Golden Valley Real Estate LLC
With the advances of modern medicine, people are living longer. Once they raise children and retire from work they have a new stage of their life where they find themselves enjoying their spouse and free from other responsibilities. They get a second try at being a carefree youth. They need to find a place within their budget that helps them with that.
GVRE will provide real estate services in the newly established Golden Valley Retirement Community, located to the Northwest of scenic Tucson, Arizona. GVRE is a full-service real estate, mortgage, and title company.
The retirement industry has been steadily growing over the past twenty years. The percentage of the U.S. population over the age of 55 is at an all time high of 21% and is growing at an average rate of 3% each year. In certain parts of the country like the American Southwest, which has a high concentration of retirement communities, the growth rate is about 8%. This percentage is also expected to grow as the first of the "baby boomer" generation begins to reach retirement age in the next decade. It is estimated by the U.S. Census Bureau that the retirement industry, that includes homes, medical facilities, specialty equipment, retirement entertainment services, etc., accounts for 4.8 billion dollars each year.
The real estate industry is highly fragmented, with a large number of potential rivals. Our most serious competitors are Bowditch Realty and RE/MAX. Bowditch is an established company that has been in operation for the past ten years, with a fine track record of quality service. It currently employees twelve agents and has long-term contracts with various home building companies. This company is slightly larger than GVRE in size and market capitalization.
RE/MAX is one of the largest and best known real estate firms in the country. It has hundreds of agents and very deep pockets that can be used to counter any sort of competitive move.
GVRE believes that the greatest threat at the moment is in new entrants to the market who will want to capitalize on this high growth industry. The most likely entrants will be new, small real estate companies with fewer than ten employees. However, the one major advantage GVRE has is its exclusive rights to act as the agent for Golden Valley Retirement Community. However, due to the high number of competitors and the overall low profitability of each firm, competition is quite intense.
The power of potential clients is very great in this industry because most clients are very concentrated in our geographical area. Furthermore, clients tend to "shop around" for the best package of services and cost.
The company expects to reach profitability in the first year and does not anticipate any serious cash flow problems. We conservatively believe that during the first three years, average profitability per month per segment will be adequate. We expect that about one sale per month will guarantee a break-even point.
Financial Highlights by Year
We will be getting $20,000:
Mrs Susan Egan $10,000
Mr. Daniel Egan $10,000