Fund 6
A CashGrowth Fund from Brandon Turner
An investment that focuses on immediate cash flow for investors – while also maximizing equity growth during changing market cycles.
A Different Kind of Fund
Investment Summary & Highlights
Mobile home parks (MHPs) are a recession resistant investment class with relatively low vacancy rates, CapEx, and repair expenses.
MHPs possess significant value-add opportunities through park infill, utility back-billing, expense management, and rent increases.
Two different investment options to fit your needs:
• Class A: 10% preferred return with limited upside
• Class B: 7% preferred return + profit splits, yielding a targeted 14-20% AAR.
$40M, 506(c) Fund open to accredited investors only.
Diversified portfolio across multiple assets and markets to minimize risk and maximize opportunities for investors.
Senior management with extensive expertise in real estate investing, property management, asset management, business-strategy, and acquisitions.
The goal: purchase 5-10 mobile home parks, execute our business plan over a 5-10 year hold, then exit after adding significant value.
The targets above are intended for illustrative purposes only to facilitate analysis and are not guaranteed by Sponsors as there are no assurances these targets will be met. These targets are based on past mobile home park metrics, past performances, and past experiences of the Sponsors in the mobile home park space. Sponsors make no representations or warranties that any investor will, or is likely to, attain the targets shown above since hypothetical or simulated performance is not an indicator or assurance of future results. Please review the financial disclaimers on page 3 and Risk Factors in the PPM.
Offering Specifics
INVESTMENT TYPE
506(c) Reg D CashGrowth™ Fund from Brandon Turner - accepting investments from Accredited Investors only.
ASSET CLASS
Mobile Home Parks (MHPs)
INVESTMENT STRATEGY
Purchase 5-10 mobile home parks across multiple markets, hold for 5-10 years, then exit after adding significant value. This is primarily accomplished by increasing occupancy, improving management, back-billing utilities, and increasing rents.
PROJECTED HOLD PERIOD
5-10 years
MINIMUM INVESTMENT
$100,000
CLASS A STRUCTURE
Earn a cumulative 10% preferred return with limited upside upon disposition of the Properties, but with strong cash flow and reduced risk compared to Class B.
CLASS A TARGETED RETURNS
10% AAR, 10% annual cash-on-cash upon closing of the last Property within the fund.
CLASS B STRUCTURE
Earn a cumulative 7% preferred return, but also participate in the profits upon disposition of the Properties. Profit split above preferred return is 70% LP / 30% GP until Class B member achieves a 15% IRR, then profits are split 50% LP / 50% GP. This share class has a lower preferred return, but provides greater profit participation upon disposition relative to Class A shares. Please reference the PPM for the full waterfall details.
CLASS B TARGETED RETURNS
14-20% AAR, 7-10% annual cash-on-cash as properties are stabilized.
DISTRIBUTION TIMING
Quarterly
TAX ADVANTAGES
Cost segregation studies will be performed, allowing investors to benefit from bonus and accelerated depreciation.
Tiered Equity Structure
Open Door Capital’s Two-tiered Return Structure provides multiple options for investors to accomplish their personal investment goals.
Investors have the opportunity to invest in Class A or Class B and can also split their investment between both Classes, allowing for a blended risk-adjusted return.
Class A vs Class B
Class A Limited Partner
Class A Limited Partners earn a cumulative 10% preferred return with limited upside upon disposition of the Properties, but with strong cash flow and reduced risk compared to Class B.
Class A investors are senior to all other equity in the fund, meaning they receive their full 10% preferred return before distributions are made to any other equity members.
This share class is for investors who prefer strong early-year cash flow and less risk.
Class B Limited Partner
Class B Limited Partners earn a cumulative 7% preferred return, but also participate in the profits upon disposition of the Properties.
Upon a liquidity event (sale or refinance), after all outstanding debts have been paid and Class A members have received their full preferred return and their outstanding capital, Class B Limited Partners will split proceeds 70% LP / 30% GP after their preferred return until they achieve a 15% IRR, at which point the split shifts to 50% LP / 50% GP.
This share class is for investors who are seeking to maximize their returns, but are ok with lighter early-year cash flows and relatively higher risk compared to Class A.
WHAT ARE YOUR GOALS?
Who is OPEN door capital?
