Of course, all decisions of this magnitude will be addressed and decided by our Board of Directors. However, the following three scenarios encapsulate what we believe to be the most likely exit strategies: Hold and Maintain: This business model has the potential to generate such enormous returns for investors that a convincing argument could be made [...]
We have projected 70 markets will be launched in the Investor Presentation, however, we believe we can potentially complete the national rollout within the 5-year time period shown. We do not foresee financial limitations due to the asset and capital efficiency of the business, operating margins, the first mover advantage, and interest from others in [...]
A: HouseCheck leverages strategic relationships with industry leaders to manage many of the operational processes that propel the business model. The benefit here is that many processes that would typically be operational risks in a traditional start-up are instead outsourced to leading service providers in the industry who already provide services to a large percentage [...]
This can’t be adequately answered until the future financing occurs. The convertible notes convert at either a discount of 25% (under the per/share pricing at the next round) or at a cap of a $12MM pre-money valuation. A best guess would be that the $4MM will convert into somewhere between 18% to 25%. [...]
Yes. If anything, we believe they’re conservative. The difference between HouseCheck and the typical start-up is that unlike many other start-ups, our product -- home inspection -- isn’t being invented or re-invented. We are simply stepping into a function that already exists in great volume and making it better. We improve the process in every [...]
Currently, home inspectors are spending approximately 15% to 20% of their income on their own business expenses. Many are skilled home inspectors, but most are not experts on back office processes and marketing. HouseCheck provides inspectors total back office support while creating a marketing machine that will increase the number of inspections for the inspector. [...]
Salt Lake City, Phoenix, Sacramento, Seattle, and San Diego are currently finalists for our next markets. These markets have various characteristics that make them attractive to HouseCheck as learning laboratories, incubators, and/or revenue generators.
Studies of U.S. markets focusing on population and consumer behavior indicated that Boise offered favorable demographics for our initial test market. In addition, Boise’s geographic isolation has allowed HouseCheck to operate “under the radar” while experimenting with the finer points of the business model. Boise’s small size and isolation have proven to the perfect environment [...]
The investment community has been increasingly interested in the “roll-up” concept across a variety of industries; we feel that the home inspection industry has been overlooked despite possessing enormous value as a roll-up. Additionally, the home inspection industry is ripe for standardization and modernization.
