Newsletter Volume 14, Issue 8

I hope this edition of ‘Exponential Insights’ finds you well and enjoying the summer season. As much as I cherish this time of year, I must admit that I am eagerly anticipating the arrival of fall—both for the change in season and for the opportunity to turn the page towards a new chapter of profitability.

The past few months have been particularly challenging for us, and sharing unfavorable results with you has been a difficult task. Many of the factors that have impacted on our performance were beyond our control, making this period even more frustrating.

I want to remind you of the "State of the Union" email message I sent on August 12, 2024. This email provides a detailed summary of the current market conditions and the factors that have contributed to our recent performance. If you haven’t already, I encourage you to review that message for a comprehensive understanding of the context in which we are operating.

With the changing of the seasons comes a renewed sense of hope and possibility. As I communicated in my email message, I am highly confident that within the next real estate cycle specifically our most recently acquired properties and those that are scheduled to be acquired over the next 60 days, we will be back to our historically profitable results. And I am confident that this short-term roller coaster ride of losses will end with these most recent disappointing results. We are already back to seeing homes as the Jersey Shore preselling for sale prices that are far greater than our projected pro forma projections (examples of this are 210 20th Street & 633 Ocean Avenue in Ocean City, NJ). In Margate, NJ, I have already received offers on properties that beat our projected pro forma sales targets and have turned down the offers because I am 100% confident that we can achieve even more profitable results than the pre-completion offers that I’ve received.

I want to assure you that we remain committed to steering our company towards a more successful and profitable future. Your continued support and commitment during this time are greatly appreciated.

I hope you enjoy the rest of your summer with your family. We look forward to sharing more positive updates with you in our September Newsletter.

Vince Viney, President & Founder