The Executive Summary
The Company
MONOPOLY I, LLC is a Missouri-based real estate company that employs a balanced strategy encompassing property purchases (hard assets) and a diversified portfolio of Real Estate Investment Trusts (REITs) and mutual funds (marketable securities).
The Company’s Mission
The mission of MONOPOLY I, LLC is to maximize share member value by purchasing undervalued residential properties and developing them into profitable rental properties. In addition, we will achieve industry and geographical diversification by developing and managing a marketable securities portfolio seeking income and capital appreciation.
The Company’s Strategy
Our strategy for company growth and development consists of three phases: growth, debt reduction, and distributions to share members.
Company growth and development consists of a balanced approach of purchasing multi-family housing and real estate investment securities. Our goal for company growth is to build a $5,000,000 real estate investment portfolo by the end of 2016. In order to accomplish this, M1 will seek to raise $110,000 annually in capital investments (by issuing member shares) to finance the purchase of $500,000 of real estate investments.
Debt reduction will occur automatically with principal payments on mortgages; however a concentrated approach will be employed in the year 2017. During 2017-2021, M1 will use all available funds (after dividend distribution) to reduce and retire debt.
Distributions to share members will begin in year 6 (2012). However, beginning in 2022, M1 will increase the distributions to reflect the reduced amount of funds needed for debt service.
Investor Marketing and Sales Strategy
MONOPOLY I, LLC will accept applications to become an investor until the company reaches its goal of 100 investors. Each investor is expected to be committed to the company’s growth objectives. Investors are asked to provide a minimum initial investment of $200 with subsequent monthly investments of $200. Investors can opt to make annual one-time investments of $2,400. There is no maximum investment.
Investors will largely come from personal acquaintances of the managing members. Anyone interested, however, may complete an application and be interviewed to become an investor.
The Competition
Today many Americans look to get involved in real estate. It is one of the best ways to accumulate wealth over time. Many investors are small property owners, usually owning one to three properties. Small property owners miss out on economies of scale, the ability to negotiate rates and buy in bulk. Economies of scale alone can increase your profit by 5-10%. With a multi-million dollar real estate portfolio, M1 will look to establish strategic alliances with service and product providers as well as take advantage of price points and bulk purchases, thus reducing our expenses and maximizing our net income.
Target Market
M1 will operate in the Midwest states (initially in Joplin, MO), targeting multi-family properties. Joplin provides a daytime population of over 250,000 and an estimate of more than 5,000 commercial and multi-family housing units. In 2010 we expanded our operations by adding two apartment buildngs in Macomb, IL. Additionally, M1 has purchased REITs owning retail, office, industrial, student housing, and specialty use properties diversified geographically throughout the United States.
Management
Founders William R. Holstine and Woodrow W. Friel bring significant start-up business and real estate management experience to MONOPOLY I, LLC.
William R.Holstine, Managing Member and President/CEO. His responsibilities include property acquisitions and rehabilitation management. Prior to MONOPOLY I, LLC in June, 2006, Mr. Holstine has worked in the real estate manangement field for over 16 years, holding executive management positions with several real estate development companies all of which he has been a founding shareholder and taken these companies from start-up operations to profitable organizations.
Woodrow W. Friel, Managing Member and SVP of Property Management. His responsibles include the management of our property held for rental income and leading our property services division. Mr. Friel is currently employed by Ozark Center in Joplin, Mo. Mr. Friel has over 16 years of direct management experience and has extensive experience in the housing market of MONOPOLY's marketplace.
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