Post on 01-Nov-2014
description
Highly Scalable, Virtual Brokerage
Q4 2013 Overview Contains Forward-Looking Statements
Our Mission…
…is to REINVENT
home buying and selling through the use of technology.
5 mm home transactions per yr => $1 trillion ind. => $50 billion market for transaction costs
Industry = Ripe for Reinvention
• Fundamental shift in the nature of buyers and sellers
• Much heightened sensitivity to transaction costs
• Housing rebound
About Us Jim Lesinski, Founder & CEO 10+ Yrs Executive in three Fortune 500 level companies 4 Years Vice President Sales & Marketing at nation’s largest home builder Licenses: RE Broker (MN)* RE Agent (MI) * Builder (MI) BBA, Univ of Michigan Doctoral Study in Consumer Behavior, Duke University
Fou
nd
er
Co
mp
any Delaware LLC
Headquarters: Minneapolis Funding to Date: $1.85 M (100% Angel)
Team
Steve Ginal, Technology BS, Marquette MBA, Minnesota Under Contract
Aaron Schumm, Operations BS, JD Licensed Broker Former Keller Williams
Our Progress
1. Software Development & Testing in the “For Sale By Owner Space”
3. Commercial Launch
Today
30 Days
30 Months
2.
5 Mos.
Phase 1: Software = Our Foundation
Please demo our services &
view our videos
Software
Listing Side Buying Side
Phase 2: Brokerage & Licensing
$$$ $$$
+
Buy Side Economic Model
Seller
Any Broker (6%)
Step 2
Applies to Broker Listed Property Only
Step 1 Buyer
Step 3: Co-Broke Fee is Transferred (2.7%)
1.2%
Step 4
Behind the scenes rebate of commission already embedded in a transaction
Listing Side Commercialization
Full Service + Electronic Capability
+ Independent Valuations
AS LOW AS
4.25%
Comparison of Models on a 250000 Home
Planned
Co Broke Transaction % Trans Avg
% $ % $
Gross Commission 4.75 11875 6.00 15000
Paid to Buying Agent 2.70 6750 2.70 6750
2.05 5125 3.30 8250
Paid to Listing Agent (70-30) 0.00 0 2.31 5775
Internal Salary Expense 0.23 585 0.00 0
Additional Services 0.31 775 0.00 0
Commission Retained 1.51 3765 75% 0.99 2475
Rebate (Unrepresented buyer only)
% $
Gross Commission 4.25 10625
Paid to Buying Agent 0.00 0
4.25 10625
Paid to Listing Agent (70-30) 0.00 0
Rebate to Buyer 1.20 3000
Internal Salary Expense 0.23 585
Additional Services 0.31 775
Retained 2.51 6265 25%
Empower Realty Conventional
4390 2475Vs
Listing Side Business Model
+77 %
Competitive Landscape
Search Transaction Mgmt
-10
0
10
20
30
40
50
-50
0
50
100
150
200
250
2013 2014 2015 2016 2017
Pro Forma Revenue (Millions)
Net Income (Millions)
2331 8164 17,783 244 Trans. Sides
Trans. Sides 5
Results shown are based on business plan, which is ubject to change as the business evolves.
-10
0
10
20
30
40
50
-50
0
50
100
150
200
250
2013 2014 2015 2016 2017
Pro Forma Revenue (Millions)
Net Income (Millions)
2331 8164 17,783 244 Trans. Sides
Trans. Sides 5
Goal:
2.1% Market Share
in each market after 4 years in that market
Benchmark:
10-25% Typical Share
Of Local Market Leader
Transaction sites eBay, Priceline,
Amazon
Public Offering
Real Estate Portals (Zillow, Trulia, Realtor.com)
National Broker
Networks
Strategics:
Mortgage, Title
Exit Strategy
Capital Requirements
• Capital Need: – Now: $225,000 ($150,000 minimum total commitments to
close) for working capital to further support our Minnesota launch • Primary uses: Marketing Awareness + Operating Expenses
through spring 2014 – Future: $1 million for growth capital -> projected to be
sufficient for funding future growth according to plan
• Offer: Preferred equity / Convertible Debt – Investor-friendly cap table (no debt, only small amount of
preferred equity) – Angel-Tax Credit Certified (prior years) = 25% REBATE of
Invested Capital (no state income or residency required)
Jim Lesinski, Founder & CEO: jim.lesinski@EmpowerRealty.com / O: 952-358-7308