Unique Business Model Thrives
By Brian Peavey
Are you crazy?! Giving away money in the form of profit sharing seems like a ludicrous way of making more money but we are experiencing this phenomenon in Boise, Idaho at ProfitShare, LLC.
ProfitShare is a group of ethical investors who buy houses, renovate them, and resell them in a socially responsible way. Because of this core value we operate differently. Like other real estate investors, we buy houses at current fair value, renovate it, and then resell it for a profit. But what makes us different is that we share some of the profit we make with the people we bought the house from originally. Because we believe if we give back to the homeowner, we are helping the community.
We have been involved in construction and all facets of real estate investing collectively for over 40 years, specifically in Idaho. We know the market, we know the industry and we grew up in Idaho and care about our community. By working with us, homeowners sell their homes quickly for a fair price without staging, without doing any repairs, without paying realtor commissions and they even receive an extra bonus check a couple months later.
Just like in a typical real-estate transaction, we use a standard realtor approved Purchase and Sale Agreements with closings at professional title companies. We handle all the paperwork and we partner with several private lenders to close quickly with confidence. The difference being that we offer a share of our profits to the seller, which is paid once we remodel and resell the home.
The reason why we make MORE money by sharing our profits is because in the highly competitive Boise market (average inventory is currently hovering around 1.1 months and a balanced market typically has 5-6 months of available inventory) we have the opportunity to work with more homeowners. They are looking to maximize their profit and therefore we have an opportunity to work with them when we may not have otherwise.
Secondly, economies of scale provide us with negotiating leverage with our suppliers and contractors. The more business we conduct with them, the greater the opportunity to realize cost savings as well as increased productivity. Our contractors focus on our projects because they know there is more work available. We are able to reduce costs by buying carpet, appliances, cabinets, etc. in bulk because of the volume of our business.
Lastly, it is the right thing to do. People want to work with and support ethical businesses. Given a choice of a buyer who is looking to buy homes at rock bottom prices and take advantage of those in need, and a buyer who is looking to create a win-win scenario, we believe homeowners have an easy choice and a beneficial one in ProfitShare.
Next time you are looking to put your money in action, do your research and choose a socially responsible and ethical business to work with because it will make you feel good and you can make more money by helping others.
ABOUT BRAIN PEAVEY:
Brian Peavey grew up in Boise, Idaho since 1976 and has over 22 years in real estate, first as a Realtor and then transitioning to work in development, remodeling and property management. He holds a B.S. in Business Economics from Willamette University and an M.B.A. in Project Management from Keller Graduate School of Management. His daily responsibilities are to track real estate trends in the industry as well as local market activity, identify viable market opportunities, analyze project projections, track remodel progress, market properties for sale, negotiate contracts, safeguard expedited and cost effective closings, and ensure partner satisfaction. Brian and his wife Elisa live in Bend, Oregon now and he enjoys rafting, skiing, hiking, playing basketball and watching his three little girls grow up.
For More Information Visit: http://www.profitshareforowners.com