Kelsey Diller

Seattle, WA (USA)
Role(s):
Founder/Owner/Principal

Orbit Homes LLC

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Location: Seattle
Industry: Real Estate
Year Founded: 2008
Number Employees: 1-10 people
Description: Orbit Homes LLC________________________________________________________ Mission: We exist to create affordable homes to price sensitive buyers through structure relocation in Seattle and the surrounding areas by securing free homes slated for demolition and giving them new life on new property. By conducting our operations prudently and reinvesting profits while protecting our environment we will be a low cost, innovative leader in our industry. Business Description: Co-founder, H. Roy Ratzlaff has 25 years of construction background and jumped at the chance to start a company that was, profitable, innovative and environmentally responsible. He began this partnership after co-founder Kelsey A. Diller approached him with the unique business concept. She had formulated the plan after discovering her neighbor’s home was scheduled for demolition. Her passion for real estate development and preservation urged her to propose the business venture. Mr. Ratzlaff and Mrs. Diller’s strengths dramatically complemented one another. With a starting capital of $250,000 dollars and a promised $100,000 dollars from an outside investor, Orbit Homes was well on its way to success. Orbit Homes LLC’s innovative strategy capitalizes on opportunities to save free homes that are otherwise scheduled for demolition by moving them onto more cost appropriate lots. Formed at the start of 2008, Orbit Homes LLC was quickly able to secure multiple homes slated for demolition. In a matter of 2 months their first move was already scheduled and land was purchased. Developers often see moving a home off their project site as a favor, because it saves them demolition costs and provides positive press for their company. Their team of specialists including, Nickel Bros. House Moving, Puget Sound Real Estate Group, Lisa Cole and Associates Inc, J3ME Engineering, as well as their relationships with developers give them a competitive edge. Orbit Homes is a limited liability company in the state of Washington and stock is currently held by Mr. Roy Ratzlaff and Mrs. Kelsey Diller (managing members). Products/Services: Moving homes maintains the structural integrity of the building and saves the environment from approximately 100 tons of demolition waste per home. While many of the homes that are scheduled for demolition and are feasible to move, have historic character, they are often smaller, older homes of under 1,200 square feet. In order to offer competitive pricing in a demanding real estate market, Orbit Homes plans to resell often below Seattle’s median housing prices. The company plans to enlarge these homes by 500 square feet to include a master bedroom and master bathroom in order to attract the modern buyer. Sometimes homes that are scheduled for demolition are located in high priced areas and due to city obstacles, a move more than 15 blocks becomes prohibitive. In these cases a second story can be added after the move to capture a view on the new property thus raising the value of the home up to meet neighborhood comparables. In some cases the roof of the home is removed and rebuilt after relocation to avoid expensive overhead wire costs. The customer benefits greatly from the business model because they receive a ‘green’ home that’s been preserved and they receive a new foundation. The buyer often receives a variety of upgrades depending on the resale area. Relocated homes frequently provide first time home buyers with the opportunity to afford a charming home and can provide room for sweat equity. Solution Management: Co-founder, H. Roy Ratzlaff brings significant construction management experience to his position and previously owned his own construction company for 12+ years. He brings organization and structure, driving projects with commitment, vision and innovation. He has proven expertise in construction and operational management. He has created award winning passive solar home designs. His expertise lies in; value engineering, budget and expense control, contract negotiation, sustainable architecture, land development, logistics planning, customer interfacing and oversight of security and safety while ensuring budget requirements and key project milestones are met. Mr. Ratzlaff’s residential and commercial construction experience is over 25 years. Currently he operates all construction related activities, provides estimates, raises capital, and interfaces with government agencies. He holds a Bachelor of Arts in Communication from Fresno Pacific University. Co-founder, Kelsey A. Diller founded and managed Motivo Coffee LLC for two years while attending college full time. Motivo Coffee LLC gave her experience in all aspects of starting and running a company. After graduating with a Bachelor of Arts in Business Administration from Seattle Pacific University she works full time at Orbit Homes LLC. She successfully co-manages accounting, plans for capital needs, assists in raising funds, locates homes slated for demolition, negotiates with developers, locates and purchases land, investigates move routes, collects bid estimates, networks and coordinates scheduling between the movers, the real estate agent, civil engineer and developers. Her strengths are financial planning, client relationship building, a keen awareness of commercial operation, risk management and leadership. By applying her business degree with her innovative ideas she successfully co-manages Orbit Homes LLC. Markets Experts ranked Seattle first in for-sale home development and second only to New York in commercial development (Business Digest 2008). This environment not only provides ample homes scheduled for demolition by increase commercial development but also a healthy residential market for resale. The Seattle economy remains strong due to low unemployment rates and limited land. However, due to the nation wide banking mortgage foreclosure rate, residential home buyers are being cautious to buy homes they can afford. Meanwhile Banks are being cautious not to over lend under-qualified buyers. Given this environment, Orbit Homes caters to the cautious buyer by providing lower than average prices, by offering a home warrantee to reduce first time buyer fears and by providing an opportunity for sweat equity. The company hedges against these environmental threats by carrying low fixed costs and by providing an innovative novelty solution that their competition is slow to respond to. Competition: There are no companies in the state of Washington that do exactly what Orbit Homes does. Developers crush homes that could be saved everyday. However, the main competition is on the resale side and includes every home owner that is selling their home close to the median house price in Seattle. The main competitive advantages the company has against its specific competition includes: • The home is green • The home is architecturally unique because its been saved • Buyers can earn sweat equity • It’s priced correctly for the neighborhood • Upgrades and interior design are tailored to changing market demands Financial Information: Sales are expected to reach $1,987,224 annually by 2013 and $9,131,258 total over five years, based on prospective projects. Due to the office location being in the owner’s home, expenses are mainly variable. The pro forma is based on a 3 percent increase in sales in years ’10-‘11 and 5 percent in ‘12-‘13. Sales are expected to be $1,699,000 in 2009. Financing Sought: The company has identified a suitable parcel to purchase at a value of $425,000 dollars. The renovations, move and administrative costs required are $450,000 dollars. The total financing sought is $875,000 dollars.