Invest in North Cove

Fueling Growth and Building Community

Our fans are the reason we’ve opened this raise. We’re on a mission to build a community drawn to our shared vision. And with our dedicated team at the helm, we can bring this vision to fruition.

We’ve made incredible progress thus far and have already raised $385k from a broad range of supporters: strategic advisors, angel investors, real estate experts, and people passionate about nature and disc golf. This diversity underscores the broad appeal of North Cove.

We're inviting anyone who resonates with our vision to invest in our future. Together, we can grow North Cove’s valuation and unlock lucrative financial potential.

Progress to Date

• Purchased the 157 acre property in 2020
• Developed 18 hole ball golf to 3 world class disc golf courses in collaboration with Innova (premier disc golf brand)
• Hosted 2023 Silver Series Pro Tour & three Collegiate National Championships
• $150k in revenue in 2022 from disc golf alone with 2023 exceeding projections by over 15%
• Successfully completed renovations to our Clubhouse, Birdie's (restaurant and bar) , generating over $50k in first three months (since April 2023). Permanent ABC license expected Oct 2023 pending the completion of our tennis courts which we plan will dual for pickleball
• Hosted our first wedding for popular disc golfer Big Germ & his bride. Hired Shay & Company, one of the top wedding planners out of Asheville to handle weddings end to end. They started onsite tours in July '23
• 10 glamping luxury Stout Tents available August 30th on the property, which as of September, had 100+ pre-reserved nights for September - March with 0 paid marketing
• Cleared the land for the music venue, and brought on Bob Robertson. His background was launching premier music festivals like Coachella and Electric Forest.

Use of Funds

Music Venue 

(Rendering. Final design TBD. Placement is below the parking lot. This current round supports the needs of a portable stage. In discussions with potential strategic partners for permanent stage funding)

Current round supports the following:

• Upgrade electrical capacity to support shows of 3k+ people
• Prepare load-in/out site for a portable stage & equipment
• Host summer concert series in 2024

Weddings & Corporate Retreats

• Improving three different ceremony locations on the property (The Gorge, The Meadow, Birdie's)
• Adding electrical, heat and HVAC to extend season (Birdie's)
• Integrate full service packages with food, alcohol, and accommodations

Accommodations

• (On track for Aug 30, 2023) Complete build out of our glamping-village. Placing near the music venue in 2023 with amazing mountain views. As shown above, we're planning to move them the river by April 2024.

This spreadsheet shows our revenue projections across all five key revenue streams with a clear plan for projected distributions back to investors.  

Assumptions:

• Disc Golf assumes normal growth rates based on what we are experiencing. We are also increasing prices in September 2023.
• Bar & Restaurant revenue includes assumed food & drink from weddings which assumes $3,500 for food & drink (50 guests) at 20% margin per wedding.
• Weddings assume on average per wedding, $6k venue booking fee for all weddings booked by Dec 2023 for 2024 and after and $11k for bookings starting Jan 2024, and $2,100 profit on rental equipment.
• Short Term Rentals assume an average 28.49% occupancy rate and $110/night before taxes and fees. Potential revenue / profit increases due to special events such as weddings and disc golf tournaments has not been factored.
• Other Revenue is mostly Tennis & Pickleball with $0 of any assumed corp venue / non-wedding bookings
• Projected revenue & expenses for special events outside of weddings e.g. Disc Golf Tournaments, is not factored above, but based on past events would be assumed to increase overall profits.
• Expenses for labor include regular staff. The costs of event staff, e.g. for weddings, is factored in the margins provided for weddings above.
• (As of 8/16/2023) End of Year Cash balances assume $618k total is raised in this round + $50k in additional private debt funding + 400k in additional bank funding.
• *Targeted Distributions (Operational Cash) shown in the year they are produced, but are planned to be paid by end of April the year after. The projected Exit Distributions are added to this. See the Example Targeted Returns chart for total targeted distributions.

When Investing in Real Estate: Location, Location, Location

Our 157 acre recreation center is nestled up to Pisgah National Forest and between the Linville Gorge (the "Grand Canyon of the Southeast") (10 mins away) and Blue Ridge Parkway (entrance 12 mins away).  

(Photo courtesy of Our State)

The parkway saw 15M+ visitors collectively in 2022, making the parkway the #1 visited National Park in the country.

Our small, local town is developing quickly.  More housing developments, AirBnbs, and small business growth attracts more visitors, who have more to do, and stay longer.  A rising tide for our local economy.  

Remote workers and digital nomads are expanding, and they’re attracted to the natural beauty in North Carolina.  We have high speed wifi and great cell phone reception on the property. 

We’re within one hour of Asheville and Boone.  Two hours from Charlotte and Greenville SC.  All four cities have seen population growth, and are popular destinations for people moving from the major cities on the East Coast.  

Investment Structure

In 2023 our bank said they would appraise us at $2.2M based on the improvements we’ve already made to the property. 

We expect the value of the property to increase based on continued investment across the five key initiatives: Disc Golf, Restaurant & Bar, Wedding Venue, Music Venue, Overnight Stays 

This spreadsheet shows Example Targeted Returns for different investment amounts.

Here are targeted returns for a $1,000 investor.

Profit Distributions - Short Term Returns

We project to be cash flow profitable in 2025*

*On top of the $385k we already raised, our Co-Founders have contributed $400k of cash, and 2 of our team members provided $130k of debt financing. An additional $600k from a combination of proceeds from this raise + debt financing our bank has verbally committed to in 2023 Q4 is projected to get us to profitability.

In 2023 and 2024 we intend to invest this cash + revenues back into the business

We plan to provide a 3x return to investors by early 2028 through a combination of 25% distribution of profits + cash from an exit event**   

**How 3x could be returned to investors e.g. every $1k becomes $3k on exit

Below are the 2 most common scenarios

Both include Sharing in Profits + 1. Debt Refi, or 2. a Financial Buyer

1. Through debt refinancing, where we increase debt on the property and use the debt to provide a payout to investors.

We’d need ~$2m in cash by early 2028 to pay investors 3x

2. Through a Financial Buyer, they either 

a) provide approximately $2m to existing investors. The new buyer owns that previous investor equity OR

b) the Buyer buys 100% of the company

The Founding Story

I'm Kyle Sims, one of the Co-Founders of North Cove Leisure Club. My Co-Founder, Luke Peniston and I bought a 157 acre 18 hole ball golf course in the middle of the pandemic.

(Luke, left and me, right)

In ~2 years we turned that failing 18 hole ball golf course into a paid 3 course disc golf haven that is now one of the top places for disc golf in the world.  We also have a fully operational bar and restaurant (Birdie’s) that is exceeding sales projections.  

After the successful launch of our disc golf course and lounge, we decided to start Phase II.  Expand our wedding venue, add glamping accommodations, and finish the 1st part of our music venue.

We’re built an initial “village” of 10 stout tents.  And we’ve recruited a wedding planner and are booking weddings, wellness retreats, and other events in 2023 and 2024.

Our music venue is almost ready for a portable stage to book an initial concert series.  We already have the planning in motion for a summer concert series in 2024.  

We’re in the process of layering in amenities, parking, security, and a slew of other considerations to provide an excellent experience.  

We want to build a brand that becomes a household name.  The Cove.  

Join us in our pursuit to build this with a community of people that want to be a part of that vision, directly, as investors.