REI Deals A2B | Application Preview
REI Deals A2B is applying for a $100,000 government grant to expand its real estate wholesaling business, which specializes in acquiring off-market, distressed properties and assigning contracts for profit. The requested funding will be strategically allocated to six key areas: marketing and lead generation ($40K), acquisition and closing costs ($20K), operations and technology ($15K), personnel and cold-calling staff ($15K), legal and compliance needs ($5K), and a contingency reserve ($5K).
The largest portion of funds (60%) will drive direct revenue generation activities — finding seller leads and closing deals. The remaining 40% supports infrastructure, staffing, legal compliance, and financial cushion, creating a stable foundation for growth.
The five-year financial projection anticipates scaling from 12 deals in year one to over 30 annually by year five. With reinvestment of profits and smarter marketing, projected revenue reaches $1.23M over five years, with net profits approaching $820K — an 820% return on the initial grant.
REI Deals A2B aims to stand out in a competitive market by offering a personalized seller experience, flexible deal structures (assignments, double closes, wholetailing), and deep local expertise. Unlike larger, impersonal firms, this business builds trust through direct interaction with distressed sellers and quick, creative solutions that benefit both parties.
Beyond financials, the owner emphasizes a personal motivation: securing his daughter’s college future. This makes the grant not just a business investment but a contribution to a lasting legacy — one grounded in family, education, and upward mobility.
The request outlines a detailed, scalable plan with demonstrated ROI potential, community benefit, and a compelling human story behind it — offering a balanced case for public funding.
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General Information
Business Registration Number: 93-2591067
Location: Newport, KY, United States
Length of Operation: 1-5
Number of Employees: 1-10 Employees
Annual Gross Income: Less than $100k
Annual Gross Expense: Less than $100k
Open to Loans: YES
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Funding Usage
REI Deals A2B – $100,000 Funding Usage Plan 1. Marketing & Lead Generation – $40,000 (40%) This is the lifeblood of wholesaling: finding motivated sellers. Direct Mail Campaigns (postcards/letters targeted to distressed lists) Digital Ads (Google PPC, Facebook, Instagram campaigns) Skip Tracing Services (finding accurate seller contact info) Cold Calling Centers (outsourced teams dialing thousands of leads per month) SMS & RVM Campaigns Expected Impact: Consistent deal pipeline of distressed properties at below-market value. 2. Acquisition & Closing Costs – $20,000 (20%) Covers costs tied to securing contracts and closing deals. Earnest Money Deposits (EMD) to lock in properties Option Fees (when using option-to-purchase contracts) Title & Escrow Fees (especially in double closes) Inspection/Appraisal fees (if required) Expected Impact: Ability to confidently secure multiple contracts at once without cash flow issues. 3. Operations & Technology – $15,000 (15%) Efficient systems = scale without losing deals. CRM software (Podio, REI BlackBook, InvestorFuse) Data subscriptions (PropStream, BatchLeads, Privy) VoIP/phone systems (CallRail, Mojo Dialer) Cloud tools & e-signature platforms (DocuSign, Dropbox, Google Workspace) Virtual Assistants (VAs for lead management and follow-up) Expected Impact: Streamlined operations, faster follow-up, higher conversion rates. 4. Personnel & Cold Calling Staff – $15,000 (15%) Scaling requires people to consistently work leads. Acquisition Managers (commissions/salaries) Dispositions Managers (selling deals to cash buyers) Cold Calling Center Contracts or In-House Callers (salaries or retainer fees) Training & onboarding costs Expected Impact: Expanded capacity to handle higher lead volume and close more contracts. 5. Business Development, Legal, & Compliance – $5,000 (5%) Protects the business and ensures smooth scaling. LLC formation & annual fees Legal counsel (contracts, dispute handling) Accounting/bookkeeping setup (QuickBooks, CPA fees) Business insurance Expected Impact: Legal and financial foundation strong enough to support rapid growth. 6. Reserve / Contingency Fund – $5,000 (5%) Cash buffer to handle unexpected expenses. Unforeseen holding costs (utilities, taxes, insurance if forced to close on property) Extra marketing pushes in hot markets Backup liquidity for emergencies Expected Impact: Stability — ability to pivot or absorb unexpected costs without slowing down. Summary of Allocation Marketing & Lead Gen: $40,000 Acquisition & Closing Costs: $20,000 Operations & Tech: $15,000 Personnel & Cold Calling: $15,000 Legal/Business Development: $5,000 Reserve/Contingency: $5,000 With this allocation, the $100K directly fuels lead generation and acquisitions (60%), builds operational systems (15%), scales people & calling power (15%), and protects the company with legal structure and reserves (10%).
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Business Plan
REI Deals A2B – 5-Year Projection (Based on $100K Initial Funding) 🔹 Key Assumptions Avg. Assignment Fee = $10,000 (conservative baseline) Avg. Cost per Closed Deal = $5,000 (marketing + acquisition spend) Initial funding = $100,000 Reinvest a portion of annual profits into more marketing capacity each year Operational efficiency improves gradually (cost per deal decreases to $4,500 by year 5) Year-by-Year Projection Year 1 Marketing budget = $60,000 Deals closed ≈ 12 (1 per month) Revenue = $120,000 Net profit ≈ $80,000 ROI ≈ 80% Year 2 Reinvest $40,000 into additional marketing (total marketing = $80,000) Deals closed ≈ 16 Revenue = $160,000 Net profit ≈ $110,000 ROI ≈ 110% Year 3 Build a bigger cold-calling team + expand marketing ($100,000 spend) Deals closed ≈ 22 Revenue = $220,000 Net profit ≈ $150,000 ROI ≈ 150% Year 4 Add small wholetail flips & MLS listings (increasing avg. fee to $12,000) Marketing spend = $125,000 Deals closed ≈ 28 Revenue = $336,000 Net profit ≈ $220,000 ROI ≈ 220% Year 5 Fully scaled marketing + dispositions team (cost per deal down to $4,500) Marketing spend = $150,000 Deals closed ≈ 33 Avg. fee = $12,000 Revenue = $396,000 Net profit ≈ $260,000 ROI ≈ 260% 5-Year Totals Total Deals Closed: ~111 Total Revenue: ~$1.23M Total Net Profit: ~$820K ROI on $100K Initial Funding: ~820% over 5 years In summary: Your $100K starting capital grows into a $1.23M revenue business within 5 years, producing ~$820K in net profit. By reinvesting into marketing, scaling cold-calling centers, and adding light wholetailing, the business compounds deal flow year over year. Why I Am Requesting Funding I am requesting the $100,000 in funding to strategically scale REI Deals A2B, a real estate wholesale company with proven systems for acquiring and assigning properties at below-market value. This capital will directly fuel marketing, acquisitions, and operations, allowing the company to increase deal flow, generate consistent monthly revenue, and achieve long-term growth. From a business standpoint, this funding is not an expense — it is an investment that multiplies. As outlined in my projections, $100,000 can generate over $1.23M in gross revenue within 5 years, with more than $800K in net profit. This provides a high return for investors, strong justification for grantors, and financial sustainability for the business. From a personal standpoint, one of my highest priorities is to put my daughter through college. As a father, providing her with the opportunity for higher education is more than just a financial goal — it is my deepest motivation. The success of REI Deals A2B is not only about building wealth, but also about creating a lasting legacy of stability, opportunity, and empowerment for my family. By awarding this funding, you are not only supporting a business with clear growth potential and strong ROI, but also helping fulfill a mission rooted in family, education, and community impact.
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Self Identified Competition
Competitors in the Real Estate Wholesale Market 1. Local Independent Wholesalers These are solo operators or small teams who wholesale in your same city/region. Strengths: Strong local connections, lower overhead, quick decision-making. Weaknesses: Limited marketing budget, smaller buyer lists, less consistency. 2. Wholesaling Teams & Regional Firms Mid-size groups that operate across multiple markets. Strengths: Larger marketing spend, dedicated cold calling/VAs, strong buyer databases. Weaknesses: Less personalized service to sellers, often spread too thin across markets. 3. National Real Estate Investment Groups Bigger players that run nationwide campaigns (e.g., HomeVestors “We Buy Ugly Houses”). Strengths: Well-funded, high brand recognition, massive marketing reach. Weaknesses: Impersonal process, slower response times, less flexibility on deal structures. 4. iBuyers & Institutional Buyers (somewhat overlapping competitors) Examples: Opendoor, Offerpad, Zillow (before exiting the space). Strengths: Tech-driven, convenience for sellers, ability to close quickly. Weaknesses: Primarily target retail or near-retail properties, not distressed assets; not as creative with deal structuring as wholesalers. 5. Realtors & Traditional Real Estate Agents Compete indirectly when motivated sellers choose to list their property. Strengths: MLS exposure, credibility, and established networks. Weaknesses: Sellers face commissions, longer timelines, and the need for property repairs. Where REI Deals A2B Stands Out Focused on Distressed Sellers – targeting situations big competitors overlook (foreclosure, probate, vacant homes, tired landlords). Flexible Deal Structures – using assignment, double closes, JV deals, and wholetailing — unlike iBuyers or agents. Personal Approach – stronger seller relationships compared to impersonal national firms. Local Market Knowledge – understanding pricing trends and neighborhoods in ways big-box competitors can’t. Lean, Efficient Operations – allowing for higher margins and faster closings. What Makes REI Deals A2B Different From Competitors Personalized Seller Experience – Unlike national “We Buy Houses” companies that feel corporate and impersonal, I work directly with sellers, building trust and offering flexible solutions that meet their unique situations. Creative Deal Structuring – Many wholesalers stick to simple assignment fees. REI Deals A2B uses multiple strategies — assignments, double closings, JV partnerships, wholetailing — to maximize profits and create win-win deals. Local Market Expertise – I understand the neighborhoods, pricing trends, and buyer demands in ways large firms cannot. This allows me to negotiate better, close faster, and serve sellers more effectively. Efficiency & Lower Overhead – Unlike bigger firms with bloated marketing budgets, I run lean. This ensures higher margins, faster scaling, and smarter use of every funding dollar. Legacy & Motivation – My competitors are chasing profit. I’m building a business not only for income but for legacy — to put my daughter through college and create long-term community impact. Why Grantors Should Fund Me Proven Profitability – With a clear business model, detailed expense plan, and projected ROI of 80–110% annually, this funding won’t be wasted — it will multiply. High ROI & Sustainability – The $100,000 requested can generate over $1.2M in revenue and $820K net profit over 5 years. That means grantors/investors are fueling a business that can sustain itself long after the initial funding. Community Impact – By creating consistent deal flow, REI Deals A2B helps distressed sellers exit tough situations, provides affordable homes for buyers, and creates work for local contractors and service providers. Family Legacy – This funding has a personal mission tied to it: helping me put my daughter through college. That story matters. It demonstrates discipline, responsibility, and a deeper motivation than profit alone. Scalability – The business model is designed to grow. With funding, I can expand into new markets, build a larger team, and create opportunities for others while keeping operations efficient.
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