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IMPACT GROWTH FUND
A 20+ Year generational wealth fund
OFFERING OVERVIEW
Impact Growth Fund I
The Impact Growth Fund is a buy, rehab/redevelop, lease-up, refinance, hold, and repeat fund with a 20+ year time horizon that targets a 100% return of capital within the first 7 years through cash flow, not liquidity events.
Once 100% of capital is returned, the Fund is using “house money” to continue to grow, your ownership remains unchanged, and you continue to receive cash flow for the next 10-15 years!
Beyond cash flow, the Impact Fund is a powerful tool that significantly reduces the tax burden from profits**. With continued acquisitions and cost segregation studies, each 1-3 years brings large paper depreciation losses that offset profits. Thus, capital continues to grow with little hindrance.
What Does this Mean to You?
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Acquired assets compound, increasing potential investor cash flow every 4 years
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Powerful tax strategy reduces taxable profits
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A single investment that could change everything
**Please consult with your CPA for tax advice based on your personal situation
12.6
%
TARGET
Annual Avg Cash flow via the 4-C Strategy*
“Acquired assets compound, increasing potential cash flow to investors every 3-4 years”
*Based on Stacked Cash Flow Returns over 20 Yrs
Impact Growth Fund
An “Infinite Return” Strategy
$20M
Fund Allocation
$300M+
Asset Growth Potential
Investment Opportunity
$100,000
Minimum Investment
7 yrs
Return of Capital
20+Yrs
Fund Life
13.7x
Target Return on Equity
Quarterly
Distributions
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CONDUCT CAPITAL IMPROVEMENTS
CASH OUT
REFINANCE & HOLD
CASH OUT
REFINANCE
&
HOLD
CONDUCT CAPITAL IMPROVEMENT NEXT ACQUISITION
CAPITALIZE ACQUISITION
Continuous Cycling Compounds Cash Flow
The 4-C Growth Strategy*
We’ve designed the Impact Growth Fund to follow the 4-C Continuous Cash Flow Model:
Here’s how it works: We invest in the fund. The fund invests in a project, greatly enhancing asset value sufficient to refinance a target 100%+ of invested capital out. The tax-free proceeds from closing are then used to acquire the next project, conduct capital improvements, enhance asset value, and so on.
We brought the secrets of the wealthy to Impact Investing.
Continuous Cycling Compounds Cash Flow (4-C)
This process is then cycled again and again. As projects are added, their respective cash flow returns compound. Capital gains taxes are avoided—assets under management swell, and cash flow from properties compounds continuously for the life of the Impact Fund.
We brought the secrets of the wealthy to Impact Investing.
*The targets above are intended for illustrative purposes only to facilitate analysis and are not guaranteed by Sponsors as there are no assurances these targets will be met. These targets are based on past mobile home park metrics, past performances, and past experiences of certain of the Sponsors in the mobile home park space. Sponsors make no representations or warranties that any investor will, or is likely to, attain the targets shown above since hypothetical or simulated performance is not an indicator or assurance of future results. Please review the financial disclaimers on page 6 and Risk Factors in the PPM.
Sign Up Here: haystack-ventures.investnext.com
The Power of Impact Growth Funds
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*The targets above are intended for illustrative purposes only to facilitate analysis and are not guaranteed by Sponsors as there are no assurances these targets will be met. These targets are based on past mobile home park metrics, past performances, and past experiences of certain of the Sponsors of the Sponsors in the mobile home park space. Sponsors make no representations or warranties that any investor will, or is likely to, attain the targets shown above since hypothetical or simulated performance is not an indicator or assurance of future results. Please review the financial disclaimers on page 6 and Risk Factors in the PPM.
Who We Are
The Impact Growth Fund is led by seasoned, and highly awarded industry veterans who have operated at the highest levels of their fields.
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Sam Sells
Sam, CEO/Founder of Wild Mountain Capital has 19+ yrs in real estate and is a retired Air Force Officer. Sam spent 12 years in global health designing and building 100-500-bed hospitals around the world. He established Wild Mountain with a mission to improve 1 million lives through the sustainable alignment of profit-yielding, social impact projects.
Jon Weiskopf
Jon, CEO/Founder of Blue Eyed Capital, has 18+ yrs in real estate, specializing in energy and sustainable buildings. Notably, Jon lead charging 300+ spaces worldwide as the former head of engineering for Apple Inc.’s retail estate. Today, his firm manages $15M+ with a mission of impact, combining profit with purpose.
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Sam Longbotham
Sam is an, Active Duty Pararescueman (PJ) in the Air National Guard and has been serving for over 5 years post College. After deploying to Africa, Sam Co-founded Haystack Ventures with his wife to help others create impact through real estate. He brings an elite level of performance and dedication to every project and investor that he works with.
Patient, disciplined, cycle-tested investment management team
The Impact Growth team takes a very deliberate approach to phasing growth that ensures sustainable, resilient impact, and an elite level of performance for the entire life of the Fund.
Impact Strategy
High Financial, Environmental & Social Yields
This fund seeks out and acquires affordable housing communities that meet or exceed the following criteria:
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Strategy: Heavy value add, distressed (physical, financial, management)
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Min. Size: 100+ lots/homes (existing or expansion)
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Market: Strong and growing with high demand for affordable housing
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Financial Yield: 100%+ projected return on equity via refinance in 3 yrs
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Impact: Renewable energy potential, 30%+ energy use reduction
Fund Fees
Profit Share: 70% LP / 30% GP (after 100% of investor capital is returned)
Property Management Fee: Market rate, paid monthly to third party or internal PM
Asset Management Fee: Annual 2.5% on total capital contributions, paid monthly
Acquisition Fee: 2.5% of the purchase price of each acquisition
Capital Transaction Fee: 2% of the sale price/ New Loan Value (refinance)
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Why Us and this Fund?
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30+ years combined Real Estate experience.
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Expertise required for sustainable and resilient operations that reduce risk related to external factors such as climate and escalating expense costs.
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20+ yr horizon mitigates risks from market and economic fluctuations that hurt typical investments.
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Cashflow focused strategy in affordable housing means your assets will be the only class with a growing demand regardless of market conditions.
Sponsorship Team Track Record
Deeply experienced team in international development, non-profit work, and managing capital
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CURRENT PORTFOLIO
$100M+
$33M+
AUM
Equity Deployed
1,200+
Units
IMPACT
$10M
15,000+
21
Positive Impact
Residents Served
Communities
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Recent Case Study
43-lot mobile home community, expansion to 100+ lots, capitalized 6 Jun 2023, still undergoing development as of 1 Aug 2024, already hit 1.7x ROE with lot’s more to go!
Current Performance: Mobile Homes
South Acres MHC Re-Development
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Net operating income (NOI) rose 534% from close of capitalization to end of first year.
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33 units were added and leased in 12 months
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Market value rose from $495k to $2.2M in 12-months
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Equity growth of 186% since close of capitalization
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If sold today, 12 months after capitalization, investors would receive as much as a 171% ROI
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Target refinance at 18 months, expecting 110% ROE -- 10% higher than model calls for
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*The targets above are intended for illustrative purposes only to facilitate analysis and are not guaranteed by Sponsors as there are no assurances these targets will be met. These targets are based on past mobile home park metrics, past performances, and past experiences of certain of the Sponsors in the mobile home park space. Sponsors make no representations or warranties that any investor will, or is likely to, attain the targets shown above since hypothetical or simulated performance is not an indicator or assurance of future results. Please review the financial disclaimers on page 6 and Risk Factors in the PPM.
Frequently Asked Questions
Why Affordable Housing?
We believe mobile home parks are the most recession-resistant investment available in the market today. In addition, these properties tend to produce high levels of cash flow and have ample room for profit growth via the infilling of homes. Apartment communities have scale, are easier to source lending, and tend to appreciate at a higher rate. RV parks are in hot demand and seem to be the future for much of affordable housing.
Why must investors be accredited?
There are many types of legal ways to raise money, but we chose a 506(c) Reg D fund. This type of fund allows us to speak publicly about the raise. Because of that, the SEC prohibits us from taking investments from non-accredited individuals. If you are non-accredited and would learn more about how to become accredited, please reach out to us at info@impactgrowthcap.com.
How do you plan to manage the growth?
We have operated 22 affordable mobile home communities, RV parks, and apartment complexes with a staff of 10-12 personnel for years. When Jon W. was at Apple, he had a 3 man team that oversaw 30-50 development projects a year with a managed scope of around $100M, but behind that was a detailed yet flexible Design Standard that trained contractors and consultants to achieve the same end goal. Getting to stability and staying there will be our key. Fortunately, we’ve done this before.
When do I get my money back?
We are targeting 100% of invested capital fully returned by year 7 through cash flow.
Where will you acquire properties for the fund?
We take a multifaceted approach to acquisitions. Each project must meet the aforementioned requirements. We source affordable housing projects from traditional on-market and off-market sources as well as through relationships with public officials, property owners, brokers, and etc.
Can I invest using SDIRA funds?
Yes, as long as your SDIRA provider allows for it and the proper rules are followed. Please reference the PPM as it specifically discusses how to invest via an SDIRA. Investors should work with their custodian to ensure their SDIRA investment is managed properly. If you need assistance sourcing a custodian, we can recommend ones that have treated our investors well.
What is the biggest risk factor, or threat to success?
Debt markets. In 2008, numerous commercial real estate operators went bankrupt because they could not access debt for their assets. However, two lenders remained active when all others stopped: Fannie Mae and Freddie Mac (Agency). Every single property level business plan we undertake must meet the requirements for the property to qualify for Agency debt. Thus, even if the debt markets are melting down at the time of a refinance, we should still be able to qualify for and secure Agency debt.
*Please check with your tax, financial, and legal professionals as Sponsors do not provide tax or legal advice and the above is not intended to or should be construed as such advice. Your specific circumstances may, and likely will, vary.
Visual Comparison: How the Fund Works
Traditional 5-Yr Model Over 21-Year Period
4-C Impact Growth Model on 3yr Cycles, 21-Year Period
*The targets above are intended for illustrative purposes only to facilitate analysis and are not guaranteed by Sponsors as there are no assurances these targets will be met. These targets are based on past mobile home park metrics, past performances, and past experiences of certain of the Sponsors in the mobile home park space. Sponsors make no representations or warranties that any investor will, or is likely to, attain the targets shown above since hypothetical or simulated performance is not an indicator or assurance of future results. Please review the financial disclaimers on page 6 and Risk Factors in the PPM.