Property Management Industry Analysis
Company and Industry
Ferventure Realty LLC is a residential property management company, specifically managing properties owned by the company. Our company closed escrow on its’ first rental property March 30, 2018. On that date, the rehab process began and the property was officially available for rental consideration on June 14, 2018. The business became a Limited Liability Company, registered through the Illinois Secretary of State’s office, on August 15, 2018. Our company is owned and operated by Jarrod Snow and Kate Snow. Since we began operations in April 2018 our company has acquired an additional rental property. We currently own two rental properties and a third, which may or may not be rented, is being built. Our goal is to purchase two additional properties a year through the year 2030.
The members of our company share a 50%-50% interest. Jarrod Snow searches for, and bids on prospective properties. He is also responsible for estimating costs to repair the properties and independently completes each project. He is familiar with virtually all rehabbing aspects, to include; roofing, plumbing, electrical, gas piping, furnace and water heater installation, demolition, framing, cabinetry installation, flooring, trim and molding, drywall, and windows. Additionally, Jarrod is partially responsible for marketing the properties, screening prospective tenants, and collecting rent. Kate is responsible for record keeping, assisting with the screening process of prospective tenants, and rental collection.
Our company is involved in the residential property management industry. We feel the timing is excellent to be entering this industry and we firmly believe the foundation we are establishing will foster growth. Additionally, our productivity and growth today will provide us with a well-leveraged position for future, larger, acquisitions through the use of established property equity.
Current economic trends are conducive with our expectations. The lack of stability in the housing market is advantageous and will foster growth for our company. In addition to the current economy, the demographic make-up of our selected geographic region plays a significant role. Alton is an ideal location for property management. Properties in this area, looking at market value in specific, range from $30,000 to $300,000. The diverse property values, in conjunction with the dynamic range of people, will have a favorable affect on our objectives. As far as following market trends, comparing this community to national trends, this area experiences slight growth when the housing market is explosive and it experiences slight decline when the national market is experiencing steep declines. We see this as a form of stability in making projections and assessing values.
Ferventure Realty LLC sees numerous opportunities that exist with the abundant number of foreclosures on the market. Our company seeks to purchase these properties at distressed prices and get them back on the market as rental properties within four months. As a result of displaced families losing their homes, they need a place to live and we will provide them with a home while providing compassion, enthusiasm and quality service.
Due to the relatively low price of acquiring these distressed properties and the low cost of rehabilitating them, our company can offer the properties at slightly below market rates, providing a low-cost advantage over competitors, while still maintaining generous profit margins.
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