Ltx Home Builders

I am an owner of Ltx Home Builders looking for funding to expand our business, which builds new homes in Central Texas. We currently build 50 houses per year in Texas., sell about $20,000,000.00 in sales

 LTX Holdings Inc was formed in March 2019 by brothers Terry Lade and Richard Lade. The company was created to purchase land to resale, this was done with a $30,000 initial investment. During this time period the company primarily flipped land and reinvested profits into additional land purchases. In early 2020 LTX decided to start building homes under the dba LTX Custom Homes and LTX Home Builders. In 2020 the company started to grow with sales of $724,000, it was at this time Terry and Richard decided to work full time growing the company. The next year sales increased to $6 million in 2021, then to $14 million in 2022, and now approximate sales of $20 million in 2023. Both Terry and Richard have been in the home building business for the last 20 years working for some of the nation’s largest home builders in various positions. Through this experience the company is growing at a very fast pace. What the company needs to continue this growth in the home building industry is access to more capital to build and is seeking a $10,000,000 credit line. The exact terms of the credit line can be negotiated but below are some basic proposed terms: LTX would continue to build a similar product home that has been successfully built and sold by the company over 100 times over the past 3 years. The base amount of funds used for each home would be approximately $300k each, which would allow for 33 homes at one time to be built. LTX’s average build time from land purchase to sale of home is generally 6 months or less (we are a production builder), so with a $10,000,000 credit line approximately 66 homes per year could be built and sold. The return to the investor could be calculated on a percentage basis or could be a guaranteed flat fee. We have calculated what we believe would be an average percentage of $17,500 per deal. This would give the investor a potential profit of $1,155,000 per year ($17,500 x 66 deals) on the $10,000,000 investment. The LTX proposed home sales are at a modest projection, the primary area that LTX builds in is a suburb of Austin Texas which is rapidly growing. The largest builder in this area was Clayton Homes, which has recently completed all projects in Lago Vista, this has left the door open to an even larger potential expansion for LTX. Clayton was selling around 150 homes per year in this area, so the LTX projections of 66 sales should be easily achievable. Availability of property is not an issue, as there are thousands of undeveloped homesites in Lago Vista. The reason the large home builders do not desire building in Lago Vista is because these properties were developed decades ago and are individually owned, so contracts must be negotiated for each individual property, whereas the national builders want to build in the large master planned communities that they can purchase hundreds of lots at one time. LTX has become experts in our market and has truly found a niche area that has very high growth potential. In addition to Lago Vista, we have built in several other suburbs of Austin and there are excellent growth opportunities elsewhere. As we expand, we see opportunities to build hundreds to potentially thousands of homes per year in the Austin area and then possibly expand to additional Texas markets. In addition to home building expansion the company would like to expand operations into mortgage lending. When LTX is able to accomplish 66 home sales per year with purchasers averaging $375,000 mortgages on each home, this opens the door for around $25 million in mortgage lending opportunities to an investor. With the potential to build and sell hundreds of homes per year these numbers could drastically increase. With continued growth from the home building operations the company has the potential for hundreds of millions of dollars in mortgage opportunities. As discussed above you will find that LTX Holdings is a company that has a proven track record and the ability for continued growth.