Monday, April 30, 2012

EXECUTIVE SUMMARY

Company Profile
HC Realty began by two owners, Christine Moore and Hillary Poole. The owners both have a BBA degree from Texas A&M University. Their main real estate focus has been in the city of College Station, TX. The company enjoys the new opportunities the city of College Station brings. Every year there is an increase of a student population for the university, which allows an increase in demand for apartments and homes.  HC Realty's new focus is looking into investing town homes located off University Drive.

Market Analysis
Sales Representatives from HC Realty will begin by researching the Brazos County area and figuring out what type of target market College Station brings in. We want to build relationships with people in the area and get the word out of our new design as quick as we can. Our main targeting strategies will be through home magazines, TV commercials, local College Station events, HC Realty website, and word of mouth. We will analyze our rent prices by comparing them with our competitors near by. We will strive to have our sales representatives be able to make a better deal with our customers compared to our competitors. HC Realty wants to give our clients lower prices with better quality.

Property Descriptions
The town home designs all have different structures, as well as different brick layers. Gateway Villa town homes are all 2 stories with the option of having either a 2 bedroom, 3 bedroom or 4 bedroom structure. There is a easy road access out of Gateway Villas to one of College Station's main roads', University Drive.

Financial Analysis
HC Realty wants to invest in town homes for a profitable business opportunity. The Gateway Villa town homes that HC Realty are looking to invest are being sold for approximately $28,000,000. We will be acquiring a loan from The Bank of Ozarks and the loan will be fully amortized over 25 years with a balloon payment at 10 years. Total expenses such as real property taxes, hazard insurance, maintenance, and interest expense will all be in collaboration with local municipalities. HC Realty will also be calculating the net income after taxes and projecting a Discounted Cash Flow Analysis. This investment will be profitable with a Net Present Value of $3,419,231 and an Internal Rate of Return of 13.41%.



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