hinael luxury properties sales and leasing, llc pp

HINAEL LUXURY PROPERTIES SALES AND

LEASING, LLC

PROJECTED INCOME, BUSINESS PLAN AND COMPANY OPERATIONS.

Updated: July 20, 2016

HINAEL at a Glance

PROJECTED MINIMUM INCOME

(Updated July 20, 2016)

This income projection includes sales and leasing, locally and

internationally, and is based on a company opening of five agents, growing to

20 in 4 months, working eight hours a day, five days a week and, based on a

target sales price of a minimum 6 million and a target lease price minimum of

200,000 AED. (HINAEL’s target markets are the luxury projects, such as

Landmark Tower, Etihad Towers, Saadiyat Island, Yas Island, Raha Beach and

Eastern Mangroves.)

The agents are expected to finalize a minimum of two lease transactions

per week, which equates to 40 transactions per month and, two sales per

month for ten sales total.

PROJECTED MINIMUM INCOME (Continued)

First shall be the lease transactions income:

Commission rates on leasing are typically five percent; with each agency

splitting the commission for 2.5 percent each. Therefore, if a lease transaction

is 200,000 AED, then the total commission amount is 10,000 AED, with each

agency/brokerage receiving 5,000 AED. Based on this, HINAEL will receive a

total in-house commission amount of 200,000 AED per month (five agents

doing 8 transactions per month for 40 total transactions).

After the 50% commission split with the agents, HINAEL will net a total of

100,000 AED per month (again, please note that these are very conservative

lease prices for our target market. For example, the lowest lease price at the

Landmark project is 280,000 AED).


Next, we will look at the sales income projection:

Typically, commissions on sales are two percent; with each

agency/brokerage splitting the commission for one percent each. Therefore, if a

sales transaction is 6 million, then the total commission is 120,000 AED; with

each side (agency) receiving 60,000 AED.

Based on this, HINAEL will receive a total in-house commission amount of

600,000 AED (five agents at two transactions per month each). After the 50%

split with the agent, the remaining net commission amount is 300,000 AED

(please note that the majority of sale prices exceed 6 million. For example, a

current sales price for a villa in Saadyat Beach is 8.5 million).


Finally, we will review the expected income from international sales,

leasing and referrals.

HINAEL is represented in Europe, China, Canada, Australia, South

America and the United States. HINAEL has associated with real estate

companies, mortgage companies and banks. The way income is produced is

one of two ways:

1. An investor is referred to HINAEL from another country, to purchase/lease

property in the UAE. This results in a commissioned sale or lease.

2. HINAEL refers an investor to another brokerage in one of the associated

market areas. This results in a referral fee income, paid by the receiving

broker, or a commissioned sale or lease.


To project international sales/leasing income, we will determine a

conservative expectation of out-going and incoming referrals. HINAEL’s sales

and leasing agents will serve the incoming clients; out-going referrals will be

served by local agents in the market areas. First we will take the incoming

referral business:

It is safe to expect one sale and one lease a month, per agent, from

referrals. Therefore, there will be 5 sales and 5 leases the first month. We know

from above that 5 sales will generate 300,000 AED in company revenue. Also,

we know that 5 leases will provide 25,000 AED to the company the first month.


Based on the above, HINAEL can expect a total

commission income, from five agents, of:

Sales: 300,000 AED

Leasing: 100,000 AED

International: 325,000 AED

Total: 725,000 AED net commission

income for the first month.


The above amount is projected for the first month of

operation. Each successive month, HINAEL will bring on

five more agents with a target of twenty agents by month

four. Therefore, based on the same sales, leasing and

referral income projection, HINAEL will be making, at the

fourth month:

Sales: 1,200,000 AED

Leasing: 400,000 AED

International: 1,300,000 AED

Total: 2,900,000 AED net commission

income per month.

HOW IT WORKS

You may be asking yourself, “How is HINAEL able to generate

these kinds of profits in the current market?” and, that’s a great

question

.

Firstly, everyone at HINAEL will prospect! Using HINAEL’s scripts!

Also, HINAEL will join the American Chamber of Commerce as a

premier member and by doing so will have access to a 10,000+

database of Abu Dhabi residents. This equates to a ton of business for

HINAEL. And, of course, our inventory is supplied by the local and

international developers in Abu Dhabi.

HOW IT WORKS, continued

Now the before mentioned only concerns the local market.

Addressing the international market, HINAEL increases the income

projection dramatically.

Being an internationally associated company, right out of the gate,

HINAEL insures the advertisement of Abu Dhabi as an investment

opportunity. International investors, through their local area advertising,

will learn about the advantages of investing in Abu Dhabi properties.

HINAEL will fly pre-qualified buyers and leases to Abu Dhabi on the

UAE’s flagship carrier, Etihad. Once here, they will stay at a designated

4, 5, or 7 star hotel, based on the price range and type of the desired

property.


HINAEL has associated with Abu Dhabi hotels, acquiring corporate

rates and advertising cooperation – both locally and internationally.

When the investor arrives from abroad, he/she is given a weeks’ stay at

the hotel. HINAEL’s sales or leasing agent then spends a day or two

with the investor (driven to showings in a leased, Infinity Q50 or Q60

hardtop convertible with navigation) until a property is closed upon, at

which time, the investor then enjoys area attractions (safaris, cultural

exhibits, etc.) at HINAEL’S expense. This insures client/customer

satisfaction and retention.

This same applies for Abu Dhabi residents that seek worldwide

property investments and opportunities.


The motivation for Abu Dhabi resident investors may be slightly different

than our international investors coming from abroad. That is, there are visa

programs in western and other countries, such as the visa program in the

United States. When a foreign investor buys a property for $500K or more in

the US of A, they automatically get a resident visa.

This is advantageous for various reasons, one being the UAE resident

family that have college age children and seek a university in the States. Of

course the future student will have a student visa, but the parents now enjoy a

resident visa. Furthermore, should the family have other children approaching

college age, they can use the home or apartment investment for years, selling

after the needs are filled, and typically, at a substantial return on investment.

There is a 10% Foreign Investment Tax that is charged when the property

is sold, but the property will have increased (typically) in value and this tax will

be more than covered.


As mentioned, other countries also have similar visa programs. But

regardless, the rate of return on any foreign investment is motivation enough to

attract customers. HINAEL does its research in international markets!

Now, let’s go back to the hotel programs and see why local hotels want to

associate with HINAEL. There are 3 ways that hotels benefit from associating

with HINAEL…

1. HINAEL offers free accommodation to pre-qualified investors from abroad

for one week.

2. HINAEL offers “contests” for local investors and those seeking personal

accommodation, on the radio, in magazines and on outdoor advertising.

Once pre-qualified, these local investors also enjoy a “Stay-cation” of one

week at a local hotel, at HINAEL’s expense and,


3. After one year, the previous years’ clients, that have closed a transaction

with HINAEL, will enjoy a three day “Stay-cation” at one of the area hotels.

The hotel will be selected based on the closed transaction price.

These programs will create additional “room nights” for the hotels as follows:

Program 1. 4 transactions per agent per month times 1 year equals 960

transactions times 5 nights’ stay (the “one week) equals 4,800 room nights per

year.

Program 2. 8 transactions per agent per month times 1 year equals

1,920 transactions times 5 nights’ stay equals 9,600 room nights per year.


Program 3. 200 office transactions per month times 1 year equals 2,400

transactions times 3 nights’ stay equals 7,200 room nights per year. (This also

included those clients that have purchased or leased HINAEL listings, rather or

not the transaction was closed by a competing brokerage – and , this number is

not included in the calculation but shall be an added bonus for the hotels.)

Therefore, a total of 21,600+ additional room nights for 10 selected

Abu Dhabi hotels will be distributed based on an approved distribution schedule

(approved by myself and the partner group). This will be a great thing for the

community of Abu Dhabi as many people from many areas of the world will be

made familiar with our culture, people and community!

THE HOME BENEFITS PROGRAM (Another reason people will want to use HINAEL.)

When a client locally or from abroad purchases or leases property through

HINAEL Luxury Properties Sales And Leasing, LLC, they automatically qualify

for discounts at home and garden stores and services.

Here in Abu Dhabi, HINAEL has associated with companies like H2O

Concepts, iDesign, Royal Furniture, Ace Hardware, IKEA, general maintenance

and landscaping companies, etc.. Discounts range from 10 to 15% for clients of

HINAEL.

This program will be built upon, associating with similar companies

internationally.

HINAEL OFFICE LOCATIONS AND RATIONALE

HINAEL has leased with two solid companies. First, with Regus

Executive Business Centers. Our location is at the Al Arjan Building (same

building as Union National Bank) on Defense Road. The obvious benefit of this

association is the fact that Regus operates facilities in over 3,000 international

locations. Therefore, when our sales people travel to their respective countries,

they have an office where business can be transacted.

Secondly, HINAEL’s headquarters is located in the new ADCP building

(currently accommodating the Las Vegas Gym) on Muroor Road, opposite of

Emirates Discount Store. This space is 398 sq. meters and is perfect for the

layout of a brokerage. Currently concrete and rough utilities, this is a buildout

project with an expected time frame of 30 to 45 days.

THE INTERNAL WORKINGS AND PHILOSOPHIES OF

HINAEL, LLC

Recruiting for the positions within HINAEL has been meticulous and

specific. The first requirement is that the future employee have a “good heart”.

This character trait is obvious within the first few minutes of conversation.

I believe that any person can be taught a skill or taught to complete a

task, therefore, it was important to me that we have people that our clients and

associates will appreciate and remember. Good hearted people are memorable

and appreciated, it’s a statistical fact!

Sales and leasing agents have an additional requirement, that they be

handsome or beautiful. Clients buying or renting luxury properties expect it.

Therefore, all sales and leasing agents are either very handsome or drop-dead

gorgeous!


HINAEL, LLC, continued

The drivers of the Infinity Q50s and 60s have been recruited from the

Abu Dhabi taxi companies. A criteria of a minimum of 5 years driving

experience in Abu Dhabi was/is required.

And finally, the other admin positions within HINAEL are experienced

in their fields and hand-selected. For example, Iven – our marketing director,

has been in the business for 10 years and brings with him extensive marketing

experience in the real estate field. Melissa, our international director, runs her

own company in Dubai and is well-versed in international relations.


HINAEL, LLC, continued

REQUIRED TRAINING AND EXPECTATION OF HINAEL, LLC EMPLOYEES

Every employee of HINAEL is required to learn the prospecting and customer

relations scripts of the company. Every employee shall prospect and be able to

accommodate any customer related question or inquiry. Furthermore, every employee

shall participate in sales training, goal setting and HINAEL’s unique Dreams Realization

Course.

I don’t expect any employee to be with the company for longer than two years.

I expect them to leave and pursue their own dreams. I believe that our purpose on earth

is to help others and that by doing so, our own joy and light expands.

There are many other specific training requirements and aspects of the

company that will not be mentioned due to trade secrets and confidentiality reasons.

REQUIRED TRAINING AND EXPECTATION OF HINAEL, LLC

EMPLOYEES, continued

I hope you have enjoyed reading about HINAEL. If you are associated in any

way, I hope it is beneficial to your own goals or aspirations. If you have an idea or dream

of your own, and want to achieve it, please give me a call or send an email.

- Mike Hinton, Founder of HINAEL: 971 55 335 5763/5793

[email protected]

hinael luxury properties sales and leasing, llc pp

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