Tyler Beckwith

Arlington, VA (USA)
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JTB Homes

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Location: Arlington
Industry: Real Estate
Year Founded: 2010
Number Employees: 1-10 people
Description: Executive Summary JTB HOMES is the product of founder James Tyler Beckwith’s dream to develop high end environmentally friendly residential properties in the heart of urban Arlington Virginia’s Rosslyn to Ballston corridor. Tyler intends to leverage the help of his parents who have already successfully completed three similar high end developments in the last five years in Lexington Kentucky (the last one completed in six months). Tyler’s parents will be active participants by providing advice and assistance along the way. Their participation will alleviate business risks by providing an invaluable source of knowledge, skills and abilities within the industry. Tyler also plans to leverage over six years of professional experiences in management, analysis, and market research. JTB HOMES has specifically targeted the closest neighborhoods in Arlington to the popular urbanized Rosslyn to Ballston corridor that still have substantial amounts of residential properties. These neighborhoods maintain high property values and have plenty of undeveloped properties capable of achieving gross margins that support JTB HOMES’ business model. Recent market data of undeveloped properties within the target neighborhoods support JTB HOMES business model of purchasing properties under $550,000. Other recent market data for already developed high end properties also supports the feasibility of JTB HOMES business model of selling for $1.5 Million. Comparable high end newly developed properties represent only 3% in the target market. We believe this demonstrates a market that both has the capability to achieve sales prices that support JTB HOMES business model and a market that is not over saturated and with room for expansion. Also, since single family housing in Arlington is actually expected to decline close to 1% in the next 5 years, and with all major economic and other statistics indicating steady growth in the area, we believe the area will maintain high demand for new high end property developments for years to come. JTB HOMES intends to design its homes to have the smallest impact as possible to the environment, and it plans to accomplish this by designing its homes around the Arlington County Green Homes certification program checklist in order to obtain certification from the program. 1.1 Goals Our Goal is to be amongst the best high end property development company’s in Arlington by continuously maintaining above $600,000 gross margins and below one year turnarounds on each sale. 1.2 Objectives We have identified the following objectives that are necessary to achieve our goals. Identify properties with the highest potential gross margins Close on purchases quickly Develop quality environmentally friendly designs that our customers want Manage projects effectively to ensure we come in on time, on budget, and at the highest quality Effectively market properties to ensure the highest sale price possible in the shortest amount of time An extensive implementation plan for these objectives is in the fifth chapter, Strategy Implementation. 1.3 Mission JTB HOMES Mission is to provide its customers an urban lifestyle in downtown Arlington with all the comforts of high end residential properties and the least impact possible on the environment by finding properties with the best potential for gross margins, developing them into what our customers want, achieving certification from the Arlington Green Homes program, and bringing properties to market as soon as possible. 1.4 Business Model JTB HOMES business model is to purchase small residential properties under $550,000, develop them into high end environmentally friendly homes around 3500 square feet, keep operating costs under $100 a square foot, and sell for $1.5 Million. Should the market for high end developments that can sell for $1.5 Million in these neighborhoods dry up, JTB HOMES has an alternate plan to develop properties in the up and coming South Arlington at lower entry points, lower price per square foot, and lower sales prices. Although each sale would generate lower gross margins, JTB HOMES would aim to complete two of these sales each year. More details for this backup plan can be found in the fifth chapter, Strategy Implementation, under the “Plan B” section. 1.5 Highlights As supported in our Market Analysis chapter, we believe our business model supports gross margins of $600,000. By achieving our objectives, we believe that we can maintain $600,000 gross margins and less than one year turnarounds on each project. By doing so, our financial models project that our initial investment will be completely paid off and our net worth will reach $1 Million within five completed projects. Funding Request In order to begin operations, and in order for founder Tyler Beckwith to leave his current job and devote 100% of his time to this new business, JTB HOMES is requesting a start up loan of $989,000. From the net profits we anticipate from each sale derived from our market analysis, and by paying 95% of net profits toward the principal on the loan, we project being able to fully repay this loan after the fifth property development. Further financial details can be found in the 9th chapter, Financial Plan. The following is a breakdown of how JTB HOMES intends to use the initial $989,000 funding: $550,000 to purchase initial property $11,000 in closing costs to complete the purchase $350,000 in improvement costs to the property ($3500 square feet x $100 per square foot) $78,000 to supplement founder’s current income for one year in order to leave his current job and devote 100% time and effort Because of the long amount of time we project between sales when developing high end residential properties, we would like to request a loan payment cycle based on the sales cycle.