New Chances to New Homes (2)

New Chances to New Homes (2)

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  ‘New Chances toNew Homes’ Proposed by Executive Investments & Securities, L.L.C. Chris Moll CEO & Al Moll COO How do we fix the U.S. economy? What effect will government bail outs and new regulations have on financial and real estate markets? Are we at the end of a recession or will the economy continue to struggle in upcoming years? There are no easy answers to these questions. There is no magic economic formula that will guarantee a solution to the real estate, financial, and economic crisis that America is enduring today. Rather there are purposeful plans and proposed solutions. New Chances to New homes is an idea with a plan that will help in the efforts to repair today’s economy. The purpose of New Chances to New Homes is to revitalize and stimulate the local economy by offering financial services that will promote economic growth and benefit the local Real Estate Market. The proposed plan will contribute to five of the six livability principles, namely, promote equitable, affordable housing (principal #2), enhance economic competiveness (principal #3), support existing communities (principal #4), coordinate policies & leverage investments (principle (#5), & value communities & neighborhoods (principal
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  #6), however, theprimary focus and impact of the project will be on livability principal #2; to promote equitable affordable housing and support existing communities. As indicated, the primary livability principle addressed is to promote equitable affordable housing, further; we will be able to keep housing costs low by seeking out and investing specifically in foreclosures and short sale properties. Focusing on these properties will provide unique advantages and benefits. Targeting and purchasing quality properties at a substantially discounted price is intended serve safeguard the company, and the client, against housing market fluctuations. This simultaneously benefits the clients by allowing them to buy or have the option to buy properties that they would otherwise be unable to attain and reside in, hence serving the function of providing affordable equitable homes. In order to understand how the project will impact this livability principal as well as livability principals 3, 4, 5, and 6 we will next need to address the functionality, purpose, and proposed outcomes aspects of the work plan. In order to address the work plan, leveraging, and collaboration; the purpose and outcome will be addressed by describing in detail how the plan will work and benefit the economy. Current local market conditions, regulation changes, and consumer demand as well as historical data will be addressed and referred to in the following plan. The primary purpose of ‘New Changes to New Homes’ is to provide affordable quality housing to a target market. This will be achieved by using an innovative idea to take & use unfavorable real estate market conditions as a catalyst to promote affordable
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  housing to atarget market with the intent of maintaining real estate market values & market values & increasing economic conditions in the long term. This will be achieved by marketing to consumers who have who have the desire & financial means to purchase a home, but do not qualify for conventional/conforming mortgages and matching them with a quality home that is currently in foreclosure or being sold as a short sale on the market. Once a home is matched with a qualified applicant, our company, Executive Investments & Securities, L.L.C. will purchase the home and sign a contract with the consumer that will be made in the form of one of the two following options. Option 1) the consumer will buy the property on a contract for deed basis. The contract for deed rate and terms will be constructed in a way that will produce monthly cash flow for the company Option 2) the consumer will enter into a 1 year lease option upon expiration of the lease option the customer will have the choice of the purchasing of the property or renewing the lease option. As a courtesy and benefit to the customer we will provide and recommend credit counseling agencies that will help the client repair their credit so they can obtain a conventional/conforming mortgage in the future and buy the home from Executive Investments & Securities, L.L.C. using the basic plan above, the company will be used as an entity that operates as a holding company as well as a private ‘hard’ money lender. To
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  clarify, the primarypurpose & intent of the company is not mortgage lending, rather the company’s long term objective is to serve as an intermediary that matches qualified target market candidates with affordable quality housing that would not be available to them without this program in place. As addressed earlier, clients will have the option of either signing into a contract for deed on the desired property or signing into a one year lease option. These options provide the following opportunities for the client. Option 1) Contract for Deed The customer enters into a contract for deed on the property. This option serves the purpose of allowing a consumer of limited financing options a way to get into the home without money down. Essentially, the company will take the mortgage out on the property and sell it immediately on a contract for deed basis to the client. This serves as a financial lending intermediary for the client. Since the intention of the company is short and mid term financing as a service during closing we will guide the customer on how to obtain conventional mortgages with potentially lower rates in the future by informing them of FHA and conventional programs that available with little or no money down and referring them to a reputable credit counselor if they have credit repair needs. Option 2) Lease Purchase option The customer simply enters into a one year purchase option. Sometimes these agreements are referred to as ‘rent to own’ programs, regardless of terminology, the concept is the same. The customer will enter into a one year lease with the exclusive
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  right to buythe property from the company after one year. At the end of the term, our clients will also have the option to renew the lease option for another year assuming payments were made on time during the first year; however, we will encourage the client to consider buying after one year by offering a housing rebate incentive program. The housing rebate incentive program will simply state the consumer will have the option of buying the home at 5% less than appraised value in one year assuming that this discounted price is not less than the original purchase price. According to the Article by published on Zillow.com entitled ‘Price Differences Between Foreclosures and Non-Foreclosures’ by Chief Economist Dr. Stan Humphries the median sales price on foreclosures in 2009 sold on the market in the Phoenix Metropolitan area at 71% of market value. Since the company will be targeting these homes, a five percent discount in one year’s time will more than likely still be above the original purchase price safeguarding the company from potential losses, while still providing an incentive for the customer to do business with us. The next step deemed the work plan is a portion of the project that measures outcomes and outputs. In the case of Executive Investments & Securities, L.L.C. we have written pro forma financial statements for the next fiver years of business. The pro forma estimates were designed with conservative, attainable sales goals in mind. 1st year estimates have been projected based on data gathered from 2005, during which time Executive Investments & Securities, L.L.C. was a viable, profitable entity contracted in
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  conjunction with theparent company Trinity Mortgage, Inc. and did business as Trinity Mortgage. On average, the company brokered two to three mortgages a month during the first year of production. Using this as a guide, our first year sales projections are in line with this with a goal of 2 new clients a month, to keep projections as accurate as possible, we have included implemented an initial 90 day grace period in anticipation of no sales into our first year projections, since during the first 90 days of operations we will be developing marketing, qualifying candidates, and developing integral relationships with point of contact individuals at affiliate companies that we will be working collaboratively with. In order to address and minimize any foreseeable financial or operating problems, we will incorporate and supplement the original marketing techniques the company used in 2005. To market to our target population we will have a marketing plan that consists of three aspects 1) We will run a half page ad in the phone book marketing to individuals looking to buy property. 2) We will do direct marketing in key area codes 3) Word of mouth and traditional networking strategies will be implemented with affiliates such as realtors, banks, colleagues, etc. Prior to addressing details of planned budgeting, and other financials, we will briefly revert to the purposes and outcomes of the project, to dialog and address the additional contributions to other livability. Principles noted on Page 1, Paragraph 3, of the proposal. As stated, livability principle #2, promoting equitable, affordable housing is our primary
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  purpose and focus.However, the New Chances to New Homes project will additionally contribute to liability principles (#3), (#4), & (#5) in the following ways. #3 Enhance Economic Competitiveness Our work plan provides financial and housing services to the interested persons of all incomes, races, and ethnicities by seeking out and placing these parties in quality, equitable, affordable housing of which would be otherwise unattainable with the unique financing and investment options made available through New Chances to New Homes. The program expands business to local real estate markets by investing in and placing residents in select homes currently on the market, providing to enhance and collaborate with local businesses and services, name banks, financial institutions, realtors, title companies, and related financial affiliates. This expansion will additionally support existing communities (livability principle #4) by providing funding other related services into existing residential communities with the planned outcome of sustainable real estate market value and growth in what is currently a depreciated real estate market brought forth by recent recessive economic years, specifically 2006, 2007, 2008, 2009, and 2010. During a period of over inflated real estate values, commonly referred to as a real estate “bubble”. Leveraged investment combined with corporate and federal policy (livability principal #5), removes collateral barriers by working in conjunction with locally government regulated businesses such as realtors, banks, title companies, and credit consumer advocacy agencies. The accountability and effectiveness of government and economic growth by helping the catalyst of our company practice and pro???? Increases and contributing to local real estate markets which will ultimately create sales, property, and employment tax revenue. Accountable parties on all levels of both government and
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  private sectors, notsolely, but perhaps most apparently related and interested financial and regulatory affiliates. Executive Investments & Securities, L.L.C. budget proposal & projections are based off the