The City Broker Executive Summary

For more information contact: Dan Gordon [email protected]

Executive Summary

March 2009

The City Broker Building an exclusive Internet promotion and lead generating system for deployment in local real estate markets. The Problem

Target Market

The Real Estate market is experiencing significant changes. Despite declining prices, sales are down, lenders are tightening up, and REALTORS are scrambling to leverage any and all available technologies to increase their access to qualified leads.

Three separate market categories exist: the “hot” REALTOR, the “recession” REALTOR, and the “successful” REALTOR . The “hot” REALTOR already has a plan in place and is using the Internet to their benefit; the “recession” REALTOR still has a license but is working at Loweʼs to make ends meet. The “successful” REALTOR is still making a living in this tough market and can see the industry transitioning around them but doesnʼt have the tools, time or money to do anything about it. The latter is the prime target market for our services.

The Opportunity The City Broker combines the quality tools and resources of a high-volume national company website with an emphasis on the area and attractions that local REALTORS rely on when converting buyer to owners. This is done, not through one corporate supersite for the whole country, but by building a website for each market (as defined by a combination of MLS zoning and search engine traffic). Each site will be licensed to 1-6 local REALTORS and 1-6 Loan Officers (Members), depending on respective market size, for a low monthly fee; the leads from which are equally divided among the members with the loan officers and REALTORS sharing the same leads. Why build 100ʼs of websites instead of one mother ship with sub pages? • • •

SEO optimization – the ability to optimize each URL for the local market. The landing page is customized specific to the area (map, pics, featured homes) Members will take personal ownership of each site helping to promote it both in the local community and on the Internet

Competition Internet-based Real Estate competition varies greatly from area to area. Obtaining market share in large metropolitan areas is very difficult due to the sheer volume of competitors; however, many of the smaller communities are not so competitive (yet). The City Broker is facing competition from two primary sources, the large national companies and the individual REALTORS hosting their own website in small markets. The City Broker is focusing on the technological gap between the two. The national companies have large marketing and development funds to create state of the art tools while the individual REALTORS have local area knowledge but lack the time, money and experience to gain access to a custom IDX search engine. The City Broker aims to make a Web 2.0 Internet Application available to local REALTORS in an affordable package while taking care of the infrastructure for them.

Executive Summary | March 2009

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Financials

Road to profitability in 90 days

$75,000 total request: • $54,000 payroll for four for 90 days -----------------------------------$8,000/mo. for Sales $7,000/mo. Programming $3,000/mo. Design & SEO -----------------------------------• $8,000 legal contracts, offering prospectus, online EULA. • $8,000 for IDX feeds in WA and UT • $5,000 for office rent, travel, telephone services, site hosting and miscellaneous expenses.

Day 1-30: $10,000 monthly gross revenue from 40 Members in the Utah market at $250 per month. Day 31-60: $20,000 monthly gross revenue from 60 Members in the Utah market and 20 Members in the Washington market. This represents a total of 15 websites in Utah in addition to 5 sites in Washington focusing on the Seattle metro area. Day 61-90: $30,000 monthly revenue from an additional 40 Members in the Washington market, for a total of 30 websites and 120 Members.

40000  Days 1-30

31-60

61-90

30000 

20000  Personnel

Legal

IDX

Discretionary 10000 

The Offering 7.5% equity ($1mm post-money val.)

Current Status

0 

‐10000 

The City Brokerʼs Internet Application has been under development for six months. The site template is in beta testing now and the IDX database is under construction for both Washington and Utah.

‐20000 

‐30000  URLs for all targeted markets in Utah, as well as preliminary targeted markets in Washington, have been acquired. Sales have started in the Utah market and 10 Letters Of Intent have been signed and received. The process of generating the legal contracts is underway and initial revenue receipts are anticipated within two weeks.

Executive Summary | March 2009

‐40000  Gross Revenue

Expenses

Net Revenue

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Company Founders

Board of Advisors

Dan Gordon After graduating with distinction with a Bachelor of Science degree in aeronautical engineering from the United States Naval Academy in 1994, he went on to complete a Master of Science degree in aeronautical engineering from the Navy Post Graduate School in 2004 and is a graduate from the United States Naval Test Pilot School. Mr. Gordon has 15 years of Naval Service as a professional fighter pilot with over 2000 hours in the F/A-18 Hornet and Super Hornet. Dan is the lead programmer for The City Broker front-end infrastructure.

Brian E. Lewis, Business Development Mr. Brian Lewis focuses his practice at Rosen Lewis, PLLC on the business needs of media, entertainment, and technology clients. Mr. Lewis counsels a wide variety of clients on issues relating to trademarks, copyrights and publicity rights; patent management and licensing; licenses and contracts; corporate formation, financing, mergers, and acquisitions; advertising and media law; contests and sweepstakes; and the Internet. His clients have included computer hardware, software, and networking companies; board and video game companies; magazine and book publishers; and authors, artists, athletes, film makers, and musicians. Mr. Lewis was previously vice president of Business Development & General Counsel for Wizards of the Coast, where he provided counsel for ten years. He is a graduate of Seattle University School of Law and served on Law Review. He received his undergraduate degree in Mechanical Engineering from Michigan Technological University prior to working for several years with Boeing, where he co-chaired the 777 fuselage design team. Mr. Lewis is on the Executive Committee of the WSBA Corporate Law Department Section, the ABA Cyberspace committee, and works with several non-profit organizations.

Scott Gordon After serving honorably in the United States Air Force as a Korean linguistics specialist for 8 years, he entered the real estate industry where he has accrued nearly 12 years experience, most recently with his familyʼs real estate development company in Bellingham, Washington. Scott is the lead salesman for The City Broker. Initial Team Aaron Radich, Technology With over 19 years experience in computer development, corporate software, corporate MIS, and vertical market software (collection industry, property management, and equipment management) heʼs spent the last four years designing the software behind the MJM Fantasy Sports network. He graduated from Central Washington University with a major in Business Administration and a minor in Computer Science. Aaron is the lead programmer and database administrator for the backend infrastructure. Sean Simmons, Design and SEO With nearly 10 years experience as a digital design generalist consulting across a number of industries, and expertise ranging from 2D/3D graphic design to video editing, compositing, and encoding to identity and marketing solutions, heʼs spent recent years working on advanced UI/UX designs for patent pending web-based content distribution technologies. Sean is the companyʼs lead designer as well as its chief SEO and marketing strategist.

Matthew Jellett, Intellectual Property Counsel Mr. Matthew Jellett is a patent attorney and a past structural engineer. He has more than 13 years of practical work experience in engineering and law. Mr. Jellett focuses his legal practice on counseling and acquiring intellectual property rights, including patents, trademarks and copyrights. Mr. Jellett regularly acquires patents for U.S. companies here and abroad, having expertise in handling Patent Corporation Treaty filings. He also secures trademarks for protection here and abroad, having experience filing under the Madrid Protocol. With regard to copyright, Mr. Jellett has advised on simple literary works, entertainment licenses, and complex architectural copyright issues. He has experience handling intellectual property due diligence during mergers and acquisitions of companies in the Energy sector. Mr. Jellett holds a Juris Doctor degree from Seattle University Law School and two Bachelorʼs degrees from Texas Tech University, one a Bachelor of Science degree in civil engineering with a structures specialization, the second a professionally accredited Bachelor of Architecture degree.

Executive Summary | March 2009

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