The WF Velocity fund’s core strategy is to partner with institutional level operators in the automatic teller (ATM) space. The ATM space is mature and stable and has provided high margin returns to sophisticated investors for decades. The size and scope of the WF portfolio along with strategic placement at top locations makes it a valuable investment to consider for any alternative asset portfolio.
As most consumers know, ATM withdrawals often involve a surcharge that typically range from $2.00-$3.50 per transaction. A quality location at a high volume service station or retail outlet may result in 400 or more transactions per day with little overhead.
The key to profitability in this type of venture is proper placement and the key to stable income is scale. The WF Velocity Fund works with a top five operator in the United States that provides both of these elements.
Our partners allow for placement of thousands of ATM machines across the United States using critical demographic data and by securing the highest quality location contracts. Our portfolio of ATMs are located in many well-known stores including Walgreens, McDonald’s, Walmart, Sam’s Club, Exxon, Sunoco, and Texaco.
The pooling of income of thousands of machines allows individual accredited investors the opportunity to enjoy very attractive, tax beneficial returns with a high degree of stability. Currently, if an investor is able to take advantage of depreciation, internal rate of return (IRR) projections exceed 30 percent.
Buck Joffrey is a Principal of the WF Velocity Fund. A former board certified surgeon, Buck now heads a private equity group called the Wealth Formula Investor Club that currently holds over $400 million of assets under management. His investment philosophy is opportunistic and heavily focussed on value-add strategies.
Buck lives in Montecito, CA.
Prior to joining Prestige Investment Group, Mr. Hostetter was the owner of Hostetter Management Company (HMC), a successful hog management business he began in 1990. HMC started by managing 30,000 hogs per year and by 2003 the business had grown to manage 1.7 million hogs per year and employed more than 400 people. In 2002, Mr. Hostetter was a runner-up for the Top Producer of the Year award, an award that honors the best and brightest farmers in the United States. He sold his business in 2004 but continued to put his business expertise to use by becoming the Vice President of Fund Development and Legislative Affairs at Ephrata Community Hospital from 2008 through 2011. He served as a Board Member at Ephrata Community Hospital for 6 years and was on the Board of Governors at Lancaster Country Club from 2004 to 2010, serving as President from 2006 to 2010. Mr. Hostetter continues to be involved in his local community, currently serving on the Board for Integrity Bank.
A Lancaster, PA, native with experience serving various financial institutions via accounting, sales, operations, reporting and compliance, Will Powers acts as the Fund Manager for Prestige Investment Group. Will has successfully merged his experience in US banking and federal procurement/regulation with strategic partnerships to create fluid, cost-effective solutions to modern challenges.
As Fund Manager, Will spearheads the campaign to continuously enhance investor relations through internal/external analytics and clear, concise, secure communication. With more than $100 million under management, and growing, Will remains tirelessly committed to win-win outcomes.
A devoted family man, humanitarian, and friend, Will strives to leave the world a better place than he found it. Through active participation in various charitable organizations, most notably the Horizon Initiative, Will prides himself on giving back to those less fortunate, both locally and abroad.
Daryl brings 28 years of successful entrepreneurial experience to the leadership team at Prestige Investment Group. He leads Heller Capital Group and in turn provides leadership to Prestige as an asset under Heller Capital Group. He specializes in M&A, deal-making, integrative negotiation, and strategy, and he’s most fulfilled in pursuit of win-win outcomes. With an ever-growing list of professional accolades and accomplishments, Daryl never forgets his roots. A Pennsylvania native who co-founded his first company at a picnic table, Daryl continues to give back, remaining committed to community engagement and leadership, as well as conscientiously mentoring aspiring leaders in the area. As a man of many passions, Daryl holds two above the rest: his family and his tireless work for Horizon Initiative, an organization he co-founded with a core purpose of empowering the underprivileged to self-sustainability in Africa and Latin America. Daryl’s humanity and humanitarianism are both at the core of who he is and what he does, and he views his wholehearted investments in Horizon and his family as the true cultivation of his legacy. Like everyone at HCG, Daryl is clearly committed to continuous improvement, innovation, and expansion as an engaged member of society, and he remains passionate about leaving the parts of the world he encounters better than he found them.
Equipment like ATM machines currently have the benefit of being depreciable assets that can take advantage of the current tax code allowing for up to 100% bonus depreciation deduction.
A qualified tax professional should be consulted. However, in many cases, investors with passive income are able to enjoy the ability to write off 100 percent of the cost of the investment in the year in which the investment is made.
Contrary to popular belief, the use of cash in the United States and globally continues to increase despite cashless technologies. This is related to the fact that a significant demographic, primarily the under-banked population, rely on cash as the sole means of transaction.
The reality that cash is needed for this demographic to purchase essentials makes it a requirement for these individuals. Therefore, the use of ATM machines does not tend to fluctuate regardless of the greater economic picture of the country. For ATM owners, that means an asset that is essentially uncorrelated to other markets.
Even throughout the most recent COVID-19 crisis and quarantine, investors in our funds continued to receive uninterrupted stable returns. In this regard, investments in a quality portfolio of ATM machines can be seen as a high return hedge against the economy.
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