National Home Buyers Assistance, (NHBA) recently announced it will launch a Nationwide Franchise Sales Campaign aimed at strong industry professionals, for the rights to represent NHBA, in promoting its proven Lease to Own programs. This announcement follows almost two years of extensive test marketing in both Colorado and Florida during which time the firm has combined a pre-leased home with a 12 month purchase option to acquire in excess of $10,000,000 in very secure investment residential real estate. Industry professionals and clients alike have given ‘rave’ reviews to the trend setting new financing vehicle that NHBA has created to dramatically widen the base of potential homebuyers across North America and close almost any transaction that heretofore would have been lost. NHBA’s target market includes some 85 Million Americans that currently don’t own their own home. According to Michael Shinn, Chief Executive Officer for NHBA, the infrastructure that supports the entire concept did not come easily; and in fact took years to refine, test market and fine tune to what he believes now to be almost bulletproof for the franchisee/investor as well as the eventual homeowner. Shinn has spent 35 years investing in residential real estate using the lease/option concept to support his investment in hundreds of single- family homes. However, he credits the President of NHBA, Jeff Richardson with the spark that sets this Company apart from all other Lease Option Companies � allowing the client to choose their own home. Richardson explains that “Lease to Own” and “Rent to Own” are sales methods typically used by individual sellers as a way to move their particular property to a likely future buyer. Not only is the buyer’s choice of properties with that feature drastically limited, the seller (and Realtor) must typically wait for a year or more to realize the proceeds (or commissions) from the potential sale. NHBA now offers the only program in the nation that allows the homebuyer to select virtually any home that is for sale in their local market area, with minimal restrictions. NHBA then immediately steps in to buy that home in NHBA’s name, pre-leases the home to the client for 12 months, with an option to purchase the property at the end of the lease. As a result, a huge void in the market has been filled that never before had been addressed. Everyone gets what they want, when they want it. NHBA’s program enables the would-be homebuyer to move into the home of their choice ‘today’ on a Rent to Own basis. They can improve their lifestyle, clear up any credit issues or resolve any uncertainties � while living in the home and neighborhood of their choice. At the end of the twelve month lease period, the client has the option to take ownership of the home � or move elsewhere if circumstances require. Best of all, if they opt to buy, they can get back up to 50% of the total rent paid during the year, as a credit towards the purchase of their home. Numerous testimonials from past clients and trade groups indicate that this is a win-win program that benefits everyone involved, with NHBA and its Franchisees acting as the ‘facilitator’. The program appeals to homebuyers because they can select almost any home that is for sale in the local market area, so long as NHBA is represented by a Franchisee that approves the purchase. Sellers, Realtors, mortgage lenders, and homebuilders benefit from the program too, because it enables sales to immediately close that otherwise wouldn’t and thereby boosts their overall sales volume, commissions, and net proceeds. The Franchisee benefits from a large pool of highly structured residential investment transactions that offer high rates of return and very low risk. Most industry professionals know that the entry-mid level single family home represents the finest investment anyone can make. However, the majority of those same professionals don’t take advantage of it. NHBA Franchisees stand to capture this investment potential while truly helping the community and the rest of their industry in the process. The Franchisee has flexibility to do a small volume or large volume of transactions, depending on his financial capabilities and comfort level with his revolving inventory of lease/option homes. For the already successful Realtor, mortgage broker, or homebuilder the NHBA franchise has the potential to complement his existing business, giving his office and sales force a major competitive advantage, while adding a new revenue stream that will likely be greater and more certain than his primary business. National Franchise Services Inc. has been contracted by NHBA to head up its franchise marketing and sales nationwide. Ken Hollowell, President has been in the franchise consulting business for 27 years and has developed more than 650 franchise companies. According to Hollowell, NHBA is the perfect franchise business because start-up costs are very low and home purchases can be highly leveraged. Risk is minimized by up front option fees, a pre-leased home with security deposit, and investment in one of the most predictable assets in the world, the single family home. Most importantly, the Franchisee needs no sales force; he only needs to make the industry aware of the NHBA alternative to closing difficult transactions, and the business comes to him � he has the program and the solution. The Company announced its Franchise debut at the National Association of Realtors (NAR) Convention in New Orleans in early November and expects to achieve over $500,000 in franchise sales from that event. Looking to the future, Dan Siedlecki, Senior Vice President of National Expansion, indicates that NHBA will pursue several industry segments and marketing channels in order to forge partnerships and expand its Lease to Own Business: (1) New Home Builders, (2) Realtors, (3) Mortgage Bankers and Brokers, (4) Corporate Relocation Companies, (5) Credit Repair Agencies, (6) Housing Assistance Agencies in State and Local Government, (7) Renters in High-End Developments. Exhibits at all the upcoming major industry trade shows are planned by NHBA to promote its business concept and market its franchises. Siedlecki explains that all of these people can benefit in dramatic ways through partnership with NHBA. Realtors and mortgage brokers that have been exposed to the program have come to understand that NHBA is the largest buyer of homes that they’re ever likely to see. Then the Realtor only needs to find a ‘tenant’ and the sale is made immediately and directly to NHBA. The Realtor and mortgage broker receive their usual commission on the front end of the lease period, not 12 months or more later. And the seller benefits by a faster cash sale to a pre-qualified buyer (NHBA). Shinn says that NHBA doesn’t intend to take the place of public-sector organizations that address the needs of the most credit-impaired or low-income segment of the population, but it can assist a significant portion of the agencies’ constituents � a huge segment of the population that is currently underserved. We often hear families recount how owning a home has been the best investment they have ever made. Even in an era where attention in the past has been paid to stock market millionaires, home equity still remains the cornerstone of wealth creation for the vast majority of American families. Owning a home is more than simply providing shelter for one’s family. It is a critical element in developing a family’s net worth, which can be passed down from one generation to the next. One of the most effective mechanisms for bridging the gap in America between those who have accumulated wealth and those who have not is to close the gap between those who are homeowners and those who are not. NHBA plans to help bridge that gap, as it expands its operations across the United States. Through the creation of innovative products such as ours, the American Dream of homeownership is, within the reach of hundreds of thousands of families who may have thought it was forever beyond their grasp. We’re proud to say NHBA is accomplishing this without the expenditure of any public funds. It’ s an outstanding example of free enterprise at work. We’re solving very pervasive problems in the housing arena and being very socially useful. This is a ‘white hat’ business, that when properly managed by NHBA and its Franchisees, entails minimal business risk and a generous return to our investors. NHBA plans to expand its franchise system across the United States and Canada to an eventual 10,000 franchisees. Initial ten year franchise agreements sell for $25,000 and include comprehensive training and proven systems that teach the franchisee how to become the largest and most successful investor in residential real estate in the franchisee’s community, while truly helping people in the process.
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