JLB TITLE SERVICES, LLC

Real Estate Title Company Business Plan

By: Jessica Breto

EXECUTIVE SUMMARY

Introduction:• JLB Title Services, LLC is located in South Florida• The company has a wide range of real estate

closing services• Partner’s have extensive knowledge and

background in the real estate industry• The company will gain market position through

outstanding customer service on all refinances, mortgage modifications, purchase/sales and foreclosure transactions offered at competitive prices

EXECUTIVE SUMMARY

The Company:• JLB Title Services, LLC is a limited liability

company in the state of Florida• Equally owned and operated by two partners:

Jessica Breto and Estelio Breto• Jessica Breto has worked in the real estate

title services industry for over 10 years and has a Bachelor’s Degree in Business Management and Business Marketing

EXECUTIVE SUMMARY

The Company Cont’d:• Estelio Breto owned and operated a Real

Estate Brokerage and Mortgage Company in South America for 5 years.

• His skills include business operations and administration, residential and commercial real estate sales and loan consultations

• JLB Title Services, LLC expects to hire 1 full-time REO Administrative Manager, 2 full-time Title/Loan Specialists and 2 full time Closing Agents.

EXECUTIVE SUMMARY

Products and Services Summary:• Primary focus is to provide high quality customer

service.• Specialize in performing title searches, clearing

title defects, performing lien searches, requesting estoppels, preparing loan documents, coordinating closings.

• Clients have access to their closing transactions through a self service internet database.

• Closing services and title insurance offered for all transactions

EXECUTIVE SUMMARY

Products and Services Summary Cont’d:

• All staff members have a notary public • Private conference rooms available for

closings• Mortgage modification opportunities for

clients in financial despair.• The company contracts with mobile

notaries all of the state of Florida so clients can hold a closing in the leisure of the homes

EXECUTIVE SUMMARY

Financial Considerations:• Partners will comprise $160,000 of capital

in startup funds.• $120,000 will be obtained through a 10

year Small Business Administration Guaranteed 7 (a) Loan Program

Projected SalesYear 1 : $557,360Year 2: $667,489Year 3: $715, 657

Projected Net Profit:Year 1: $43,000Year 2: $82,000Year 3: $95,000

Projected Gross Margin:Year 1: 56.9%Year 2: 60.2%Year 3: 61.7%

EXECUTIVE SUMMARY

Financial Considerations Cont’d:Highlights

Year 1 Year 2 Year 30

100000

200000

300000

400000

500000

600000

700000

800000

Sales Gross Margin Net Proft

EXECUTIVE SUMMARY

The Mission for JLB Title Services, LLC:

JLB Title Services, LLC provides a standard of high quality professionalism, customer service and satisfaction to our clients in the real estate closing industry. It is the mission of JLB Title Services, LLC to become the leader in closing REO real estate in the state of Florida. Our closing team will ensure all service is done with a smile and will guarantee accurate and precise work at all times. We will take grave care of servicing our clients with respect and will be diligent in our closing efforts.

EXECUTIVE SUMMARY

Keys to Success, Profitability and Survival:

1. Establish close relationships with REO banks nationwide such as Wells Fargo Bank to enhance foreclosure activity.

2. Establish, maintain and build relationships with local real estate agents and mortgage brokers to uphold a reputation of highly skilled closing agents.

3. Establish a threshold of identifying mistakes and prepare corrective actions that will enable our firm to furnish satisfactory customer service will minimal errors

COMPANY SUMMARY

Company Objectives:

• Establish a minimum of 97% customer satisfaction.

• Obtain the business of a major bank as a sole client by the end of year one.

• Establish and maintain healthy, growing and sustainable relationships with local real estate agents and mortgage brokers by offering competitive prices for outstanding services.

COMPANY SUMMARY

Company Ownership:

• The company is established as a limited liability company.

• The company is domiciled in the state of Florida.

• The company is owned and operated by 2 equal parnters

COMPANY SUMMARY

Company History/Startup Costs:Startup

Expenses Assets Investments Loans0

20000

40000

60000

80000

100000

120000

140000

160000

Startup Costs Include:

•Legal Costs•Licensing•Advertising•Insurance•Utilities•Rent•Office Equipment/furniture•Software/Databases•Phone •Supplies•Website Design•Business Cards/ Brochures•Other Expenses

PRODUCT & SERVICES DESCRIPTION

Services Include:

• Examining title, clearing defects, preparing liens searches, ordering estoppels, requesting payoffs, preparing settlement statements, organizing loan packages and coordinating closings.

• Offers closing services and title insurance for refinances, purchase/sales, REO transactions, foreclosure transactions, and mortgage modifications.

PRODUCT & SERVICES DESCRIPTION

Services Cont’d:

• The company offers mobile notary services so closings can be held in the luxury of home.

• Staff consultants will provide advice for clients wishing to modify an existing mortgage.

• The company offers a full service interactive website database for our clients including customers, mortgage broker, real estate agents and lenders.

MARKET ANALYSIS

Two Defined Market Segments:1. Florida residents age 50 and older – they

amount to 26% of Florida’s population and are more likely to be in the 2nd stage of foreclosure or in default status.

2. Foreclosure Sector of Wells Fargo Bank - Wells Fargo Bank holds nearly $650,000 in bank owned properties and $1 million in properties that are sale by owner, auction properties and short sales.

• Wells Fargo Bank has approximately 66,104 mortgages in default in Palm Beach, Broward, and Miami-Dade County

MARKET ANALYSIS

Foreclosures from high to low:

MARKET ANALYSIS

Target Market Segment Strategy:

• Provide excellent customer service, competitive prices and superior work ethic.

• Tradeshows will be held in local meeting areas.• free consulting sessions for individual that fit the

criteria of this market segment.• visit 55 years + communities to hold events and

raffle off prizes.• visit local bank branches in an effort to develop

durable contacts in the banking industry

MARKET ANALYSIS

Target Market Segment Strategy Cont’d:

• Travel to Wells Fargo Bank headquarters and hold lunch meetings with the directors and CEO’s of the foreclosure department.

• Hold tradeshows in the local areas in an effort to establish the quality of services at competitive rates.

• Offer free training sessions to keep this client update on regulations and standards of the industry

MARKET ANALYSIS

Market Needs:• Florida is one of the top 10 states in the nation

with the highest foreclosure rates.• Florida residents are seeking relief from their

financial burdens.• Female and male residents ages 50 and older

are finding themselves in financial distress.• Senior citizens and elderly find it more disabling

to be able to seek additional work.

MARKET ANALYSIS

Market Needs Cont’dOur target market segments needs:

• Relief from their mortgage payments.• To sell their homes that have been appraised at

low values.• To relive the burden of numerous foreclosure,

REO and auction properties that have flooded the economy during the topical recession.

• Competitive prices and quality service.

SERVICE BUSINESS ANALYSIS

a) Foreclosure real estate title industry in the U.S. has experienced rapid growth due to the increasing rate of foreclosures.

b) Changes in RESPA guidelines and underwriting standards have provided more opportunities for lenders to lend higher quality and more sustainable loans.

c) New borrowers are more sensible in seeking out risk.

d) There are still many properties in foreclosure and many homeowners seeking assistance in their current financial situations.

SERVICE BUSINESS ANALYSIS CONT’DHow will we establish a market

position?

1. JLB Title Services, will position itself in the Broward County location which is the central location of south Florida - central location will enable the company to service business in both Palm Beach County and Miami-Dade County as wells as Broward.

2. The company can expand operations to the entire state of Florida thus taking full advantage of the new era of clientele brought in from the recent changes in the RESPA guidelines and underwriting standards

SERVICE BUSINESS ANALYSIS - COMPETITION

Who is the Competition?

Currently there are a handful of title companies in the tri-county area but they have grown so big that the level of customer service is less than acceptable. The size of the few remaining title companies in the south Florida area is to our advantage because our competitive edge is to put the client’s needs first.

SERVICE BUSINESS ANALYSIS - COMPETITION

How will JLB Title Services Excel?

We will develop and withhold a standard of excellence in the quality and precession of our work as well as preserve the relationships of our clients. We will exploit partners experience to assemble broad base of clients include real estate agents, mortgage brokers, customer, and lenders. We will develop a self service website that will enable clients to view their closing transactions as we do. This will provide a competitive edge as clients will appreciate the amount of information available to them.

SERVICE BUSINESS ANALYSIS - PRICING• Our policy at JLB Title Services, LLC will be to

provide competitive market rates keeping in mind long term profitability.

SERVICE BUSINESS ANALYSIS - PROMOTION

How will you advertise and promote?1. Our most important form of advertising is

customer’s word of mouth.2. Offer rewards to any client that refers business to

the company.3. Offer discounts for early closings.

4. Attend local tradeshows to advertising the company’s service offerings - provide free pens, key chains, note pads, coffee mugs, and we will raffle off prizes for those people who provide us with their business cards.

SERVICE BUSINESS ANALYSIS - INTERNET

How will you advertise on the internet?

By purchasing Google Adwords, Google Adscenes and Google Places to enhance the company’s profitability

SERVICE BUSINESS ANALYSIS – DIRECT MAIL

How will you use direct mail to advertise?

• By keeping track of public records and maintain a database to mail brochures and business cards.

• By maintaining a database of Florida residents that are 50 years and older to mail brochures and business cards

MANAGEMENT TEAM

REO Executive Officer : Jessica Breto

Account Executive Officer: Estelio Breto

REO Administrative Manager: Victoria Breto

MANAGEMENT TEAM

Personal Plan:JLB Title Service, LLC intends to hire 2 full-time Title/ Loan Specialists and 2 full-time Closing Agents.

 Year 1 Year 2 Year 3

Managers (1) $65,000 $70,000 $75,000Title/ Loan Specialists (2) $60,000 $66,000 $70,000Closing Agents (2) $80,000 $84,000 $88,000Other $0 $0 $0Total People 5 5 5Total Payroll $205,000 $220,000 $233,000

FINANCIAL PLAN

JLB Title Services, LLC with invest $160,000 of its capital from partner’s savings and personal resources. The company expects to finance the remaining capital of $120,000 through a Small Business Administration Guaranteed 7 (a) Loan Program. This will provide the necessary financing required for JLB Title Services, LLC.

FINANCIAL PLAN – PROJECTED PROFIT & LOSSProjected Profit and Loss

_______________________________Year 1 Year 2 Year 3__________Sales $557,360 $667,489

$715,657Direct Cost of Sales $240,010 $265,470 $274,126Other Costs of Sales $0 $0 $0Total Costs of Sales $240,010 $265,470 $274,126Gross Margin $317,350 $402,019 $441531Gross Margin % 56.9% 60.2% 61.7%Expenses Payroll $205,000 $220,000 $233,000Marketing/ Promotion $10,800 $11,900 $13,600Depreciation $8,000 $9,500 $13,800Lease Equipment $2,500 $2,700 $2,900Utilities $4,300 $5,300 $5,600Insurance $11,400 $12,600 $13,000Maintenance $0 $5,000 $7,500Rent $2,800 $3,600

$4,600Payroll Taxes $11,580 $13,860 $15,300Other $0 $0 $0Total OperatingExpenses $246,380 $284,460 $309,300Profit Before Interest $70,970 $117,559 $132,231Interest Expense $20,000 $19,500 $18,250Taxes Incurred $8,066 $16,256 $19,424Net Profit $42,904 $81,803 $94,557Net Profit/ Sales 7.7% 12.3% 13.2%

FINANCIAL PLAN – PRO FORMA CASH FLOW 

 Pro Forma Cash Flow Year 1 Year 2 Year 3Cash Received Cash from Operations:Cash Sales $557,360 $667,489 $715,657Cash from Receivables $0 $0 $0Subtotal Cash from Operations $557,360 $667,489 $715,657 Additional Cash Received Non Operating (Other) Income $0 $0 $0Sales Tax, VAT, HST/ GST Received $0 $0 $0New Current Borrowing $0 $0 $0New Other Liabilities (interest-free) $0 $0 $0New Long- term Liabilities $0 $0 $0Sales of Other Current Assets $0 $0 $0Sales of Long-term Assets $0 $0 $0New Investment Received $0 $0 $0

Subtotal Cash Received $557,360 $667,489 $715,657 Expenditures Expenditures from Operations:Cash Spending $20,600 $24,100 $30,596Bill Payments $317,084 $410,649 $435,312 Subtotal Spent on Operations: $337,684 $434,749 $465,908 Additional Cash SpentNon Operation (Other) Expense$0 $0 $0Sales Tax, VAT HST/GST Paid Out $0 $0 $0Principal Repayment of Current Borrowing $0 $0 $0Other Liability Principal Payments $0 $0 $0Long-term Liabilities Principal Repayments $0 $16,000 $40,000Purchase Other Current Assets $0 $23,000 $50,000Dividends $0 $0 $0

Subtotal Cash Spent $385,684 $473,749 $505,908 Net Cash Flow $171,676 $193,740 $209,749Cash Balance $194,439 $388,179 $597,928

FINANCIAL PLAN – CASH FLOW CHART

0

100000

200000

300000

400000

500000

600000

Net Cash FlowCash Balance

FINANCIAL PLAN – BALANCE SHEET AssetsCurrent Assets Year 1 Year 2 Year

3Cash $194,439

$388,179 $597,928Other Current Assets $12,000 $12,000

$12,000Total Current Assets $206,439 $400,179

$609,928Long-term AssetsLong-term Assets $98,000 $118,000

$138,000Accumulated Depreciation $13,800 $28,379

$49,291Total Long-term Assets $84,200 $89,621

$88,709Total Assets $290,639 $489,800

$698,637 Liabilities and Capital

Year 1 Year 2 Year 3

Accounts Payable $36,049 $32,482$38,069

Current Borrowing $0 $0 $0Other Current Liabilities $0 $0 $0Subtotal Current Liabilities $36,049 $32,482

$38,069 Long-term Liabilities $120,000 $104,000

$64,000Total Liabilities $156,049 $136,482

$102,069. Paid-in Capital $160,000 $160,000

$160,000Retained Earnings ($92,580) ($49,676)

($17,238)Earnings $42,904 $81,803

$94,557Total Capital $110,324 $192,127

$237,319Total Liabilities and Capital $290,639 $489,800

$698,637Net Worth $110,324 $192,127

$237,319