Company Summary: Hubilu Venture Corporation

Business Overview

• Type: Real estate consulting, asset management, and property acquisition company.
• Inception: Incorporated in Delaware on March 2, 2015.
• Primary Focus:
  • Acquiring and managing residential rental properties, especially student housing near Los Angeles.
  • Providing research, analysis, and advisory services to real estate investors and professionals.
  • Seeking to acquire real estate in Los Angeles, particularly properties near USC, to exploit high-demand rental markets and development opportunities.
• Operations:
  • Owns 30 rental properties across Los Angeles through 9 subsidiary LLCs.
  • Active in property acquisitions, with six properties purchased in 2024 for a total cost of approximately $4.09 million.
  • Provides consulting services aimed at evaluating market opportunities, property analysis, structuring financing, marketing strategies, and operational planning.
  • Intends to expand revenue through property management, consulting fees, and additional property acquisitions.

Employees & Management

• Number of Employees: 2 (one unpaid CEO and one Vice President of Investor Relations).
• Management Experience:
  • CEO (David Behrend): Over 18 years in real estate buying, sales, and brokerage, with approximately 250 transactions.
  • Vice President (Tracy Black-Van Wier): Former National Marketing Director with expertise in marketing and relationship building.

Revenue & Income

• 2024 Revenue: ~$2,232,412 from rental properties, an 18% increase from $1,885,985 in 2023.
• 2024 Net Loss: $186,237, reduced from a loss of $275,332 in 2023.
• Major Customer: One client (9 Silver) accounted for approximately 64% of revenue in 2024 and 63% in 2023, but terminated their leases after November 2024.
• Operational Cost: Estimated monthly burn rate of ~$30,000, expected to be covered by revenues over the next year.
• Assets:
  • Total real estate assets valued at approximately $21.87 million as of December 31, 2024.
  • Owned properties are primarily in Los Angeles, with land and improvements financed via mortgage loans.

Financial Highlights

• Total Assets (2024): ~$20.94 million.
• Total Liabilities (2024): ~$22.23 million, including mortgages and related-party debt.
• Equity (2024): Negative equity of approximately $1.29 million.
• Cash on Hand (2024): ~$9,799.
• Debt: Multimillion-dollar mortgage debt across various properties, with refinancing and debt payments ongoing.
• Market Capitalization: Estimated at ~$69,630 as of June 30, 2024.

Business Strategy

• Focus on acquiring properties with limited downside risk in growth corridors near LA metro stations.
• Expand through property acquisitions, development projects, and investment in related high-growth industries like property management, clean tech, healthcare, and technology sectors.
• Provide fee-based consulting services, offering analysis, financing, marketing, and operational planning.
• Seek additional financing (equity, debt, or related-party advances) to fund growth, with substantial reliance on external capital due to current negative working capital and losses.

Market Position & Risks

• Operates in a highly competitive environment with large firms and private investors, especially in student housing near USC.
• Faces risks related to market downturns, interest rate increases, regulatory compliance, and management's lack of extensive experience in consulting and public company operations.
• No current plans for dividends; profits are reinvested into growth initiatives.
• Management and ownership heavily concentrated (95% owned by Jacaranda3 Investments, Inc.), with significant influence over company decisions.

Summary: Hubilu Venture Corporation is a Los Angeles-based real estate and business acquisition firm specializing in residential and student housing properties and related advisory services. It owns 30 properties, primarily in Los Angeles, and generated over $2.2 million in rental revenue in 2024. The company operates with minimal staff and is heavily reliant on external financing and property acquisitions to expand. It faces several operational and market risks, including significant liabilities and a limited public market for its stock.