Although many people long to own their own home, cultural barriers as well as a lack of affordable housing are obstacles that may prevent this dream becoming reality. Reed Properties works to preserve these dreams. This new real estate brokerage will not only define success by the number of units closed and sales volume but also by whether people were helped in the process.
Claudia Reed, Reed Properties’ founder, is a professional who has more than 15 year experience in the Richmond Metro.
A recent Census Bureau report on the economic status of the nation’s minority groups should noted that all segments surveyed–African American, Hispanic, and Asian-Pacific–registered significant growth in average family income during the past two years. Fannie Mae, a secondary market mortgage company, reported that immigrant homeowners grew by 47 percent between 1980-95 and is expected to increase 45 percent to 6.8 millions people in the next ten year. Recent Fannie Mae surveys found that renters are three times more likely to make home ownership their top priority than other renters. On the whole, immigrants are more likely than any other adult demographic group to buy a home in the next three years.
In Richmond, the Latino community has grown tremendously, but have not been targeted by the city’s real estate professionals. In Richmond, 27% of new entrants were Latinos between 25 and 34 years. Targeting Latino home buyers is good business. Latinos are expected make up half of metro population in 20 year’s, making them one of the fastest-growing segments of the city’s real estate market.
Reed Properties will continue to be a major player in the Richmond Metro area’s revival.
Claudia Reed will provide counseling, education programs, and credit repair services. Her radio talk show, “Your New Homeâ€, will feature educational programs, credit repair initiatives, and HUD counseling.
There are currently three low-income housing projects in Richmond, totaling 1,500 units. These will be sold as affordable housing. Claudia was instrumental for helping community organizations to win the ten million dollars grant for the renovation projects.
1.1 Objectives
Open the door of home ownership to residents of the Richmond Metro area.
A business that serves the community can be built.
You can capture a large market share from the new business that is being created by current and future building and renovation projects.
1.2 Mission
The mission of Reed Properties is to increase minority homeownership in the Richmond Metro area.
RJ Wagner & Associates Realty, Inc., a Texas S corporation, is domiciled in Texas. Regina Wagner, a principal investor and stockholder, is the corporation’s capital. Regina Wagner is both a licensed broker as well as the sponsoring broker of this firm. The sponsoring broker for this firm is Regina Wagner, a licensed broker. This corporation will formalize the real estate services offered.
RJ Wagner & Associates Realty, Inc., opens its doors to the public in July. The office is located in Houston in the Champions area, Houston.
Credibility and reputation excel with the broker of this firm, with a published real estate book and real estate organizational programs placed in the Houston Association of Realtors and the Dallas Association of Realtors bookstores and superstores. Over the past year, novice licensed agents have been enjoying the organization tools and guidance provided by Texas Real Estate/The Mobile Mentor.
1.1 Objectives
Our organization has two primary goals:
Be a profit-making organization that allows us to take advantage of any other real estate investment opportunities that become available.
Recrute and hire hardworking, self-motivated sales people.
Maintain an office of at least 15 sales agents who meet the previous requirements.
Establish a solid corporate identity in the target market.
Establishing positive working relationships and starting to work as part of a team.
In our third year, or sooner, we aim to be the Champion’s top brokerage firm.
In just 12 months, you can see a positive ROI.
The professionalism of the sales team and the manager of this company will make it possible to achieve the above-mentioned goals. Real estate license holders graduate from school having a working knowledge of real estate laws and procedures. This business has a high turnover rate because agents are not trained outside of the law and regulations. Once an agent has obtained a license, the only way they can obtain the training required for the sales and marketing profession is to get it. Agents can only get this training at a very high cost. Most agents cannot afford the training required to start their career. In addition, the average real estate agent’s earnings are very low compared to the industry.
We will provide a productive office environment that is inviting and welcoming to both the client as well as the agent. Each day will have a different location within the office, with a daily marketing schedule/routine to be followed. Agents can be guided through a daily marketing plan to help them gain clients. They may choose to follow the guidelines and training provided or they may follow their own daily routines. We will offer guidance and stability, so that new agents can earn more than the average agent in real estate.
Our company has an agent who sets a goal to get one buyer and one seller each month. On average, $150,000 per sale, this would bring in $6,750 per months. Twelve months equals $81,000. Regina’s goal is to support each agent in achieving this goal.
The same sales as noted above would profit the corporation $2,250 per month X 12 months = $27,000 for the year X 15 agents = $405,000. This doesn’t include the sales made by the active broker. Each side would receive $4,500 in commission to bring $9,000 (100%) back to the corporation. The corporation will pay the broker a salary.
1.2 Mission
This plan is intended to be a guide for starting and running a new company. It also serves as a foundation for a separate, more detailed marketing plan. Following is a summary of the main points of this plan.
RJ Wagner & Associates Realty, Inc. aims at generating a profit, growing at a challenging pace, and adhering to the Texas Real Estate Commission ethical codes.
The first mission of RJ Wagner & Associates Realty, Inc., is to first recruit Texas real estate agents.
Agents choosing this firm will get a higher commission that allows them to market more.
The ongoing mission will be to assist both homeowners selling their homes, as well as homebuyers purchasing the home of their future, by providing professional and personal assistance. It is of paramount importance to ensure the customer’s best interests are met.
RJ Wagner & Associates Realty, Inc.’s keys to success are networking, marketing, customer service, and generating repeat business.
We want to build a partnership with our clients, staff members and title companies that respects the goals and interests of all parties.
The local market for this business, while not new, is wide open for new and expanding brokerage firms.
The initial financial analysis shows that this venture is viable. It also has outstanding potential and results. Numerous sources have noted that the realty business has proven to be very lucrative in today’s fast-paced market.
The company will remain competitive in its target market by providing exceptional customer service both to clients and to associates.
In conclusion, as shown in the highlights chart to follow, this plan projects rapid growth, as additional agents join, and high net profits over the next three years. RJ Wagner & Associates Realty, Inc. can be a very profitable venture if it implements this plan in conjunction with a thorough and detailed marketing plan.
The advances in modern medicine have allowed people to live longer. Once they raise children and retire from work they have a new stage of their life where they find themselves enjoying their spouse and free from other responsibilities. They have another chance at being carefree as a young adult. They have to find a location within their budget that will allow them to do that.
Solution
GVRE provides real estate services for the Golden Valley retirement community, located northwest of Tucson. GVRE offers full-service title, real estate and mortgage services.
Market
The industry of retirement has experienced steady growth over the last twenty years. The U.S. has a record 21% over-55 population, and this number is increasing at an average of 3% annually. In certain parts of the country like the American Southwest, which has a high concentration of retirement communities, the growth rate is about 8%. This number is expected to rise as the first baby boomer generation reaches retirement age over the next decade. The U.S. Census Bureau has estimated that the industry of retirement, which includes home, medical, specialty equipment and retirement entertainment, generates 4.8 billion dollars per year.
Competition
The realty industry is highly fragmented. There are many potential competitors. Bowditch Realty, RE/MAX are our most serious competitors. Bowditch Realty is a well-established company with a strong track record of providing quality service. It has been in business for ten years. It currently has twelve agents, and long-term contracts with many home building companies. This company is somewhat larger than GVRE in both market capitalization, and size.
RE/MAX has a reputation for being one of America’s most prominent real estate firms. It is home to hundreds of agents, and has deep pockets that can be used against any kind of competitor move.
Why Us?
GVRE believes new entrants are the greatest threat to the market right now, as they want to capitalize on this high growth sector. Smaller real estate firms with less than ten employees will be the most likely new entrants. The one advantage GVRE does have is the exclusive right to act as an agent for Golden Valley Retirement Community. However, due to the high number of competitors and the overall low profitability of each firm, competition is quite intense.
Because most clients live in the same area, there is a lot of potential customers in this industry. Furthermore, clients tend to “shop around” for the best package of services and cost.
Expectations
Forecast
The company expects to reach profitability in the first year and does not anticipate any serious cash flow problems. The average margin per month for each segment should be sufficient, according to our estimates. We anticipate that around one sale per monthly will result in a break even point.
Although we are lucky and arrogant, our place in the market has allowed us to change the face of the real estate industry. Our current business plan does not reflect the impact of ecommerce and its growth. Our company views the Internet as a tool that allows us to provide services directly to agents’ homes, while still adhering to all of our legal obligations under federal and state laws. Our agents can receive 100% of their commission, which is a privilege that only the most experienced realtors have. They pay $200 per month plus $100 for each listing and/or sale. If you look at our projections, we can accomplish this and still generate astronomical profits from the deal. Our agents can save thousands of dollars. It is imperative that you join our company. We make a significant profit, and the consumers also save money. Amerihall Realest is the name given to the agents associated with Amerihall. It is bestowed upon those who have attained the highest level in professionalism and knowledge about the real estate market.
These partners have the ability to automate businesses as well know the needs and wants of real estate agents. This combined with the ability to make changes via the Web gave us the opportunity to create a site devoted to the needs in the real estate industry. This includes agents, clients, suppliers, and even real estate educational services. Our company envisions continuing education classes provided to our agents exclusively through our website allowing agents, for a fee, directly from their home computers, to accomplish all the continuing educational needs required by the various states. The entire process will end with the agent automatically renewing their state licenses through the appropriate agency.
We are simply ‘#8220 the future of realty” and we believe that this will revolutionize realty.
1.1 Strategic Alliances
AT&T will provide all our Web requirements as well as automate server designed specifically for agents. This allows them to receive all their calls via our virtual floor plan. Each agent will get an extension number. When clients call our tollfree phone number, they will need to enter the extension of the agent. This call will then be forwarded directly to the agent’s home office. If the client doesn’t have the extension number of the agent they are calling, they will be asked to choose another option. This will send the call to the Amerihall agent closest to them. AT&T recognizes the strength in our business plan and anticipates that we will grow so quickly that they need to automate more of their systems to meet the demand. Independent of our projections, their projection is 10,000 in the first year. They also anticipate 100,000 transactions on their network before retooling. Their strength lies with their ability supply all of their potential clients with high-band Internet access using cable modems. We are currently considering a script page for our agents that would allow them to sign up easily and offer a discounted program for installation. This will allow our agents easy sign-up and a discounted installation program, and will also allow our agents a direct link through our website, promoting fast Internet access at discounted rates. The growth of our company will directly depend on the speed with which clients and agents adjust to technology. AT&T is the best choice for these future products.
Bank of America provided the best services for our company. In the initial talks with our Web Developer, they knew that this company would prove to be a valuable asset to real estate. The merchant services they provide are tailored to our special billing needs. They also have a special script that our Web developers created to help Amerihall agents. Amerihall and Bank of America have created a system which will allow agents to deposit their checks directly into the corporate account from their virtual office terminal. The electronic transfer will take place instantly and the receipt will be printed immediately to the printer of the realtors’#8217. This is a first-of-its kind service in the industry. Also, the bank will certify our Escrow Accounts on a monthly basis to ensure our clients have the best quality control in the business.
These measures exceed all state requirements regarding escrow management. Bank of America’s software developers are currently working on more features with future plans to allow our agents and their clients the ability to watch the transaction progress through all stages from start to finish.
Sterling Capital Mortgage , a national brokerage firm that specializes in residential mortgages, is . Our agents can access our site 24/7 and view a client’s credit history online. Instantly, the server will generate a prequalification email that allows clients and agents to submit offers to purchase particular properties. This is yet another system that was designed specifically for Amerihall.
Lowen Signs has the largest range of real estate signs manufacturing in the country. They offer a web site that allows agents to place custom Amerihall orders and then ship the signs directly to them.
1.2 Service Description
The product will be available online, giving agents the ability to manage all their real estate transactions. They have already gained access to our multiple listing services through the Internet. This allows them to post their listings and reports their sales. We want to provide them with all the services offered by a traditional office, without having to ever visit that office.
Agents can choose a duty and be placed on the right page.
Agents need to order paper materials. Simply visit our vendor section and choose the style, quantity, personal information, and design they wish to have printed. This site will be connected to a printer who will fill the order and ship the material directly to their home office. We would like the event to be completely transparent for the agent and to appear as another Amerihall service. The same system could be applied to house signs, Errors & Omissions Insurance and home inspection agencies. It would also apply to real estate lawyers. We will also offer a site a nationally recognised mortgage company. The agent can input their clients’ personal information, and the site will immediately run credit checks and provide a prequalification note for the purchase.
Our system allows agents to be charged with credit cards for all services, as well as monthly fees.
Our company will hold a blanket Error & Omissions coverage policy. Amerihall pays the insurance carrier one fee each year and charges agents a $60 per quarter fee.
Finally, we will provide all agents with a national toll-free number. The number will be displayed on all participating Realest(r), signs along with the extension. Callers will dial the number toll-free and be asked for the extension. The agent would then receive the call.
It will also be an advertised number throughout the country, which allows us to advertise the number to all potential clients through traditional advertising. AT&T automation will forward the call to the agent if a prospect calls the number. If the service fails to find an Amerihall Realest(r) agent in the area, the call will return to the corporate office and then be referred to a non-participating agent with an expressed agreement that they will pay a 20% referral fee to our office.
This feature will enable us to pay national advertising to increase public attention without burdening individual agents with high advertising expenses. We are keen to eventually do all the phone features in-house as technology advances.
We will have a live online help desk, available during business hours, to answer all of our agents’ questions and concerns. There will also be an email help desk constantly online.
In addition to all these feature, the agents will be able to download all of the forms used in the sale and management of real estate via the website.
In the future, our virtual office will take advantage of a live chat through NetMeeting, which will allow all agents (with the appropriate equipment) to communicate with each other, as well as deal with questions and concerns directly with our staff.
We also wish to provide each agent with an email address that corresponds with the Amerihall image.
1.3 Description of the Company
Amerihall was created from the merger of various real estate companies that were both franchises, and partnerships. Hall Properties Realty, Inc. is a real estate brokerage that has been in operation for more than 18 years. It also owns a management and sales company. Hall properties also has franchise rights for D.B.A. residential franchise. Re/Max Junction. We are a creative marketing agency that uses technology to promote real estate.
We have found shortcomings in real estate sales technique as a whole. The traditional realty office follows a plan that brokers supply basic equipment and office space. phone, fax, computer, printers). They also supply all prerequisites dictated by state law, in that the company will have a place of business that is open for inspection by the appointed agencies of the state during normal business hours. The office, along with all relevant documents to run the business, will be open to inspection during designated business hours. They will also need to supply at least one designated representative who can answer questions about real estate for the state agencies.
There is no limit to the number of agents under one broker’s license, and the only rule designated by the state concerning the amount of agents is that all of their licenses must be displayed conspicuously in the office.
The traditional office receives between 20% and 50% of the commissions from the sales made by the agent. These commissions can reach tens or thousands of Dollars. The agents still have to pay for any miscellaneous items, which can be hundreds of Dollars per month.
The Re/Max plan is a simple desk charge that is paid on a monthly basis under a triple-net lease. The average agent pays $2,000 per monthly for desk rental. A shared fee is paid for all other expenses, such as salaries, utilities, supplies, etc. ).
Both agents are still responsible for any personal advertising that is placed in order to benefit their office. They can’t guarantee they will get the highest return on their investment.
Our vision is to make the Internet a tool that allows agents to work from home, with faxes and computers, to serve all their clients. The agent gets to advertise in a fashion allowed by law and receives all the proceeds from their investment. Amerihall Agents pay a flat fee to our company of $200.00 / $100.00 per transaction. The agent is entitled to 100% of the commissions.
1.4 Mission
Amerihall has one mission: to revolutionize the way we do business in realty by reducing the cost of a traditional office, and replacing it using the internet. The real estate agent will save $30,000 to $50,000 annually, which will help them increase their profits. They can also underbid other traditional realtors for the commissions they charge consumers. In the end, the consumer will save thousands of dollars on the sale.
1.5 Financing Requirements
The owner invested $125,000 in the company. Rest of the money will be raised through new members or sales of services.
Our interest in seeking outside funding is solely for the purpose of expanding on a national level. Funds will be used to market Amerihall across the United States. Direct marketing campaigns will be used through lists obtained through Freedom of Information Act requests from individual state licensing authorities. The campaign will be slightly modified to reflect the state laws and regional policies governing real estate agents.
