GIROLAMO LLC

Table of Contents
1. Introduction..............................................................................................................................4

2. The Company/Business Profile................................................................................................5

2.1. The Services......................................................................................................................5

2.2. The Market........................................................................................................................5

2.3. Financial Considerations...................................................................................................6

3. Mission of Business..................................................................................................................6

3.1. Keys to Success.................................................................................................................7

3.2. Objectives..........................................................................................................................7

4. Business Summary of Girolamo LLC......................................................................................8

4.1. Start-up Summary.............................................................................................................8

4.2. Services.............................................................................................................................8

5. Market Analysis Summary.....................................................................................................10

5.1. Market Segmentation......................................................................................................11

5.2. Service Business Analysis..............................................................................................12

5.3. SWOT analysis of Business............................................................................................13

5.3.1. Competition and Buying Patterns............................................................................14

6. Strategy and Implementation Summary.................................................................................15

6.1. Sales Strategy..................................................................................................................15

6.1.1. Sales Forecast..........................................................................................................15

6.2. Marketing Strategy..............................................................................................................15

7. Management Summary...........................................................................................................16

7.1. Personnel.........................................................................................................................16

8. Financial Plan.........................................................................................................................16
8.1. Important Assumptions...................................................................................................18

8.2. Break-even Analysis.......................................................................................................18

8.3. Projected Profit and Loss................................................................................................18

8.4. Projected Cash Flow.......................................................................................................19

 1. Introduction

GIROLAMO LLC is a start-up company in USA to buy several houses in USA in order to offer
a good ROI to international investors, it is incorporated in Colorado. It is the mission of
GIROLAMO LLC to search investors against provision of return on investment for buying
houses, provide real estate services on rental basis in the newly established Community in USA.
The Company is looking to protect and maintain the investments at first priority in property
industry. The entire focus of Girolamo LLC is upon securing investments and buying houses for
rental based provision to customers along with customers’ satisfaction.
 2. The Company/Business Profile
Our Premier focus is to generate
value for our customer and to build
GIROLAMO LCC has initiated its business in real estate sector sustainable relation with all our
stakeholders
via purchasing houses for investment purposes from global
investment corporation which is currently working in Detoit.

The company is going to plan to be leveraged through private

investment and it is expecting to begin offering its services in
beginning of year. This business is focusing the new community
residing in Detoit and in other major cities of UK ranging the
average and above average families. The other preferred areas for business for its launching
business will be urban districts areas or such roads where some commercial schools and other
educational institutes are there.

2.1. The Services

Girolamo LLC looking to facilitate its prospectus customers via provision of real estate services,
rent based houses. Other rental facilities to customer of community will be provided in addition
to:

Maintenance of data base for home searching

Provision of consultancy services to customers
Ensuing a competitive analysis of market oriented investors in home industry
Facility of property preparation and appraising

2.2. The Market

The flourishing home industry and international investors industry has been gradually growing
over last decade in Detroit and in surrounding areas. The percentage of the U.S. population over
the age of 55 is at an all time far above the ground of 21% and is mounting at an average rate of
3% each year and youth rate is also tremendously increasing.
In some parts of the country like the American Southwest and in other close parts of Detroit,
which has a high concentration of residing families on rental basis and the shifting rate of
families on the basis of rent based houses is about approximately in between 8% to 12%. This
percentage is also predictable to nurture in the first and second decade of this Century. It is
estimated by the U.S. Census Bureau of housing societies that the housing industry will
tremendously increase in coming few years especially families settlements on rental houses as
the purchasing of a house and acquiring its title is a huge capital expenditure. So there is huge
potential exist in US market and in Detroit for settlement of families in rental houses.

2.3. Financial Considerations

Girolamo LCC is initiating the starting expenses via equity and debt financing. The practice will
be to include all expenses for coordination to operational expenses to income with an acceptable
level. It is anticipated that this business will reach to profitability in the first year and does not
foresee any serious cash flow tribulations. It is also unadventurously supposed that during the
first three years, average profitability per month per segment will be sufficient to meet
operational expenses and reasonable profit margin ranging from 25 to 30%. The company
management is looking forward that about one or two sales per month will pledge a break-even
point where no chances of loss will be there.

3. Mission of Business

It is the mission of GIROLAMO LLC to buy several houses in USA in order to offer a good ROI
to international investors. Our premier focus is upon searching investors in USA via returning
them return on Investment, provision of real estate facilities to our esteemed customers,
constructions and properties via innovative ways for facilitating customers.

The Company is looking to protect and maintain the investments at first priority in property
industry. The entire focus of Girolamo LLC is upon securing investments along with customers’
satisfaction.
 3.1. Keys to Success

GIROLAMO LLC's keys to long-term and short term survivability and profitability are expected
as follows:

Establishing and maintaining close associations with residential real estate listing
services, and all other service organizations that GIROLAMO LLC uses, such as Global
Investment Corporation for provision of rental houses with luxurious facilities.
Ensuring secure and closer relationships and contact with clients and establishing a well
functioning long-term relationship with them for the purpose of repeating business
transactions and obtaining a top indentation status.
Marking arrangements for establishing a broad service experience for our housing
customers for provision of services like consultation, appraisal, sale preparation,
community information for residency, moving consultation and other relevant services in
lieu of creating collaborative relationships with current and prospective customers.

3.2. Objectives

The four goals for GIROLAMO LLC are designed by the management are as:

Making tremendous efforts for ensuring break-even point by first or in second year.
Establishing long run relationships with investors and communities
Ensuring at least 95% customer satisfaction rate for establishing long-term relationships
with our customers and create word-of-mouth marketing which is most reliable source of
marketing
Searching new and reliable investors for arranging houses from them
 4. Business Summary of Girolamo LLC

The company is looking be leveraged through private investment and a limited number of loans
available to it from nearness banks. The company has its main offices in Detoit, MI 48224. The
facilities offered by business are residential houses and office spaces. It will seek prospective
investors against return on their investment for purchasing houses and let it for residence
purposes on rental basis.

The company's main clients will be such families looking for houses on rental basis and
somehow gaining title of houses via purchasing and looking for a community which has ability
for gaining significant services for their age group and income levels. It is worth mentioning that
the owner is within this demographic group and aware and recognizes this market's needs; it can
be believed that he can appeal to such clients far more than most other competitors.

4.1. Start-up Summary

The starting expenses include expenses which are most essential and the rest in cash needed to
hold up operations until revenues reach an acceptable level and the breakeven point is gained by
the business. The major liabilities of businesses will come from outside private investors and
management investment; conversely and it will be obtained current borrowing from Bank of
America Commercial Investments, the principal to be paid off in two years. If there persist any
long-term loan for business, that will be availed through National Banks this will be paid back to
banks within a time span of five years.

4.2. Services

GIROLAMO LLC offers comprehensive real estate, mortgage, and title services to our diverse
clients. As per our planning, the business will be a dominant in its market for provision of
housing facilities to potential communities on rental basis with comfortable facilities. In some
rare case, the selling and transfer of ownership of houses is also possible. In addition to these
premier services, the management of business is looking to facilities its customers via provision
of following facilities as competitive advantage over its rivals:
  Establishing a strong references lists and database of communities
 Providing planning facilities to communities
 Provision of information to communities
 Transferring titles of homes if required
 Appraising and property preparations for customers
 Generating and maintaining market analysis in residential industry

It is planned that most of the company's services will be outsourced at manageable rates. This
comprises upon title transferring, approval of loans and financial matters, and appraising and
market analysis services and maintaining records of far away customer which are not accessible
to business management. It also planned that the option of Title transfer will be gripped by TNT
Legal Services, loan approval by GMC Credit Co. and appraising and market analysis by
Templar Real Estate Services or other specialist in these fields. These companies encourage self-
governing agents to use their services and posses confirmed track record in terms of affordability
at minimal rates and with established service. The selection process of these companies is upon
flat monthly or quarterly rates and the management of business is looking to include these
expenses under profit and loss account.

The first priority of business is provision of residence facilities in real estate market to end
consumers at a realistic and justifiable pricing policy. However like other businesses who have
consumed countless hours of time and force into our property it may be tricky to remain
objective when it is time to price it and put it up for resale or on rental basis. Typically property
owners have much more than dollars and cents invested in a home as an individual pledge that
makes it a highly valued personal statement for this purpose. But it is worth mentioning that the
value and amount becomes a mirror image of the buyer's viewpoint as well when that property is
put up for sale.

It is a general practice from customers that when they require a home for residence, they try to
search best valued residences and it is required for business to list their houses at every place
which the potential customers search for houses. The Girolamo LCC is trying to sharpen its
focus upon this factor.
Listing property at 15% above current market value gives it a sales benefit which is
approximately ten times greater than if priced at 15-20% on top of and it is also to note that a
statistic that can never be overlooked as far as its importance is concerned. It is also generally
seen in US market that an overpriced home will undergo from lack of exposure from potential
customers because the longer it remains on the market the more difficult it will be to sell. That is
why the management of this business has tried to determine a precise and objective market value
for your property. It is planned that with the buyers and sellers closely to achieve that, and to
make the most of their opportunities to provide their home on rent based at the best possible
price within good enough time frames.

5. Market Analysis Summary

GIROLAMO LLC will be concentrating on multiple market segments and this will be the
flourishing residential market consisting of those individuals and communities looking for
houses on rent in industry of real estate information. It is general that the owner deals with the
residential facility as very sensitive issues that her clients do, consequently providing imminent
and opportunities to improved assistance to customers. The industry picture of US market for
investment in real estate is as under:
The residential industry has been steadily growing over the past two years as stated above. 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 and new couples seeking for residential facilities on rental
basis is tremendously increasing since last five to ten years and it worth mentioning that this
business has estimated by the U.S. Census Bureau that the residential industry including homes,
medical facilities, specialty equipment, entertainment services, etc., accounts for 5.8 billion
dollars on annual basis.

The USA Market of residential home industry consists of thousands of small housing

communities which are continuously engaged in this sector. These communities variety from
those owned by major specific firms to thousands of small, one-location firms associated to this
business.

GIROLAMO LLC deems that the utmost threat at present to its business is in fresh and
innovative entrants to the market who will want to take advantage of on this high growth
industry in which lots of chances exists for new entries. It is forecasted by the management of
Girolamo LLC that the most likely entrants will be new and small real estate companies and
businesses with less than ten employees and small business culture like sole trader ship.
Conversely, the one major advantage GIROLAMO LLC has is its exclusive rights to act as the
agent for flourishing young Community acquiring residential facilities. It is rightly expected that
due to the high number of participants and the generally squat profit margin of each firm,
competition is quite intense in this industry.

The analyst of this business have pointed out that the major rival of this business will be Metro
Property Group, Bowditch Realty Company and Re/Max company and they can strongly
influence upon the services offered by Girolamo LLC

5.1. Market Segmentation

GIROLAMO LLC will be concentrating exclusively on investors like Global Investment

Corporation for acquiring houses for investment purposes. This means the company will be
focused on investing and providing these houses on rental basis real. So it can be said that this
market segment has particular needs and is almost always looking to find homes in specially
constructed communities that serve those particular requirements such as medical, dining,
entertainment, shopping, and other such facilities which are deem necessary in US community in
residential facility.

5.2. Service Business Analysis

The residential industry has been progressively growing over the five to ten 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 and the new families of newly married couples require
residential facilities on rental basis. In certain parts of the country like the American Southwest
and other areas of countries, which have a high concentration of residential communities, the
growth rate is about 8% to 10% approximately. This percentage is also expected to grow in
coming decade with a tremendous pace. It is estimated by the U.S. Census Bureau that the
residential industry which includes homes, medical facilities, specialty equipment and
entertainment services etc., accounts for 5.8 billion dollars on yearly basis.

The residential home industry consists of thousands of small housing communities. These
communities variety from those owned by major name brand firms of thousands of small, one
location firms. The Girolamo LLC is expecting a severe competition in market as there is no
barrier in entry of new entrants. The smaller competitors consisting less than ten employees are
tremendously competition and launching their business activities in this industry. The
profitability ratio is lower and intense pressure of competition is there in market. The other point
to be noted under business service analysis is power of prospective customers which is more than
expectation in this geographical area. There is general tendency of customers for searching long
list of residential facility providers. The Girolamo LLC is trying to cop up all these service
business analysis in true spirit and addressing these issues for the sake of better engagement in
business and achieving the organizational objective in a period of less than two years.

5.3. SWOT analysis of Business

Following are the precise SWOT analysis of this real estate business:

SWOT Positive Negative

Strength
 High skilled and experience
Internal workforce
Factors  Large customer base
 Increasing disposable income of
the people in US market
 Low cost and Stylish yet
operationally exceptional
 Government policies to support
the industry
Opportunity
 Rural market/developing
countries is very less penetrated
so great opportunity ahead
External
 Increasing demand due to
factors
changing trends in residential
industry
 Tremendous increasing demand.
 Urban and commercial needs for
homes and office space
 Government policies for mobile
banking provides great
Weakness
 Highly Competitive
 Insufficient financial resources to
compete the large market.
 Intensive R&D required for
information pertaining to
customers
 Low end products yields very less
margin
Threats
 Very money-spinning industry,
and owing to this, low barriers to
enter in the industry which
increase competition.
 Unorganized sector to some
extent
 Need to look for each social class
 Need to keep abreast with the
latest requirements of potential
customers
 opportunity ahead

5.3.1. Competition and Buying Patterns

Competition
as stated earlier, that there is severe competition in this industry, the major and most intensive
competitor in our business is Metro
Property Group. This group is
attracting the investors in purchasing
and investing in property business
and securing a monthly positive cash
flow for an aim of becoming
landlord. Metro Property Group is
one of the principal and best known real estate firms in the country. This business possesses
hundreds of agents and has deep pockets that can be used to compete any type of competitive
move in the market analysis.

Realistically speaking, the real estate industry in US is highly fragmented, with a numerous
potential rivals. The other examples of rivals besides Metro Property Group are Bowditch Realty
and RE/MAX. Both these competitors are established companies that have been in operation for
the last decade and they have a fine track record of quality service. These businesses are
currently employing more than twelve agents in each business and have long-term contracts with
a variety of home building companies for investment purpose. These companies are slightly
larger than GIROLAMO LLC in size and market capitalization.

Buying patterns and needs

It is a general practice in US that the Clients usually deal with real estate companies based on
their reputation of professionalism and quality of services they have observed in past history and
it is much difficult for any new business to gain reputation as it is difficult to obtain by new firms
except its personnel bring it with them from previous companies. Price and scope are also
important reasons for acceptance, especially if the company is small.

6. Strategy and Implementation Summary

The strategy designed by Girolamo LLC for entering into market is covering limited areas in US
depending upon the staff available and resources to handle the geographical area. After success
of first two to three years, it will launch its campaign in major areas of country with excellence
in services and cost effectiveness for residential users via investing in various segments.

6.1. Sales Strategy

GIROLAMO LLC's management will be focusing on leveraging its extensive contacts with the
various construction companies such global investment corporation. Furthermore, it is also
planned by the business to offer promotions of a mixture of free services such as preliminary
appraisals and information packets to engender sales once our ad campaign begin in positive
move.

6.1.1. Sales Forecast

Sales are based on the various clients we anticipate acquiring. Revenues are based on an average
commission rate of 25 to 30% per sale based on closing costs. The company does not have any
significant direct costs of sales.
6.2. Marketing Strategy

GIROLAMO LLC will be utilizing radio, newspaper, and phone directory advertising, and a
small business referral group to generate sales and establish a presence. In addition, any famous
advertising agency in USA will be outsourced for doing their own advertising, and all interested
clients in the Community will be referred to GIROLAMO LLC.

7. Management Summary

The company will have only one full-time employee, and some part time as deem fit necessary
by management of this business. The company's office will be in an office suite with some other
businesses that will share the costs of a receptionist.

7.1. Personnel

The owner has had extensive experience in the real estate business, first working for some other
real estate businesses, where he became head of west coast operations. The owner has recently
performed number of activities with same competence business and desires to continue in the
real estate business at a more tranquil pace and manage the affairs in lieu of organizational
objectives

8. Financial Plan

The management of Girolamo is opinion that initial profitability will be fairly justifiable and
realistic for a start-up company. Our financial plan anticipates that we will achieve positive net
income by the end of the first year. We have budget enough investment to cover any potential
losses and have additional personal financial resources available for equity investment if sales do
not match predictions. Following is an overview of expected income and balance sheet during
first year of operations:

M/S Girolamo LCC

Income Statement
For the Period of __________
Income $
Rent Income ($8700x30) 2,61,000
Interest Revenue 7,200
Gain on Sale of Assets 24,000
Total Income 2,92,200
Less: Operative & General Expenses
Property Taxes 26,100
Insurance 12,000
Utilities expenses 18,000
Management Fee 26,100
Office Expenses 54,000
Payroll & Expenses 15,000
Professional Fee 24,000
Telephone Expenses 12,000
Total Operative Expenses 1,76,400
Net Income (Income-Expenses) 1,05,000
 M/S Girolamo LCC
Balance Sheet
As on __________
Assets $ Liabilities $
Cash 25,000 Account Payable/Creditors 50,000
Bills Receivable 24,500 Bills Payable 24,500
Accrued Fees 45,500 Outstanding Expenses 12,500
Investment 2,00,000 Owner’s Equity 2,08,000
Furniture & Fixtures 1,05,000 Net Income 1,05,000
Total Assets 4,00,000 Total Equities 4,00,000

8.1. Important Assumptions

We are assuming approximately 30% on net sales and on credit and average interest rates of
10%. These are considered to be conservative in case our predictions are erroneous. The normal
range of selling on rent an apartment is $8700, the taxes, management fee and insurance charges
will be deducted accordingly.

8.2. Break-even Analysis

Our break-even analysis is based on the assumption that our gross margin is 100%. In other
words, we will have insignificant direct cost of sales. It is conservatively believed that during the
first three years, average profitability per month per unit will be about an average 30%
commission rate. Management expects that about one home sold per month will guarantee a
break-even point.

8.3. Projected Profit and Loss

We expect to be paying higher costs in marketing and advertising than other companies as we
attempt to build sales volume. As the reader can see in the accompanying charts, we expect
consistent monthly profits to begin in coming year. The profit margin tendency is shown for first
three years in following figure in association to sales and gross margin:

8.4. Projected Cash Flow

We do not expect to have any short-term cash flow problems because of sales planning and
achieving the breakeven point. Our short-term loan will be repaid in two equal payments in one
year. Our long-term loan will be paid off in less than ten years.