At Capital Home Buyers, we do virtual marketing via META and Google to find off-market properties and facilitate the sale of those properties to a list of thousands of real estate investors in South Florida. We take on the coordination and finalization of these transactions by clearing up code violations, permits, moving out the homeowners before the sale is done, etc
We have a small but effective team of 7 people, with all but 1 of them being here in South Florida. The team is made up of real estate professionals with over 20 years of experience each. Household company names such as QuickenLoans and Redfin are where we sourced our people from to guarantee we’re running an efficient and lean operation with low overhead relative to the revenue margins.
The business is essentially a sales and marketing business with single family residences being the product instead of solar panels or insurance. We get paid per transaction we successfully complete for the investors/homeowners.
We scaled the business from $100k/mo to $250k/mo in Q4 of 2024 which is usually the worst quarter of the year for real estate as a whole year-over-year. Now we’re scaling up from $250k/mo to $500k/mo in revenue, but that comes with a lot of upfront capital expenditures that have cash conversion cycles of 4-5 months. In other words, we are forced to burn cash to collect data and re-assess processes as we scale, because we are forced to use more and more sophisticated marketing and sales techniques as we are solely focusing on one market at this stage.
The South Florida market we’re competing in has a large enough market share for $12M/mo in revenue for one company, even while sustaining other 7 figure competitors. We know this as there are competitors in the space doing those kinds of numbers, validating our locally-focused approach to the business with Customer Experience being at the FOREFRONT of our focus.
Customers are moved out of their houses and have the next one lined up for them by us, as well as helping them cover temporary bills and costs associated with this large change in their lives. Our close rate is above the industry average and so is our revenue per transaction, all because of the superior service we provide compared to our competition.
We have already amassed a pipeline that is on track to get to the $500k/mo mark, but we are still looking for long term partners with real liquidity as we grow.
Disclaimer:
DO NOT CALL THE COMPANY LINE AS THAT IS FOR CUSTOMERS OF OUR DAY TO DAY OPERATIONS
CALL 786-531-8999 OR EMAIL KEVIN@KREICAPITAL.COM
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