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EXECUTIVE SUMMARY 2013An in-depth look at an emerging start-up and opportunity to invest in an early-growth Risk Mitigation Company
Decrease in Apartment Development
-4%
NOTES FROM OURCHEIF EXECUTIVE OFFICER
Larry went to friends and family to seek a guarantor for his lease without success. He had no options until his landlord shared with him LeaseLock®. After a successful application Larry moved into his new home. Larry’s full story can be seen at www.leaselock.com.
Introducing the most exciting new
guarantee program for leasing apartments: LeaseLock®
In conjunction with a worldwide rated reinsurer, and with the
association of Mucker Labs, LeaseLock® has created a program that assists credit challenged individuals, foreign nationals and those who don’t meet the required qualifications to lease their home, by providing landlords with the guarantee they seek in order to lease to the applicant.
Attached you will find the full LeaseLock® story, a very exciting investment opportunity, which we hope you will consider.
Our association with Mucker Labs is as exciting as our product. Mucker Labs is a nationally renowned business incubator. They only associate themselves with approximately 7 – 14 companies a year, and the success of these associations can be viewed at www.muckerlabs.com.
So please take the time to read the attached executive summary, visit the various websites and become a part of history.
Representatives from Brolacky Investment Group, one of our financial advisors, will be contacting you to discuss this great opportunity.
Reichen LehmkuhlChief Executive Officer
The LeaseLock® Team recerntly designed and implemented a web-based video is the first thing any visitor to our site will see. Our team spent several days working on this animated video about our product.
In our video, ‘Meet Larry,’ needed
to move into a new apartment, but because of his credit rating, he found did not qualify him for the
Since 2011, the percentage of U.S. Renters has risen to almost 35%—the highest rate since
1995.
Since 2008, there has been a 4% decrease in Apartment Developments across the U.S.
35%increase in U.S. Renters in 2011
Reichen LehmkuhlLeaseLock®’s CEO and Founder
THE CHANGINGU.S. RENTAL
Since the economic downturn of 2008, the U.S. Rental Market has drastically changed. Not unlike Europe, the U.S. is becoming a more “renter-based” community. More people are realizing that owning a home isn’t all that it promises. In an ever-changing economy, U.S. residents are beginning to move into apartment communities across the country. In 2012, the total annual revenue generated from Renter-Occupied unites was $537Billion. This ever increasing amount represents revenue generated by over 36 million apartments across the U.S. The demographic change puts enormous pressure on the rental housing stock, tightening supply, and pushing up rent prices in metro areas across the nation. Furthermore, it puts pressure
on the U.S. Renter who can’t completely qualify for the apartment they dream for. However, thanks to the founders of of the LEASELOCK® GUARANTEE, U.S. Residents and Landlords can move further down the road with this unique offering that will change the way U.S. Residents rent.
$537b
36m
$1231
Total Annual Revenue Generated from
Total # of Apartments in the U.S. that are renter-occupied
Average U.S. Rent per month
1.5 million households are moving into rental properties just in the past year, according to a
Real estate experts and analysts suggest that many people are unable to buy a home. Therefore, the rental
market is expanding and with it the rent charged for a rental unit.
“Investors will increase their holdings in large apartment communities to strengthen their positions during times
of high rental demand,” according to a Jan. 6 article on
INTERESTING FACTS ON THE CHANGING U.S. RENTAL
SAN FRANCIS-
CHICAGO
19,360 Residents need Guarantors
inSan Francisco
82,399 Residents need Guarantors
inChicago
254,468 Residents need Guarantors
in LA Coutny
321,863 Residents need Guarantors
in NYC
$588M $1.6b $4b
SAN FRANCISCO NEW YORK CITY
TOP 4 U.S. RENTAL MARKETS:GUARANTORS AND VACAN-CIES
$20bTotal Revenue
Generated from Residents who need a
Guarantor
Top U.S. Rental Markets Revenue:
Guarantors Needed
15% of all U.S. renters will require a co-signer or guarantor
with their lease. This stastistic is based on the average U.S.
Credit Score.
The following graph shows the total reveneu for this niche..
CHICAGO LOS ANGELES
19,780 Vacant Apartments in
Chicago
4,187 Vacant Apartments inSan Francisco
27,466 VacantApartments in
NYC
69,555 Vacant Apartments in
LA County
$588M $1.6b $1.2b
CHICAGO LOS ANGELES
$3bTotal Lost Revenue from
Vacant Apartments in Top 4 Markets
Top U.S. Rental Markets Rvenue:
Vacancies LostThere is on average a 3%
vacancy rate in the Top 4 Rental Markets in the U.S.
The following graph shows the total reveneu for this niche..
SAN FRANCISCONEW YORK CITY
TOTAL REVENUE FORGUARANTORS AND VACANCIES
IN U.S.
$108b
$24b
Total U.S. Revenue Available for Guaranteed Rental Units and
Filled Vacancies
Total U.S. Annual Revenue from Rental Units using a
Guarantor
Total U.S. Annual Revenue Lost from Rental Unit Vacancies
$23b
TOTAL REVENUE FORGUARANTORS AND VACANCIES
IN
$20b
$3b
Total U.S. Revenue Available for Guaranteed Rental Units and Filled Vacancies
Total U.S. Annual Revenue from Rental Units using a :Guarantor
Total U.S. Annual Revenue Lost from Rental Unit Vacancies:
THE PROBLEM FORRENTERS IN THE U.S. RENTAL
STRICT FINANCIAL
NOT LEGALLY PERMITEED TO PAY ANNUAL RENT
NOT LEGALLY PERMITTED TO PUT ADDITONAL DEPOSIT
HIGHER DEMAND/LESS INVENTORY ON UNITS
IF POTENTIAL RESIDENT DOESN’T MEET REqUIRE-MENTS,
RENT PAYMENTS TO LANDLORD ARE NOT RECORD-ED AND SUBMITTED TO CREDIT BUREAUS
RENTER’S PROBLEMS
THE PROBLEM FOR LANDLORDS IN THE U.S. RENTAL
4% VACANCIES IN THE U.S.
1.7% EVICITONS IN THE U.S.
UNSTABLE CASH FLOW FOR UNITS AND BUILDINGS
LONGER CLOSING TO LEASING PROCESS
CURRENT qUALIFICATIONS MEANS LESS ACCESS TO
LONGER LEASING TIMES FOR NEW RENTAL DEVELOPMENTS TO FILL UP UNITS
LANDLORD’S PROBLEMS
√ Assures Rent Payments
√ Helps Residents
√ Provides Landlord Peace of Mind
THE SOLUTION:THE LEASELOCK® GUAR-
√ Assures Rent Payments
√ Helps Residents
√ Provides Landlord Peace of Mind
LeaseLock® will continue to make monthly rent payments until the end of the lease or the unit is re-
who are re-building their credit ACCESS to lease the apartment that they really want, while allowing them to QUALIFY for the apartment they may not traditionally qualify for.
by EXPANDING the pool of QUALIFIED applicants, while helping to fill VACANT units and STABLIZE CASHFLOW and PREDICT DEFAULTS.
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DEVELOPING THE SOLUTION TO THE U.S. RENTAL MARKET
WHAT ISTHE LEASELOCK® GUARANTEE?
THE LEASE RESIDUAL
VALUE GUARANTEE®
Application is submitted
Underwritting of Applicant
Approval for LeaseLock®
Premium Paid with Deposits on
Resident moves in
Application Submitted for a LeaseLock® Guarantee with an annual lease of
$20,000 lease
Approval of a LeaseLock® Guarantee. Conditions are an extra month of deposit needed to be held by LeaseLock
Applicant pays 10% of annual lease for premium for Guarantee and gives additional deposit to LeaseLock is case of
Resident moves into new apartment.
WHAT ISTHE LEASELOCK® REVENUE With the assistance of specialized insuranceexperts, the founders of LeaseLock® were able to build a revenue model that produes a 66% Gross to Revenue structure after subtracting the cost of sale. consectetur adipiscing elit. Sed et consectetur lacus. ed sit amet nulla vel dolor gravida bibendum. Nunc odio massa, sodales et consectetur a, iaculis eget sapien. Mauris dignissim, arcu id faucibus laoreet,
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Resident’s Annual LeaseLeaseLock® Guarantee Premium
$25,000$2,500 (10%)
Fee to A Rated Carrier for PolicyFee to Reserve Account to meet
$412$412
$1650
LeaseLock® Revenue
WE PREDICT: LeaseLock® knows how much rent the average building will lose with vacant units. With LeaseLock®’s actuaries and underwriting, we are highly knowledgeable in regard to resident default rates
WE STABILIZE CASH FLOW: Because large organizations don’t have to worry about the unpredictability of defaults with LeaseLock® service, therefore better hands on cash.
WE EXPAND THE APPLICANT POOL: LeaseLock® helps property managers and landlords expand the pool of qualified residents. With the LeaseLock® Guarantee, more people become more qualified residents, therefore filling up vacancies.
VALUE OF THE LEASELOCK® PROGRAM
Value to Landlords Value to Residents
WE HELP TO REBUILD A RESIDENT’S CREDIT: LeaseLock® works with residents who are building or re-building their credit while helping landlords rent their units with the confidence of knowing that rent payments are guaranteed.
WE HELP RESIDENTS QUALIFY FOR THE APARTMENT THEY WANT: LeaseLock® offers a much-needed Guarantee with all the current stringent rules for renting an apartment or home in today’s marketplace.
WE HELP LANDLORDS BY OFFERING A GUARANTEE: We qualify applicants with a LeaseLock® Guarantee that in the event of default on their rent, LeaseLock® will continue to make the rent payments on-time and monthly.
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$25,000$2,500 (10%)
$412
LEASELOCK®’S TARGET CUSTOM-
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ipsum. Nam vehicula lorem erat, a consectetur libero. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed et consectetur lacus. S
ed sit amet nulla vel dolor gravida bibendum. Nunc odio massa, sodales et consectetur a, iaculis eget sapien. Mauris dignissim, arcu id faucibus laoreet, justo tortor imperdiet tellus, et egestas quam velit ac ligula. Quisque auctor.
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Distant Bankruptcy
Marginal CreditHas cash on hand
Full-time Employment
Foreign NationalsNo U.S. CreditHas cash on handFull-time Employment
Full-time StudentsU.S. Credit is just becoming establishedHas cash on hand or Parent has cash on hand
RetireesMarginal Credit
Has cash on handNo Current-Employment
Recent College GradThin CreditFull-time EmploymentCash on Hand
EntrepreneursMarginal Credit Has cash on hand
Proof of steady owner operated business
DivorceesMarginal Credit
Has cash on handFull-time Employment
Individuals repairing their
creditMarginal Credit
Has cash on handFull-time Employment
Recent College GradThin CreditFull-time EmploymentCash on Hand
HOW WEMITIGATE OUR RISK
LEASELOCK® FEE COLLECTED: One month risk covered
STRICT UNDERWRITING: LeaseLock will not approve an applicant with bad credit and no cash on hand
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ipsum. Nam vehicula lorem erat, a consectetur libero. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed et consectetur lacus. S
ed sit amet nulla vel dolor gravida bibendum. Nunc odio massa, sodales et consectetur a, iaculis eget sapien. Mauris dignissim, arcu id faucibus laoreet, justo tortor imperdiet tellus, et egestas quam velit ac ligula. Quisque auctor.
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2013 2014 2015 2016
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REACHINGLEASELOCK®’S MILESTONES
78%
Los Angeles
78%
New York City
60%
San Francisco
50%
Chicago
78%
LEASELOCK®FINANCIALS
2013 2014 2015 2016 2017
$484k
23%
23%
23%
$484K LeaseLockRevenue $1.2M $1.2M $1.2M $1.2M
$1.2M
POSSIBLEEXIT STRATE-
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NYSE IPOSuspendisse congue
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PELLENTESqUE SCELERISqUE
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PELLENTESqUE SCELERISqUE
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1.5 million households are moving into rental properties just in the past year, according to a recent report by Freddie Mac. Aliquam varius adipiscing tempor. Vivamus id ipsum sit amet massa consectetur porta. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Praesent dignissim ultrices neque. Aliquam auctor congue nunc sed interdum. Aenean sagittis gravida est, sit amet egestas metus venenatis non. Mauris non leo malesuada orci laoreet eleifend eget mattis ipsum. Nam vehicula lorem erat, a consectetur libero. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed et consectetur lacus. S
THE LEASELOCK®
Peter Mansfield
CMO, Co-FounderKeith D. Black
COO, Co-Founder
Reichen LehmkuhlCEO, Founder
1.5 million households are moving into rental properties just in the past year, according to a recent report by Freddie Mac.
1.5 million households are moving into rental properties just in the past year, according to a recent report by Freddie Mac.
1.5 million households are moving into rental properties just in the past year, according to a recent report by Freddie Mac.
CORE TEAM
ADVISORY TEAM
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