Empower Realty investor materials. Empower Realty is a disruptive, fully-licensed real estate brokerage model that uses the internet to help consumers buy and sell residential real estate at very substantial savings. For example, a buyer who initiates an offer online for a $200,000 house receives online professional support and $3000 cash back at closing. Sellers who list their home for sale with the company can do so at savings of up to 30% relative to traditional firms like Coldwell Banker, Edina Realty and RE/MAX.
Every home listed for sale by a competitive Realtor on the MLS can be purchased with the assistance of Empower Realty. Empower Realty relies on a comprehensive SAAS backbone (8000 engineering hours, 50-state regulatory compliance, multiple patents pending) to deliver an ultra-low operating cost. And with relatively few “boots on the ground”, Empower Realty is the only scalable rebate model in the industry.
2. Our Mission…
…is to REINVENT
home buying and selling
through the use of
technology.
5 mm home transactions per yr => $1 trillion ind.
=> $50 billion market for transaction costs
3. Industry = Ripe for Reinvention
• Fundamental shift in the
nature of buyers and
sellers
• Much heightened
sensitivity to transaction
costs
• Housing rebound
4. About Us
Company
Team
Founder
Jim Lesinski, Founder & CEO
10+ Yrs Executive in three Fortune 500 level companies
4 Years Vice President Sales & Marketing at nation’s largest
home builder
Licenses: RE Broker (MN)* RE Agent (MI) * Builder (MI)
BBA, Univ of Michigan
Doctoral Study in Consumer Behavior, Duke University
Steve Ginal,
Technology
Aaron Schumm,
Operations
BS, Marquette
MBA, Minnesota
Under Contract
BS, JD
Licensed Broker
Former Keller Williams
Delaware LLC
Headquarters: Minneapolis
Funding to Date: $1.85 M (100% Angel)
5. Our Progress
2.
1. Software Development
& Testing in the “For Sale By Owner Space”
30 Months
5 Mos.
Today
3. Commercial Launch
30 Days
7. Phase 2: Brokerage & Licensing
Buying Side
Listing Side
Software
+
$$$
$$$
8. Buy Side Economic Model
Behind the scenes rebate of commission already
embedded in a transaction
Step 2
Buyer
1.2%
Step 1
Seller
Any Broker (6%)
Step 4
Step 3: Co-Broke Fee is Transferred (2.7%)
Applies to Broker Listed Property Only
17. Capital Requirements
• Capital Need:
– Now: $225,000 ($150,000 minimum total commitments to
close) for working capital to further support our Minnesota
launch
• Primary uses: Marketing Awareness + Operating Expenses
through spring 2014
– Future: $1 million for growth capital -> projected to be
sufficient for funding future growth according to plan
• Offer: Preferred equity / Convertible Debt
– Investor-friendly cap table (no debt, only small amount of
preferred equity)
– Angel-Tax Credit Certified (prior years) = 25% REBATE of
Invested Capital (no state income or residency required)