“Understanding The Value Of You Property”
Start Here: Business Blue Print
Hello! To Who It May Concern: My name is Vincent, I’m a Real Estate Entrepreneur. I appreciate the time you spent reading this information. After many years of renovating properties, I came up with a few important questions most investors ask. Therefore I anticipate the questions you may ask. The failure to have thoughtful and reasonable answers to the most basic questions will decrease the likelihood of getting my next Real Estate Project funded. Listed are just some of key questions.
My goal as CEO & Critical Solutions Analysis of Pitts Enterprises Inc is to create a clear and concise overview of what the company provides, why it should be interesting to you, and why it would eventually lead to a investing with this company (Buy and Hold Strategy) with a profitable exit. Cash On Cash return. Income for many years to come. We focus on Undervalued Properties, For Income and appreciation!
1). What does Pitts Enterprise Provide?
Pitts Enterprises Inc, offers a specialized type of collateral backed loan. Short-term lending capital that provide funding for the 30 – 75K program! Based on the value of the collateral. (The House) Core Business: 30 – 75K Program: Purchase Residential properties under $30,000.00! Sale them to a End buyer! Lease With Option! $50,000 to $75,000! On a Ten Year Note At 11% Interest:
2). What is unique about the company?
30 – 75K Program / New Homeowner provides all renovation cost: Client Pays Taxes and Insurance! Unless other wise stated in the contact: Buy and Hold Undervalued Properties, collecting income for 10 – 30 years!
3). What big Real Estate problems will Pitts Enterprises solve? Look at the Analytic’s:
Here’s the big problem Pitts Enterprises Inc Can Solve! ” Unresolved foreclosure cases” Filling up in Cook County! Lower-income to Middle-Class Homeowners. There have the highest numbers of affected properties, study says!
January 22, 2014|By Mary Ellen Podmolik, Tribune report
As many as 8,000 residential properties in Cook County, including 4,000 in Chicago, have been in foreclosure for at least three years without resolution, new data show, a situation that could further deteriorate already middle-class communities.
Many of those properties that seem to get stuck — or abandoned — most are in a move in condition. The foreclosure process is affecting the middle-class income areas where annual household income is $79,000 or less, according to a study by Woodstock Institute.
Some of the at-risk houses, condos and apartment buildings are vacant and waiting for a new family to move in. The lenders have likely abandoned the foreclosure cases. Some continue to be inhabited while in foreclosure. Others are still in foreclosure while lenders consider short sales, and hoping for a Real Estate Entity, Hedge Fund or Cash buyer.
“You’re stuck in this situation where nobody really has a long-term interest in the property,” said Spencer Cowan, a vice president at the Chicago-based public policy and research group and one of the report’s authors. “The titleholder knows it may be taken at any time. The servicer doesn’t own it and may never own it. They may release the lien or just let it sit.” That’s where we come in. We are not talking the war zones. It’s the stable neighborhoods that are facing the new challenges.
Mortgage servicers filed foreclosure cases against about 228,400 houses, condos, and apartment buildings in Cook County between 2008 and 2012, according to Woodstock. Its research, though, looked only at the roughly 135,000 cases filed between 2008 and 2010 because of the long time it typically takes to process a foreclosure case through the county’s court system. The 2015 – 2016 results are in http://www.realtytrac.com/statsandtrends/il/cook-county/chicago/ You be the judge.
Business Blue Print
Moody’s Analytic’s estimates that every single-family home that is started creates ( 3.7 jobs ) over the ensuing year, compared with ( 1.8 jobs ) for a unit in each multifamily home. Moody’s Analytic’s: Single-family rental growth will accelerate! Second chance for Home Ownership! Solving the problem! Educational achievement; Civic participation; Health benefits; lower Crime rate; Public assistance; and Property maintenance and improvement. Eye on Housing! Good Housing Leads To Good Health!
4). How big is the market opportunity Pitts Enterprises Inc?
During the boom, builders were very busy, putting up 2.1 million more houses from 2000 to 2006! The glut of houses is one element! Banks are still working through their inventory supply of foreclosures: Millions of people are doubling up with roommates, living at home with parents! Can’t afford a 200K to 500K new home! Private Lending is the next stage of profitability, cause banks are not lending money. This is the problem for the whole economy, and at its core is the mystery of the missing buyers. We can create the market for those new buyers. Click below for relevant foreclosures listing! http://www.realtytrac.com/mapsearch/us.html /click on each major city and visit the percentage of vacancy! look at Illinois and the top 10 cities with the highest foreclosures. Five Economists Forecast the 2015 Housing Market
THINK AND GROW RICH! Click:
5). Where is this company headquartered?
Current Office Location North Boston Ave. Chicago Heights Illinois Lever One Under Pitts Enterprises Inc.
6). How big can the company get?
No Limits: No Boundaries
7). Why does Pitts Enterprises Buy and Hold?
The Third Richest Man in the World Thinks it’s a good idea! Mr. Warren Buffett Just Made A Huge Bet On The U.S. Housing Market
“Warren Buffett Reveals His Secrets for Investing in Real Estate”
1. Invest in Undervalued Real Estate!
2. Think in Terms of Income, Plus Appreciation!
3. Focus on Underutilized Properties!
4. We Use Partnerships to Fill In Gaps in Our Expertise!
5. The Macro View Is More Important Than the Micro!
Perhaps unsurprisingly, Buffett’s philosophy on investing in individual companies is similar to the one he applies to investing in real estate. Find investments that produce income, have long-term value prospects not currently being recognized by the market, and, once you buy them, increase their operational and managerial inefficiencies to maximize recurring revenue.
These are ideas that you don’t need to be a billionaire to understand, nor to put them into practice in your own portfolio. Real Estate Links you can use!
I hope I’ve created a clear picture that the market opportunity is meaningfully large and growing! You may have other questions!
8). What is the actual addressable markets?
Cook County/ Will County /
9). What percentage of the market does Pitts Enterprises plan: Over what period of time?
With the right funding starting year 2017 we anticipate 10 to 12 properties per year,” is not unrealistic! With the right passion, strategy, acquisitions, Team achievements, Pursuit of excellence, all things are possible! Dream Big! Implement Realistically! The right funding Thirty to forty Properties.
10). How did you arrive at the sales of your industry and its growth rate?
Realtytrac: Zillow: Trulia: and other reliable sources! Therefore my answer is still 10 to 15 properties per year: With a slow market, that number is not that ridiculous.… If the market continues it’s averages of 4% to 8% over a tough 5 year period, then our companies portfolio of investment account should do at least … 10 to 15 properties per year! But I do think it’s realistic and useful for long-term planning projections…. But there will also be times in which 15 to 20 is possible with the right funding, even with this market! We will stay conscious of the target.
11). Why does your company have high growth potential?
There’s one commodity that will always be in demand! ( REAL ESTATE) & ( LAND )People need somewhere to Live, love, and Play!
Click and Meet The Team: Business Blue Print:
The Next Seven Questions can be answered by Clicking Above!
Who are the founders and key team members?
What relevant domain experience does the team have?
What key additions to the team are needed in the short term?
Why is the team uniquely capable of executing the company’s business plan?
How many employees do you have?
What motivates the founders?
Let me paint a picture of a Perfect World and how you can participant in the world!
Someone Found You A Great Deal On A Property!
Negotiated The Price!
They Purchased The Property For You!
Hired The Construction Crew! Pulled Permits, Bonded Renovated The Property!
Marketed The Property And Put Someone In The Property For You! For A Year: Paying You!
Hired A Property Manager To Manage The Property!
The Property Has Equity And It’s Cash Flowing Every Month!
Our Goal is to clearly articulate what the company’s services consist of and why it is unique! POINT AND CLICK:
IN CHICAGO — Hispanics have become Illinois’ largest minority group, 2010 Census data released Tuesday show, and the city of Chicago lost almost 7% of its residents over the past decade.
Population and National Origin U.S. Rank No. 2
Total Hispanic Population in Illinois 2,078,000
Hispanics as Percent of State Population 16%
Hispanics as Percent of U.S. Hispanic Population 4.0%
Native-Born Hispanics (Percent of Hispanics) 60%
Foreign-Born Hispanics (Percent of Hispanics) 40%
Mexican Origin (Percent of Hispanics) 80%
Non-Mexican Origin (Percent of Hispanics) 20%
12). Why do users care about your services?
We Know The Inventory: TOP CITIES:
Bank Owned Properties in Cook County:
Properties For Sale Cook County Illinois:
Recently Sold in Cook County:
Unresolved foreclosure cases pile up in Cook County:
Auction Properties: Direct Buy:
Links: Foreclosed.com Midwest area:
13). What are the key differentiated features of your service?
Pitts Enterprises Inc, Provides The Mortgage! 30 – 225-K Program!
14). What have you learned from early versions of the service? ( Working Backwards )
15). Provide a demonstration of the service. (BEFORE AND AFTER PROJECTS)
16). What are the two or three key features you plan to add?
COMMERCIAL: MULTI-UNITS: STORAGE UNITS: MOBILE HOMES:
Pitts Enterprises Inc, “will always have competitors” We have a specific Market! So I anticipate the following questions!
To Be honest! Anybody with more Money, Efficient Social Media, Exceptional Employees, Better Tech.
What gives your company a competitive advantage?
Simple, Focused Experience in the Business! In Office FUNDING!
What advantages does your competition have over you?
FUNDING! More Money!
Compared to your competition, how do you compete with respect to price, features, and performance?
Outsourced Employees, Low Overhead, Achievement Driven, identifying the Client Needs, Never pay Full Price, Negotiate a “Win” “Win” terms with the Banks or motivated Sellers.
Marketing and Customer Acquisition:
Many of my personal investors want to get a sense of how this company plans to market itself. Acquiring Buyers, New Home Clients, and the long-term value of that customer. So, before you ask here’s the answer!
How does the company market or plan to market its services?
Maximizing my Outsourcing dollars with all Social Media. Strive to understand the needs of our clients! Mailing lists. Test And optimize again and again. Expand the team. Maintain Affiliate Systems. Publish Videos relevant to Real Estate & Financing. Live/Online support – Skype. Prospecting and Lead Generation. Coaching Interaction with like-Mind people. Learn strategies that will improve our client’s experience. Sessions to help achieve our Goals and Objectives.
What is the company’s PR strategy?
General PR Tactics in this case will start here:
- Create Quantifiable goals:
- Have people of influence tell others why they appreciate our service:
- With the rise of self-publishing platforms and social-media networks, brands can collaborate with connected individuals whose published content carries great clout amongst niche audiences:
- The Millenial Consumer study published in January of 2015, showed 58 percent of consumers expect Singe Family Homes to published online before they make a purchase and 43 percent rank authenticity of the pictures interior to be real important:
- “Verticalize” pitching the 30-75-K program platforms to tailor that specific messages to specific group audiences.
- responsive video series to interactive social media campaigns:
- Make a list of all the publications in our Cook County And Will County target market areas.
What is the cost of a customer acquisition?
While This question is very important, I do not wish to cloud the numbers with ratios, and fancy calculations. The current calculating of cost is creating clients from these specific three mailing lists. One 1000 from each system, 3000 members total! Consisting of Cash Buyers, Private Lenders, & Motivated Sellers. The cost of mailing is $4,585.00 per month. Click below!
What is the projected lifetime value of a customer?
10 to 30 YEARS
What advertising will Produce the best results?
The power of……………………….
Ads Social Media: Web-pages With Great Content:
Writing Good Elements! For Email Newsletters Responses:
Mailing list to a specific targeted audience: Word of mouth from satisfied customers:
What is the typical sales cycle between initial customer contact and closing of a sale?
30 – Days with Funding intact!
What early traction has the company gotten?
Our traction is starting to take off! From the many likes from our Facebook campaign! https://www.facebook.com/blakeconsultants ( 6,360 – likes ) At this point, everyone starts to want to know what we are doing. including Investors!
(sales, traffic to the company’s website, app downloads, etc., as relevant).
Business Blue Print
How can this traction be accelerated?
What has been the principal reasons for the early traction?
Three projects completed using no investor funds! Testimonials demonstrating a need or telling a customer’s story. A recent trend has been to adopt a formula letter that increases our response ratio. The idea of giving away information creates interest. In addition to building a better service model. We are showing growth in our team which is an important indication of traction. It’s often said that investors “bet on the jockey, not the horse,” and for us, that is their true philosophy.
There inevitably are risks in any business undertaking!
An obvious question is: What do you see are the principal risks to this business?
What do we mean about risk? Simply stated, the risk exists. In the past, we saw plummeting home values which are now corrected! Frozen credit! which is now relaxing in some states. On the flip side of risk I see opportunity! Which means if you want to succeed now is the time. There is risk management issues, Minor consequences which are safely ignored, which is not a factor. Risks that can be mitigated through simple changes in behavior. Insurance Risks with Insurance, Errors & Omissions Insurance if needed. Cost effectiveness risks, Nuisance Risks if needed.
What legal risks do you have?
1). Liability to third parties pursuant to a contract, such as a responsibility to make mortgage payments to the lender Pitts Enterprises Inc.
2). Liability to a purchaser when a problem occurs in transferring title, interest, or possession of the property sold.
3). Failing to properly maintain property until sold. Knowingly or unknowingly create a condition that causes injury to another’s person or property, which could be determined as negligence with liability for the resulting harms and injuries.
Do you have any regulatory risks?
Regulatory risk as we see it! The changes in laws and regulations could materially impact a Real Estate Security instrument. This business, sector or market. Is Residential Housing, which means the law is set. Commercial is different, and that’s the future. A change in laws or regulations made by the government or a regulatory body can increase the costs of operating a Real Estate business. And can reduce the attractiveness of a an investment and/or change the competitive landscape. Our model is based on simplicity ( SINGLE FAMILY HOMES )
Are there any service liability risks?
The Fair and Accurate Credit Transactions Act (FACTA) of 2003 details the proper (and legally required!) which we follow! Procedure for disposing of data-containing records, which includes shredding, incineration, and/or the use of software that can wipe information from a hard drive and prevent its restoration.
All investors will want to get a sense of when and how they will be able to exit and receive a return on their investment, Here’s the answers!
What is Pitts Enterprises exit strategy?
A fireman once said that it’s not safe to enter a burning building without first knowing where all the exits are. That seems like common sense attitude to have.
The same thinking applies to Pitts Enterprises Inc real estate business. Before We buy any property, We have a buyer waiting to buy from us. It’s called working backwards. No stress, in selling the property. We First decide on the exit strategy. Before we buy the property. Having the funds and a buyer makes this business stress free, and very profitable. .
In other words, when you know what you will do with the property, it will help you determine the offer. You bring to the table the Funding source. We do all the Due-diligence, property, Buyer!
(1). (Buy & Hold): This is our best strategy! Instead of selling the renovated property, we at Pitts Enterprises chooses to create the 30-75k program there by giving the new family the ability to purchase the home. A option to buy, which means they have a contract for deed! They renovate the property themselves, they pay the taxes and Insurance, they pay all utility bills, and take on all respond ability of the residence. They pay the closing cost, and submit a down payment. We collect a Note until payment in full is satisfied. Benefit: Monthly cash flow. This is a popular real estate exit strategy for those looking to build up equity in an asset.
(2). (Seller Finance): As its name suggests, the seller finance strategy involves a creative technique that permits the owner to sell the property to a buyer. Essentially, the owner Pitts Enterprises Inc. finances the deal and acts as a bank. However, monthly payments are awarded to the owner. The seller maintains the mortgage loan to cover the sales price.
(3). (Pre-rehabbing): is a hybrid combination of both rehabbing and wholesaling. During a pre-rehab, minimal work is done to bring the property up to selling quality. They are often sold to rehabbers who will continue to fix it up.
(4). (Wholesaling): Simply put, a wholesale deal will witness the investor act as the middleman between a seller and an end buyer. Essentially, the investor will find and quickly sell a property for a respectable profit margin. There are two methods in which an investor can wholesale: They can either sell or “assign” their purchase contract to an end buyer, or they actually close on the property and immediately resell the property to another investor in the form of a “double close.”
(5). (Lease Option): A lease option, otherwise known as rent-to-own, allows the owner to rent the property to a tenant, but with the option to purchase it at a later date. Should the option be picked up, monthly payments are put towards the purchase of the home.
(6). (Sell The Note): Another exit strategy is selling the mortgage note. We have many direct note buyer of real estate notes. And they make selling a mortgage note easy. The company we use have there own funds to purchase notes. The down side selling that note at a discount 65% to 80% of the remaining note that is left on the mortgage with the original note buyer.
• We Sell Note’s to industry leading direct note buyers:
• They provide Fast closing, We receive a lump sum of cash at closing.
How will valuation be Done?
Intellectual Property: Let me define the word thereby creating the questions below.
What key intellectual property does the company have (patents, patents pending, copyrights, trade secrets, trademarks, domain names)?
Three Proprietary: all Cash Buyers-Motivated Seller-Private Lenders in American:
Seven Domain Web-Pages:
What are the company’s three-year projections?
- Here are the realistic assumptions on Hand:
- Operating cash: It means the amount of money at the beginning of each month.
- Sources of cash — All money coming in each month (receivable collections or direct sales, loans, etc.).
- Total sources of cash — Add the amounts in the Operating cash: Sources of cash for each month.
- Uses of cash — List every likely expense your business may incur, such as payroll, accounts payable to vendors:
- Total uses of cash — Each month we tally all expenses so we can see exactly what will be going out the door each month.
- Excess (deficit) of cash — This is the number that counts. If you see positive numbers across the board — congratulations, We buy another investment for the 30-75k program.
How much equity and debt has the company raised; what is the capitalization structure?
Currently Pitts Enterprises Inc. Has NO DEBT: Meaning No Business Credit Card Debt: No Auto or Truck Loans: No Mortgages of any kind:
I’m sure you realize what capital structure is! It’s how a firm finances its overall operations and growth by using different sources of funds. Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings.
When will the company get to profitability?
What are your unit economics?
A few Investors mentioned something called Real estate economics: Therefore I want to explain the value and mid-set of the application of Real Estate economic! It’s a techniques unique to the real estate markets. Our hope is to describe, explain, and predict patterns of prices, supply, and demand. The closely related field of housing economics is narrower in scope, concentrating on residential real estate markets: The 30-75-k program, while the research of real estate trends focuses on the business and structural changes affecting the industry. Both draw on partial equilibrium analysis In simple language (supply and demand), urban economics, extensive research, surveys, and finance.
What are the factors that limit faster growth?
The Capacity to Purchase Ten Homes per year!
http://www.metrodepth.com/chicago/ “MetroDepth” as the original author.
How do ordinary people get started! Click and see for yourself!
How Jeff Bezos Started: http://fundersandfounders.com/how-jeff-bezos-started/
How Elon Musk Started: http://fundersandfounders.com/how-elon-musk-started/
How Einstein Started: http://fundersandfounders.com/how-einstein-started/
How Steve Jobs Started – The Life Of Apple’s Founder: http://fundersandfounders.com/how-steve-jobs-started/
Kudos to Mark and Anna Vital: Information Designers: