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Business Plan
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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.
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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
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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.
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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.
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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.
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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,
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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.
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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.
http://mortgage-x.com/library/loans.htm
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.
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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
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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.
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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
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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 http://www.30secondbailout.com.Offer 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. www.HUD.gov.
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. www.naca.com.
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
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rates of foreclosure, the Center works with local leaders to create sustainable foreclosure intervention programs.
www.nw.org.
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. www.995hope.org.
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. www.acorn.org.
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. www.nfcc.org.
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.
http://www.chnnet.com/about_us.asp
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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:
http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=4891&acc
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.
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Ohio County Foreclosure Filings (1995-2007)
Ohio County Foreclosure Filings (1995-2007)
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Ohio County Foreclosure Filings (1995-2007)
Stats retrieved from: http://www.policymattersohio.org/foreclosures_1995-2007/ohiomap.htm
For more statistics for the entire state visit the link above.
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