Foxtrot Initiative LLC

Residential Short Term Rental Arbitrage with Profit Metrics (Start-Up)

My name is Leonardo Lopez and I formed Foxtrot Initiative, LLC to take advantage of emerging technologies in E-commerce.

Executive Summary
Foxtrot Initiative LLC was created in Houston Texas on January 2019.  The company was formed to fill residential short term rent demands, initiated by internet marketing platforms such as AirBnB and Vrbo.  The overall business model I'm focusing on is known as Rent Arbitrage, and is based on lease contracting residential property and delivering a furnished product that creates value, at a price that the marketplace is willing to pay for.  AirBnB is currently attempting to roll out their IPO soon, and with consideration of location, safety protocols, target audience, and guest valued amenities, short term rent properties will remain profitable.  The business will focus on Continuous Improvement, using Lean Six Sigma tools to help ensure the most competitive rates.  The primary target audience are traveling professionals in the healthcare industry, and other young professionals traveling in groups from 1-8.

Lease Contracting
Over 200 opportunities a month are projected, and 1 lease contract a month is necessary to meet the first years quote.  Leads are generated through Realtor networking, social media, and cold calling current listings.

Marketing
The marketing campaign will be primarily through AirBnB, Vrbo, Homeaway, and other Networking sites where business can be brought to our personal website.  A company website and social media accounts will also be used for guest feedback.

Team
The first year will involve myself, a Maintenance coordinator, and an Operations coordinator.   Supply chain vendors and field staff will be outsourced to keep our focus on hospitality.  Staff will be added during scale-up years, and will include business partners, Operations Manager, and a Channel Manager.

Scale-Up
Scale-up will be moderately paced to ensure we stay adaptable to market changes.  The first Scale-up is projected to take place at the beginning of year 2.  We reserve the right to scale-up or down as the market dictates.  At every scale up, the company will first generate positive cash flow to pay for new employee's, increase capital reserves, and pay for overhead.

Flexibility
A benefit to short-term rentals, unlike long term rent where one might give up a month of income due to a non-paying tenant, is that monthly income is based on occupancy rate, which is increased by determining what the marketplace is willing to pay for, also known as the bid price.

Exit plan
Another advantage to this business model is the ability to terminate a lease contract if necessary.  Unlike residential ownership, a lease contract can be terminated if necessary, limiting the amount of risk and loss.  This will be included into the Lease Contract Agreement. 

Ownership
Foxtrot Initiative, LLC retains 100% ownership of business decisions and company share.

Mission Statement:  We strive to highlight the experience of travel life, by delivering on guest defined values, one day at a time. 

If you clearly see value in this investment opportunity, I will gladly present metrics and Return on Investment.