To the Limited Partners of Ziggy Capital Fund I, LLC:

Happy August! We hope you’re enjoying some well-deserved time off with your family. 

All properties are open and earning healthy revenue. We are happy to announce that we are prepared to begin quarterly profit dividends.

Operating revenue has more than doubled year over year.

Thank you for your continued support. Please find more details below. 

Sincerely,

Ziggy General Partners

Quick Recap of Progress

• The fund has acquired and rehabbed six properties. A large acreage on one of our lots is being vetted for subdivision or town partnership. 
• We brought property management and operations in-house. We now have three employees in the region and one overseas. 
• After numerous pivots, the addition of dynamic pricing, Superhost status, and improved amenities and marketing, we have achieved marginal profitability.

‍Upcoming Priorities

• Continued operational excellence for increasing revenue and improved margins. 
• Consider the acquisition of one more property pending local deal availability.
• Bottom-up construction of a unit(s) on the Pine St. lot in Lincolnton, NC. 
• Quarterly distributions to our valued investors. 

Numbers

Operating Revenue

Strong growth year over year as the portfolio expands and occupancy improves. Our goal is above $15k for the best months of the year with an average in the low teens.

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Occupancy

These results are a combination of pricing and listing exposure. We find profits are maximized at 60-70% occupancy. With mediocre results for 217 Pine B, we have chosen to switch to long term rental and have already lined up a tenant. 308 Sycamore begins a rental contract (100% occupancy) in August. 

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Average Daily Rate

When booked, these numbers reflect earnings per night. When combined with occupancy, they result in operating income. We have improved 40%+ year over year and hope to continue this trend. 

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Conclusion

With Operating Revenue up over 100% year over year, we are hopeful that fund revenue has stabilized at a profitable average. Until now, we faced unforeseen headwinds, including expensive borrowing and a static housing market. We failed to acquire as many homes as intended due to these reasons. However, now that the fund has stabilized, we plan to maximize cash earnings and distributions until the timing is ideal for liquidation in the coming years. 

We appreciate your continued support. Thank you! 

Sincerely, 

Ziggy Capital Partners

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