CORE BUSINESS PLAN

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Executive Summary

 

Business associates, Ruben Ebanks and Rudy Cattuse, are starting a business venture as real estate investors, buying and selling for profit. ( "HOME FLIPPING" / TOTAL BUSINESS SERVICE SOLUTION LLC DBA R&R CONSULTING / SOLUTIONS ). Web: rubenebanks.com / rudycattuse.net

 

Ruben Ebanks has an extensive background as a project manager for the American Red Cross. In addition to having the relevant experience in public relations and building maintenance, dedicated to services of public buildings, facilities and support professionals, bringing together managers with inspectors, appraisers and product providers, Ruben can also offer diligent transaction processing and forwarding services through relevant knowledge, skills and abilities, to utilize available coordinating systems.

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Ruben has also developed, distributed and managed an online consulting business (TBSS LLC). He presently owns and manages two residential properties in the Miami area, which makes him highly qualified on every segment of the business process from property acquisition, to project management and transaction coordination.

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Rudy Cattuse has a background in real estate managing, purchasing, selling and mortgage financing, going back three decades. He started as a sales associate with Century 21 between 1993 and 1998, became a mortgage broker with Allied Mortgage Inc., from 1998 to 2006. He made a good volume of fix and flip transactions, between 2001 and 2006, netting 1.8M in revenue, in the Miami-Dade county municipalities, prior to the real estate decline of 2008.

 

Rudy is presently licensed, active and affiliated, in real estate sales with eXp Realty Inc. (RC-EXP..com) and mortgage lending with Reliable Mortgages Inc., (RC-LOAN.com) based in Central Florida, providing professional support resources, such as information networks, realtor associations, mortgage bankers and title companies, to expedite processes.

 

R&R CONSULTING is poised to revolutionize the property flipping consulting landscape by leveraging the extensive expertise and dynamic synergy of its founders, Ruben Ebanks and Rudy Cattuse. With a deep well of experience in real estate management, purchasing, selling, mortgage financing, and property consultancy, R&R CONSULTING is set to become a premier choice for individuals and businesses seeking guidance in the complex world of property flipping.

Key Offerings and Expertise:

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• Ruben Ebanks brings a robust background in project management, garnered from his tenure with the American Red Cross, which has equipped him with a meticulous approach to transaction processing and project coordination. His hands-on experience managing residential properties in Miami further enriches his ability to oversee all phases of property development, from acquisition to final sale. Ruben’s prior success in managing an online consulting business is a testament to his capability in leveraging digital platforms for expansive client reach and engagement.

• Rudy Cattuse, with over thirty years in the real estate industry, offers unparalleled expertise in sales, mortgage brokerage, and property flipping. His successful track record with Century 21 and Allied Mortgage Inc., punctuated with substantial revenue from fix and flip projects, underscores his proficiency in navigating real estate transactions and market fluctuations. Rudy's current affiliations with eXp Realty Inc. and Reliable Mortgages Inc. connect R&R CONSULTING with significant industry resources and networks in the State of Florida, enhancing the efficiency and efficacy of their services.

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Strategic Vision: R&R CONSULTING aims to bridge the gap in the property flipping market by providing comprehensive consulting services that integrate public relations skills, diligent transaction processing, and robust industry networks. The firm’s strategic partnerships and personalized consulting solutions are designed to maximize client satisfaction and financial success in the ever-evolving real estate market.

With a dedication to professionalism and a commitment to excellence, R&R CONSULTING is set to be a leader in consulting for property flipping initiatives. By harnessing Ruben and Rudy’s combined expertise, the venture promises not only to meet but to exceed client expectations, creating a significant positive impact within the real estate industry.

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Market Analysis 

 

Primary Research: Recent data shows a strong demand for moderately priced homes in Florida. This demand is primarily driven by homebuyers seeking affordable monthly payments and larger living spaces to accommodate growing families. Centralized neighborhoods and communities continue to be popular due to their accessibility and proximity to urban centers. Surveys and focus groups indicate that both first-time home buyers and investors face challenges such as affordability constraints and competitive market conditions. These insights have been instrumental in tailoring offerings to meet the specific needs of these groups.

 

Secondary Research: An analysis of existing data from industry reports and academic papers reveals that Florida's real estate market is experiencing a shift towards eco-friendly and sustainable properties. This is in line with nationwide trends where eco-consciousness is becoming increasingly significant. Social media analysis further supports this shift, with discussions frequently highlighting sustainability as a key factor in purchasing decisions.

 

Trends and Patterns: Sales data and customer feedback indicate a steady interest in properties with sustainable features, and there is an observable pattern of increasing demand for energy-efficient homes. This demand aligns with changes in consumer behavior where buyers are prioritizing not just the cost and size of homes but also their environmental impact.

 

Competitive Analysis: Research on competitors within the Florida real estate market has identified several gaps, particularly in the area of sustainable housing. Competitors offer a range of pricing and property features, but few focus on the integration of green technologies, representing an opportunity for differentiation. Customer feedback suggests a growing interest in such features, which could be leveraged to offer unique value.

 

Target Audience: The target audience comprises first-time homebuyers, investors, and environmentally conscious buyers looking for sustainable housing options. The needs of these groups include affordability, spacious living arrangements, and eco-friendly features. By focusing on these aspects, services can be tailored to provide solutions that address both practical and ethical considerations.​​

 

Market Gaps and Opportunities: Significant market gaps exist in the availability of affordable, sustainable housing options, particularly catering to the emerging eco-conscious demographic. There are opportunities to capitalize on the growing trend towards sustainability by offering homes that not only meet financial constraints but also deliver enhanced environmental benefits. This analysis provides a comprehensive overview of the Florida real estate market, highlighting key areas for business focus and strategic development to align with current market dynamics and consumer preferences.​​​

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Project Scope Overview:​​

Our project aims to purchase distressed properties at significant discounts in every county throughout the state. We source these properties from various channels, including court records on probate, foreclosure files, divorce cases, MLS listings, Real Estate Owned (REO) properties, short sales, and several auction platforms.

 

On each acquisition, we will ensure the property has an equity rate of at least 35% above current market values. This standard will be a critical aspect of our purchasing decisions. Additionally, every property will undergo a thorough evaluation using established comparative market analysis methods to optimize profit margins and achieve the best possible project outcomes. After acquisition, the properties will be renovated to comply with code standards and made ready for occupancy. This initiative is designed to provide secure and affordable housing options, as well as attractive investment opportunities, by selling these properties at competitive market prices, approximately $375,000. Our pricing strategy focuses on achieving a net profit margin of 10 to 15% after covering expenses and operational costs, based on thorough margin assessments.

 

Our main objective is to convert abandoned and uninhabitable properties into fully functional homes. These revitalized properties will be upgraded to be appealing and affordable to pre-qualified buyers who are keen to acquire homes within their budget and meet their homeownership objectives. Our target market encompasses major municipalities within the Metro Central and South Florida regions. We will focus on residential properties situated in areas with high resale turnover, specifically targeting moderately priced single-family homes, as well as multi-family units such as duplexes, triplexes, and fourplexes.

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Sales and Marketing Strategy

1. Information Resources and Prospecting

• Target Market Research: Utilize advanced data analytics tools to conduct in-depth market research across defined geographic areas. Use public records including probate, foreclosure, and divorce proceedings to identify potential seller leads and property opportunities. Implement software that can automate the collection and analysis of this data to identify properties with favorable equity, physical conditions, and marketability.

• Lead Generation: Develop a digital platform that integrates AI-driven algorithms to qualify, and segment leads based on their potential value and urgency. Offer online resources such as webinars, guides, and newsletters to attract and educate prospective buyers and sellers about market conditions and real estate processes.

2. Structured Process for Property Transactions

• Expedited Transaction Processes: Implement a streamlined online workflow system that handles everything from initial contact to closing. This system should facilitate virtual tours, electronic document signing, and real-time communication between all parties involved in a transaction.

• Multi-Channel Outreach: Leverage various digital marketing channels, including social media platforms (e.g., Facebook, Instagram), email campaigns, and Google Ads, to reach prospects. Use CRM systems for personalized communication strategies that target specific customer segments based on their behavior and preferences.

3. Enhancing Market Reach and Territory Expansion

• Geographic Expansion Tools: Use geographic information systems (GIS) to continually analyze and evaluate new potential markets. This will help identify emerging property hotspots and demographic shifts that might present lucrative opportunities.

• Professional Network Utilization: Recruit and train individuals who can operate in new territories with proficiency. Foster partnerships with local real estate professionals and utilize virtual platforms to establish strong collaboration practices without needing physical presence.

4. Technology and Automation in Operations

• Systematized Processes: Develop and maintain a dynamic online portal where professionals can access training materials, transaction management tools, and customer communication logistics. Employ project management and communication software like Slack or Trello to coordinate tasks across teams.

• Client Services and Online Accessibility: Ensure clients have access to resources and services 24/7 through a user-friendly online interface. This should include self-service options such as scheduling virtual consultations, viewing property listings, and accessing market insights via dashboards.

5. Marketing and Engagement Optimization

• Content Marketing: Regularly produce high-quality content that highlights success cases, market analysis, and real estate tips. This can be shared across blogs, video content, and podcasts to establish authority and engage a broader audience.

• Data-Driven Marketing: Continuously monitor the effectiveness of marketing campaigns using analytics tools to refine strategies and optimize for conversion rates. Use A/B testing to experiment with different messaging and offers.

By implementing these strategies, the online system should effectively support a highly modernized, efficient, and responsive real estate sales and marketing operation, capable of delivering exceptional value to its clientele.

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Management Plan:

1. Information Resources and Data Utilization

• Advanced Data Analytics: Implement sophisticated data analytics tools to gather and analyze information from public records, including probate, foreclosure, and divorce cases. Use this data for generating high-quality leads by identifying properties with favorable market conditions.

• Automated Data Processing: Establish a system that automates the data collection, filtering, and updating processes, ensuring real-time access to critical information. This automation can help quickly prioritize leads based on equity, functionality, and marketability.

2. Efficient Transaction Processes

• Structured Workflows: Develop an online system that supports end-to-end transaction management, from lead acquisition to closing. Use customer relationship management (CRM) software to organize interactions and optimize relationships with buyers and sellers.

• Communication and Outreach: Utilize omni-channel communication strategies; leverage email marketing, social media outreach, and SEO-driven content marketing to engage with prospects. Develop personalized communication plans aligned with client preferences and behaviors.

3. Market Reach and Territory Expansion

• Geographic Information Systems: Use tools to explore and validate new markets efficiently. Keep the system updated with information on emerging areas, demographic shifts, and potential new territories.

• Network Development: Build partnerships with local market experts through online platforms to enlarge territorial coverage without extensive physical infrastructure. Use virtual collaboration tools to maintain constant communication with on-ground partners.

4. Strategic Recruitment and Skill Development

• Talent Acquisition: Recruit proficient professionals using online job platforms and industry-specific portals. Focus on sourcing individuals with experience in digital real estate tools and sales tactics.

• Continuous Learning: Implement an online training and development platform to enhance employee skills continuously. Use webinars, virtual workshops, and e-learning courses to keep the team informed about the latest industry practices and technologies.

5. Automation and Online Access

• Resource Allocation: Use automated systems for efficient resource allocation—ranging from human resources to technology deployment. This will ensure that all necessary elements are available and optimally utilized.

• Client Portal: Create a client-facing portal that offers seamless access to listings, transaction progress updates, and support resources. Make sure the portal is mobile-friendly and includes features like live chat for real-time assistance.

6. Engagement and Branding

• Brand Visibility: Conduct regular online seminars and actively participate in industry forums to build brand reputation. Share success stories and case studies across digital channels to demonstrate expertise.

• Performance Monitoring: Regularly assess the system performance, using analytics to track KPI (Key Performance Indicator) metrics such as lead conversion rates, transaction times, and customer satisfaction levels. Use these insights to fine-tune strategies and improve system efficiency.

By balancing advanced technological tools with strategic human elements, this management strategy aims to streamline operations, enhance market engagement, and ultimately drive successful real estate transactions efficiently.

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The System of Services and Products:

First-time users, buyers and sellers, shall get free consultations, guides, document gathering assistance, analysis and MLS listings, on buying and selling single and multi family homes (duplexes, triplexes and fourplexes), in South and Central Florida, average priced between 250k-500k, after repairs and upgrades value (ARV).

Home buyers can get a free six step home buying checklist and guide, which includes a credit consultation, a loan application, complete mortgage loan analysis, to assess how much of a home they can afford, within a specific timeframe.

Home sellers can get a free seven step home selling checklist and guide, which includes a comparative market analysis on their home and a complete listing assessment to calculate, arrive to the best price to sell, in the shortest amount of time.

Free Six-Step Home Buying Checklist:

1. Credit Consultation:

   • An initial assessment of your credit score and financial health to determine your loan eligibility and potential interest rates. This step includes personalized advice on improving credit scores and managing debt, if necessary, to optimize your position for lending.

2. Budgeting Assistance:

   • Guidance on understanding your financial limits, including income, savings, and monthly expenses, to establish a realistic and sustainable home buying budget.

3. Loan Application Support:

   • Assistance in preparing and submitting a loan application. We provide insights into various loan types and help you choose the one that best fits your financial situation and homeownership goals.

4. Mortgage Loan Analysis:

   • A comprehensive review of available mortgage options, including fixed-rate, adjustable-rate, and government-backed loans. This analysis helps you understand the long-term implications of each option and select the most affordable and advantageous loan.

5. Affordability Assessment:

   • A detailed calculation to determine how much home you can afford while considering potential down payments, closing costs, and future monthly payments, ensuring that your purchase aligns with your financial capabilities.

6. Timeline Development:

   • Establishing a realistic timeline for each stage of the home buying process, from financing pre-approval to closing, tailored to your specific goals and market conditions.

Free Seven-Step Home Selling Checklist:

1. Property Evaluation:

   • An initial consultation assessment of your property’s strengths and weaknesses, identifying features that can be highlighted to attract buyers or areas that might need improvement.

2. Decision Before Selling:

   • Your home is one the biggest investment you’ve made; you want the best amount and the best terms. A thorough evaluation of similar properties in your area, analyzing recent sales, current listings, and market trends to determine a competitive and appealing listing price.

3. Home Staging Guidelines:

   • Recommendations for preparing your home for sale, including decluttering, cleaning, and arranging furniture to create a welcoming and attractive environment for potential buyers.

4. Listing Strategy Development:

   • Crafting a strategic marketing plan that includes listing your property on multiple platforms, using professional photography, and highlighting unique selling points to reach a wide audience.

5. Pricing Strategy and Negotiation Prep:

   • Setting the optimal listing price based on the CMA, and preparing to negotiate offers, including strategies for handling multiple bids or counter-offers to maximize your sale price.

6. Marketing Implementation:

   • Deployment of marketing efforts through various channels, including online listings, social media, and open houses, to ensure maximum exposure and interest.

7. Timeline Management:

   • Developing a timeline that aligns with your selling goals, coordinating showings, open houses, and negotiations to achieve a timely and efficient sale.

By offering detailed guides, both home buyers and sellers are equipped with the essential knowledge and tools to confidently navigate the process, making informed decisions that align with their individual circumstances and objectives.​

Our clients can get started by using easy to submit short forms to access comprehensive information on our web portals: 

HOME BUYERS / BUYERS' GUIDE / HOME SELLERS / SELLERS' GUIDE​ / HOME LISTINGS / INVENTORY​

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DESCRIPTION & PROJECTIONS​

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Business structure:

Consulting services that shall assist home buyers and home sellers with valuable information and documentation, to help them better understand the process and provide access to available resources through mortgage and real estate brokers, systems and offers, in the best possible clients' terms, within financial reach, specific to proposed criteria and foreseeable time frame.

Our Services:

• Guidance and Documentation: We assist clients by offering invaluable insights into the home buying and selling process. Our services include thorough documentation support to ensure clients are well-equipped to navigate each stage of their real estate journey.

• Resource Accessibility: Through our vast network of mortgage and real estate brokers, we provide clients with access to the latest market insights, offers, and systems. We ensure that every client finds opportunities tailored to their terms and financial capacity.

• Education and Empowerment: Dedicated to client education, our team offers personalized consulting designed to demystify real estate transactions. We provide the necessary knowledge and abilities, encouraging clients to confidently pursue and achieve their personal real estate goals.

• Personalized Strategies: By understanding each client's unique criteria and timelines, we develop strategies that support their objectives in both the short and long term.

Services shall be dedicated to consumers' guidance, designed to educate, empower and encourage clients through detailed knowledge, abilities and support required to achieve our clients' personal goals.​

Market Forecast: Florida’s real estate markets vary from more developed areas in the southern cities, around Miami-Dade county to the constantly growing central Florida municipalities and counties. Since 2008, the recovery of home markets have improved significantly, appraised values and prices have gone up, and sales have been steady, allowing for business potential and revenue growth between 25% to 40% annually, in about every major metro area.

Structure shall improve to evolve into a full service brokerage, once we have built a significant inventory of homes, added financing services, increased activity volume and created more revenue channels through wholesale vendors.​

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Revenue projections: potential sales the business will achieve in the coming 5 years.​

1.  Revenue Projections

Based on the previous description, target market and pricing strategy account for generating revenue through both single and multi family home sales. Given the basic yearly growth rate of 25% mentioned:

• Year 1 Revenue: Estimate based on the sale of homes and using given average sales prices, multiplied by expected 10 to 12 units sold.

• Year 2 to Year 5 Revenue: Increase Based on Year 1 Gross Income by 25% Annually.

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2. Cost of Homes Sold (COHS)

Our properties are bought in (distressed to be fixed at an estimate cost rate of 10% of market value) with equity greater than 35% and sold at discounted rates between 10% to 20%, generating an average to high end net income of 10% ($37,500) of market value.​

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Information on our services and products is available online and through other relevant property publications.​​

Example Projection Model No. 1:

Short-form example for Year 1 revenue and cost of homes sold:

Direct costs of purchasing and renovating properties:

• Property Acquisition more than 35% below market value & Renovation: Estimated cost and 10% per unit.

• Total cost per property and use this to determine total cost of homes sold based on the number of units sold.

• Eg.: Property Bought at $243,750.00 (65% of Average Market Value) + Renovation Cost $24,375.00 (10%)

• After Repair Value = Proposed Sales Price: $375,000.00.

• Discounted Actual Sales Price: $350,000.00 = Gross Profit Margin: $82,000.00 (33%)

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3. Operating Expenses Estimate

These include regular annual costs such as:

• Rent and Utilities: $36,000 annually.

• Marketing: $24,000 annually.

• General Contracting and Operating Costs: $240,000 annually plus 25% increase to projected yearly gross.

• Salary Reinvestment: 80% of gross earnings in the first two years.

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4. Capital Expenditures

Include initial setup and ongoing technology investments:

• Year 1: $120,000 for vehicle, setting up office, facility supplies, computers, softwares and networks.

• Year 2 to Year 5: $12,000 yearly for maintenance and updates.

• New Technology: $6,000 annually.

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5. Financing Activities ​

Wholesale Mortgages and Business Loans Estimated at 2.5M 1st Year

Equity investments: Proposed Resale Homes Netting 250k on 1st Year.

Financing Sources: Mortgage Bankers and Business Brokers

Begin with planned loans and equity investments:

• Initial Loans: Total of $2.5M in the first year.

• Equity Investments: Projected Net Income = $250,000 on 1st Year.

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6.1 Assumptions & Growth Rate

• Maintaining a consistent annual revenue growth rate of 25%.

• Considering potential shifts in market conditions that could impact growth projections based on migration trends and housing demands, growth rate may change up ro down, from 5% to 10%.

Example Projection Model No. 2:

Short-form example for Year 1 revenue and cost of homes sold:

• Projected Gross Revenues: E.g., 10 homes sold at an average price of $250,000 = $2,500,000

• Cost of homes sold (COHS) Calculation: Cost per home is 65% of $250,000 (distressed value) + 10% renovations = $187,500.

• Total COHS: 10 homes x $187,500 = $1,875,000

• Projected Net Revenues: E.g., 10 homes sold at a low end price of $250,000 each = $2,500,000 - $1,875,000(COHS) = $625,000​

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6.2 Assumptions and Growth Rate:​

Assumptions on trends, data relevant to Americans moving to south states and metropolitan areas. Individuals and families changing employment, choices, skills and abilities. There has been a great number moving within the US over the past decade. Southern states such as Florida, Texas, and the Carolinas have been big winners in these domestic migration patterns, largely led by more affordable housing conditions in retirement communities, resale properties, new construction homes and better economic opportunities. According to U.S. Census Bureau data: 42 percent of these transfers were driven by housing reasons, 26 percent for family reasons, 16 percent for employment reasons, and only one percent moved due to climate-related reasons.

The available Census Bureau data provides information surrounding where Americans move and in what volumes.

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2024 Migration Trends By National Association of Realtors - Please See Attached Report.

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