PART I
ITEM 1. DESCRIPTION OF BUSINESS
OVERVIEW
Trimax Consulting, Inc., a Nevada corporation (the Company), incorporated May 19, 2014. The Company is principally engaged in the business of marketing an array of property tax lien services including (a) identifying property tax lien auctions and property tax liens for sale; (b) providing valuation services with regards to real property subject to property tax liens; and (c) providing consultative and advisory services to property tax lien investors in regards to purchasing property tax liens, servicing property tax liens and adjudicating property tax liens.
BUSINESS STRATEGY
The company was incorporated on May 19, 2014 in the state of Nevada. Since inception, Our Chief Executive Officer has focused on identifying property tax liens for sale and providing a valuation of the underlying properties to determine profit opportunities. The Company has entered into an agreement with one party, Innovation Consulting Worldwide, LLC to provide our services to the company. Our Chief Executive Officer has likewise been actively engaged in servicing that contract by providing Innovation with information regarding future property tax auctions and by further identifying particular properties that may present a sizable profit opportunity for Innovation
The Company is principally engaged in the business of marketing an array of property tax lien services including (a) identifying property tax lien auctions and property tax liens for sale; (b) providing valuation services with regards to real property subject to property tax liens; and (c) providing consultative and advisory services to property tax lien investors in regards to purchasing property tax liens, servicing property tax liens and adjudicating property tax liens.
Revenues
The Company offers its services on a flat monthly fee basis, typically between $1,500-$3,000 per month. Each engagement at such amount will obligate us to identify up to fifty tax certificate and tax lien investment opportunities to our client.
Marketing Program & Advertising
The primary objective of the company’s marketing program will be to identify real estate investors as well as individuals seeking a lower cost entrance into the real estate investment industry. Our primary marketing efforts include:
We expect to rely on SEO, SEM, direct e-mail and affiliate marketing as our primary marketing strategies, with viral marketing as a secondary marketing strategy.
Pricing
Costs associated with the customer acquisition, retention, continued product development, overhead and management and continued servicing are budgeted individually for each project. Contingencies are allowed for as deemed necessary. Each engagement contemplates that we will offer up to fifty tax lien investment opportunities.
Business Growth Strategy
The Company intends to offer our services through our current officer and by retaining, when feasible, highly skilled real estate professionals. Although, we have limited competition in the tax certificate and tax lien consulting industry. Our competitors are in the realtor services industry include franchisees of Century 21, Prudential, GMAC Real Estate, and RE/MAX insomuch that they are the largest source of all real estate investment opportunities. All of these companies may have greater financial resources than we do, including greater marketing and technology budgets. We also compete with smaller regional and local realtor companies and independent realtors.
Realtors compete for business primarily on the basis of services offered, reputation, personal contacts, and realtor commission. We may have to reduce the fees we charge our clients to be competitive with those charged by competitors, which may accelerate if market conditions deteriorate. The company’s strategy is to leverage broad geographic reach, long-term client relationships, and full-range and service offerings to become a larger, more robust real estate services firm. The company’s growth plan is focused on the achievement of four primary objectives:
- Hire and retain highly qualified, experienced third party associates. We believe our highly qualified, experienced third party associates will provide us with a distinct competitive advantage. Therefore, one of our priorities is to attract and retain high-caliber real estate sales professionals. We believe we will attract and retain qualified professionals by providing attractive sales commission arrangements
- Leverage existing real estate industry relationships. We will emphasize a relationship-oriented approach to business rather than a transaction-oriented or assignment-oriented approach. We believe the real estate professional services experience of our associates will enable us to understand the needs of our clients and to deliver an integrated, relationship-oriented approach to meeting their needs, while offering many of these individuals a new real estate investment opportunity that they may not otherwise be familiar or experienced with
- Offer robust information services. Our anticipated approach is to identify, attract and obtain new customers by offering a comprehensive tax lien information platform. The company’s computer systems will be designed to deliver an array of tax lien investment data relevant to the customer’s investment profile with minimal time and effort
- Build the Trimax brand as the premier provider of tax lien consulting services. Our primary means of building our brand is by consistently providing high quality, value-added services to our clients. In addition, we will have ongoing marketing efforts that will reinforce the our brand
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ITEM 1A. RISK FACTORS
An investment in our Common Stock is highly speculative, involves a high degree of risk and should be considered only by those persons who are able to afford a loss of their entire investment. In evaluating our business, prospective investors should carefully consider the following risk factors in addition to the other information included in this Annual Report.
The nature of our business may make projecting future financial results difficult, which may have a negative impact on our business.
Once a party has acquired a tax lien certificate, the party will not know when or if it will be redeemed by the owner of the underlying property. Property owners may almost immediately redeem the certificate, may redeem the certificate at some other time prior to the expiration of the statutory redemption period or may allow the property to be foreclosed. If the tax lien is redeemed quickly, the party may not realize a significant financial gain on their investment. In such instances, the tax lien investments that we identify for our clients may not generate sufficient profit to justify the fee we charge our clients for our services. This may lead to clients discontinuing our services and decreasing our revenue.
Our business model may not be sufficient to achieve success in our intended market
The Company is principally engaged in the business of marketing an array of property tax lien services including (a) identifying property tax lien auctions and property tax liens for sale; (b) providing valuation services with regards to real property subject to property tax liens; and (c) providing consultative and advisory services to property tax lien investors in regards to purchasing property tax liens, servicing property tax liens and adjudicating property tax liens. Our survival is dependent upon the market acceptance of a narrow group of services. Should these products be too narrowly focused or should the target market not be as responsive as we anticipate, we will not have in place alternate service offerings we can offer to ensure our survival.
Our profitability is dependent in part on third party service providers; any increase in the costs of those service providers may decrease our profitability
If a tax lien certificate or lien is not redeemed, the holder of such interest may foreclose upon the property. The foreclosure of a property will require the holder to engage an attorney at a cost to the holder. Once a property is foreclosed upon, the holder becomes the owner of the property. Should the holder elect to market such property for rent, the holder may be inclined to engage a realtor. In either instance, the cost of engaging such third party professional represents a cost to our client. Accordingly, such cost will impact the profitability of the party’s investment in the tax lien certificate or lien. If any of our clients are compelled to engage a third party professional, their return of investment will decline. If the return on investment of an tax certificate or lien that we identify for our clients declines, such investment may not generate sufficient profit to justify the fee we charge our clients for our services. This may lead to clients discontinuing our services and decreasing our revenue.
We may be unable to continue paying the costs of being public.
The costs of being a public company may be substantial and the Company may not be able to absorb the costs of being a public company which may cause us to cease being public in the future or require additional fundraising in order to remain in business. We estimate that in the future, costs for legal and accounting at $20,000 per year.
Our lack of history makes evaluating our business difficult.
We have a limited operating history and we may not sustain profitability in the future.
To sustain profitability, we must:
We may not be successful in accomplishing these objectives. Further, our lack of operating history makes it difficult to evaluate our business and prospects. Our prospects must be considered in light of the risks, uncertainties, expenses and difficulties frequently encountered by companies in their early stages of development, particularly companies in highly competitive industries. The historical information in this report may not be indicative of our future financial condition and future performance. For example, we expect that our future annual growth rate in revenues will be moderate and likely be less than the growth rates experienced in the early part of our history.
The profitability of our fixed-fee engagements with clients may not meet our expectations if we underestimate the cost of these engagements.
Our client engagements are predicated upon fixed-fee consulting contracts. When making proposals for fixed-fee engagements, we estimate the costs and timing for completing the engagements. These estimates will reflect our best judgment regarding the efficiencies of our methodologies and consultants as we plan to deploy them on engagements. Any increased or unexpected costs or unanticipated delays in connection with the performance of fixed-fee engagements, including delays caused by factors outside our control, could make these contracts less profitable or unprofitable, which would have an adverse effect on our profit margins
Expanding our service offerings or number of offices may not be profitable.