Goodegg Growth Fund II Investment Opportunity Note: Investments will be taken on a first-funded basis. Welcome Hello there! On behalf of the entire Goodegg Investments team, we’re glad you’re here, and we’re excited to share with you our latest investment opportunity – Goodegg Growth Fund II. Goodegg Growth Fund II is your opportunity to invest alongside us in 2 select-service hotels in Kentucky – just 5 minutes outside Fort Knox – one of the largest military bases in the country. This unique location allows us to capture hotel stays from government contractors, military personnel, and other business travelers. Goodegg Growth Fund II is open to all investors – whether you’re accredited or not – with a minimum investment of $10,000. The goal for Goodegg Growth Fund II is to provide you an opportunity to diversify your portfolio through cash-flowing hotels in a solid and stable market. The Opportunity We will be acquiring 2 select-service hotels in Radcliff, KY, just outside of Fort Knox – Candlewood Suites (83 rooms, built in 2010) and Holiday Inn Express (63 rooms, built in 2007). Located just 5 minutes from Fort Knox, these hotels are in an ideal location to serve government contractors, military personnel, and business travelers. We will be assuming the in-place fixed-rate debt, further mitigating our risk. ✅ Rated 4.5 Stars On Tripadvisor Both hotels are currently rated 4.5 stars on Tripadvisor, across hundreds of reviews. What that tells us is that, not only are the properties seeing high demand and high occupancy, but they are operated with a level of efficiency and service that keeps guests happy and coming back for additional stays. ✅ $2.5M Renovation A significant franchise-required property renovation is currently underway at Candlewood Suites and is slated to be completed by the time we close on these assets. That means that we are acquiring these assets with upgrades and modernization already in place. ✅ Low Fixed-Rate Debt We will assume the in-place loan, which has a low 50.87% LTV and is at a fixed interest rate of 5.19% – far lower than what we could get in the market today. Further, the loan has another 9 years on the term, thus giving us ample time for our buy-and-hold business plan. Investment Snapshot & Projected Returns Goodegg Growth Fund II is open to all investors, with the following projected returns: Goodegg Growth Fund II Minimum $10,000 Preferred Return 8% LP / GP Split 70 / 30* Equity Multiple 1.7x - 1.9x Distributions Quarterly *Up to 13% IRR, then 50/50 thereafter Why Select-Service Hotels Select-service hotels are hotels that offer limited amenities and are often geared toward business travelers and those looking for longer stays. Unlike full-service hotels, select-service hotels typically don’t have a full on-site restaurant, spa, or any of the other luxury amenities that can be quite costly to operate. What makes select-service hotels such a great investment is that they are efficient and cost effective, and they are much more resilient and less susceptible to the ups and downs of seasonal and leisure travel, especially when they’re in key locations. Select-service hotels allow us to maximize efficiencies while also offering key amenities that are focused on business travelers. Throughout the pandemic, select-service hotels have continued to see strong and growing demand, and we anticipate that demand will continue to rise in coming years. Why We Love These Hotels These two select-service hotels are fully stabilized, with historically strong performance and are located in a high traffic area near one of the largest and most well-known military bases in the country. This, combined with the in-progress development of the $5.8B Ford factory, diverse range of local economic drivers, and high transportation connectivity ensure that these hotels will continue to see consistent demand and strong performance. Why Fort Knox Just up the road from both hotels is Fort Knox Military Base, home to 18 different military commands, each with a significant need for training, relocation, and strategy meetings, thus creating consistent year-round hotel demand. Further, Ford just broke ground in late 2022 on a $5.8B factory nearby, which will be one of the largest battery plants in the country and bring over 5,000 jobs to the area. At Goodegg Investments, we’re extremely proud of our strong track record and our commitment to maintaining the highest standards when it comes to managing the assets in our portfolio. Strong Track Record Of Success While past performance is not indicative of future results, it can certainly give you important info about the strength of the operating team and their ability to deliver on projected returns. Together with our investors, we’ve acquired 40 commercial real estate assets valued at $1.3B+ over the last 5 years with 20 assets that have successfully exited. Of those, our most recent hotel assets have produced an average of 11.3% cash-on-cash return for our investors in 2022. To learn more about the assets in our overall portfolio, visit the Portfolio page on our website. Goodegg Gives - Meaningful Impact Through Your Investment In addition to giving you a great opportunity to protect and grow your capital, Goodegg Growth Fund II will also help you to create meaningful impact in local communities and around the world. When you invest in Goodegg Growth Fund II, you’re contributing to Goodegg Gives – a program where we donate a portion of our proceeds to support worthy causes around the world – all without any impact to your investment returns. To date, Goodegg Gives has donated over $55,000 to support nonprofits in the areas of: Fighting human trafficking Supporting women, children, and families Cultivating financial literacy Advancing equity, creativity, and entrepreneurship FAQs How does Goodegg Growth Fund II compare to other investment offerings? The general investment structure for each investor is very similar to that of our current and previous offerings. As an investor, you can expect to receive a preferred return plus a percentage share of cash flow going forward for the overall fund. The main distinction is that, unlike previous funds, Goodegg Growth Fund II is open to all investors – whether you’re accredited or not – at a minimum investment of $10,000. This structure allows as many people as possible to participate in and benefit from this opportunity. Please also note that the projected returns for Goodegg Growth Fund II are identical to the Class B returns for Goodegg Hotel Fund I (which is only open to accredited investors at a $50k minimum). -- Who will be the interested buyer(s) for asset after the hold period? As with our prior investments, there are two types of buyers who will be attracted to these hotels after the hold period and once we execute on the business plan – (1) other private syndication groups like ours and (2) institutional buyers. Plus, because we are purchasing a portfolio of 2 hotels, we have the option to sell them together or separately, thus further expanding the buyer pool. Having multiple exit strategies and multiple potential buyer groups in mind from the start of the project means that we know exactly what our end goal is and thus can execute on the business plan efficiently. Further, it gives us maximum flexibility while minimizing risk. -- What type of financing are we getting on Goodegg Growth Fund II? We plan on assuming the in-place debt, which features a current LTV of 50.87%, a fixed interest rate of 5.19%, and 9 years of term left on the loan. This fixed interest rate is very much below market in the current economic climate and limits our risk of further interest rate increases, which have negatively affected many commercial real estate properties in recent months. -- Is this investment eligible for 1031 exchange? No. This investment is not set up to take funds from a 1031 exchange. If you are considering selling your property, it might help to know that, with the high year 1 depreciation, the tax shelter you could get from selling a property outright and investing those funds into an opportunity like this one could help to significantly offset your tax liability. Of course, we highly recommend you consult your own CPA to discuss your specific situation. All that being said, if you are currently in the middle of a 1031 exchange and looking to place your funds, please let us know, and we can help point you in the right direction. -- What is the expected depreciation on this deal? While we don’t yet have the exact depreciation numbers yet, we do plan to do a cost segregation study shortly after acquisition, and we anticipate significant year 1 losses. We will share those numbers as soon as we can upon closing of the assets. -- Will distributions take place on a monthly or quarterly basis, and when will they start? Distributions will be quarterly and will begin only after the closing of the fund. More specifics around timing will be shared once the fund closes. -- What type of communication will take place with investors throughout this investment? As soon as your investment is approved, you'll receive confirmation of your investment. We will keep you in the loop as we identify and move through the acquisition process for each asset in the fund. Once we close on each asset, you’ll hear from us immediately. We will continue to communicate with each subsequent closing within the fund. After the fund closes, you can expect to receive monthly updates from us, along with quarterly financials for all assets held within the fund. Ready To Pledge? Thank you again for your time in reviewing this opportunity and your consideration for investing alongside us in Goodegg Growth Fund II. If you'd invest, go ahead and click the "Invest Now" button to get the process started. -- We look forward to a very fruitful, impactful, and sunny-side-up partnership together!