My City Builders, Inc. (OTC: MYCB)

My City Builders, Inc. is a real estate company that concentrates on the acquisition, development, sale, and rental of low income housing. The company conducts its operations primarily through its subsidiary RAC Real Estate Acquisition Corp., which pursues three core investment strategies. First, it acquires distressed foreclosure properties, refurbishes them, and sells the renovated homes. Second, it purchases large clusters of land or homes often referred to as land banks, develops the sites, and holds the resulting units for long term rental. Third, it sources properties from Home Equity Conversion Mortgage pools, refurbishes or constructs new units, and either sells or rents them to qualify for government backed mortgage programs. Through these activities My City Builders, Inc. aims to provide affordable housing options while generating returns for its investors.

The company generates revenue chiefly from the sale of renovated single family homes and from rental income collected on its leased properties. Additional revenue streams include interest earned on promissory notes issued in connection with property transactions and occasional gains realized from the disposition of real estate assets. My City Builders, Inc. also receives contributions from joint venture partners when it structures partnerships to acquire and develop larger projects, and it may earn fees for managing properties on behalf of third parties. The mix of sales, rental, interest, and partnership income provides diversified cash flow for the business.

The company operates through the following segments.

• Traditional Foreclosures: This segment purchases distressed foreclosure properties, renovates them to marketable condition, and sells the homes to individual buyers or investors.

• Land Banks: This segment acquires large tracts of land or clusters of over 100 homes/lots, develops the sites, and holds the resulting units for long term rental to low income tenants.

• HECM Properties: This segment sources properties from Home Equity Conversion Mortgage pools, refurbishes or constructs new units, and either sells or rents them to qualify for government backed mortgage programs.

My City Builders, Inc. competes in a fragmented real estate sector where barriers to entry are relatively low. Its main competitors include real estate investment trusts, institutional pension funds, private equity backed developers, and other local firms that also focus on affordable housing. The company differentiates itself by concentrating on low income projects, leveraging joint venture structures, and utilizing government supported mortgage programs such as HECM. This focus allows My City Builders, Inc. to access specialized financing and to serve a customer segment that is often underserved by larger market participants.

The company’s customers are primarily low income individuals and families seeking affordable rental or homeownership options. It also works with capital providing investors and government agencies that administer housing assistance programs; no specific customer names are disclosed in the filing.