Executive Summary
Product and Service
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Fidelity Property Brokers is set to run an above standard and thriving real estate business, with primary attention to building fiduciary relationships with customers and investors throughout time and through the ever-changing industry.
Investment services are composed of house flipping business, high yield rental producing business and an open business brokerage for servicing single family residential real estate.
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Our goal is to provide our investors and partners with above average, risk-adjusted rates of return, build investor trust throughout the investment cycle and create significant added value by engineering and executing proactive, strategic operating, management, and capital strategies.
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We have experience in all facets of residential, single family and multi-family assets with a primary focus on opportunistic and distressed investment properties for resale in high yielding markets.
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Our business services are listed below:
Exchanging property / House Flipping (Our Core Business Offering)
Facilitating a Purchase — guiding a buyer through the process.
Property Management
Auctioning property
Preparing contracts and leases.
Lists the property for sale to the public
Provides the seller with a real property condition disclosure (if required by law) and other necessary forms.
Holds an open house to show the property
Ensures that buyers are pre-screened and financially qualified to buy the property
Selling of Fully Furnished Properties
Selling of Landed Properties
Real Estate Consultancy and Advisory Services
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Company Structure
Managing Broker: Daniel Araque
Business Development: Anna Russu
Company’s Lawyer: Christopher Nasseh
Admin and HR Manager: Nicole Palacio
Head of Construction: Oscar Montoya
Head of Assets Management: Daniel Araque
Head of Acquisition and Disposition: Wilton Belidor
Business Developer / Marketing: Javier Arias
Accountant: Cindy Wang
Front Desk Officer: Nicole Palacio
Broker Associate: Anna Russu
Marketing & Lead Consultant: Cristian Rojas
Primary Photographer: Alex Escobar
Outlook
Nearly a decade after the subprime real estate bubble drove the industry to decline, relatively relaxed lending conditions and rising employment levels enabled investment from the private sector to bounce back. Since 2013, industry revenue has been on the rise as housing starts and access to credit have improved. Residential and non-residential property values have been rising and encouraging professional assistance from consultants and other specialized real estate companies. As a result, industry revenue is expected to grow at an annualized rate of 3.1% to total $60.7 billion over the five years to 2018, which includes a 3.3% jump in 2018 alone.
Rising demand for building, developing, and general contracting enabled the industry to expand over the five years to 2018. In large part, increasing consumer and investor confidence, low interest rates, and declining unemployment led housing starts to increase over the five years to 2018.
The greater number of real estate transactions and rising property values provided favorable conditions for companies such as Fidelity Acquisition Croup LLC, and others involved with management and consulting of real estate assets. In addition, many investors placed greater importance on consultants who could assist in the gathering, analyzing, and evaluating of data regarding the costs associated with selling and occupying existing residential properties in the single family and multi family sectors.
The median home value in Orlando is $241,800. Orlando home values have gone up 7.7% over the past year and Zillow’s Orlando real estate market prediction is that the prices will rise 4.5% in 2020. The median list price per square foot in Orlando is $153, which is higher than the Orlando-Kissimmee-Sanford Metro average of $147. The median price of homes currently listed in Orlando is $285,000 while the median price of homes that sold is $250,500.
Opportunity
Target Assets & Acquisition
Essentially, there are three opportunities for buying foreclosure properties: 1) the pre-foreclosure stage; 2) at the public auction; and bank-owned, or real estate owned (REO). The first step is to determine which stage of foreclosure process you are interested in and figuring out strategies to successfully purchase in that stage. Each of the three buying opportunities has advantages and disadvantage. Here’s a brief overview of the three stages:
Pre-Foreclosure (NOD, LIS)
Buying a property in pre-foreclosure involves approaching the borrower/owner and offering to buy the property outright. The borrower/owner can walk away with something to show for any equity in the property and avoid a bad mark on his or her credit history. The buyer has time to research the title and condition of the property and can realize discounts of 20-40 percent below market value.
Wondering what happens after foreclosure? Then please read on. Remember that understanding foreclosures is the first step for homeowners to stop foreclosure. It is also the first step for investors to buy foreclosure properties.
Auction (NTS, NFS)
If the loan is not reinstated by the end of the pre-foreclosure period, potential buyers can bid on the property at a public auction. Buyers often are required to pay in cash at the auction and may not have much time to research the title and condition of the property beforehand; however, a public auction often offers some of the best bargains and avoids the unpredictability of dealing directly with the borrower/owner.
Bank-Owned (REO):
If the lender takes ownership of the property, either through an agreement with the owner during pre-foreclosure or at the public auction, the lender will usually want to re-sell the property to recover the unpaid loan amount. The lender will then typically clear the title and perform needed maintenance and repair; however, the potential bargain for these REO homes is typically less than a pre-foreclosure or auction property. Bank foreclosures can become government foreclosures if the loan is backed by a government agency such as the Department of Housing and Urban Development (HUD) or the Department of Veterans Affairs (VA). In that case the government agency would be responsible for selling the property.
Objectives
The Company plans to actively pursue a real estate acquisition program that will focus on the purchase of single family and/or multiunit apartment buildings ,to be acquired on a bulk purchase basis from US federal, state and county government entities (FDIC, Fannie Mae, HUD, IRS, VA, US Marshalls, etc.), and bank foreclosure sales, with the intent of creating a recurring stream of income. Management will use reasonable leverage to purchase these properties well below market so that a positive cash flow is generated after debt service has been paid.
Management is developing a very complex pricing method to ensure that the Company can continue to provide its units at profit despite possible drawbacks in the overall economic market. The Company’s two prong approach to real estate will allow the business to grow successfully in the rapidly changing real estate market. More importantly, this strategy will allow the Company to offset the risks from each business unit so that there is a diversified balance in the Company’s real estate portfolio. This is especially important as the business uses leverage to finance the acquisition of its properties.
Marketing Objectives
Develop an online presence by acquiring accounts for major online real estate portals.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper, MLS, and websites such as Zillow, realtor.com, etc.
• Establish relationships with real estate brokers and agents within the targeted market.
Open house flyers, signs and social media promotion. CRM capabilities and landing pages.
Milestones & Metrics
Fidelity Acquisition Group shares a corporate office with its affiliate partner company Fidelity Property Brokers, which is part owed by Daniel Araque, which currently serves as the active managing broker. The office is located at 1631 E Vine St, Suite 201 in Kissimmee, Florida. Together both companies have leveraged the sales force and investment funding to acquire 6 properties in 2017, 16 properties in 2018, and 7 properties YTD tracking 25 units.
INVESTOR PORTFOLIO
