Since the North Point model home opened, sales and lot deposits have scaled at unprecedented rates – far greater than originally predicted. In one day, on September 10, during Frederick’s annual festival, In the Streets, Nexus received 5 lot holds! A continuation of this “One Home a Week Sale’s Pace” will Sell-Out all available Nexus EnergyHomes at North Pointe in Frederick, MD before the end of next year. Within slightly over 3 months, that equates to a total of 15 lots on hold and/or under contract. If you think a first time homebuyer tax credit is good, on the first home that closed, these buyers are scheduled to receive $15,909 in Federal Tax Credits and $3750 in State Grant monies! That means they should get $19,659 back just for buying a NEXUS EnergyHome, and little to no utility bill!! It is likely you will not find any other home builder in America that is currently matching this value from a home nor match our sales velocity.
The profile of the North Pointe home buyer is varying. The profiles range from a Professor and Nurse, Downsizers from Montgomery County, First Time Home Buyers, Middle-Aged Couples and a Newspaper Publisher from New Hampshire. The only theme that seems to exist amongst these home-buyers is their desire for practicality and deletion of utility costs. The growth rate at North Pointe is unparalleled for these times, and far exceeds that of other builders.
The buyers of the first home at Three Creeks, the Wichard family, are moving from Texas to Maryland to work at Fort Meade. We have the foundation and plumbing ready, and expect the SIPS (Structurally Insulated Panels) to arrive and be up in two weeks. They are very excited to live in a Nexus home and are pleased with the progress. We thank the Queenstown Bank of Maryland for extending, in these difficult lending times, the full construction loan for this Grayson/Corsica type house.
Nexus Capital, LLC
As virtually every business person knows, obtaining constructions loans for residential building companies, or even small business loans, has become a time consuming and often futile exercise. As most bankers will tell you, loan applicants need not apply so long as regulators continue to put unrelenting pressure on those institutions to dispose of or charge off existing real estate loans. It is difficult during these regulatory times to convince a bank to lend when they are being told to reduce their portfolio of real estate loans.
Because this situation clearly impacts Nexus’s ability to “scale up” to meet buyer/market demand, a demand that has been created and is increasing rapidly even in the current housing recessionary period, Nexus’s officers have decided to innovate a financial product. This Product, Nexus Capital, represents a construction loan solution for the EnergyHome market and an opportunity for our shareholders, friends and family to obtain low risk, fixed returns on their money similar to financial instruments such as Certificates of Deposit (CD’s) or Money Market Accounts. The major difference is the amount of the return! Without substantial overhead, carrying costs or debt, and controlled investment standards, Nexus Capital is structured to return 6% interest on its certificates or Units of deposit.
Compared to a bank’s . 3% or .4% returns on savings accounts or CD’s, Nexus Capital Units are an investment that benefits EnergyHome growth and flexibility, while providing outperforming returns to its Unit Owners. Should anyone be interested in learning more about Nexus Capital, LLC, please feel free to contact us.
An agreement has been drafted, which will benefit both land owners and Nexus EnergyHomes, allowing for joint marketing initiatives to sell our products. Nexus and our partner land owners will work together by allowing Nexus to market “to be built” Nexus EnergyHomes on their lots. Nexus and its sub-agents and/or representatives will be permitted to offer and display marketing material including, but not limited to MLS/internet listings, brochures and/or other documents and plans to prospective home buyers. By way of the cross-marketing agreement, the Listing Brokers agree to allow Nexus and our sub-agents and/or representatives to market “to be built” Nexus EnergyHomes on the lots, even though the marketing materials may be through another real estate broker who is marketing for Nexus. This is a great example of Nexus teamwork and the types of people or organizations we select as partners.
In addition to our array of projects already in the pipeline, we are currently negotiating the potential to partner at Vint Hill in Fauquier County, Virginia (www.vinthill.com). Moving forward, Nexus would enter in the role of residential building partner, in a much larger planned “mixed-use” community, akin to a small town that will include; a shopping village, winery, theatre, farmer’s market and deli, amongst many other things.
As we close in on the last quarter of 2011, Nexus is proud to announce; the extraordinary sales achievements reached in Frederick, the founding of the innovative Nexus Capital, LLC, a Financial Instrument, which allows us to fund our own expanding construction needs, while offering outstanding returns to the funds contributors. And we are certainly pleased to highlight the addition of another fantastic community in which to set Nexus roots.