Empower Realty q4 investor presentation

Post on 01-Nov-2014

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Empower Realty investor materials. Empower Realty is a disruptive, fully-licensed real estate brokerage model that uses the internet to help consumers buy and sell residential real estate at very substantial savings. For example, a buyer who initiates an offer online for a $200,000 house receives online professional support and $3000 cash back at closing. Sellers who list their home for sale with the company can do so at savings of up to 30% relative to traditional firms like Coldwell Banker, Edina Realty and RE/MAX. Every home listed for sale by a competitive Realtor on the MLS can be purchased with the assistance of Empower Realty. Empower Realty relies on a comprehensive SAAS backbone (8000 engineering hours, 50-state regulatory compliance, multiple patents pending) to deliver an ultra-low operating cost. And with relatively few “boots on the ground”, Empower Realty is the only scalable rebate model in the industry.

Transcript of Empower Realty q4 investor presentation

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

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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.

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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