THE UNICORN: THE RECESSION RESISTANT INVESTMENT.

[vc_row][vc_column][vc_column_text]The Great Recession officially lasted from December 2007 to June 2009 and had immediate and lasting negative financial impact on households and the broader markets.  The economy bottomed out, crushing the real estate and stock markets, destroying $18.9 trillion of household wealth and wiping out more than eight million jobs.  Investors heavily invested in the stock market through investment and retirement accounts saw their portfolios wiped out almost overnight.

In a recession, consumer and business confidence plummets leading to weakening employment, falling real incomes, and weakening sales and production. On a personal level, people lose jobs and homes.  A plummeting economy leads to plummeting stock and real estate prices and as a result plummeting net worth.  Those invested in certain real estate sectors such as flipping and commercial real estate see their income drop as demand and prices for homes and commercial space drop.[/vc_column_text][gem_quote style=”4″ no_paddings=”1″]For the first time, the S&P 500 ended every single month of a calendar year with a gain. So how long will this last?[/gem_quote][vc_column_text]The drop in stock and real estate prices from the Great Recession is widely known.  What is not as widely known is the effect on the affordable housing market.  Affordable housing becomes even more in demand during times of economic hardship.  As more people lose jobs and homes, the demand for affordable rental homes goes up.  The renter share of all US households jumped from 31 percent in 2004 to 35 percent in 2012 with that share projected to grow even more over the next ten years.  Since the Great Recession, supply has outstripped demand for affordable housing and that gap is currently growing and is projected to grow in the foreseeable future. America’s Rental Housing – Evolving Markets and Needs (2013), Joint Center for Housing Studies of Harvard University.

Even in the midst of the current recovery, demand for affordable housing continues to outstrip supply.  Another recession will only make this gap wider as the number of low income renters will increase.  And in no other affordable housing sector will this gap between supply and demand be wider than in the mobile home sector.  New mobile home parks just aren’t being developed.  “There are 8.6 million mobile homes in the United States, according to a 2013 U.S. Census Bureau report. That number is not likely to grow…given restrictive zoning laws and the prohibitive cost of building a new park.., meaning supply is static even as demand for cheap places to live is high.”   Gary Rivlin (Mar. 13, 2014), The Cold, Hard Lessons of Mobile Home U., www.nytimes.com.

With stagnant supply, a recession will only increase demand in mobile home parks, which makes an investment in a mobile home park appealing. In addition to being recession resistant, mobile home parks are also highly profitable with same site net operating income growth exceeding all other forms of commercial property since 2000 as demonstrated by the graph below.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

As an affordable housing option, mobile home parks are not only recession resistant but the high-yields make it a very attractive investment for savvy investors. That is why we invest in mobile home parks.[/vc_column_text][/vc_column][/vc_row]

DISCLAIMER

This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein.

THE OFFERING IS MADE ONLY BY THE PRIVATE PLACEMENT MEMORANDUM. THIS MATERIAL MUST BE READ IN CONJUNCTION WITH THE PRIVATE PLACEMENT MEMORANDUM IN ORDER TO UNDERSTAND FULLY ALL OF THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES ASSOCIATED WITH AN INVESTMENT IN THE SECURITIES TO WHICH IT RELATES AND MUST NOT BE RELIED UPON TO MAKE AN INVESTMENT DECISION.

The offering of securities described herein will not be registered under the Securities Act of 1933 (the “Securities Act”) or the securities laws of any state and the securities are being offered and sold in reliance on exemptions from the registration requirements of the Securities Act and such laws. Neither the Securities and Exchange Commission nor any other federal or state agency has passed upon the merits of or given their approval to the offering of the securities, the terms of the offering or the accuracy or completeness of the offering materials. The offering of securities is being made only to Accredited Investors, as defined in Rule 501(a) of Regulation D of the Securities Act. An investment in the securities is highly speculative and involves substantial investment and tax risks. All prospective investors must review the Private Placement Memorandum in its entirety, including the section entitled “RISK FACTORS” before investing.

An investment in Four Peaks Capital Partners, LLC is highly speculative and involves substantial risks, including, but not limited to: (1) Four Peaks Capital Partners, LLC success depends upon the performance of the Manager in managing Four Peaks Capital Partners, LLC and its investments, including decisions involving investment of Four Peaks Capital Partners, LLC’s capital and the acquisition and disposition of properties and there is no guarantee Four Peaks Capital Partners, LLC will raise enough capital to perform its investment objectives; (2) There can be no assurance that a prospective investor will receive any return on investment in Four Peaks Capital Partners, LLC and/or realize any profit on a prospective investor’s investment in Four Peaks Capital Partners, LLC and a prospective investor could lose all or a substantial portion of its investment; (3) The Manager has limited or no net worth and there can be no assurance that the Manager will have sufficient funds to meet its obligations to Four Peaks Capital Partners, LLC or to otherwise financially support Four Peaks Capital Partners, LLC; (4) The Class A members and Class B members have no power to take part in the management of Four Peaks Capital Partners, LLC and have limited voting rights and will not have the opportunity to evaluate or approve any of Four Peaks Capital Partners, LLC’s investments; (5) The Class A Interests and Class B Interests will be illiquid, and the transferability of the Class A Interests and the Class B Interests will be substantially restricted; (6) Four Peaks Capital Partners, LLC may not have the cash flow necessary to make distributions to its members; (7) Four Peaks Capital Partners, LLC will not diversify its investments and, therefore, the success of Four Peaks Capital Partners, LLC will be dependent upon the success of the properties; (8) There are substantial risks associated with real-estate investments and ownership of storage facilities and mobile home parks; (9) There are various potential conflicts of interest among the Manager and its Affiliates and their principals.
Investors must read and carefully consider the discussion set forth under the section entitled “RISK FACTORS” in the Private Placement Memorandum for a complete discussion of these and other risks pertaining to this investment.

These projections are speculative and based on specific assumptions, which, if incorrect, would cause the actual returns to differ materially from the projected returns. You should review the entirety of the assumptions and risks set forth in the Private Placement Memorandum.

Any underlying assumptions and any forward-looking statements herein may not be accurate, the projections herein shown may not occur, and actual results could differ materially due to risks and uncertainties that are beyond the Company’s ability to control or accurately predict. To the extent, the information in this communication conflicts with the information in the Private Placement Memorandum, the information in the Private Placement Memorandum shall govern.

The securities offered are an illiquid investment and involve a high degree of risk; Investors should be able to bear the loss of some or all of their investment. Investors should read and understand all of the risks and the entire Private Placement Memorandum before making a decision to invest. Past performance is no indication of future results and there can be no assurance that Four Peaks Capital Partners, LLC will be able to execute the investment objectives for the Properties or the Offering.

This material is for general information purposes only and does not constitute legal, tax, investment or other professional advice on any subject matter. Information provided is not all-inclusive and should not be relied upon as being all-inclusive.
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