Rhett Allen

Draper, UT (USA)
Role(s):
VP/SVP/Dept Head

IMPAC, LLC dba Your REO Store, INC

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Location: Draper
Industry: Real Estate
Year Founded: 2009
Number Employees: 10-50 people
Business Stage: Growth (profitable)
Entity Type: Limited Liability Company
Description: IMPAC, LLC dba Your REO Store, INC Funding Request Tear Sheet IMPAC, LLC is a Utah based company established in August 2009 fulfilling a fast growing niche market segment which facilitates real estate transactions on a national platform by contracting with and supplying “back end office support” to national real estate educational and coaching companies. Many of the educational coaching companies are headed up by nationally recognizable experts and authors that hold large seminars throughout the country and infomercials. IMPAC facilitates supply chain delivery of superior real estate product to these companies’ students. All property is rehabilitated and rented meeting superior standards which are verified by third party agencies and meet a certain “Net Net” ROI upon delivery to the student. This is an order fulfillment model. IMPAC monitors over 350 different real estate markets throughout the U.S. to determine which markets best fits its superior delivery system to fulfill orders. IMPAC has raised the bar and is setting the standard for quality delivery unlike its competition. Strong word of mouth has increased its demand for their product. IMPAC’s growth has primarily been in the last twelve months and has facilitated 330 transactions. IMPAC’s current pro-forma growth over the next 90 days are at 50 units per week with a demand for much more. IMPAC has two income producing products; 1, an engagement agreement when the student is referred over from the coaching company that sells for $10k, the student is credited back the entire $10k over their purchase of three properties (this is a credit not a refund); 2, The second income point is the buy/sell margin of a minimum “Net Net” 4% per month on the spread that it sells its property to a holding company called Your REO (URL removed) which the holding companies become a part of. The coaching companies then sell the property from there to its students at a higher price. IMPAC’s has two current needs; 1, capitalization of approximately $300k to upgrade office space, increase staff and position itself in a startup pubco shell such as a 12G and; 2, approximately $5MM minimum for property acquisition and rehab capital. Of the two needs the $300k is the most pressing need due to the demand in orders. IMPAC is currently closing on a $2MM investment for property acquisition and rehab costs. IMPAC also has another company in the final “decision” stage of a $5MM acquisition and rehab commitment however acquisition commitments cannot be used for overhead and growth which is right now the most pressing item. If IMPAC stays in its current office which it shares 55,000 sq ft with another company it would have to surrender half of its profits to the company that owns the office lease and supplies some of its personnel. IMPAC’s growth due to demand can be self funded however the challenges to continue its growth in market share could be hampered by a self funding model. As well, IMPAC would rather raise funds for acquisition and rehab through a broker dealer network, leaving the fund raising side of the model to the professionals in the fund raising industry so it can concentrate on its core strength, fulfilling orders of superior product and ROI to real estate educational company’s students which number in the hundreds of thousands.