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| Current
Market Conditions |
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| The market conditions
have recently, in our opinion, created the demand
and opportunities for our rental solutions and
strategies. Among these are: |
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Record
numbers of foreclosures
increased REOs and have caused many families
to become renters. |
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Many Banks,
including Fannie Mae, are
now requiring Real Estate companies to have
rental or property management services in
order to service their REO listings. |
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Housing prices
have fallen, leaving many owners upside
down in their homes and unable to sell for
the prices they need. |
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Housing sales
have dropped significantly, producing a
surplus of homes for sale. |
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Mortgages
are becoming more difficult to obtain. |
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Builders and
developers are struggling to sell
homes and start new projects. |
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The condo market
has crashed, leaving many projects and developers
in serious financial trouble. |
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The economy
has created financial hardship and uncertainty,
leaving many unable or unwilling to buy.
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Unemployment
has risen, with companies resorting to large
layoffs and cut-backs. |
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Corporate Relocation
is down creating strains on Corporate Relocation
companies. |
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Realtors
are challenged to generate sales and earn
commissions, with many forced to leave the
industry. |
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Real Estate Brokerages
are challenged to remain profitable, with
many failing or experiencing substantial
reductions in business and agents. |
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| In short, property
owners, buyers, sellers, developers, lenders,
Realtors, brokers and employers are all needing
to look to creative solutions to solve their problems
and improve their business. |
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| Examining
the Opportunities |
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| We have created
Rent Solutions out of an understanding that the Real
Estate industry must evolve in order to thrive under
the new market challenges. We have also established
that there is a tremendous need for quality professional
real estate services in the rental sector.
Our programs offer Real Estate Brokerages and its
agents significant market advantages including: |
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| Increasing
client acquisition and average client lifespan. |
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33% of US households rent.
This represents over 34 million new households
to target. (i) |
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20%, or about 7 million, will
either purchase or build a home at the end of
their lease term. (ii) |
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Over 50% of Corporate transferees
are now renters, with increases projected over
the next several years. (iii) |
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Renters are responsible for
71% of moves, moving approximately once every
two years. (iii) |
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During the last 10 years, over
40% of all home purchases are made by first-time
home buyers. (ii) |
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Over 75% of first-time home
buyers rented an apartment or house prior to purchasing
their first home. (ii) |
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The Hispanic/Latino community
is the fastest growing demographic group in the
country. 54% of Hispanic/Latino households are
renters. (iv) |
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| Increasing
agent production and profitability. |
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82% of first-time home buyers
and 78% of repeat home buyers used the internet
to search for homes. The Internet is the fastest-
growing customer acquisition media for real estate
agents. (ii) |
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77% of all Internet home shoppers
buy a home through a real estate Agent or Broker
(compared with 68% of traditional buyers) .
(ii) |
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Up to 50% of internet leads
require 12 to 24 months of incubation before they
buy or sell. (v) |
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LeadRouter (v) demonstrated
most agents lack the “incubation stamina”
to properly incubate internet leads. |
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The top producers in real estate
typically hire assistants or operate within teams
to maximize leverage and revenue opportunities |
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| Capitalizing
on opportunities and market shifts within the Apartment
and Condo Industry. |
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The rental housing industry
is one of the largest sectors in the US economy,
with revenues of $341 billion. (vi) |
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Over 50% of rental units become
vacant each year, requiring the apartment managers
and owners to spend more than $13 billion
to market and prepare them for occupancy.
(vi) |
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In Tampa, 40% to 60% of condos
that were planned for conversion are reverting
to rentals. (vii) |
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A majority of condos that were
bought by investors during the last year have
remained as rental units, given the fact that
the current market conditions are not favorable
for resale. (vii) |
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| Creating
genuine recruiting and retention advantages for new
and experienced agents. |
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74% of the people completing
a real estate transaction do so with the FIRST
agent they speak with. (ii) |
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Over 50% of households already
subscribe to the “Do Not Call List”,
with that trend continuing to grow. |
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Agents get access to accounts
and sources of quality clients. We provide support
staff for screening and prequalifying prospects
within our system. |
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Real Estate Brokerages can
protect accounts, clients and relationships by
establishing Contracts and Agent Agreements containing
non-disclosure and non-compete provisions relevant
to our Programs. |
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(i) National
Multi Housing Council
(ii) National Association of Realtors, Profile of Home
Buyers and Sellers
(iii) Employee Relocation Council
(iv) US Census Bureau
(v) LeadRouter: Lead Management system used by Coldwell
Banker and other Reology brands
(vi) National Multihousing Council
(vii) Associated Press |
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