Aventine Acquisitions Inc.

 Aventine Acquisitions Business Plan Presentation

THE MARKET 


Our product is real estate. We provide an opportunity for money to make money. The dollar will always seek the highest yield and smart investors can make money in real estate no matter what market they are in. We provide the product to make this happen. Price is a very important piece of our business. If not for price, then our investors would simply buy any home listed for sale. We currently offer investors two distinct product options: 

  • The Rehab -  Properties purchased for rehab must be priced correctly for the investor to make money. The pricing strategy is a follows ARV x .70 – repairs = Purchase price. What this means is that a home has an ARV or after repaired value, this is what the home will be sold for when rehabbed. The investor buys the home for 70% of the ARV minus any repairs to be made on the home. Why? Because contrary to any cable tv shows that you see, it costs time and money to rehab and sell real estate. One unforeseen expense and you could be out business. So our company needs to meet this formula to sell the home at wholesale prices and still buy it cheap enough to make a profit. 
  •  Buy and Hold - Investors interested in buying to hold rent out properties or live in them. For these investors we want to get them a house for ARV x 85% - repairs. This was if they have to exit they can do so without losing money in the process. Place – Our business operations take place in Southern California. Specifically Riverside, San Bernardino and Orange County. 
We are members of various investor clubs that hold weekly meetings. Selling our products is not the challenge. Buying the products (homes) at a low enough price to resell for profit is. So our main promotion is focused on buying properties from large and small lenders to individual homeowners that need cash fast. 
  •  LARGE LENDERS – Lenders will make what is called “tapes” available for sale to certain investors. These tapes can start from 50 to 100 million dollars and will hold as many as 400 to 500 properties. 
  •  SMALL LENDERS – With small lenders tapes of 10 to 20 million can be purchased in bulk. These tapes hold about 80 to 100 properties. 
  •  INDIVIDUAL SELLERS – They make the bulk of our purchases and we market to this by direct mail and follow up phone calls. Sometimes a CPA or Attorney will refer their client to us because there clients need cash and wish to dispose of residential assets quickly.
Aventine Acquisitions, Inc. focuses on investors who seek better returns for the money. Because we are not SEC licensed to sell securities, we cannot approach the public with our investments. Instead we meet investors at investor clubs. Investors who tried to get good deals on real estate soon discover that it is not easy to find “deals”. 

Most real estate agents do not have this type of inventory and it takes a large investment of time and money to develop a large investment network to facilitate the acquisition of these “deals”. Investment clients are people, entities or trusts that are interested in putting their money in vehicles that are secure and will yield a high return. Some investors are hands on while others are happy to just write a check and wait for a return. It is uncertain how many potential investors exist. The Inland Empire, Los Angeles and Orange County investor clubs total more than 5,000 investors. This of course does not include financial planners who handle large estates. These investors can make multiple purchases depending on the size of their portfolios. Some rehab investors purchase up to 10 homes every 3 months. While rehab investors will buy as many units as they can afford to buy.

Competitive Advantage

SWOT Analysis

     Aventine’s strengths are in its people. Our company has the experience and knowledge required to purchase, manage and sell real estate assets in any market. Our company’s management has made money in boom, crashing and flat markets. Aventine understands the numbers behind most buying strategies and this helps it mitigate the risk of investing in assets like real estate.

     Our Company’s current weakness is lack of capitalization. In this market one or two million is not enough money to properly invest in real estate and get the prices needed for a good return.

     There are current opportunities for small investment companies to buy assets from the government from FHA and VA insured homes and mortgages. The buy in are only 20 million and most of these properties are good shape and in hot markets.

     Large hedge funds are buying large portfolios without regard for price. This reduces the amount of product available to purchase and resell. It also artificially increases prices which are likely to fall once the demand is gone. This is what is currently affecting the current retail real estate market and what is causing the temporary increase of real estate prices.

 Go to Operations

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