CPI believes that several growth opportunities exist through leveraging the Company’s key strengths. Growth will result from the Company capturing additional market share within its existing markets, expanding its complement of service offerings, as well as capitalizing on favorable dynamics within its new target markets. CPI’s scalable business model, industry reputation and experience, and lending relationships will help drive these initiatives.
The residential real estate market has a consistent stream of customers either upsizing from rentals and apartments or downsizing into smaller dwellings. This movement provides a constant demand for CPI’s services. Moreover, it is becoming increasingly difficult to qualify for conventional financing, which has resulted in a larger pool of potential borrowers looking for the products and services provided by Capital Plus.
The Company’s properties are located throughout Texas, which includes the counties of Dallas, Harris, Tarrant, Bexar, McLennan, Bell, Galveston, and Fort Bend.
With one of the strongest economies in the country, Texas offers a welcoming business climate, an abundant and educated workforce from its world-class research and educational institutions, attractive housing costs and excellent schools. In addition, all of the Company’s properties are located near mass transit, shopping malls and desirable school districts.
The turnkey capabilities of CPI and its staff make duplication, specialization, and expansion highly feasible and attractive. The Company’s management team has identified Texas as the most favorable geographic region for expansion. The Company already has a major foothold in Texas and sees an opportunity to expand towards other areas of Texas, such as Central and South Texas.
Product Line and Customer Expansion
Building upon its core competencies, the Company could sell products which are attractive to its existing customer base or, alternatively, leverage its infrastructure to capture other demographics. Complementary service lines include insurance, security systems, and home warranties. While companies offering these products have different business models, these product lines would be an extension of the Company’s core service and, therefore, are viable options for product line expansion. CPI believes that given adequate levels of financing, the Company could expand its offerings to higher income tiers.
Development of Partnerships
Partnerships with gas, electric, cable and water companies, among others, could be used to generate referral income whenever new and existing borrowers are referred to a specific Company. Additionally, there are many other companies that would benefit from partnering with CPI to gain access to its highly desirable Hispanic customer base.