Company Description: We specialize in comprehensive data collection and reporting for rental and periodic payment activities. Credit Gnomes is the conduit between property management companies and the three credit bureaus, reporting positive and derogatory payments while offering complementing services that benefit property owners and residents. The payment information is seamlessly integrated within a suite of credit tools that reward renters and incentivize timely rent payments while improving cash flow for property owners and managers.

The Problem: Revolutionizing the Property Management Industry, Credit Gnomes offers an innovative solution to the persistent challenge of late and skipped rental payments. Absent a formal eviction, resident credit scores have not historically reflected their payment of rent.  The collection of past due rent is currently addressed through collections agencies and costly legal proceedings. Credit Gnomes provides monthly payment accountability and improved collection strategies, which are more efficient and reduce costs.  Credit Gnomes fosters financial responsibility by rewarding residents for timely rental payments and creating a win-win scenario for owners’ property managers and renters.

The Solution:  Credit Gnomes is transforming the rental market by creating a seamlessly integrated conduit for property management companies to report resident rental payments to the three major credit bureaus (Experian, Equifax, and TransUnion) while providing residents with a suite of related benefits, including credit building and credit education to improve their financial wellness. Our solution improves cash flow for property owners by reducing delinquency and “bad debt” while allowing residents to benefit from making timely payments of their largest monthly expenditure, their rent!   Credit Gnomes promotes financial literacy with educational resources and insight that help renters understand how credit scores are determined and how to build better credit. These resident features can improve their access to credit while reducing their cost of credit.

The Market:  Targeting a substantial market, Credit Gnomes can provide solutions to ~300,000 Property Management Companies across the U.S., collectively representing a massive base of ~44,000,000 renters. This expansive reach presents a significant opportunity to impact the rental industry nationwide, offering our services to a diverse and extensive audience of owners, property managers, and their residents.

Clients:  Property management companies can significantly enhance their financial performance by adopting our program. They stand to increase revenue and notably reduce costs associated with collections and evictions, thus streamlining their operations. Simultaneously, this program offers a valuable benefit to residents by improving their access to credit and reducing future credit costs, as their credit scores increase by making timely payments. The harmony of increased cash flow for property managers and improved financial wellness for residents makes our program a vital addition to the property management ecosystem.

Revenue Model:  Our subscription-based Software as a Service (SaaS) model guarantees a consistent monthly income from property management companies. Targeting residential property managers, we offer a comprehensive solution to optimize their operations. Charging a monthly fee of $2.00, $4.00, or $7.00 per unit per month, our pricing covers reporting and platform services. This unique structure allows property managers to pass on costs to residents, creating an additional income stream and allowing Credit Gnomes to maintain a 98% customer retention rate. Our business's SaaS nature ensures steady revenue and fosters long-term relationships with clients, driven by the program's positive impact on consumer credit profiles.

Marketing & Sales Channels:  Credit Gnomes employs a multi-faceted marketing approach, utilizing email campaigns, websites, webinars, and skilled B2B salespeople. Our primary sales focus targets property management companies overseeing 300 to 25,000 units. While smaller landlords may engage through email marketing, our core emphasis is building relationships with larger accounts. Recognizing the potential for substantial revenues, property management companies, guided by trusted advisors and referrals, can contribute significantly, ranging from $25,000 to over $500,000 annually.

Competitors:  Competitors in our space primarily engage in B2B sales, utilizing channels such as email blasts, newsletters, cold calling, LinkedIn sponsorship, and SEO to promote their products. The sales model for our product aligns with the established B2B insurance brokerage model, emphasizing a relationship-driven approach centered on expertise, specific product offerings, implementation, service, and pricing. As our product operates in a broad market, the current landscape is favorable, particularly with the ongoing adoption of tenant-friendly legislation in the post-Covid era.

Our Team: David Haldi - President & CEO: brings 25 years of expertise in sales, marketing, and insurance brokerage experience to Credit Gnomes. With a proven track record, he founded three startups, including CredHub.   

Scott Greenburg - Corporate Counsel: With over 20 years of legal expertise in startups, Scott, now a valuable addition to Credit Gnomes, has a notable track record. He played a key role in taking Starbucks public and served as their external corporate counsel for 18 years.

Steve Haldi - COO He played a pivotal role in developing the backend data processing at a competitor in the space and brings a wealth of experience and knowledge to our team. 

Matt Drake - Director of Finance and Research: brings over 20 years of commercial banking experience.  A UW Commercial Real Estate Certificate Program graduate, Matt also brings additional insights as he oversees a family-owned multi-family portfolio.

Our Need: We're seeking an additional $500,000 investment to drive our growth in three key areas: product development, marketing, and salaries. This investment will enable us to improve our products, increase our market presence, and hire and retain top talent, which is crucial for scaling our operations and establishing a strong market position.

 What We Want To Achieve:  We aim to become the leading player in Rental Payment Reporting, focusing on helping Property Management companies and residents with payment and credit complexities. Our success will be measured by sales and customer feedback from Property Management companies and residents. This feedback will be vital in demonstrating our impact on the industry and the real benefits we provide to all stakeholders.

Financial Projections:              2024               2026                     2028
REVENUE                                       $81,360        $2,868,950       $8,971,900
NET PROFIT/ LOSS                  -330,983       $1,293,378       $5,150,752