Ziggy Capital Fund I, April 2022

To the Limited Partners of Ziggy Capital Fund I,

Thank you for your patience these past few weeks. Investor interest has been overwhelmingly positive. Fund I is now oversubscribed by 20%+ and we have made the decision to officially close. Congratulations for getting in - you are officially an owner of a growing portfolio of homes in North Carolina! 

Investment 

If you have sent a wire or check, please consider your investment confirmed. Our SEC filing is underway and on track. All Limited Partners will be receiving final documentation, including finalized operating agreements shortly. If you’d like a record now, you may download your executed contracts via the original Docusign link in your email. 

You are joined by ~15 investors across the U.S. and Canada!

Operations 

We began fund operations in early April. Here is a brief synopsis of actions to date:

• Home Data: We purchased targeted data for our ideal home type in up-and-coming markets in the Charlotte metro area. Our target property is a wholesale opportunity or distressed property at the $100k level. 
• Direct Mail: We have enlisted our direct mail service. Our marketing team has finalized custom direct mailers to maximize response from interested sellers. We expect 0.5%+ response rates.
• Sales Funnel: Our seller qualifying team is online and prepared to field interested phone calls 24 hours a day. Our CRM system is set up and ready to track home leads and conversions. 
• Financing: We are preparing our hard money financing with our local partners to ensure we’re ready to act on good deals. 
• Construction: Our construction teams are ready to begin renovations immediately after the first properties are acquired. 

We can’t predict exactly how long it will take to identify deals that fit our target profile, but we expect to purchase approximately two properties per month for the next six months. Each purchase is followed by 90+ days of renovation, furnishing, listing, and renting. 

Risks

Interest rates are on the rise. The good news is that we anticipated increased credit costs and included seven rate hikes into the initial financial model. We also operate differently than the traditional home buyer by using hard money short term loans to maximize speed-to-close. Long standing relationships with local lenders should enable us to borrow and execute at minimal increased costs. We are monitoring the situation locally and nationwide and will continue to plan ahead for events outside our control. 

Next Steps

Over the next year and into mid 2023 we will be purchasing, renovating, furnishing, and renting the Ziggy Capital Fund I portfolio. After which, there will come the refinancing event and the first distribution of capital. We plan to inform LPs once per quarter via updates covering the good, the bad, and the numbers. As well as some photos from the day-to-day. 

Please let us know if you have particular information requests or questions. We appreciate your confidence and look forward to working together. 

Sincerely, 

Ziggy Capital General Partners

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Dr. Brendan Anzalone

Jason Mahoney

Matt Phillips

Etienne Turner

Dylan Enright

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