax impact of the investment.
K-1 Reporting
Investors will receive a K-1 (anticipated to be provided by March 31st following each year in which profits or losses are earned) securely uploaded to their investor portal.
1031/TIC Participants
Currently Wise Choice Fund does not support 1031/TIC participants at this time.
Investor Reporting
1
Transparency Commitment
Wise Choice Fund is committed to transparency throughout the investment period.
2
Quarterly Updates
Investors can anticipate 4 written updates each year.
3
Zoom Meetings
Additionally, there will be 2 zoom meetings hosted by management.
4
Comprehensive Information
These updates provide valuable information, including stabilization progress, project expenditures, market fundamentals, new supply, and transaction activity.
Investor Portal
1
Login
To start an investment, please login to the Wise Choice Investor Portal.
2
Investment Information
Follow the prompts to fill in your investment information and electronically sign documents.
3
Spot Confirmation
Once your spot is confirmed, the next steps will be to verify your accredited status (guidelines are in the portal).
4
Wire Instructions
Upon completion of verification, the wire instructions will be supplied securely within the portal. Your funds are due in the bank within 10 days of spot confirmation.
5
IRA Investors
If you are funding via IRA, you can have an additional 10 days if needed to work with your IRA company.
Contact Information
Investor Relations Team
For Documentation, Investment Process or Investor Portal Questions: support@wisechoicefund.com
Offering Document
Disclaimer
Investment Process
1
Investor Interest
The process begins with investors expressing interest in the Wise Choice Fund LP.
2
Due Diligence
Investors are encouraged to conduct thorough due diligence, reviewing the offering documents and consulting with their financial advisors.
3
Document Submission
Once satisfied, investors can submit their investment documents through the secure investor portal.
4
Accreditation Verification
The Wise Choice Fund team will then verify the investor's accredited status and confirm their spot in the fund.
5
Funding
Investors will receive wire instructions and are expected to fund their investment within the specified timeline.
6
Reporting and Updates
Once invested, investors will receive regular updates on the fund's performance and progress.
Investment Opportunities
RV Park Acquisitions
The Wise Choice Fund LP focuses on acquiring undervalued RV parks across the United States.
Value-Add Strategies
The fund employs value-add strategies, such as renovations, expansions, and operational improvements, to increase the parks' profitability and value.
Potential for High Returns
By leveraging their expertise and proprietary underwriting models, the fund aims to generate attractive returns for its investors.
Risk Management
Diversification
The fund diversifies its investments across multiple RV parks, mitigating the risk associated with any single asset.
Thorough Due Diligence
Rigorous due diligence is conducted on each potential acquisition, ensuring a comprehensive understanding of the risks and opportunities.
Conservative Underwriting
The fund employs conservative underwriting practices, incorporating appropriate risk premiums and stress-testing assumptions.
Experienced Management
The fund is managed by a team of seasoned professionals with extensive experience in the RV park industry and real estate investing.