Being in the Real Estate Marketplace. Our Marketing for exit strategy is to sell the properties obtained after holding them for 5 years. We have a two-based strategy for selling properties. First: is listing the property for Seller by Owner with seller financing. This allows us to earn additional interest on the financing of the property and a non-refundable deposit of 20% of the asking price. The Second is to list the property with an Agent / Broker to sell the property via the MLS system. The funds received are used to cash out loans and investors. Net profit is used to purchase new properties.

With TPD, our advantage over other lenders is an “asset-Based Private money Approach”. We use the asset as security that has been ARV and/or As IS appraised by an independent appraiser of Real Estate. This gives us a great advantage is getting better properties and long-term clients to use our private money services.

We offer a diverse range of markets in real estate, focusing on Single-Family Residences (SFRs) and Multi-Unit Properties, including duplexes, triplexes, and quad units. These properties form the core of TPD’s investment portfolio. In addition, we are expanding into resort properties to cater to the short-term rental market, providing vacation experiences of a lifetime. Our approach includes acquiring 5-star resort properties with premium amenities, as well as condos, town homes (duplex units), and single-family homes. Our goal is to achieve a 95% occupancy rate for these properties. To meet this target, we employ a multi-faceted internet marketing strategy that includes targeted digital campaigns, podcasting to drive traffic to our website, and email advertising via autoresponders to engage potential clients effectively.

We do not currently have an official SWOT analysis. However, we have identified niche markets that provide us with a competitive advantage in both marketing and positioning against competitors. Our marketing strategy targets clients who have reached the maximum loan-to-value ratio allowed by their current lender, based on personal guarantees and income. By leveraging “Asset-Based Lending,” we can effectively engage this demographic. For our vacation resort properties in the short-term rental market, we focus on two primary audiences: women aged 35–50 and married couples with children aged 35–55. Additionally, we utilize advanced algorithms for pricing and audience targeting to identify the best potential clients searching for lending options in Single-Family Residences (SFR), multi-unit properties, and short-term rentals.

We have conducted our own break-even analysis for our markets. We do not take on projects involving Single-Family Residences (SFR) or multi-unit properties unless they yield a minimum Return on Investment (ROI) of 30% or greater. For short-term rentals, the break-even point is calculated on a property-by-property basis. On average, however, our break-even occupancy rate is 65%, while our target occupancy rate is 95%.

We have minimal liability, all of which is covered under comprehensive insurance policies. This includes coverage for risks such as injuries sustained by short-term renters and professional liability for errors and omissions. While no business can fully protect itself from lawsuits, we have taken appropriate steps to hedge against such risks.

Our incorporation documents are available upon request.

We currently bank with Bank of America, NA.

We use internet algorithms for our target marketing, including data on home listing prices, rental prices, and short-term rental pricing.

All real estate projects have a first lien position, which ensures the investment is secured by the property. Each client is required to maintain a life insurance policy equal to the value of their investment, with TPD listed as the beneficiary in case of unforeseen circumstances. Currently, TPD has over $1.5 million in free and clear fixed assets available as collateral. Additionally, all properties are appraised annually to ensure their value.

We have an established relationship with our local bank, Bank of America. However, they require personal guarantees, which we are unwilling to provide. While we maintain unsecured lines of credit with Bank of America, these are limited to $50,000, which is insufficient for our current funding needs. We are seeking external funding secured by the equity within our fixed assets.

The primary risks include: A client failing to make interest payments on funded projects, potentially leading to foreclosure to recover the investment. Non-payment of rent by tenants, requiring eviction proceedings. Not achieving the desired occupancy rate for short-term rentals

We have no past or pending lawsuits.

Our contingency plan involves securing funding from individual private investors for real estate projects. While effective for short-term projects, this approach can take longer to meet the funding needs of larger, long-term projects.

Yes, we have utilized seller financing for some real estate acquisitions, typically structured as 5–10-year terms with interest-only payments and a balloon payment upon sale. Additionally, private investors (partners) fund most of our short-term projects, such as rehab flips.

No, we have not been declined by any investors, lenders, or banks.

Our biggest challenge is having sufficient working capital readily available to seize lucrative real estate opportunities when they arise. Often, the best deals require swift action to secure the property under contract and close the transaction. Without immediate funding, we may lose out on these opportunities due to time constraints.

No, we are not willing to provide personal guarantees.

We are already profitable. However, individual projects vary: Short-term real estate projects typically take six months to complete and an additional three months to sell, resulting in an average profitability timeline of nine months. For short-term rentals, profitability is achieved within 1.5 years, factoring in the costs of furnishing and preparing the property for rental.

Reduced demand is a risk faced by any business. To mitigate this, we have diversified revenue streams across three separate lines of cash flow. If one stream experiences reduced demand, the others can compensate, ensuring business stability. Diversification is our key strategy to hedge against reduced demand.