3. PROJECTED MINIMUM INCOME
(Updated July 20, 2016)
This income projection includes sales and leasing, locally and
internationally, and is based on a company opening of five agents, growing to
20 in 4 months, working eight hours a day, five days a week and, based on a
target sales price of a minimum 6 million and a target lease price minimum of
200,000 AED. (HINAEL’s target markets are the luxury projects, such as
Landmark Tower, Etihad Towers, Saadiyat Island, Yas Island, Raha Beach and
Eastern Mangroves.)
The agents are expected to finalize a minimum of two lease transactions
per week, which equates to 40 transactions per month and, two sales per
month for ten sales total.
4. PROJECTED MINIMUM INCOME (Continued)
First shall be the lease transactions income:
Commission rates on leasing are typically five percent; with each agency
splitting the commission for 2.5 percent each. Therefore, if a lease transaction
is 200,000 AED, then the total commission amount is 10,000 AED, with each
agency/brokerage receiving 5,000 AED. Based on this, HINAEL will receive a
total in-house commission amount of 200,000 AED per month (five agents
doing 8 transactions per month for 40 total transactions).
After the 50% commission split with the agents, HINAEL will net a total of
100,000 AED per month (again, please note that these are very conservative
lease prices for our target market. For example, the lowest lease price at the
Landmark project is 280,000 AED).
5. PROJECTED MINIMUM INCOME (Continued)
Next, we will look at the sales income projection:
Typically, commissions on sales are two percent; with each
agency/brokerage splitting the commission for one percent each. Therefore, if a
sales transaction is 6 million, then the total commission is 120,000 AED; with
each side (agency) receiving 60,000 AED.
Based on this, HINAEL will receive a total in-house commission amount of
600,000 AED (five agents at two transactions per month each). After the 50%
split with the agent, the remaining net commission amount is 300,000 AED
(please note that the majority of sale prices exceed 6 million. For example, a
current sales price for a villa in Saadyat Beach is 8.5 million).
6. PROJECTED MINIMUM INCOME (Continued)
Finally, we will review the expected income from international sales,
leasing and referrals.
HINAEL is represented in Europe, China, Canada, Australia, South
America and the United States. HINAEL has associated with real estate
companies, mortgage companies and banks. The way income is produced is
one of two ways:
1. An investor is referred to HINAEL from another country, to purchase/lease
property in the UAE. This results in a commissioned sale or lease.
2. HINAEL refers an investor to another brokerage in one of the associated
market areas. This results in a referral fee income, paid by the receiving
broker, or a commissioned sale or lease.
7. PROJECTED MINIMUM INCOME (Continued)
To project international sales/leasing income, we will determine a
conservative expectation of out-going and incoming referrals. HINAEL’s sales
and leasing agents will serve the incoming clients; out-going referrals will be
served by local agents in the market areas. First we will take the incoming
referral business:
It is safe to expect one sale and one lease a month, per agent, from
referrals. Therefore, there will be 5 sales and 5 leases the first month. We know
from above that 5 sales will generate 300,000 AED in company revenue. Also,
we know that 5 leases will provide 25,000 AED to the company the first month.
8. PROJECTED MINIMUM INCOME (Continued)
Based on the above, HINAEL can expect a total
commission income, from five agents, of:
Sales: 300,000 AED
Leasing: 100,000 AED
International: 325,000 AED
Total: 725,000 AED net commission
income for the first month.
9. PROJECTED MINIMUM INCOME (Continued)
Based on the above, HINAEL can expect a total
commission income, from five agents, of:
Sales: 300,000 AED
Leasing: 100,000 AED
International: 325,000 AED
Total: 725,000 AED net commission
income for the first month.
10. PROJECTED MINIMUM INCOME (Continued)
The above amount is projected for the first month of
operation. Each successive month, HINAEL will bring on
five more agents with a target of twenty agents by month
four. Therefore, based on the same sales, leasing and
referral income projection, HINAEL will be making, at the
fourth month:
Sales: 1,200,000 AED
Leasing: 400,000 AED
International: 1,300,000 AED
Total: 2,900,000 AED net commission
income per month.
11. HOW IT WORKS
You may be asking yourself, “How is HINAEL able to generate
these kinds of profits in the current market?” and, that’s a great
question
.
Firstly, everyone at HINAEL will prospect! Using HINAEL’s scripts!
Also, HINAEL will join the American Chamber of Commerce as a
premier member and by doing so will have access to a 10,000+
database of Abu Dhabi residents. This equates to a ton of business for
HINAEL. And, of course, our inventory is supplied by the local and
international developers in Abu Dhabi.
12. HOW IT WORKS, continued
Now the before mentioned only concerns the local market.
Addressing the international market, HINAEL increases the income
projection dramatically.
Being an internationally associated company, right out of the gate,
HINAEL insures the advertisement of Abu Dhabi as an investment
opportunity. International investors, through their local area advertising,
will learn about the advantages of investing in Abu Dhabi properties.
HINAEL will fly pre-qualified buyers and leases to Abu Dhabi on the
UAE’s flagship carrier, Etihad. Once here, they will stay at a designated
4, 5, or 7 star hotel, based on the price range and type of the desired
property.
13. HOW IT WORKS, continued
HINAEL has associated with Abu Dhabi hotels, acquiring corporate
rates and advertising cooperation – both locally and internationally.
When the investor arrives from abroad, he/she is given a weeks’ stay at
the hotel. HINAEL’s sales or leasing agent then spends a day or two
with the investor (driven to showings in a leased, Infinity Q50 or Q60
hardtop convertible with navigation) until a property is closed upon, at
which time, the investor then enjoys area attractions (safaris, cultural
exhibits, etc.) at HINAEL’S expense. This insures client/customer
satisfaction and retention.
This same applies for Abu Dhabi residents that seek worldwide
property investments and opportunities.
14. HOW IT WORKS, continued
The motivation for Abu Dhabi resident investors may be slightly different
than our international investors coming from abroad. That is, there are visa
programs in western and other countries, such as the visa program in the
United States. When a foreign investor buys a property for $500K or more in
the US of A, they automatically get a resident visa.
This is advantageous for various reasons, one being the UAE resident
family that have college age children and seek a university in the States. Of
course the future student will have a student visa, but the parents now enjoy a
resident visa. Furthermore, should the family have other children approaching
college age, they can use the home or apartment investment for years, selling
after the needs are filled, and typically, at a substantial return on investment.
There is a 10% Foreign Investment Tax that is charged when the property
is sold, but the property will have increased (typically) in value and this tax will
be more than covered.
15. HOW IT WORKS, continued
As mentioned, other countries also have similar visa programs. But
regardless, the rate of return on any foreign investment is motivation enough to
attract customers. HINAEL does its research in international markets!
Now, let’s go back to the hotel programs and see why local hotels want to
associate with HINAEL. There are 3 ways that hotels benefit from associating
with HINAEL…
1. HINAEL offers free accommodation to pre-qualified investors from abroad
for one week.
2. HINAEL offers “contests” for local investors and those seeking personal
accommodation, on the radio, in magazines and on outdoor advertising.
Once pre-qualified, these local investors also enjoy a “Stay-cation” of one
week at a local hotel, at HINAEL’s expense and,
16. HOW IT WORKS, continued
3. After one year, the previous years’ clients, that have closed a transaction
with HINAEL, will enjoy a three day “Stay-cation” at one of the area hotels.
The hotel will be selected based on the closed transaction price.
These programs will create additional “room nights” for the hotels as follows:
Program 1. 4 transactions per agent per month times 1 year equals 960
transactions times 5 nights’ stay (the “one week) equals 4,800 room nights per
year.
Program 2. 8 transactions per agent per month times 1 year equals
1,920 transactions times 5 nights’ stay equals 9,600 room nights per year.
17. HOW IT WORKS, continued
Program 3. 200 office transactions per month times 1 year equals 2,400
transactions times 3 nights’ stay equals 7,200 room nights per year. (This also
included those clients that have purchased or leased HINAEL listings, rather or
not the transaction was closed by a competing brokerage – and , this number is
not included in the calculation but shall be an added bonus for the hotels.)
Therefore, a total of 21,600+ additional room nights for 10 selected
Abu Dhabi hotels will be distributed based on an approved distribution schedule
(approved by myself and the partner group). This will be a great thing for the
community of Abu Dhabi as many people from many areas of the world will be
made familiar with our culture, people and community!
18. THE HOME BENEFITS PROGRAM
(Another reason people will want to use HINAEL.)
When a client locally or from abroad purchases or leases property through
HINAEL Luxury Properties Sales And Leasing, LLC, they automatically qualify
for discounts at home and garden stores and services.
Here in Abu Dhabi, HINAEL has associated with companies like H2O
Concepts, iDesign, Royal Furniture, Ace Hardware, IKEA, general maintenance
and landscaping companies, etc.. Discounts range from 10 to 15% for clients of
HINAEL.
This program will be built upon, associating with similar companies
internationally.
19. HINAEL OFFICE LOCATIONS AND RATIONALE
HINAEL has leased with two solid companies. First, with Regus
Executive Business Centers. Our location is at the Al Arjan Building (same
building as Union National Bank) on Defense Road. The obvious benefit of this
association is the fact that Regus operates facilities in over 3,000 international
locations. Therefore, when our sales people travel to their respective countries,
they have an office where business can be transacted.
Secondly, HINAEL’s headquarters is located in the new ADCP building
(currently accommodating the Las Vegas Gym) on Muroor Road, opposite of
Emirates Discount Store. This space is 398 sq. meters and is perfect for the
layout of a brokerage. Currently concrete and rough utilities, this is a buildout
project with an expected time frame of 30 to 45 days.
20. THE INTERNAL WORKINGS AND PHILOSOPHIES OF
HINAEL, LLC
Recruiting for the positions within HINAEL has been meticulous and
specific. The first requirement is that the future employee have a “good heart”.
This character trait is obvious within the first few minutes of conversation.
I believe that any person can be taught a skill or taught to complete a
task, therefore, it was important to me that we have people that our clients and
associates will appreciate and remember. Good hearted people are memorable
and appreciated, it’s a statistical fact!
Sales and leasing agents have an additional requirement, that they be
handsome or beautiful. Clients buying or renting luxury properties expect it.
Therefore, all sales and leasing agents are either very handsome or drop-dead
gorgeous!
21. THE INTERNAL WORKINGS AND PHILOSOPHIES OF
HINAEL, LLC, continued
The drivers of the Infinity Q50s and 60s have been recruited from the
Abu Dhabi taxi companies. A criteria of a minimum of 5 years driving
experience in Abu Dhabi was/is required.
And finally, the other admin positions within HINAEL are experienced
in their fields and hand-selected. For example, Iven – our marketing director,
has been in the business for 10 years and brings with him extensive marketing
experience in the real estate field. Melissa, our international director, runs her
own company in Dubai and is well-versed in international relations.
22. THE INTERNAL WORKINGS AND PHILOSOPHIES OF
HINAEL, LLC, continued
REQUIRED TRAINING AND EXPECTATION OF HINAEL, LLC EMPLOYEES
Every employee of HINAEL is required to learn the prospecting and customer
relations scripts of the company. Every employee shall prospect and be able to
accommodate any customer related question or inquiry. Furthermore, every employee
shall participate in sales training, goal setting and HINAEL’s unique Dreams Realization
Course.
I don’t expect any employee to be with the company for longer than two years.
I expect them to leave and pursue their own dreams. I believe that our purpose on earth
is to help others and that by doing so, our own joy and light expands.
There are many other specific training requirements and aspects of the
company that will not be mentioned due to trade secrets and confidentiality reasons.
23. REQUIRED TRAINING AND EXPECTATION OF HINAEL, LLC
EMPLOYEES, continued
I hope you have enjoyed reading about HINAEL. If you are associated in any
way, I hope it is beneficial to your own goals or aspirations. If you have an idea or dream
of your own, and want to achieve it, please give me a call or send an email.
- Mike Hinton, Founder of HINAEL: 971 55 335 5763/5793
hinael444@gmail.com
