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Oct 13, 2024

The Pitch Deck

The Sharks are Excited to Invest In “The Future of Real Estate” Boho | Shark Tank US

Summary

Business Model and Financial Performance

Boho Camper Vans offers affordable, easy-to-drive, and photogenic camper vans starting at $20,000, targeting a broader demographic than traditional mobile living options.

In just 8 months, the company generated $195,000 in net revenue, projecting $1.9 million in sales and $1 million pre-tax profit by year-end.

Operational Efficiency and Scalability

Boho's pre-fabricated components enable rapid production of vans at $29,000 each in under three weeks, with plans to hire installers for assembly.

Marketing and Revenue Strategy

The company's three-night minimum rental policy at $200 per night ensures a high occupancy rate and long-term revenue stream.

Social Impact and Financial Strategy

Boho Camper Vans combines a charitable component to support homeless people with a debt-free strategy, focusing on profitability and cash flow for independent decision-making.

Timestamps

00:00 Boho Camper Vans offers stylish, affordable mobile living solutions, promoting freedom and adventure for a broader demographic.

01:46 A couple, inspired by camper van travel, created a successful tiny home rental business in Phoenix, capitalizing on high demand.

03:19 The company rents out vans for under $200 a night, generates $2,000 monthly per van, and sells them for $29,000 after a $15,000 build cost, all while having no debt.

04:47 Sharks are excited about Boho's potential in real estate but challenge its valuation and profitability despite projected $1.9 million in sales.

06:18 Kevin offers $300,000 for a third of the business, while another shark suggests a 25% stake, highlighting the need for a fair valuation.

07:39 David and Brett attract multiple investment offers for their designer van business, Boho, highlighting its cash and growth potential.

09:14 Sharks are excited to invest in Boho, emphasizing a charitable aspect and discussing equity while downplaying debt concerns.

10:49 Barbara's investment in the mobile real estate startup Boho is seen as a perfect match, promising rapid growth and debt-free strategies.

Transcript

00:00 First into the tank is a stylish trend in accommodation. Hi sharks my name is brett ellinson and I'm from tempe arizona and my name is david soderman and I'm from phoenix arizona. Our company is boho camper vans. We are seeking a 300 000 investment in exchange for 10 boho. Campervans is changing the way that people travel and live through one simple yet powerful word freedom. We hear the word freedom all the time but most of us never get to truly experience it. The average american is swimming in debt tied to an inflexible work schedule and is just trying to keep up with the cost of living most of us feel as though we'll never catch up and there must be a better way to experience life. Boho camper vans is giving people back that freedom we rent and we sell them so whether you're looking for the tiny home on wheels for your short-term adventure or the ability to live on the road. Full-time boho camper vans has everything you need comfortable beds kitchenettes with running water solar powered electricity pull out countertops and more the best part you can take them anywhere. Mobile living is not a new concept but boho vans is different because we cater to a broader demographic. Our vans are affordable easy to drive and let's be honest extremely photogenic shark tank. Let's help people live more with less who wants to join this movement but first let's try to check out this game yeah lock us all in there.

01:46 This looks like totally fun yeah. We try to make it look like a tiny home. I kind of love it right if it had a shower yes running water yes yes. So there's yeah you can actually hit the switch right under the countertop right. There yeah yeah yeah. There you go okay sink works yep. Hey what's it take to do a shower. They're actually having something with you. There's a shower back. There you guys don't see that too often yep. We got the shower here but here's something that you actually really are you kidding me. So we actually do butcher black countertops. This comes out about another three feet and you can do all your cooking under here. Fun is this extra storage. It's really cool thank you what's your background. How did you get into this. The idea came from a trip.So. I went with my girlfriend to maui and we explored the island in a camper van so we came back and realized no one was doing this in phoenix. It's such a hot tourist tourism town and everybody runs their cars and they go to the grand canyon and lodging up. There is a suspect so I called brett because I know he's a really great builder. He's a master at his craft. So we discussed it over one night and the next couple days we bought a van and got to work. My background is machining and fabrication. I've been doing tool and die work since. I've been 14 years old. What's your background my background. I went to school for design and marketing. We started this as a passion we wanted to just use it you know and maybe make a little money on the side if we weren't using it and then we couldn't even use it because it was booked up so much wow so we built another one and another one.

03:19 So you have a whole bunch of them. We have five fans in our rental fleet and we've sold uh 12. And you sold 12. How much how did you rent this out for it comes out to be just under 200 a night. And we have a three-night minimum yeah okay. Once you buy it and trick it out how much are you into the van full for our rental vans. We're into them right at about twenty thousand dollars. That's it huh. That's that's all in. It's yes because we're buying the vans we're sourcing them used on a twenty thousand dollar van.How much revenue can you generate in a year. So we're doing about 2 000. A month per van would you say you pay back a van within a year. Eight months months eight months how many of you guys sold for people to live in literally live in so out of the 12 vans that we've sold it's basically half of them yeah. They halfway we see this as mobile real estate. We see this as kind of the next level of of living what gives you guys an edge and a difference and how do you scale this model beyond a master craftsman. So first off they're they're very affordable. In this space you have lots and lots of lots of people that have reached out to us just wanting to get on our list to build a van tell me what it's fitting it out. Like that cost this van was 15 000 um and we charged 29 000 for this build out and I'm curious how long does it take you to actually do that van. So right now we have a process just under three weeks and do you have any debt nope zero no two so how much did you make in the last year so in the last eight months.

04:47 In 2019 we're at a hundred ninety five thousand five hundred net wow so our sales total this year calendar year four hundred ninety 000. 195 net wow really yeah you guys that's impressive so you're looking for money from us. Yes what are you going to do with that money. So. I'm going to take the money and I'm going to put in a manufacturing and get it. So. We can actually have finished pieces ready to go in the van and we can hire on just installers because everything's pre-cut pre-fab exactly gotcha yeah. Let's go to the numbers because I'm a numbers guy so if if I'm an investor what am I going to make next year so this year we're going to project to be at 800 000 in sales okay by the end of the year. So next year we're projected. We're projecting 1.9 1.9 that's a projectile this year. What am I going to make on that pre-tax. I think we're going to be close to a million a million yeah out of one line you're going to net just based on our margins. Now yep. Why don't you have a lot of competitors.We talk about it a lot. It's. It's time. It's space. It's know-how all right. So I'm in for how much um hold on hold your horses bob um. It's a shark tank. I love your numbers but you're only doing 4.95. Let's round. It up five or a thousand and you are basically asking for a valuation of three million dollars. That's a sport evaluation. Yes no that they're making a millionaire profit. Negative well wait a second that assumes everything goes right guys. I'll make it simpler look. I think it's a great business for you all.

06:18 But it's just not a fit for me right now congratulations man but I'm out the way. I see it the way I look at it. So. I haven't finished that kevin oh sorry go ahead give me a moment because I you don't get. My juices are flowing. I look at it and say to myself. I should be the third partner at 33 and a third percent. I'll give you the 300 000. I want a third of the business because I'm mr wonderful they don't look happy kevin. They look very happy. You should always be happy when you get an offer from mr wonderful. So look he's trying to guide you come back to me because I'll just put some real numbers on that please. So thank you for the offer yeah we appreciate it thank you for the offer but piss off the offer well. Let's go what are you going to do. Rohan look you've got to get to a more reasonable and fair valuation. On this third. A third is too much. I would go for the 300 000 happy to bring all the sort of marketing muscle and awareness building that this thing needs to have but I'd want 25 whoa what's the difference you get mr wonderful quarter. They're three quarters. It's a big delta if if you guys are entertaining let's talk about it. If not. I'm fine to move out you guys gotta pick it up leave it. You haven't heard from me yet and who was most excited. You were.

07:39 One shark is out david and brett have two offers on the table for their designer. Van business boho but lori also seems interested. I think it's super cool. I could see people loving this um. I got to think for a minute. I'm going to shoot thanks for returning you guys want a feedback great if not. I'm happy to be here. I want more offers and here comes an offer.I don't think you need a partner at all and I think you need cash. That's it you've got a plan you're working the plan. It's going exactly as you had wish. It would probably better and I do believe your projections that you're going to make a million dollars next year okay so I'll give you exactly what you want 300 000 for 10. But I'll give it to you in the form of 150 in cash up front and 115 credit line and then if the business expands and continues to grow at the same rate and I see no reason why not. I'll continue to fund the growth simple interesting how is that a shocky offer you give them exactly what they wanted no. It's not exactly what they are what they offer if you're considering debt. I'm far more creative than barbara is and I can make you an offer. You might find extremely attractive and you still get the shot loan. You. The 300 000 at nine percent for two years venture debt and I get seven you walk into a bank and get it for less yeah. Respectfully. We really pride ourselves on being debt-free we really don't you don't want to do good for you. You are listening to barbara with her deal well. Let me make you an offer what I'll do the 300 000 at 20 but mine has a caveat.

09:14 I want a charitable component in this to a van. I wouldn't worry about it hear me out yeah. You give it to a chair a lot of homeless people in america absolutely. I see it constantly because I'm always in just major cities. We absolutely love that idea. It's something we've been wanting to align with a social cause. We love it uh. Respectfully would you be able to go down to fifteen percent with that same offer. You know that the 15 is really low. I I would stick it at the 20. You know guys. My offer is really the best offer here because it gives you exactly what you need. And in addition to that there's nobody here that can market better than me.There is no one here that you can laugh all you want. I'm laughing. There's no one. Here. I'm totally laughing you shouldn't be overly concerned with debt. You're. A profitable company take the debt issue off the table. I respect your whole debt-free strategy. But I wouldn't be concerned with these guys. They're not gouging you at 20 interest rates thank you for the business advice. So. I'm the lowest cost deal if you actually think about it by miles. Three hundred thousand dollars debt at nine percent for two years 24 months and I only want seven percent equity. What was the interest on the loan that you're offering whatever interest I get on the loan. I pass on to. It's not to make money it's so that you take off the table the least amount of stock because I've been in the position of almost selling a lot of stock and a few years later realizing stock barbara realizing that I made a terrible mistake.

10:49 I've had done the deal. Why give up ten would you give him a sweetheart you just give up seven. We can give up can. I do drum roll please thank you so much. I'm so excited thank you very much congrats. Guys good luck congratulations thank you oh man. So barbara was a perfect fit for us because she knew we didn't want any debt and she gave us a way to pay it off quickly and barbara. She she knows real estate so totally we keep touting. We're mobile real estate. We're the future of it. So we're glad to have her on board cause cause. She's gonna take us places you.