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Cleveland

Modtempo

About Documents
39%
$5,900 Funded
$15,000 Target
13 days Time Left
3 Investors
$15,000 Min. Raise
$43,500 Max. Raise
60 mo. Term Length
12.75% Interest Rate
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Introduction

Modtempo is a customer-experience focused furniture shop based in Cleveland, OH. We seek to address the problem with the current online furniture market: that most companies are focused on volume rather than providing a customer experience that encourages the customer to repeatedly purchase online. 

Our goal is to provide furniture solutions that focus on the customer experience and handle every step of the design, buying, and delivery process. Modtempo solves this problem by providing free inside delivery and setup, superior customer service with a dedicated customer service rep, and training to prepare our employees be a vital resource for online furniture buyers.

We are looking to borrow up to $43,500, repaying at a 12.75% interest rate over a 60 month term.



The Project

We’ll be using the funds for inventory and for marketing.

We will be hiring sales reps to reach out to local developers/leasing agents to offer fully furnished homes to the Cleveland market. These sales reps will be paid $10 per hour and earn a 5% commission on any contracts they secure. One sales rep will be focused strictly on B2B sales for certain products/collections created by Kevin. Once our augmented reality app is released, it will be sold as a freemium model. New subscribers can furnish one room for free to try out the app. Our VIP subscribers can access up to 10 rooms, one free interior design consult and get free white glove delivery on all orders for a yearly subscription of $199. Interior designers and real estate agents can use subscribe to our business plan for $99 per month or $999 billed annually.


Business

About Modtempo

For the wholesale furniture market, we aim to consistently provide unique and high-quality products that encourage our partners to continue to purchase from us. We are creating our own lines of furniture with our renowned designer/manufacturer, Kevin Busta. We are partnering with John Schneider, who was responsible for sourcing products for Magnussen Furniture for over 22 years.

The company's initial target market consists of buyers who value service as much as design, and prefer to pay to have someone handle their furnishing needs as a service rather than do it themselves.

Modtempo originally started as a side project, something I did in my spare time away from my "real" job as a pharmacist. Five years later, and we're headed toward making that the other way around. We see significant opportunity in wholesale distribution and retail ecommerce sales.



In our first year, we did one sale. By year four, we sold 1100 orders on a marketing campaign of $10 per day in Facebook advertising. However, when the company was started, we had to build up to the exclusive contracts and private branding that we are now moving toward because at the time, we had not established ourselves in the market. This led to fighting over breadcrumbs with 20 other online retailers because we were selling the same products as the Wayfair's and Overstock's of the world.

Now, we are moving toward using our platform to sell our exclusively designed and manufactured products, but we are going to set our primary objective to using the big players in the industry to our advantage. Wayfair alone had a $550,000,000 marketing budget and they do not stock any of their own products. We are going to work on B2B contracts for already established relationships that Kevin has built in his 18 years as a furniture designer and manufacturer.



Looking forward, we will start with the Cleveland market B2B and B2C large online retailers looking for industrial furnishing options to sell located in The United States. In five years, the target market will expand to customers located in The United States, Canada, United Kingdom, Germany, Australia, and New Zealand.

Over the last 5 years, we have built the infrastructure to create something great. I have learned that in order to build a successful business, you need to surround yourself with highly talented people in all areas. We are all working toward a common goal and our aim will always be to provide value to our customers.



Fast Facts

  • Has designed and sold furniture for movie stars, fashion designers, and other celebrities
  • Featured in Popular Mechanics, New York Times, and international design magazines
  • Went from one sale in year 1 to 1100 orders by year 3 with very low marketing budget
  • Developed an augmented reality app so our customers can try the furniture out in their home right through their cell phone
  • Looking to patent our app which would be expanded to industries outside of furniture


About the Owner

David Reamensnyder completed his Doctorate of Pharmacy in 2011 from the University of Findlay. After working as a staff pharmacist for 5 years, David was promoted to Pharmacy Manager and completed his MBA from Lake Erie College.


David Reamensnyder

Deal Summary

Summary

Issuer

  Modtempo LLC

Security Type

  Secured Loan

Loan Purpose

 Purchase of inventory, working capital

Offering Amount

  $15,000 - $43,500

Interest Rate

 12.75%

Payments

 Monthly, Disbursed to Investors Quarterly

Maturity

  60

Personal Guaranty  

 David Reamensnyder

Security Interest

 Blanket lien on assets of business

 


Your Earnings Potential

If you choose to invest, you will make a one-time investment via ACH that will be transferred to a secure escrow account. If the campaign successfully reaches its target, the funds will be distributed to Modtempo LLC.

For more information on the mechanics of Honeycomb’s crowd investing platform, please review our Education Materials.

Investment Amount One-Time Fee Potential Quarterly Returns* Potential Total Repayment*
$100 $1.40 $6.78 $135.75
$500 $7.00 $33.93 $678.75
$1,000 $14.00 $67.87 $1,357.51
$5,000 $37.25 $339.37 $6,787.59

*Individual payments may vary slightly based on rounding. Potential repayments include principal and interest; they do not include the one-time fee which is assessed when you make your investment. These amounts are calculated as a fully amortizing loan, which means that principal and interest are paid down starting with the first payment. There are no prepayment penalties and Modtempo LLC may pay down their loan early, which may impact your earnings potential. Please note, returns are not guaranteed and investors could lose some or all of their investment.

Your ongoing responsibilities from investing are very limited. Over the life of the loan, you will receive a yearly 1099-INT, which is a simple tax document similar to what you receive for most savings accounts.

Modtempo LLC pays as agreed. You will receive quarterly payments directly into your bank account. In the event of a default, you will be contacted by the administrative agent to manage the collections process on the investors' behalf.


How Honeycomb is Compensated

Honeycomb charges Modtempo LLC a $250 posting fee and a 8.0% loan origination fee on the total amount funded.

Additionally, to cover expenses associated with each investment, Honeycomb charges a 1.40% investment fee capped at $37.25 per investor.

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