Business Plan


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This my very own plan to what I think can help the banks and homeowner get out of the housing crunch.

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Business Plan

  1. 1. Clear Vision Industries CEO Xavier A. Parker Telephone: (216) 357-9287 Fax: (216) 587-1626
  2. 2. HH Page 2 of 21 House 2 Home HH House 2 Home Business Plan HH House 2 Home
  3. 3. HH Page 3 of 21 House 2 Home I. Table of Contents I. Table of Contents 3 II. Executive Summary 4 III. General Company Description 8 IV. Advantages for Banks and or lenders Error! Bookmark not defined. V. Services, Operations and Strategy 10 VI. Competition and Present Need 13 Appendix A: Foreclosure States for Ohio 16 Sample Certificate for Completion of our program Error! Bookmark not defined. HH House 2 Home
  4. 4. HH Page 4 of 21 House 2 Home II. Executive Summary The purpose of this business plan is to developing an innovative program that is set to educate current home owners and new homeowners on the process of homeownership, and to implement a plan/process to rid the housing market from one of the worst disasters in its history. Banks, Lenders, Cities and States, Current Home Owners and individuals looking to own their first home can benefit from this. Services: Homeowners Course: This course will provide the information and training needed for individuals looking forward to own their home. This can be considered the “Drivers Education” for home ownership. Process of purchasing a home, clearing up credit, determining price range of home that the individual can afford, mortgage terms, and the art of successful homeownership. Banks, Lenders and the Investors can use this program to re-establish the confidence back into the market, because informed buyers/investor’s are individuals who have taken the time to research the market and their finances to prepare for the big step of home ownership. The major benefits:  Return of consumer/market confidence.  Knowledgeable buyers can turn into knowledgeable investors.  The more individuals we put into homes can benefit everyone from current homeowners (property value); banks/lenders (market confidence from Gov’t bail out); cities/counties (property taxes, schools, the civil service and road rehabilitation). Course Material and School Program While the goal is to get individuals to take our course to re-establish the confidence in the housing market another goal of ours is too HH House 2 Home
  5. 5. HH Page 5 of 21 House 2 Home eventually incorporate our course information into high school and college curriculum. There are many individuals who are leaving high school and college to begin renting their first apartment and assume that owning their first home is exactly like renting an apartment. Incorporating this course in to our schools curriculum can do nothing but help the housing market. Major Benefits of this course:  If individuals are beginning to learn information about the housing market can make a well prepare buyer and when they reach that time.  Individuals tend to educate themselves on home ownership while they are looking for a home.  To return responsibility to the consumers and to create a new balance between the lenders/banks and the consumers. Business Description: House 2 Homes Consulting Group (H2H) will provide an efficient, mutually beneficial partnership between the new home owner and the banks/mortgage lenders. Once established in the state of Ohio, House 2 Homes will expand regional and then nationwide, choosing the locations that have been ravaged by foreclosures the most. Our concept stems from our realization of six marketplace trends:  Lenders were taking advantage of less knowledgeable buyers, with bad loans.  Home buyers were not educating themselves enough on the process of home ownership, most new home owners think that owning a home is just like living in an apartment.  Home buyers living beyond their means and purchasing homes that stretched their budgets.  The banks and lenders taking advantage of the housing system.  Individuals will purchase homes with their hearts and not their budget.  Individuals lack the knowledge and planning when they facing a financial hardship. HH House 2 Home
  6. 6. HH Page 6 of 21 House 2 Home Business Timeline:  Year 1-4: Completely implement our marketing plan and decrease the foreclosure rate from 10-30%. Organize and partner with the board of education to try and create a course of study for students in high school; ages 17-22 is target market to start our foreclosure prevention plan.  Year 5: To create the Home Ownership & Foreclosure Prevention Bureau and become national. This would make it mandatory for potential home owners to take theses course before they can buy a house. Create help for those who have take the proper steps and are still faced with the hardship of losing their home (a type of foreclosure insurance).  Year 6-10: Reduce foreclosure to 20%-35% and focus on foreclosure prevention, intervention and education. Target Market   College Students Individuals ready to buy after  First time home buyers foreclose  Single males and females   Single parents Mortgage Lenders and Banks  Low income families  High Schools & Colleges.  Individuals before they are ready to buy  Current Home Owners Advantages: The re-establishment of the housing market will benefit banks and lenders for the following reasons:  More home owners will increase property value.  More home owner equals more borrowers; this program will make the borrowers educated.  More borrowers equal more home builders borrowing to build more homes. HH House 2 Home
  7. 7. HH Page 7 of 21 House 2 Home  The lender or bank that commits to this could be the one that shows that they have established the method that may save the housing market after the bail out.  Once the program is establish it will create a new market for educating new home owner in high school and or college and we will establish the criteria for the courses.  More knowledgeable consumers equal more income for the lenders and banks.  Job Creation Disadvantages:  Individuals, banks and real-estate agents may be reluctant to this transition because it adds more time to the home buying process.  Transition may cause individuals to not buy as fast as they normally would.  This may be costly to lenders and banks but will be more beneficial in the future. HH House 2 Home
  8. 8. HH Page 8 of 21 House 2 Home III. General Company Description Mission Statement: To restore the integrity and honesty back to the American dream of home owner ship by fostering a new mentality to educate, inform and assist:  Educate- educate individuals on what it means to own a home, and how to review the contracts that you may sign during the home buying process.  Inform- inform the individual on the different options that they have when owning a home, let them know if it is in their best interest to purchase a home now or later.  Assist – provide assistance to the home owner, who may feel alone in the new stage of home owner ship process. Company Goals and Objectives Our company goal is to decrease the foreclosure rates by at least 15%-50% in 5 to 10 years. We plan on vastly education the home owner on the options and avenues they can take to help themselves as consumers. Our company feels that the failure in the housing market is a collection of individual problems, but they main problem is the lack of education of the new home owner. Business Philosophy The education and empowerment of home owner is our number one priority. Industry We will be breaking into the foreclosure and homeownership industry, I feel that for too long the industry was built on taking advantage of misinformed individuals to make as much money as possible. Our company will take advantage of this by focusing on the person instead of the profit, HH House 2 Home
  9. 9. HH Page 9 of 21 House 2 Home because the more people we have in homes them more we allocate begin to rebuild to our cities and infrastructures, which will then help the community. Legal form of ownership Limited liability Corporation (LLC); Non-Profit and or Government Contractor Consumer Benefits: The benefits of starting this service will serve everyone well. To educate consumers will return the confidence to the housing market. Lenders will be more confident in the consumers and their ability to be a reliable client. For the consumers and lenders the benefits of this program could be the beginning of the re-establishment of the booming housing markets; with more individuals in homes property values will increase; and more home owners will benefit the counties and cities that will see their tax revenues grow due to more home owners paying property taxes. The growth in revenue for the cities from taxes can also benefit the local school districts. HH House 2 Home
  10. 10. HH Page 10 of 21 House 2 Home IV. Services, Operations and Strategy The type of product and service that the company will offer is a home owning consulting program and service to the home owner to educate individuals on the entire process of purchasing a home and financial literacy. The organization will consist of the following: 4a. Establish a home owner’s course this course will educate individuals on: How to read a mortgage contract/agreement and the type of mortgages available.  How to compute Interest Rates, the difference between fixed and adjustable rates.  What programs are available for new home owners FHA, VA, and RHS programs to name a few.  The course will cover the maintenance that is necessary for the up keep of a new home, which may include how to use a washing machine to how to use a dishwasher, or what maintenance jobs in the homes are easy for the “ do it yourselfers” or if the job is one that you should always leave to the professionals.  The type of insurance you will need for your home, appliances and your family insurance and why.  New home awareness, not all new home owners knows what to look for, and what they may need to ask a seller before buying.  Other services: Budgeting, credit cleaning and bill paying, Investment, Home Inspections, Real estate services and Home refurnishing. HH House 2 Home
  11. 11. HH Page 11 of 21 House 2 Home 4c. Marketing Strategy Marketing phase’s I-III is set up to eliminate any barriers that may be in the way of our organization by securing Alliances and Partnerships with local government and Lenders. Our companies marketing strategy will be one set up like a Presidential Campaign; we will saturate the market/ community with information on our plan and vision. Our strategy is easy to incorporate in any location and can easily be transitioned in and out of a location (and State to State). Marketing Phase Phase Team Secure Alliances and Partnerships Marketing Vehicle Employed Team   Clevelan City Counsel Representatives of Cleveland, Trips to target area I  d Garfield Hts. and Maple Hts, OH Community Contact /Personal Contact   Local Community (House to House) Email   Contact Banks and Lenders Mail  Phone   City Mayor’s of Cleveland, Garfield Hts. Personal Contact II Team  and Maple Hts, OH Email   Contact Banks and Lenders Phone Cleveland HH House 2 Home
  12. 12. HH Page 12 of 21 House 2 Home   Trips to target area Contact Mayor’s of surrounding III. Team  Community Contact /Personal Contact Counties (Summit, Lake Geauga and  Email Lorain) Ohio  Mail  Local Community (House to House)  Phone  Contact Banks and Lenders 4d. Possible Business transitions With the vision that our founders have this plan has the potential to transition to other fields of opportunity, examples are below:  House 2 Homes LLC can transition to a government agency.  House 2 Homes LLC can convert its course material to the academic arena.  House 2 Homes LLC can convert to a foreclosure prevention agency. HH House 2 Home
  13. 13. HH Page 13 of 21 House 2 Home V. Present Need and Competition Present Need: If would have turned on your television in this past year you could not find a channel that was talking about the banks failures due to the housing crisis. This is where House 2 Homes comes in; the biggest factor in the failure of the housing industry was greed and lack of knowledge. House 2 Homes cannot manage individual’s greed but we can inform the buyers. With the banks and mortgage companies looking to get out of this current situation, I feel that this market his ready to be tapped into. Why this service can be successful? The reason why this service can be successful is because if we can guarantee to the banks and mortgage lenders that their individuals that use our service is ready to be a home owner financially and mentally. My organization feels that the lending industry is prime and ready to lend to an educated and informed consumer. The other beneficiary from this program will be the county and cities who are missing on tax dollars on these foreclosed homes. I feel that the cities will be willing to work with individuals who may be interested in the homes that are being held by the cities due to the taxes owned on them, if we can get these empty house filled with families. Advantages: Competition is not always a bad thing, the advantages to competition are:  Realization that there is a current market.  The availability of future partnerships.  Statistics already exist. Disadvantages: The disadvantages of the competition are as follows:  Already has name recognition.  Already has a consumer base HH House 2 Home
  14. 14. HH Page 14 of 21 House 2 Home  Individuals are reluctant to use a new organization in comparison to one that they are failure with. With the competition below, they have name recognition and they have been in business since at least 2004, but the foreclosure rates have steady climbed. We know that we cannot prevent all foreclosure because of individual’s wants, but where the competition is not taking advantage of their ability to be proactive in this process. This is where we come into play; our plan is set to prevent foreclosure the competition is currently set up to maintain foreclosure rates. Also the competition target market is individuals who are almost in foreclosure or close to, and low income families/individuals, but our plan is set to target current and new home owners, future home owners (students) and those in or close to foreclosure. Current Competition: Bluekeel LLC: Creators of the website to lower your house payments; reduce loan amount, transfer overdue payments to end of loan, and lower monthly payments. U.S. Department of Housing and Urban Development The U.S. Department of Housing and Urban Development (HUD) offers assistance to homeowners in need, including mortgage assistance and free or low-cost home ownership counseling. Neighborhood Assistance Corporation of America Countrywide’s joint initiative with the Neighborhood Assistance Corporation of America (NACA) helps Countrywide borrowers keep their homes. It combines Countrywide’s home preservation options with NACA’s comprehensive Home Save approach, which includes individual counseling and the development of a documented affordability budget. Neighbor Works America Center for Foreclosure Solutions The Neighbor Works Center for Foreclosure Solutions was created to preserve homeownership in the face of rising foreclosure rates. Countrywide is a founding member of the national partnership of lenders that launched the Center. In cities and states with high HH House 2 Home
  15. 15. HH Page 15 of 21 House 2 Home rates of foreclosure, the Center works with local leaders to create sustainable foreclosure intervention programs. Homeownership Preservation Foundation (HPF) The Homeownership Preservation Foundation creates partnerships with local governments, nonprofits, and lenders to help families overcome obstacles that could result in the loss of their homes. ACORN Housing ACORN Housing provides free counseling to low- and moderate-income homebuyers. In a special project to help Katrina victims, Countrywide worked with ACORN Housing to help identify solutions for those customers who lost their homes. National Foundation for Credit Counseling (NFCC) The National Foundation for Credit Counseling is comprised of over 100 nonprofit, community-based agencies with more than 900 local offices throughout the country. Countrywide sponsors special training for NFCC counselors to teach best practices for foreclosure prevention and loss mitigation counseling. Cleveland Housing Network (CHN) The mission of the Cleveland Housing Network is to generate hope and healthy market forces in Cleveland’s aging neighborhoods, pave powerful pathways out of poverty for very low-income families and assist low to moderate income working families build wealth and self-determination. HH House 2 Home
  16. 16. HH Page 16 of 21 House 2 Home Appendix A: Foreclosure States for Ohio I. Below are the number of foreclosure number Foreclosures for 2008 NOD LIS NTS NFS REO Total 161,162 157,094 139,955 59,112 222,391 739,714 Average cost of homes 150,000 Foreclosures 2008 x 739,714 Est. loss by lenders 110,957,100,000 Our organization set out to cut the number of foreclosures by 50% by 2015 Average cost of homes 150,000 1/2 Foreclosure 2008 x 369857 55,478,550,000 This money can be reinvested in the banks, lenders and the community Stats retrieved from: nt=64847  NOD: Notice of Default  LIS: Pre-foreclosure  NTS: Notice of Trustee Sale  NFS: Notice of Foreclosure Sale  REO: Real estate owned/lender owned II. Statistics from 1995-2007: These statistics show that the foreclosure numbers have done nothing but grow and the market for an organization to try to focus on decreasing this numbers is prime and waiting. HH House 2 Home
  17. 17. HH Page 17 of 21 House 2 Home Ohio County Foreclosure Filings (1995-2007) Ohio County Foreclosure Filings (1995-2007) HH House 2 Home
  18. 18. HH Page 18 of 21 House 2 Home Ohio County Foreclosure Filings (1995-2007) Stats retrieved from: For more statistics for the entire state visit the link above. HH House 2 Home
  19. 19. HH Page 19 of 21 House 2 Home Top 20 States: U.S. Foreclosure Market Data by State – Q2 2008 Properties with Foreclosure Filings %Change 1/every X %Change Rate Rank State Name NOD LIS NTS NFS REO Total from Q1 HH (rate) from Q2 07 08 United States -- 161,162 157,094 139,955 59,112 222,391 739,714 171 13.82 121.36 3 Arizona 18 0 25,431 0 11,781 37,230 70 35.86 272.26 2 California 119,836 0 19,968 0 62,795 202,599 65 19.29 197.78 5 Colorado 22 0 10,331 0 5,881 16,234 129 -14.54 50.69 19 Connecticut 0 3,872 2 845 226 4,945 290 -35.21 7.95 District of 226 0 728 0 221 1,175 241 7.90 3,163.89* Columbia 4 Florida 0 74,968 28 18,379 16,058 109,433 78 24.51 181.83 8 Georgia 107 0 17,522 0 10,124 27,753 140 -2.63 85.12 20 Idaho 1,142 0 693 0 251 2,086 295 15.25 148.63 10 Illinois 0 18,302 30 1,912 6,646 26,890 193 15.83 57.99 11 Indiana 0 4,048 29 5,021 4,792 13,890 198 -0.33 59.40 16 Maryland 0 6,881 17 1,357 1,197 9,452 243 -17.04 130.20 9 Mass. 0 6,734 22 4,345 5,072 16,173 168 -1.18 285.71* 7 Michigan 5,114 0 12,526 0 15,228 32,868 137 11.25 73.18 18 Missouri 3,289 0 1,932 0 4,455 9,676 271 9.42 85.36 1 Nevada 13,831 0 2,110 0 8,716 24,657 43 25.83 146.77 12 New Jersey 0 11,725 8 3,694 1,862 17,289 201 31.94 140.33 6 Ohio 0 11,716 78 10,131 15,764 37,689 134 20.60 26.93 17 Rhode Island 0 0 1,150 0 510 1,660 271 5.00 444.26* 13 Tennessee 2,935 0 4,189 0 4,884 12,008 223 -3.08 105.19 14 Utah 516 0 2,744 0 721 3,981 226 21.04 113.23 HH House 2 Home
  20. 20. HH Page 20 of 21 House 2 Home %Change Rate Props with 1/every X %Change from State Metro Name from Q1 Rank Filings HH (rate) Q2 07 08 -- U.S. Total 739,714 171 13.82 121.36 1 CA STOCKTON 9,066 25 19.92 170.63 2 CA RIVERSIDE/SAN BERNARDINO 43,600 32 17.08 193.42 3 NV LAS VEGAS/PARADISE 21,742 35 25.53 143.66 4 CA BAKERSFIELD 6,431 41 25.78 294.78 5 CA SACRAMENTO 15,505 49 11.01 125.46 6 FL FORT LAUDERDALE 15,558 51 42.39 215.26 7 AZ PHOENIX/MESA 31,613 51 36.65 306.81 8 CA OAKLAND 15,904 60 25.56 237.31 9 CA FRESNO 4,806 62 26.08 178.13 10 FL MIAMI 15,260 62 30.39 112.86 11 CA SAN DIEGO 17,343 65 13.24 206.52 12 MI DETROIT/LIVONIA/DEARBORN 12,826 66 3.42 52.91 13 FL ORLANDO 11,809 72 12.23 247.94 14 FL SARASOTA/BRADENTON/VENICE 4,690 82 9.10 163.34 15 CA ORANGE 12,439 82 29.69 276.71 16 CA VENTURA 3,177 85 34.62 228.88 17 FL TAMPA/ST PETERSBURGH/CLEARWATER 14,960 87 26.66 158.51 18 FL PALM BEACH 7,141 88 50.69 188.29 19 CA LOS ANGELES/LONG BEACH 36,955 91 14.85 168.24 20 GA ATLANTA/SANDY SPRINGS/MARIETTA 22,484 91 -0.31 77.05 21 OH TOLEDO 3,253 92 73.31 121.44 22 OH AKRON 3,283 93 58.68 24.40 23 CO DENVER/AURORA 10,829 95 -18.99 44.71 24 CA SAN JOSE/SUNNYVALE/SANTA CLARA 6,437 97 35.66 343.32 25 TN-MS-AR MEMPHIS 5,141 105 3.75 95.33 26 OH CLEVELAND/LORAIN/ELYRIA/MENTOR 8,735 108 -2.61 -3.69 DC-MD-VA- 27 WASHINGTON/ARLINGTON/ALEXANDRIA 15,569 109 3.05 250.97* WV 28 MI WARREN/FARMINGTON HILLS/TROY 9,312 113 17.22 100.26 29 OH DAYTON 3,304 115 21.47 18.68 * Actual increase may not be as high due to data collection changes or improvements HH House 2 Home
  21. 21. HH Page 21 of 21 House 2 Home HH House 2 Home