about us
Executive Summary
The company is a start-up business venture developed a Group of individuals for the sole purpose of investing in residential real estate. This business plan lays out a simple strategy for developing a long-term real estate investment company by leveraging an initial investment of $100,000
Our business model is to market the company to a consistent stream of motivated sellers that are willing to accept discounted wholesale prices for their property. The properties are primarily resold at retail prices to generate working capital for the company. We pay all closing costs and do not use real estate agents to execute the transaction, thus eliminating agent’s fees.
Often, there is not a substantial difference between our offer and the net cash an owner would receive by listing their property with an agent. When listing with an agent, the owner will pay 6% of the sales price in agent’s fees and 4% in closing costs. We can close on a property in as little as seven days, while the average days on the market for a house listed with an agent is fifty to sixty in our region, in addition to a thirty-day escrow. Our value proposition of an all-cash offer with a fast escrow close is often a good option for the owner/seller who recognizes the benefit of speed to cure their financial situation.
The company is a start-up business venture developed a Group of individuals for the sole purpose of investing in residential real estate. This business plan lays out a simple strategy for developing a long-term real estate investment company by leveraging an initial investment of $100,000
Our business model is to market the company to a consistent stream of motivated sellers that are willing to accept discounted wholesale prices for their property. The properties are primarily resold at retail prices to generate working capital for the company. We pay all closing costs and do not use real estate agents to execute the transaction, thus eliminating agent’s fees.
Often, there is not a substantial difference between our offer and the net cash an owner would receive by listing their property with an agent. When listing with an agent, the owner will pay 6% of the sales price in agent’s fees and 4% in closing costs. We can close on a property in as little as seven days, while the average days on the market for a house listed with an agent is fifty to sixty in our region, in addition to a thirty-day escrow. Our value proposition of an all-cash offer with a fast escrow close is often a good option for the owner/seller who recognizes the benefit of speed to cure their financial situation.
Corporate Status and Ownership
The company consists Group of partners, with each partner owning a percent base of there intial share to the investment. Each partner is investing the cash needed to operate the company and fund our initial property acquisitions. To limit liability and optimize tax benefits, the company is formed as a Limited Liability Corporation In the State of Nevada.
As an LLC, the company passes on its profits or losses to each shareholder. At the end of each tax year, each partner receives a tax form from the corporation listing their individual share of the profit or loss for the company. Each shareholder is responsible for reporting the profit or loss on their personal taxes. As part of our team of professionals, we always seek the guidance of an accountant well-versed in real estate accounting and tax matters.
Business Model and Value Proposition
The business model of the company is to buy residential properties at discounted prices and resell the properties at retail prices. We market our services to property owners who are highly motivated to sell their property. When a property owner contacts us, we evaluate their property and determine whether to make an offer to purchase the property. Our offers are based on wholesale pricing with a fast escrow closing. The value proposition to the owner is that they be willing to accept less net profit for their property in exchange for a fast escrow to quickly relieve their financial situation.
Because we pay all closing costs and don’t charge an agent’s commission, we’re able to demonstrate to the owner that they’re not giving up a substantial amount of net profit in the end. We often buy properties ‘as-is’, further relieving the owner from the burden of properly staging the property. If the owner were to pursue a more traditional sales path and engage a real estate agent to represent the property, the owner would pay a substantial commission of up to 6% plus closing costs, generally totaling 10% of the property’s sales price. Often, the net cash difference to the owner is not dramatically different from our offer.
Parameters and Guidelines
This business plan defines a long-term strategy for development of a real estate investment company. We recognize that investing in real estate is an opportunity to build substantial company wealth over the long-term and have set the following parameters to achieve our goals.
Buy properties only from highly motivated sellers: Through the company’s marketing efforts, we actively seek out motivated sellers with an identifiable,distressing problem that forces them to sell their property at discounted prices. Common types of distress are personal financial pressures; unemployment; relocation; divorce; health problems; and inheritance of unwanted property.
