Shark Tank: Boho Camper Vans Accept $300,000 From Barbara Corcoran

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March 26, 2020

Shark Tank: Boho Camper Vans Accept $300,000 From Barbara Corcoran

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With a growing number of Americans feeling overwhelmed with debt, David Sodemann and Brett Ellenson are committed to providing alternatives ways of living and vacationing for people in Arizona and surrounding areas. Utilizing their background in both design and the craftsman trade, these long time friends are converting vans into liveable spaces that include kitchens with running water, beds, solar power electricity, and even a shower. These vans can be used as both a permanent residence or as a rental for vacations. Boho Camper Vans currently has a fleet of 5 vans that they rent and have sold 12 additional vans to be used for both short-term vacation plans or long-term living.

In order to keep up with the demand for their camper vans, David and Brett are looking for a Shark that would be willing to invest $300,000 for a 10% equity share. They need a cash infusion into the business so that they can purchase pre-fabricated components to be able to convert vans at a quicker pace as it currently takes them 3 weeks to complete a van. Because there is not a lot of competition, their business has been steady both for rentals and purchases and they closed 2019 with nearly a half-million in sales. Boho Camper Vans projects 2020 to bring in $1.9 million in sales, bringing their take-home amount to approximately $1 million.

Four of the Sharks were interested in investing in Boho Camper Vans and each made their own unique offers for Brett and David’s consideration. Rohan Oza was the first Shark to extend an offer, although he was concerned with their valuation. He offered $300,000 for 25% equity in the company. Kevin O’Leary was the next to propose an offer at $300,000 for a third of the business, obtaining 33.3% equity. Barbara Corcoran offered them $300,000 for 10% equity, however, $150,000 would be in cash upfront while the other $150,000 would be available in a line of credit. She was clear that she will continue to fund the growth of the organization over time. After hearing this, Kevin revised his offer to $300,000 as a loan at 9% interest for a 7% stake. Lori Greiner had a unique proposition and offered Boho Camper Vans $300,000 for a 20% equity stake, however, she would want them to incorporate a social responsibility component with a focus on donations to homeless charities.

Although they loved the idea of incorporating social responsibility with a focus on helping the homeless, David and Brett felt that Barbara Corcoran laid out a way for them to pay of their debt very easily. Since they currently do not have any debt, it’s important to them that while they get a cash infusion into the business, they are not putting the business at risk by taking on too much debt. They also like that Barbara knows the real estate business and can help them to grow that side of Boho Camper Vans. They accept Barbara’s partnership offer.

Do you think that David and Brett made the right decision by pairing with Barbara? Of all of the offers on the table, which would you have accepted if you were Boho Camper Vans? Start the conversation in the comments below!

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