E03: A Battle of Alternative Investments: Vineyards with Keeley Hubbard vs Outdoor Hospitality with Adam Lendi & Justin Hoggatt

Discover 2 unique ways to generate how two investors are generating cash flow and long-term returns through alternative investments in vineyards and outdoor hospitality. Keeley Hubbard of Hubbard Capital Group syndicates Texas vineyards to fill the supply gap for Texas wineries, while Adam Lendi & Justin Hoggatt of Happy Camper Capital syndicate outdoor hospitality properties like campgrounds and RV parks. Here are some heavyweight takeaways from today’s conversation: [03:41] - Keeley Hubbard’s background and how she runs a business with family [06:54] - Adam Lendi & Justin’s background in campground deals [14:02] - What is outdoor hospitality investing? [18:30] - The ideal investors for each [25:48] - The unique risks in vineyard investing [31:17] - Investor returns [32:08] - The benefits of vineyard investing [34:07] - The risks involved in these types of investments   Episode Highlights: [13:47] Vineyard Investments vs. Campground Investing Keeley Hubbard discussed how they syndicate Texas vineyard investments. The key points were: They are filling the large supply gap for Texas wineries since Texas only produces about half the grapes needed for the wine demand. They use mechanized vineyards to reduce costs and increase profit margins. This allows them to offer higher returns to investors. Investors have a longer horizon of 10+ years since it takes 4-5 years for the vines to mature and start generating revenue. But after that, the vineyards will cash flow for 20-25 years. They raise around $7-7.5 million per vineyard block and offer investors returns over 250% over 10 years plus 16-18% annual cash flow for years 15-25. Adam Lendi Lindy and Justin Hoggatt Hoggett discussed how they syndicate their campground and RV park deals. The key points were: They focus on the business performance and revenue streams to increase property values and cash flow. They manage the properties themselves through their operating company to have more control and maximize performance. They recently launched a $25 million fund to purchase multiple properties and diversify cash flows. Minimum investment is $100,000. They target returns of around 15% cash on cash and 2.2-3x equity multiple over their 5 year hold period. [14:40] Unlocking the Potential of Vacation Destination Properties In this model, you prioritize catering to transient guests who stay for less than 30 days. The main focus revolves around vacation destination properties, as they offer unique advantages over long-term residences. While some may prefer the security of a campground filled with long-term tenants, maximizing the number of nightly stays leads to significantly higher revenue per night. Moreover, there are additional revenue streams that may accompany your core offerings. Investing in the hospitality industry is not only exciting but also brimming with opportunity. However, it's important to note that navigating this space requires intricate and meticulous underwriting processes to ensure success. [32:08] Refinancing Flexibility From Vineyard Investing Unlike many other investments that require refinancing, vineyard investing offers more flexibility. Refinancing typically occurs around year eight, allowing time for the investment to mature. If interest rates are above 8%, investors can choose to maintain the existing financing terms, ensuring the investment continues to generate cash flow in double digits. Investing in vineyards provides an opportunity for long-term growth and financial stability.   Resources Mentioned: Hubbard Capital Group Happy Camper Capital