Capstone project [case study: Real Estate Mortgage Corp.]
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Authors
Ceja, Stacy
Issue Date
2012
Type
Capstone
Language
en
Keywords
Business administration
Alternative Title
Abstract
Real Estate Mortgage Corp. or REMC, is a start-up business venture developed by myself, Stacy Ceja, as one single individual for the sole purpose of investing in real estate. This business plan lays out a simple strategy for developing a long-term real estate investment company by leveraging an annual investment of $500,000; $450,000 from outside financial sources such as silent investors and $50,000 from myself, the single investment owner.
The business model is to market the company to motivated sellers in distressed situations, such as being over leveraged with their mortgage-to-value, that are willing to accept cash offers for their prcperty. We have the ability to offer quick close transactions since they are cash purchases eliminating realtor fees and having short transaction times, such as 7 days rather then 50-60 days, as is the current state in our market. The properties will be bought over a five year period and rented mostly for the long term.
In year 6 the sale of property will be examined to pursue additional investment opportunities such as single family residences, multi-family units and/or apartment buildings. We plan to purchase 25 properties over a 5 year period. Once all properties are purchased and rented we will receive revenue from two primary streams of income: (1) rental income of approximately $324,000 annually and (2) property management income of approximately $22,500 annually.