New Neighbors & Company
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We are New Neighbors & Co.
As an LLC we plan to partner with a venture capitalist that believes in the changes we wish to see in the world of realty. We exist in order to give urban areas a foundation to build the tight-knit and sustainable community that each family deserves. By using our agency instead of an agency that is not rooted in the community, our buyers can be absolutely certain that they are truly making the best decision, not only for their families, but also for their new neighbors and neighborhood at large. Our prices do exist on a steeper economic plane, but it is overall a small investment to make to ensure that your neighborhood stays as sustainable as possible for everyone in it! New Neighbors & Co. was created out of observational need; there are so many neighborhoods in Chicago that are in need of sustainable reinvigoration without the social detriment of displacing the current residents of the targeted area. To help jumpstart the economic growth of that urban environment, New Neighbors & Co. hires contractors and construction workers who live in the area to rehab those properties and homes which are then sold to their ​new neighbors. ​The systems we use for both the hiring of our employees and the sales/closings of our properties make re-enfranchisement a tangible reality.
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Mission, Visions & Business Units for New Neighbors & Co:
Our vision is one that exists in equity and diversity, as opposed to our competitors. New Neighbors & Company was made to ensure mindful diversification of urban areas as well as working to re-enfranchise culturally dense areas throughout the city and country. Our company works towards equity by allowing socio-economic diversity to exist in all areas, which will allow for a thriving, tight-knit community to form. As an organization we strive to allow residents of neighborhoods that are going through transformations to continue to live there.
Our mission is simple: allow you to keep the neighbors and communities, while re-enfranchising dense urban areas. Our goal is to authentically and equitably re-invigorate your local economy in the most profitable way; residential influx, making new neighbors! We will remodel homes for sale in culturally dense, the contractors, handymen, and interior designers are entirely based and living in the areas of the house being sold. We will pay your neighbors to remodel, and re-furnish your house. Post-closing there will be a housewarming cookout, totally paid for by our company, to acquaint you with your neighbors and the new resources in your areas!
Our product unit is primarily based in the remodelling, selling, and interior design of your new home. As previously stated, every single person working on your new home is your current
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neighbor. From your new marble counters to the artisanal wall mouldings, each element of your new home was diligently and lovingly picked by a member of your community! A singular unit of our services include: a newly remodeled and re-furnished home (all operations, admin, and emergency costs included), as well as a community house-warming party to introduce you to all your new neighbors.
(Product Possibilities, 2018, Creative Commons)
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Our product is the most important element of this entire company; the second most important element of this company is where we get our funding. As a blossoming LLC, we will need the support and partnership of a venture capitalist who see the realty/property industry the same way we do: an area of society that needs to be more directly oriented around equity and opportunity for all parties involved, invested and surrounding these potential homes and neighborhoods. Our LLC will be guided by a board of directors, on our board will be 12 potential seats. The members of our board and their power (their designated number of seats) will be as follows: VC (Venture Capitalist) seat(s): 4, our founder seat(s): 5, the director of Human Resources seats: (2), Lead Resource Consultant seat(s): 1. Although there are many directions that New Neighbors & Co. could have qualified for in terms of its legal structure, an LLC allows us to expand the most while still maintain our standards in quality and intention.
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In Depth Product Breakdown
Although every house cost will be unique depending on the neighborhood and property value, our basic offering will fall into a similar price range as the following:
Costs
Total Price
Average Home in Rogers Park
$169,500
$169,500
Raw Rehab Materials
28% of pre-renovated home value
$47,460
Salary of all laborers on site $222,400
$222,400
Admin Fee
10% of pre-renovated home value
$16,950
VC Cut
5% of pre-renovated home value
$8,475
Housewarming Party
Negotiable--average displayed
$1,000
Total Investment:
$448,835
$448,835
Total Price
$448,835
$448,835
As opposed to our competitors which will sell you a “new” home at market value without the proper renovations and sustainable communal connections, we at New Neighbors & Co. want to ensure that you are not simply buying a “new house”, but that your dollar is a true
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investment into your new community space. As a homeowner, it is of course your job to maintain your land. But, as a new resident of the Rogers Park & West Ridge neighborhoods, it is also your responsibility to properly and authentically integrate yourself among the cultural and social dynamics of your new neighborhood. As you can deduce from our prices, in comparison to other real estate agencies, we are asking more of you. Our costs for rehabbing your home are set in a way to provide the most investment into your new community. Each of the contractors/laborers working to give you the best home possible will be your new neighbors. These people are a part of your life as well as a part of your home through this process. By choosing New Neighbors & Co. you are choosing to invest in your neighborhood in an impactful and longstanding manner. As you can tell by our comprehensive breakdown the majority of your rehabbing costs go to paying the handymen on a sustainable salary-- a salary that allows them the opportunity to buy their children new shoes or clothes and continue their lives in your ​now shared ​neighborhood. The salaried pay is based off of the average time needed to completely ready for you and your family to move in. A part of the cost that is not listed above is the housewarming party once the final sale on your home is made. This party is entirely funded by New Neighbors & Co. This process of our home-buying experience is elemental to a successful integration and substantive relationships with not only your new neighbor, but also the laborers who invested their time into your home! Also, as a bonus for choosing New Neighbors for your remodelling and real-estate agency, you will have access to our laborers, contractors and handymen for any of your additional renovations or maintenance based needs for a discounted rate.
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Sales and Marketing (Target Markets)
Below is a visual of our advertisement to closing “map�. Listed are the levels each customer has to go through to make them the most likely to engage with our agency as well as to become longtime partners/ homeowners. According to DataUSA, as of 2016 43.8% of housing units were occupied by their owner. The median age of a homeowner in Chicago is 34.4 years old and the average value of a home in this city is $243,900. In terms of the target audience for our agency we are looking for married people, around the ages of 32-38, whose combined income averages around $125,000 yearly. In terms of psychographics, the areas we are catering to are in need of people who believe in what we do, diversity and the equitable growth of neighborhoods. The primary demographic of people who will be buying our homes have a higher likelihood of being of Non-Hispanic White based of the 2010 Census data which indicated that 76% of the Non-Hispanic White population in Chicago was made up of homeowners, while the Asian-Pacific Islander population will be the second most likely with 63% of those residents in Chicago owning their homes. This is a fact that only reinforces our purpose; by integrated people into these urban environments with the system we’ve created, we ensure diversity, re-enfranchisement and a solidified community for each of the neighborhoods that sell and home our houses. With our model we not only increase the value of their new home through renovations, but we also allow them to directly re-invest into their new community by utilizing the laborers and handymen in their neighborhoods.
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(Creative Commons, ​Pipeline​, 2018)
Our biggest advertisement move is the housewarming party at the end of each sale. This marketing tactic not only allows our company to create a relationship with the new owners of this home, but it also allows their new neighbors to become acquainted and gives the new homeowners to share the stellar work we’ve accomplished with their friends and associates. This housewarming party will serve as the primary initiation and awareness tactic in our marketing plan. Sequentially, after the initial awareness element has been made we hope our
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previous customers will refer us to their friends and associates on a contractor/handyman basis: we expect this tactic to be successful based on the thorough work we’ve already done to renovate and maintain these properties even post closing. Another service of ours that will help implement New Neighbors & Co. into the minds of our potential customers is a service to help first time homeowners pick the neighborhood that best suits their needs. As stated above, our most direct marketing campaign is the housewarming party at the end of each sale. But, we will also generate a chatter around or company through the several open houses we hole in each quarter to not only capitalize off of our beautiful developments, but also to acquaint ourselves with our community, both in terms of the potential home-buyers as well as the potential employee/contracted laborers that we intend to reach.
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Business Model -
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OrgFlow
Operations Manual: Procedure of obtain new properties: - The C.E.O, VC and C.O.O will coordinate a schedule to project how many properties they would like obtain for the whole year. They will work together to amalgamate a list of non-negotiable criteria that each property must abide by. Once they have come to a conclusion they will settle a properties’ budget. - Once a budget is set they will begin to scout locations as a team. - Each property will have to be inspected and assigned to a team of constructors and interior designers. - H.R will oversee the distribution of workers and their schedules per project acquire.
Director of Human Resources: -
Responsibilities: - To serve as mediator for internal affairs, disputes and claims made among the employees of all levels. - The hiring and firing of all personnel involved with the external/internal structure, design and remodelling of each property. - The hiring temporary/seasonal contractors and manual laborers. - Scheduling coordinator for each of the laborers including time blocks, specified task/site manager, locations and expected duration of labor. - Pay: 2.5% OF THE 10% ADMIN fee Construction/Manual Laborers: -
Responsibilities: - If Site Manager: ​report to site 45 minutes prior to scheduled time block to receive raw and interior materials from the designated Raw & Interior Material Distributor. - To report to site 15 minutes prior to scheduled time block with specified safety gear and tools. - To thoroughly and carefully complete tasks specified by either Director of H.R or site manager. - To log: any injuries, discrepancies in materials distributed, discrepancies in specified tasks, non-work related property damage, discrepancies in specified location and internal/unforeseen issues with the location or structure of property. - Pay: $44,480 salaried per completed site project. Interior Designers: 12
Responsibilities:
-
To report to site site 15 minutes prior to scheduled time block with specified safety gear and tools. - To thoroughly and carefully complete tasks specified by either Director of H.R or site manager. - To log: any injuries, discrepancies in materials distributed, discrepancies in specified tasks, non-work related property damage, discrepancies in specified location and internal/unforeseen issues with the location or structure of property. - Pay: $44,480 salaried, per completed site project. Viewing Agent/Sales Associate: -
Responsibilities: - To report to site 15 minutes prior to scheduled time block with specified props and tools, dressed in proper attire. - To thoroughly and carefully complete tasks specified by either Director of H.R or site manager. - To answer any and all inquiries made by viewers. - To coordinate with H.R to schedule Open Houses (OH). - To log how many attendants arrived at each OH. - To log: any injuries, discrepancies in materials distributed, discrepancies in specified tasks, non-work related property damage, discrepancies in specified location and internal/unforeseen issues with the location or structure of property during a viewing/ OH. - Pay: 2% OF THE 10% ADMIN fee per project+ $8.75 hourly rate. Raw & Interior Materials Manager: -
Responsibilities - To coordinate with C.O.O to establish ideal total for both interior and raw materials needed to each complete project. - To schedule meetings with interior liquidators as well as raw material liquidators to negotiate costs. - To coordinate with H.R to schedule delivery times for both interior and raw materials. - To coordinate with Raw & Interior Materials Distributor. - Pay: 1.5% of 10% ADMIN FEE per project.
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Status and Milestones
Year 1
Houses Acquired*
Houses Renovated
Open # of Private Houses attendants Showings (OH) at OH
Houses Closed/ Sold
Sales* please
(bold numbers are previously obtained properties)
review product description for itemized breakdown
Quarter 1
1
1
2
29
4
1
$440,360
Quarter 2
3
3
6
42
3
2
$880,720
Quarter 3
3
3
7
49
5
2
$880,720
Quarter 4
2
2
6
36
4
3
$1,321,080
Totals:
9
9
21
156
15
8
$3,522,880
Year 2
Houses Houses Acquired* Renovated
Open Houses (OH)
# of attendant s at OH
Private Houses Showings Closed/ Sold
Sales*
Quarter 1
4
4
9
80
15
3
$1,321,080
Quarter 2
5
4
11
79
16
4
$1,761,440
Quarter 3
1+3
4
15
120
12
4
$1,761,440
14
Quarter 4
2
2
12
72
15
2
$1,761,440
Totals
14
14
47
251
58
13
$6,605,400
Year 3
Houses Acquired*
Houses Renovated
Open Houses (OH)
# of OH Private Houses Sales* attendants Showings Closed/Sold
Quarter 1
3
2
12
72
24
2
$880,720
Quarter 2
1+2
3
12
72
24
3
$1,321,080
Quarter 3
4
3
12
72
24
3
$1,321,080
Quarter 4
1+3
4
16
80
27
4
$1,761,440
Totals
12
12
52
296
99
12
$5,284,320
Year 4
Houses Acquired*
Houses Open Renovated Houses (OH)
# of OH Private Houses Sales* attendants Showings Closed/Sold
Quarter 1
4
3
12
60
10
3
$1,321,080
Quarter 2
1+4
5
15
75
15
3
$1,321,080
Quarter 3
2+3
5
20
100
12
4
$1,761,440
Quarter 4
1+4
5
20
100
16
5
$2,201,800
Totals
21
18
67
335
53
15
$6,605,400
Year 5
Houses Acquired*
Open Houses (OH)
# of OH Private Houses Sales* attendants Showings Closed/Sold
15
Houses Renovated
Quarter 1
3+2
4
16
160
20
4
$1,761,440
Quarter 2
1+4
4
16
160
20
4
$1,761,440
Quarter 3
1+6
5
28
196
25
5
$2,201,800
Quarter 4
2+5
7
28
196
28
7
$3,082,520
Totals
17
20
88
712
93
20
$8,807,200
During the five years projected above, I spent $15,123,200 to pay all laborers, $1,152,600 to pay administrators, $576,300 for the VC return and $3,227,280 for the raw materials needed for each of the 68 houses sold in the last five years for a total of $20,079,380. The total sales from the five years projected above are $30,825,200. $30,825,200 $20,079,380 = $10,745,820 in revenue over those five years.
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Bibliography
“Chicago, IL.” Data USA, datausa.io/profile/geo/chicago-il/#housing. “City of Chicago.” Indeed, Indeed, www.indeed.com/salaries/Construction-Worker-Salaries-at-City-of-Chicago,-Chicago-IL. “Homeownership Rate by Race/Ethnicity.” DiversityData.org, Diversitydata.org, 2010, www.diversitydata.org/Data/Maps/Show.aspx?ind=261&ch=1&dtm=261&tf=38&rt=MetroAr ea¬es=True. “How Long Does It Take to Renovate a House?” Renovation Junkies, Renovation Junkies, 28 Oct. 2015, www.renovationjunkies.com.au/how-long-does-it-take-to-renovate-a-house-2/. “Rogers Park Home Prices & Values.” Zillow, Zillow, www.zillow.com/rogers-park-chicago-il/home-values/.
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