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| Q: |
Who is THE REAL MARKET
EXPERTS (RME)? |
| A: |
The Real Market Experts Franchise, Inc.™
was created to develop a unique Franchise opportunity
for a select group of real estate professionals. RME
has created a proprietary system, utilizing the Investor
Concierge™, which enables savvy real estate
professionals to offer properties to permitted investors
through a sophisticated web-based technology system.
RME has a license to use the Investor Concierge™
in connection with the operation of the RME System. |
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| Q: |
Is RME a division or
subsidiary of Nouveau Riche? |
| A: |
No. Although, RME is affiliated with Nouveau
Riche, it is a completely separate company. |
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| Q: |
Who is the executive leadership
of RME? |
| A: |
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| Q: |
Where is RME headquarters? |
| A: |
15011 N. 75th Street
Scottsdale, AZ 85260
Corporate phone: 480-214-2100 |
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| Q: |
What is the franchise opportunity?
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| A: |
RME will offer to qualified business persons
an opportunity to acquire, renovate, manage and sell
real estate to permitted investors, that are located
through the Investor Concierge™, and
to provide those investors with various real estate
related services. |
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| Q: |
Can I work at home part time
and own a RME franchise? |
| A: |
No. RME requires franchise owners (or an approved
Operating Manager) to work full time from a professional
office. |
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| Q: |
What type of real estate will
franchisees focus on? |
| A: |
The initial focus of the franchise offering shall
be on residential real estate (including apartment buildings
and other real properties consisting of multiple residential
dwelling units), although commercial real estate activities
may be added to the sales portfolio at a later date. |
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| Q: |
How are territories determined?
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| A: |
Territories are determined based on population in
specific areas (typically by counties). Two different
types of territories are being offered at this time;
Level 1 Regional Territories, which consist of an area
with less than 1,000,000 people and Level 2 Regional
Territories, which consist of an area with at least
1,000,000 people but not more than 4,000,000 people.
All population determinations will be based on the most
recent United States Department of Commerce Census Bureau
census data at the time you sign the franchise agreement
and shall not be affected by subsequent changes in population. |
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| Q: |
What specific territories /
locations are available? |
| A: |
The following list contains states that RME
has not yet received a valid registration from the
responsible governmental agency or received the required
exemption from the business opportunity law (i.e.
no franchise can be offered in these states at this
time): California, Connecticut, Hawaii, Illinois,
Indiana, Kentucky, Louisiana, Maine, Maryland, Michigan,
Minnesota, Nebraska, New York, North Carolina, North
Dakota, Rhode Island, South Carolina, South Dakota,
Virginia, Washington, and Wisconsin.
RME currently has franchises already committed
in the following locations: Phoenix, Utah, Cincinnati
- Ohio, Atlanta - GA. RME currently has franchises
coming soon to the following locations: Idaho, Oklahoma,
Vegas and Central Florida.
All other locations are currently available for
new franchises. |
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| Q: |
How much money can I make? |
| A: |
Neither RME, nor any of its authorized sales
agents, may furnish any oral or written information
concerning the actual or potential sales, costs, income
or profits of a THE REAL MARKET EXPERTS facility. Actual
results vary from facility to facility and we cannot
estimate the results of any particular franchise. Existing
Investor Concierge™ partners that have
operated a similar type business may answer questions
related to this topic. |
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| Q: |
What type of training and support
would I receive as a franchisee? |
| A: |
Five day initial training session, complete training
manual, team conference calls twice monthly, telephonic
support from corporate, and periodic additional training
and conferences. |
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| Q: |
How much does a RME
franchise cost? |
| A: |
The following table is described in Item 7 of the
UFOC. |
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WHOM PAYMENT IS TO BE MADE |
| Initial Franchise Fee |
$250,000 to $400,000
(Note 1) |
Lump Sum |
At execution of franchise agreement |
Us |
| Real Estate and Improvements |
$1,000 to $6,000
(Note 2) |
Lump Sum |
Prior to opening |
Landlord |
| Food & Lodging (2-4 persons
while training, including cost of transportation) |
$3,600 to $5,000 |
As Incurred |
During training |
Hotels, restaurants and transportation
provider |
| Furnishings, Fixtures and Equipment |
$2,000 to $6,000 |
Lump Sum |
Prior to opening |
Suppliers, contractors |
| Supplies |
$1,000 to $2,000 |
As incurred |
As incurred |
Suppliers |
| Computer Hardware/ Software |
$3,675 to $6,675 |
Lump Sum |
Prior to opening |
Suppliers |
| Insurance |
$4,000 to $8,000 |
As incurred |
Prior to opening and ongoing |
Insurance agents |
| Miscellaneous Opening Costs |
$2,200 to $5,000
(Note 3) |
As incurred |
As incurred |
Suppliers, utilities, tradesmen |
| Additional Operating Funds –
6 months |
$74,000 to $100,000
(Note 4) |
As incurred |
As incurred |
Suppliers, landlord, utilities
and employees |
| Total Estimated Initial
Investment (Note 5) |
$341,475 to $538,675 |
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NOTES:
- The Initial Franchise Fee includes
access to Investor Concierge™ and
training for 4 persons. See Item 11 of this Offering
Circular for additional information about the Initial
Training Program. See Items 5 and 10 of this Offering
Circular for additional information regarding partial
refunds of this fee and the terms and conditions
according to which we may finance a portion of this
fee. A Level 3 Regional Territory, if offered, will
cost $650,000 per unit. However, Level 3 Regional
Territories are reserved for certain select metropolitan
areas and, if offered, will be offered by a separate
offering document. Therefore, the estimated initial
investment with respect to a Level 3 Regional Territory
is not included in this Offering Circular.
- These figures presume that
you will be leasing the facility. The expense of
leasing will vary, depending upon the size of the
premises, its location, and the requirements of
individual landlords. Landlords typically require
security deposits equal to 1 or 2 months’
rent and may, in addition, require payment in advance
of the first and/or last (or more) month’s
rent. The total estimated initial investment shown
in the chart above includes these amounts. Some
franchisees prefer to own the facility premises
in which they will operate. The costs of purchasing
vary so widely as to preclude reasonable estimation
by us. Regardless of whether the facility premises
are leased or purchased by you, a typical THE REAL
MARKET EXPERTS facility consists of an executive
suite with conference room availability. The facility
must have sufficient workspace for between 5 and
9 employees. The cost of leasehold improvements
will vary widely depending upon the size and condition
of the premises, whether or not there are any existing
and comparable leasehold improvements in the premises,
the extent and quality of improvements desired by
you over and above our minimum requirements, landlord’s
cash contribution to the cost of the improvements,
and the like.
- Includes security deposits,
utility costs, business and real estate licenses,
incorporation, legal and bookkeeping fees and miscellaneous
association dues.
- This estimates your expenses
during the first 6 months of operation. These expenses
include payroll costs (excluding any wage or salary
paid to you), working capital for items such as
purchasing and renovating property, and other miscellaneous
expenses, and assume a low of $1,500 and a high
of $4,000 for rent each month. These figures are
estimates based on our principals’ past business
experience of operating businesses that were similar
to a THE REAL MARKET EXPERTS facility, and we cannot
guarantee that you will not have additional expenses
starting the business. Your costs will depend on
factors such as how closely you follow our methods
and procedures; your management skill, experience
and business knowledge; local economic conditions;
the local market conditions; the prevailing wage
rate; competition; and the sales level achieved
during the initial 6 month period.
- Except for the initial franchise
fee, we do not offer direct or indirect financing
to franchisees for any of these items.
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| Q: |
Will additional working capital
be required after the initial franchise fee and investment,
and if so, how much? |
| A: |
Yes. Additional working capital projections are detailed
in Item 7 of the UFOC, as outlined in the previous question.
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| Q: |
Is financing available for
the purchase of a franchise? |
| A: |
If you meet our financial requirements, we may finance
up to 50% of the franchisee fee. Details are described
in the UFOC. |
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| Q: |
Are there ongoing franchise
royalty fees? |
| A: |
Yes. This information is contained in Item 6 of the
UFOC. |
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| Q: |
What types of skills is RME
looking for in franchisees? |
| A: |
Business management experience, real estate investment
experience, preference for hands on owners, strong local
contacts a must, entrepreneurial spirit, strong leadership
skills, and a strong work ethic. |
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| Q: |
If I am interested in a RME
franchise, can I recruit partners to own it with me? |
| A: |
Yes. It is very common for a group of partners, or
an entity, to purchase a franchise. If an entity or
partnership is formed, a UFOC will need to be delivered
to the entity or partners. |
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| Q: |
How do RME franchisees
acquire properties for sale on the Investor Concierge™? |
| A: |
THE REAL MARKET EXPERTS franchisees will obtain
properties utilizing many different strategies, including:
- Create strategic relationships with property wholesalers,
- Create strategic relationships with builders and
developers,
- Create strategic relationships with real estate
agents,
- Obtain pre-foreclosures and foreclosures through
various acquisition
and marketing strategies (including short sales)
All of these strategies are explained in the 5 day
initial training |
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| Q: |
If I am interested, what do
I do next? |
| A: |
Request and return a Confidential Pre-qualification
Questionnaire, Request a Uniform Franchise Offering
Circular (UFOC) and sign the receipt, review the UFOC
and franchise agreement, sign the franchise agreement
after you have had at least 10 business days to review,
pay the franchise fee, attend and successfully complete
the five day training session, and open your office! |
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