Why Invest with BoaVida?

We always put our investors first: Investors get paid first. Investors receive 100% of the income remaining after overhead until all the original investment is returned. Only after the investors’ original investment is returned does the company participate in the split of profits.

We put our money where our mouth is: The principals of The BoaVida Group always invest their own capital alongside investors, making a significant co-investment inside the fund.

We spread opportunity within the company: The company culture is built on sharing opportunity with employees. Key team members have opportunities to share in the profits of the projects in which they are directly involved, making investor success their success and giving them an opportunity to build personal wealth.

We understand the downside and don’t take unnecessary risks: The principals of The BoaVida Group invest heavily in the due diligence of each property. We purchase at the right price and allocate enough capital to stabilize properties, creating value within a five-year period.

We follow the 11th commandment: Do not take thyself too seriously.

Typical Deal Structure
The BoaVida Group puts its investors first with fund investments typically following this structure:

Class A Shares (Fund)

  • Ownership: 50%
  • Distributions: 100%     until all of investment is returned plus a 5% annual preferred return
  • Profit Share: 50%
  • Preferred Return: 5%
  • Target IRR: 15%

Class B Shares (The BoaVida Group)

  • Ownership: 50%
  • Distributions: 0%     until investors receive all of their investment plus a 5% annual preferred return
  • Profit Share: 50%
  • No Fees: Creates strong alignment with investors

Here's a property from BoaVida's portfolio:

Hanahan
Hanahan Portfolio
Hanahan, SC
Acquired: January, 2020
Acquisition Price: $6,010,000
Spaces: 116
Target IRR: 16.07%
Highlights of BoaVida Investments

The BoaVida MH/RV Fund 2019:

  • $135.75 million asset value (as of February, 2020)
  • 3,531 total spaces owned by the Fund
  • 36 parks in the Fund (one investment, many properties!)
  • $61 million total equity raised in the Fund
  • 15% targeted IRR

List of BoaVida 2019 Fund Properties
The BoaVida 2020 Fund LP is projected to achieve similar results as the 2019 Fund.

Highlights of BoaVida Fund

Highlights of BoaVida Fund

Here's a property from BoaVida's portfolio:

Silver State Mobile Home Park
Silver State MHP
Carson City, NV
Acquired: November, 2019
Acquisition Price: $5,500,000
Spaces: 80
Target IRR: 13.14%
A Real Investor’s Story

This is Bob from Davis, California. He was one of the earliest BoaVida investors, investing $2.1 million in eight parks between 2009 and 2012. Between 2012 and 2019, his cash distributions and proceeds of more than $8.0 million were reinvested into another 26 parks.

Original investment: $2,128,000
Total distributions: $8,407,000
Investor equity: $12,720,000
Cash-on-cash: 33%
IRR: 28.4%

In 2019, Bob’s distributions from park operations and equity refinances totaled more than $2.5 million and $0 in federal tax.

Here's a property from BoaVida's portfolio:

Blue Ridge Mobile Home Community
Blue Ridge MHC
Kansas City, MO
Acquired: April, 2019
Acquisition Price: $5,300,000
Spaces: 174
Target IRR: 18.93%
The BoaVida 2020 Fund Returns

The goals: Acquire a national portfolio of mobile home and RV properties with an initial asset value of $120 million and increase the asset value to $200 million within 5 years. Deliver an average investor IRR of 15% by buying right, adding value and operating properties long term.

Targeted equity raise: $40 million
Targeted asset value: $120 million
Acquisition period: 12 months
Targeted return of Capital: 60 Months
Holding period: Cashflow in perpetuity
Targeted investor IRR: 15%

Investment Structure & Projected Returns

Projected Cash-on-Cash Returns

  • BoaVida projects investors will receive a cash return of approximately 5% during the first year while the initial stabilization process is undertaken.
  • After the first year, BoaVida projects cash distributions will increase by 2% per year.
  • BoaVida anticipates refinancing the assets by Year 5 with additional loan proceeds providing enough cash to fully return the initial equity investment plus the 5% preferred annual return.
  • Then, with all investor capital returned and nothing at risk, investors will continue to receive income year after year.

Here's a property from BoaVida's portfolio:

Carriage Court
Carriage Court MHP
Winnemucca, NV
Acquired: December, 2019
Acquisition Price: $3,000,000
Spaces: 100
Target IRR: 17.46%
The tax shield | A 1031 Exchange alternative

The tax write-off from mobile home parks far exceeds all other types of real estate investments including office, commercial and apartments.

  • The Tax Cuts and Job Act of 2017 provides extremely favorable treatment for mobile home parks
  • 2020 Fund investors are expected to receive 125%-175% write-off on their investment in the first year
  • This tax shield benefits investors with passive income and can also be carried forward in subsequent years
  • The tax shield can also be used as a more favorable alternative to a 1031 Exchange

Bonus Depreciation as a tax shield or 1031 Exchange alternative for investors:

An investment of $3.5M can yield a $7,518,181 write-off in year 1
75% of the purchase price for a mobile home park can be depreciated in year 1
The Tax Cuts and Jobs Act of 2017 allows an investor to take a bonus depreciation on 20-year assets in the first year of ownership and carry forward any loss not used.

BoaVida Tax Shield ChartBonus depreciation will show as a loss on your K-1 and will count as a loss against other passive income. The amount of depreciation credit allocated to BoaVida Fund investors depends on several factors. However, for tax planning purposes, we anticipate fund investors will receive a passive loss in 2020 equal to 130% of their initial cash investment.

Here's a property from BoaVida's portfolio:

Karcher Mobile Home Park
Karcher MHP
Nampa, ID
Acquired: October, 2019
Acquisition Price: $7,500,000
Spaces: 151
Target IRR: 15.28%
BoaVida’s core business functions

ACQUISITIONS

BoaVida’s acquisition team focuses on finding the right parks in the right markets that deliver great risk adjusted returns for investors.

Deal Sourcing: BoaVida utilizes its extensive relationships with industry owners, operators, brokers and specialists to source the acquisition of assets

Deal Underwriting/Evaluation: The acquisitions team evaluates hundreds of properties yearly to find desirable opportunities for the Fund

Debt: Long-term loans come from multiple regional and national lenders that view BoaVida as a safe, secure company

Competitive Advantage: BoaVida’s superior reputation and ability to pay cash gives the Fund a huge advantage when competing against multiple offers

STABILIZATION

BoaVida specializes in stabilizing parks within the first few years of ownership.

Improve Infrastructure and Aesthetics: Replace signage, improve landscaping, update clubhouse, remove old homes, repair or replace roads, etc.

Reduce Expenses: Install water meters, and pass through utility expenses at each property (water, sewer, electric, gas, trash)

Increase Income: Repair and fill any vacant homes, fill empty spaces with brand new homes, raise rents to market rates, utilize sales team specialized in filling vacant spaces and renting or selling vacant homes

PROPERTY MANAGEMENT

BoaVida utilizes in-house property management and best-in-class third-party property management.

Day-to-day responsibilities of rent collection and tenant interaction

Operate properties to meet or exceed underwriting guidelines set forth during the purchase of the property

Build community by providing safe, clean and friendly neighborhoods that create good value for people from all walks of life to grow and thrive

Here's a property from BoaVida's portfolio:

Beaver Run
Beaver Run
Linkwood, MD
Acquired: July, 2019
Acquisition Price: $4,750,000
Spaces: 119
Target IRR: 16.15%
Why manufactured housing?

Invest in the smartest (but maybe not the sexiest) real estate asset:

  • Strong appreciation – smart!
  • Strong in a down economy – smart!
  • Strong tax advantages – smart!
  • Strong cash-flow, 15% IRR – smartest!

Land Ownership: BoaVida is in the business of renting lots. This leads to significantly reduced maintenance expenses when compared to renting buildings.

Low Tenant Turnover: 5-7+ years of occupancy, compared to apartments at 1 year on average. The high cost of moving mobile homes leads to an extremely stable tenant base.

Demand for Affordable Housing: Nearly one-third of American households earn less than $34,000 per year. Households are considered cost-burdened when they spend more than 30% of their income on rent and utilities, which means monthly rents should be less than $875. The average manufactured housing lot rent is half this amount allowing for significant long-term stable rental growth.

Significant Tax Benefit: The 2017 Tax Cuts and Jobs Act created a unique opportunity for mobile home parks, allowing 75% of the acquisition price to be depreciated as bonus depreciation in the first year.

Highest Return of Any Real Estate Asset Class: “From the March 2009 stock-market bottom, shares of big mobile-home park owners Sun Communities Inc. and Equity LifeStyle Properties Inc. have returned a tech-like 4,137% and 1,186%, respectively, counting price changes and dividend payments.”
- Wall Street Journal, This Stock Has Returned 4,100% Since the Housing Crash. Dezember, R. (February 25, 2020)

Fighting the affordable housing shortage in the United States. By the numbers:

  • 22 million - People living in manufactured homes
  • $34,000 - Average household income for owners/tenants in manufactured homes
  • $780 vs. $1,189 - $780 average monthly cost for a manufactured home payment plus lot rent vs. $1,189 average for a 2 bedroom/2 bath apartment rental
  • 44,000 - Land-lease communities nationwide
  • 4.2 million - Estimated home sites
  • Fewer than 10 - New manufactured homes communities built each year
  • 3% - National average annual site rent increase

Why Manufactured Housing?

Here's a property from BoaVida's portfolio:

Green Acres Mobile Home Park
Green Acres MHP
Fresno, CA
Acquired: March, 2019
Acquisition Price: $5,000,000
Spaces: 112
Target IRR: 18.34%
Next Step
Take the next step toward becoming a BoaVida investor. Learn more here.

Property Locations

Properties in Common Ownership BoaVida Group Properties
BoaVida 2019 Fund Properties
BoaVida 2020 Fund Properties