Are there specific regions or cities in the USA that are primarily suitable for these activities? Why?

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Regions and Cities in the USA for Fix'n Flip Activities
A core market for our Fix'n Flip activities is Washington D.C., along with the surrounding states of Maryland and Virginia, often collectively referred to as the DMV region. This area is particularly exciting for several reasons and offers excellent opportunities for real estate investments:

1. High Property Prices in Washington D.C.:
   Washington D.C. is one of the most expensive real estate markets in the USA. The city is the political center of the country, attracting many government employees, consultants, diplomats, and businesses. The high demand for housing has caused prices to rise significantly, prompting many buyers and renters to move to the suburbs of D.C. – namely, Maryland and Virginia.
2. Affordable Housing in the Suburbs:
   In the suburbs of Maryland (e.g., Prince George's County, Montgomery County) and Virginia (e.g., Fairfax County, Arlington), housing is significantly more affordable than in the capital. Many professionals commute from these areas to Washington D.C. for work and seek modernized, affordable properties.
3. Attractive Infrastructure and Economic Strength:
   The DMV region boasts excellent infrastructure (transportation networks, public transport, airports) and a robust economy. Numerous federal agencies, businesses, and startups contribute to a high job density and stability in the real estate market, keeping the demand for housing consistently high.
4. Stable Economy and Demographics:
   • Job Security: Due to the presence of government institutions and large contractors, jobs in the region are more secure than in other parts of the USA.
   • Growth: The population in the DMV region is steadily growing, increasing the demand for housing. Particularly younger professionals and families are looking for renovated, affordable properties.
5. Attractive Returns on Fix'n Flip:
   Due to high demand and price dynamics in the region, investors can achieve attractive returns through targeted renovations and modernization of existing properties. Fix'n Flip projects in well-connected suburbs offer particularly high potential.
6. Variety of Properties in Need of Renovation:
   Many older homes in the region offer investors the opportunity to realize significant value increases through targeted modernization efforts. At the same time, these renovations provide housing that meets modern standards for buyers and renters.

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Conclusion:
The DMV region (Washington D.C., Maryland, and Virginia) is one of the most exciting markets for Fix'n Flip projects in the USA due to these reasons. It combines high demand, a stable economic environment, and the opportunity to significantly contribute to the creation of housing through the modernization of existing properties – all while generating attractive returns.
In recent years, we have purchased, renovated, rented, or sold over 140 properties in this region alone.

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Are there plans to replicate this model in other U.S. markets or internationally?
In addition, we plan further projects in emerging markets such as Savannah, Georgia, and the New Jersey area (near Manhattan/NY). Additional regions are under evaluation. If international opportunities arise, we will assess them accordingly.

How does your approach differ from that of other market participants?
Most real estate providers specialize in Buy & Hold strategies to benefit from both rental income and property value appreciation. To our knowledge, there are no providers in Germany or the USA that enable investors to enter into this interesting and profitable business case.

What is the process for selecting contractors, real estate agents, and other service providers?
Process for Selecting Contractors, Real Estate Agents, and Other Service Providers
Careful selection of partners and service providers is a key success factor for our Fix'n Flip projects in the USA. Our approach is structured, multi-step, and based on clear quality criteria:

1. Contractors (General Contractor, GC):
   • Experience and Specialization: We prefer contractors who have experience with renovations and refurbishments in the residential real estate sector, specifically in Fix'n Flip. References from similar projects are always checked.
   • Local Presence and Market Knowledge: Contractors from the region are familiar with local building codes, materials, and labor, which reduces construction times and minimizes costs.
   • Certifications and Insurance: We ensure that contractors are licensed and have the appropriate insurance (e.g., liability insurance, worker’s compensation).
   • Transparent Estimates: Potential partners are asked to submit detailed bids that clearly outline material and labor costs, as well as timelines.
   • Small Test Jobs: We often start with smaller renovation jobs to assess quality, punctuality, and reliability before assigning larger projects.
     Currently, we work with a handful of selected general contractors in the region who have already proven their reliability and quality. At the same time, we are in a continuous evaluation process to add more capable partners to our network.
2. Real Estate Agents (Realtors):
   • Experience in the Local Market: We work with real estate agents who are highly knowledgeable about the region and can provide accurate market analyses (CMA, Comparative Market Analysis).
   • Track Record: We check how successful agents have been in selling properties comparable to our target projects.
   • Strategic Marketing: A good agent not only brings buyers but also has a clear plan for presenting the property, e.g., through home staging, professional photos, and targeted online and offline marketing efforts.
   • Communication and Network: Real estate agents should have a broad network of buyers, financiers, and other service providers and should be proactive in the sales process.
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     Our Head of Real Estate Investments plays a central role in this: As an experienced realtor with decades of experience, he brings a comprehensive network, ranging from leading platforms like Redfin and Better to other real estate agents, contractors, and specialized service providers. This network enables us to attract the best talents for our projects and quickly respond to market changes.
3. Other Service Providers (e.g., Appraisers, Inspectors, Architects):
   • Certifications and Qualifications: Service providers such as home inspectors or appraisers must have the necessary licenses and qualifications.
   • Objective Evaluation: For appraisers, we ensure neutrality and realistic property valuations before and after renovation.
   • Timeliness: Reliability and quick execution are crucial for service providers to avoid project delays.
4. The Selection Process in Detail:
   • Creation of a Requirement Profile: For each service, we define clear requirements in advance regarding experience, cost framework, quality, and timelines.
   • Beauty Contest Process: Similar to many family offices when selecting banks or asset managers, we first conduct a structured beauty contest process. Here, we compare multiple service providers based on their qualifications, offers, and references.
   • Shortlist and Pilot Project: After the pre-selection, we focus on a smaller group of service providers. They are given the opportunity to prove themselves in a pilot project before we integrate them into our network long-term.
   • Reference Check: We contact previous clients to verify the reliability and quality of the work.

Long-Term Partnerships: Service providers who prove themselves in our projects are added to our “Preferred Partner Network.” This long-term collaboration ensures efficiency, trust, and smooth project management.

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Are there specific goals for scaling the "Fix'n Flip" model
(e.g., the number of properties sold per year)?

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The scaling of the Fix'n Flip model will proceed step by step:

1. Short-Term: 10-15 properties per year in the DMV region (Washington D.C., Maryland, Virginia).
2. Medium-Term: 25-30 properties annually through optimized processes and an expanded partner network.
3. Long-Term: 50+ properties per year, with expansion into other high-potential U.S. regions.
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   The implementation heavily depends on cash flow. With larger investment volumes, Stateside will focus on larger but still tradeable properties, such as student housing, to further optimize scalability and returns. The focus will remain on efficiency, quality, and controlled growth to ensure sustainable returns for investors.
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How is the operation supervised during the acquisition and renovation of properties?

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The operation during the acquisition and renovation is overseen by an experienced team:

1. Head of Real Estate Investments: Oversees the entire process, from acquisition to completion.
2. Local Partners: Regular checks by real estate agents, project managers, and inspectors on-site.
3. Project Management Tools: Use of software to track schedules, budgets, and milestones.
4. Quality Control: Ongoing site inspections and approvals during the renovation phases.
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   This ensures that projects are completed on time, within budget, and to high-quality standards.

How is the right timing for selling a property after renovation determined?
Before acquiring a property, we carefully analyze the expected renovation duration and optimal selling time. In 90% of cases, the sale occurs on schedule, except for unforeseen events like Covid. Should a similar situation arise, we carefully assess potential tenants and rent the property – as we have successfully done in the past – to solvent tenants, intending to sell it profitably at a later date.

Are there plans to hold certain properties as rental units instead of selling them immediately?
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Yes, there are plans to hold certain properties as rental units. Liberty Wealth Estate Ltd. acts as the primary buyer when we achieve a rental return of 12% or more with a property. This is considered during the property sale phase. However, to ensure the long-term success of Stateside’s Fix'n Flip model, the property is initially acquired and renovated with the intention of flipping. Only if the rental yield is projected to be 12% or higher, will the property be held for rental. This decision is evaluated based on market conditions and potential for capital appreciation. Properties that meet the rental return criteria are held by Liberty Wealth Estate Ltd., allowing for long-term revenue generation. This approach ensures that Stateside’s Fix’n Flip model remains adaptable, capitalizing on both short-term sales and long-term rental opportunities, depending on market dynamics.

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Investment Criteria

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Are there specific criteria for selecting properties (e.g., undervaluation thresholds, neighborhood potential)?
Yes, property selection is based on clear criteria:

1. Undervaluation: We apply our 30/30/30/10 formula: 1/3 purchase price, 1/3 renovation, and 1/3 profit. Properties where the neighborhood does not support the desired sale price are not considered.
2. Neighborhood Potential: Focus on emerging or stabilized areas with good infrastructure and high demand.
3. Renovation Needs: Clear value enhancement through targeted renovation.
4. Rental Yield or Buyer Profile: We assess whether the property is suited for an investor (rental) or a homeowner (self-use), which depends largely on the location and quality of the property.
   These factors ensure an optimal strategy for sale and mutual profitability.
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Is there a preferred method for acquiring properties (e.g., auctions, off-market transactions, tax liens)?

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Our preferred method for acquiring properties also includes US Tax Liens, and US Tax Lien Inc. specializes in these. We rely on the following methods:

1. US Tax Liens and Redeemable Deeds: We acquire properties through tax liens, especially US Tax Liens, where we, as investors, purchase the tax rights on properties where the owner has not paid the taxes. Additionally, we use Redeemable Deeds, where we acquire the right to take over the property after a certain period if the debtor does not pay.
2. Auctions: We actively participate in auctions to acquire undervalued properties that may be offered through tax liens or other legal procedures.
3. Off-Market Transactions: We specifically search for properties offered privately and provide investors the opportunity to purchase properties directly from owners without public market involvement.
   These methods allow us to access attractive properties that align with our strategy and leverage benefits through tax and legal mechanisms.
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How do you ensure the quality and consistency of renovations across multiple projects?

We ensure the quality and consistency of renovations through several measures:

1. Standardized Processes: We work with clearly defined renovation standards for materials, design, and construction execution.
2. Experienced Partners: Our general contractors and service providers are carefully selected and must prove their capabilities in pilot projects.
3. Regular Inspections: Renovation progress is monitored through weekly on-site inspections and digital progress reports.
4. Head of Real Estate Investments: Our experienced Realtor with decades of expertise supervises the construction and ensures adherence to our standards.
5. Feedback Loops: After the completion of each project, we conduct a performance review to ensure continuous improvement.
   These measures ensure consistent quality, timely completion, and maximum value appreciation with each project.

What due diligence procedures are in place for evaluating potential properties?

Our due diligence procedures for evaluating potential properties are comprehensive and based on clear criteria:

1. Financial Analysis: Review of purchase price, renovation costs, and potential sale proceeds using our 30/30/30/10 formula.
2. Location Analysis: Evaluation of the neighborhood, infrastructure, demand potential, and possible rental yields.
3. Technical Inspection: Conducting condition assessments by experienced appraisers to identify renovation needs and hidden defects.
4. Market Comparison: Utilizing databases like Redfin to analyze comparable sales (comps) in the region.
5. Exit Strategy: Planning the optimal sale timing or considering alternative scenarios, such as renting.
6. Legal Review: Ensuring a clean title and checking for legal risks, such as outstanding tax obligations.
   Through this structured approach, we minimize risks and maximize the value creation potential of each property.
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What is the price range for acquiring properties under this strategy?

‍The price range for acquiring properties under our strategy varies by region and project scope:

1. Entry-Level Projects: For smaller Fix’n Flip projects, the price range is between 150,000 and 250,000 USD.
2. Standard Projects: In established markets like the DMV region (Washington D.C., Maryland, Virginia), we range between 250,000 and 500,000 USD.
3. Larger Properties: For scalable projects, such as multi-family homes or student housing, investments can be 500,000 USD and above.
   This range allows flexibility in selecting attractive properties that align with our 30/30/30/10 formula and market conditions.
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What is the expected tenant or buyer profile after renovation?

‍The expected tenant or buyer profile after renovation depends on the location and quality of the property:

1. Homebuyers: Families or commuters working in the DMV region (Washington D.C., Maryland, Virginia) looking for modern, affordable housing.
2. Investors/Leasers: Buyers targeting attractive rental yields, particularly in growth areas.
3. Tenants: Solvent professionals, students, or small families, depending on property type and location. We target rental yields of 12% or more to remain attractive to investor-buyers.
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   Our renovation strategy and pricing are designed to appeal to both target groups—homebuyers and investors—optimally.

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Market Dynamics

What specific trends in the US residential real estate market are driving this initiative?
Several specific trends in the US residential real estate market are driving our initiative:

1. Housing Shortage in Metropolitan Areas: High demand for affordable housing in the catchment areas of expensive cities like Washington D.C., especially for commuters.
2. Suburbanization: The trend of moving from city centers to suburbs creates opportunities for Fix'n Flip projects in well-connected regions.
3. Rising Real Estate Prices: The continuous rise in property values increases the attractiveness of undervalued properties for renovation and resale.
4. More Flexible Work Models: Remote work allows more people to live in more affordable regions, driving demand for renovated properties.
5. Attractive Rental Yields: Investors seek stable returns in uncertain markets, making renovated rental properties increasingly popular.
   These trends provide the ideal conditions to realize value appreciation potentials through strategic renovations.
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What market gaps are you aiming to fill with this model (e.g., affordable housing, highly demanded locations)?

‍Market gaps we aim to fill:

1. Affordable Housing: In expensive metropolitan areas like Washington D.C., there is a lack of modernized, affordable housing for commuters and families. Through targeted renovations, we create attractive options at affordable prices.
2. Undervalued Properties: We identify and revitalize off-market and neglected properties that can be reintroduced to the market through renovation.
3. Attractive Returns for Investors: Our model offers investors access to stable returns through rental properties or lucrative resales.
4. Locations with Potential: We focus on regions that are particularly future-proof due to suburbanization and high demand growth.
   By focusing on these gaps, we create added value for both buyers and investors while contributing to housing supply.
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Are there specific demographic or buyer trends influencing the property selection process?

‍Yes, certain demographic and buyer trends influence our property selection process:

1. Commuters: In the DMV region (Washington D.C., Maryland, Virginia), many professionals are looking for more affordable housing in the suburbs that are still well-connected to the city.
2. Young Families: The trend toward more space and suburban living drives demand for modernized, family-friendly homes.
3. Millennials as Buyers: This generation values renovated, move-in ready homes with modern amenities and energy-efficient solutions.
4. Investors: The increasing demand for rental properties makes renovated homes with attractive rental yields highly sought after.
5. Remote Workers: Flexible work models enable people to live in more affordable suburbs or less central regions, raising the demand for properties in these areas.
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   These trends help us target properties that are attractive to both end users and investors, providing maximum added value.
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Financial Structuring

Is external financing planned for the project? If yes, what terms are acceptable?
Our policy is to consciously avoid bank financing or similar sources to avoid valuation and interest rate risks. Instead, we rely on equity and strategic partnerships that allow for more flexible and less risky financing. This enables us to act quickly and without the complexity of bank negotiations, which is particularly advantageous in the Fix'n Flip business.
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What is the target internal rate of return (IRR)?
The target internal rate of return (IRR) typically ranges from 12% to 18%. A key driver of returns is the renovation timeline: properties with lower renovation needs that can be resold within 4-6 months yield returns of 12%-14%. By quickly renovating and reselling in the short term, we can rotate capital within the year, maximizing profitability. This strategy allows us to use invested capital multiple times during the year and increase overall returns, while ensuring controlled growth.
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Opportunities to generate returns of 30% or more exist in the market, and we aim to include such properties in our portfolio where possible.
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What is the expected return (if available)?
Our net target return of 12%+ takes into account that it can often be difficult to remain fully invested in this business field. We place great value on careful due diligence and select only the best properties for our investments. Out of five potential properties considered within a given budget framework, we deliberately choose the two most attractive and promising properties to minimize risk and maximize returns for our shareholders.
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What is the loan-to-value (LTV) or financing structure for acquisitions?
We avoid external financing to mitigate unnecessary risks.

How will the funds be used (e.g., acquisition, renovation, marketing)?
The funds will primarily be used for acquisition, renovation, and marketing. A large portion will be allocated to acquiring properties selected through thorough due diligence, focusing on prime and select secondary locations. This helps shorten the renovation time and prepare the properties for sale or rent more quickly. We will then invest in renovations to increase the property's value. The remaining funds will be allocated to marketing and selling to ensure a fast and profitable exit. All expenses will be carefully monitored to maximize returns for our investors.
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How will the returns be distributed to investors?
As a shareholder, you will participate in both the earnings generated by Stateside and the value appreciation of the company. Profits will be distributed annually as an attractive dividend at the annual general meeting, after shareholders approve the annual accounts. Investors who wish to accompany us in the long term should know that we plan to merge Stateside Realty, Liberty Wealth Estate Inc., and US Tax Lien Inc. in five years (or earlier, depending on when we reach the investment volume of 500 million USD) and bring the company to the New York Stock Exchange.
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Risk Management

What safety measures are in place to mitigate liquidity risks for token holders?
To reduce liquidity risks for token holders, management is focused on creating a stable liquidity base. This includes strategic partnerships with established financial service providers and the creation of a reserve fund. The reserve fund could aim to generate a minimum return of 6% annually in the form of distributions, depending on market conditions and the company's specific circumstances. Additionally, one of the long-term goals of blockchain technology is to facilitate the trading and sale of tokens for holders, though we cannot guarantee immediate liquidity.
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What information will be provided to investors and token holders about the project’s progress?
Investors and token holders will be regularly provided with comprehensive updates on the project’s progress. This includes:

1. Project Updates: We regularly inform stakeholders about each acquired property, its objectives, renovation progress, expected returns, planned actions, and expansion plans.
2. Annual General Meeting (AGM): A detailed discussion of the annual report and future strategies.

The goal is to provide investors and token holders with transparent and understandable information regularly, so they can track developments in a well-informed manner.