Brian Mahoney
Linden, NC (USA)
Role(s):
Other
Property Management Pros
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Startup
Location:
Scottsdale
Industry:
Real Estate
Year Founded:
2011
Number Employees:
1-10 people
Business Stage:
Creation/Idea
Entity Type:
Not Incorporated
Description:
Starting a Property Management Company in partnership with Property Management Pros. What follows is an explanation of how the Partnership will work, funding requirements, etc. :
A Territory Protected License for the Entire Greater Scottsdale market. No other license will be issued to any other user in that location.
A free first right of refusal for complimenting "Pros" licenses for "(URL removed)" and "(URL removed)"
The term of the license is 9 years comprised of an initial term of 3 years with the ability to renew for 2 consecutive 3 year terms with a renewal payment of just 25 percent of the original license fee of your chosen market.
The cost of an entire "B Large Metro Area" Market license is only $29,995. We do have the ability to accept a credit card payment for the initial fee also. The monthly operating dues are $1200 for the B market which covers most everything other than office rent, insurance, utilities and staff. That does include the costs monthly for leads, automated follow up, operating systems, advertising to get leads, advertising to rent your properties as well as your phone and signature management system and much more. On the You Own We Operate Program our agreement would be that you would provide all financial support while we provide our over site an experience. For a period of 18 months (or longer if you like) we would split the net proceeds 50/50 each month. In addition to the license fee I expect that it will take an additional investment of $30,000 before the business starts to cash flow and about 6 months from the time we would start. A rough estimate would be that you should recover all cash outlay by the end of the 18 month ramp up period. You would not be required to put in any personal time at all during that time but welcome your questions and input. The goal would be for you to have a fully operational business after that initial 18 month ramp up period. If you can decide to move forward this month we will pick up the costs of your monthly $1200 operating expenses for your first 3 months. Should you decide to lock up Phoenix for a period of 1 year you would be able to purchase an option to lock up that market for 10% of the face value of an "A" market at the time you would decide on that. The entire cost of the option would be applied against your eventual purchase of the Phoenix market but no purchase would be required.
The mid and long term value of this opportunity you will find is unmatched. You can have your system in place with leads starting in as little as just two weeks. I would expect to be up and running within 4 weeks. We expect you to turn a $30,000 investment into a steady stream of net income of at least $10,000 coming in every month, have at least $30,000,000 listings under contract and a business that you should be able to sell for at least $250,000 at the end of an 18 month ramp up period.
I am relocating to Scottsdale, AZ when I retire from the Army in 2013. At the Point I will have total hands-on Managment of the company.