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North America’s Real Estate Alternative to Franchises turn-key brokerage | one-time fee | lifetime business support | greater prots

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SPR Goldsboro

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North America’s Real Estate Alternative to Franchises

turn-key brokerage | one-time fee | lifetime business support | greater pro!ts

vision and milestones

to build an international real estate brokerage network that provides

current broker owners and start-up brokers a viable, low-cost

alternative to traditional franchise options; while providing greater tools, support and pro!tability

through a managed services and agent productivity platform.

•  formed in 2009 as Berube and Company, REALTORS •  developed managed services platform •  opened Savannah office with investors in 2010 •  sold Washington, DC beltway market in 2011 •  changed name to STAGES Premier, REALTORS in 2011 •  formed SRS to support SPR in 2011 •  October 2012 formed serviceWOLF that provides a target

list of 4700+ brokerages to support, convert or top agents to begin start-up brokerages.

•  currently discussing STATE purchase plans with SC and West Florida.

•  closed over $350MM in volume to date •  Recently formed STAGES Premier of CANADA •  Sold the Nova Scotia Province •  Opening STAGES Premier of Nova Scotia and an office in

Halifax •  Expanding into North Carolina

unique growth opportunities

•  growing number of defections from national brands •  explosive number of start-up brokerages expected in the next 10 years •  parallel industries getting into real estate (mortgage, insurance etc.) •  attractive business model for builders and developers •  signi!cant consolidation opportunities exist •  partnership with SRS will provide exposure to many potential owners •  partnership revenue opportunities are unlisted, but signi!cant •  managed services platform greatly reduces !xed OPEX

competitive advantages

•  low barrier to entry •  low start-up costs •  branch in a box •  owners focus on business growth, not non-revenue activities •  pay for support services on a per transaction basis (as needed) •  protected areas •  managed support services •  structured exit “upside” •  world-class technology •  real-time compliance technology •  residual income program for agents based on transactions •  luxury affiliation with duPont REGISTRY

agent bene!ts

•  greater listing and closing support •  better work / life balance – more pro!ts per transaction •  dedicated support services •  turn-key email marketing and crm •  social media management for agent listings •  innovative mobility solutions •  global referral network •  FSBO sales capture programs •  automated lead distribution system •  mobile apps •  buying consortium •  health, dental, vision, life insurance •  RS-5 transaction pro!t sharing through other SPR offices •  on-going training / free to agents •  agent coaching / business planning •  awards and recognition programs •  reduced fee relocation referrals •  international brand – SPR SELECT

trending commission option STAGES CHOICE program

•  fair pricing model, where whereby home buyers and sellers have a choice in their real estate service and typically will pay less that traditional commission rates

•  real estate fees based on on the value of the real estate service and NOT the value of a sellers home, which in some cases, is irrelevant to an agents commissions

•  rebate program that rewards consumers for activities that bene!t the agent and the homeowner

why STAGES Premier instead of going on your own?

•  license not a “franchise” •  consolidated services / economies of scale •  time to cash #ow greatly reduced •  training is real-time instead of wait and learn •  low set-up fees (we put the fees to work for the branch) •  substantially lower overhead over traditional office* •  easy start up – “Branch in a Box” •  world-class technology, world-class human element behind the technology •  network of like minded professionals that want independent ownership, but a brand

affinity •  partnership between corporate and branch, each side has obligations to success •  branch office in communities lessen the emphasis on large operations •  collaborative environment / knowledge sharing •  buying consortium

brokerage growth challenges

START UP or Existing Firm

Ramp Up Time ~6 months to Year

Recruiting 15 - 25 Agents ~ 1 year (best case)

Broker Challenges

•  Motivation vs. Core Competencies •  Competing with Agents •  Tools and Support to attract producing agents •  Sales Management and Business Expertise not

there •  Consistency of Services as compared to more

established Brokerages •  Money = Time / Distractions

Future Growth requires Broker Focus on Non-Rev efforts

average national OPEX metrics

•  salaries and payroll 41.7 17 •  advertising and marketing 10 5 •  occupancy 27.1 18 •  other 15.8 8

94.6 48% on average, the SPR brokerage will see a 38.6 to 47% improvement in closed gross pro!t (cgp) to the bottom line of the brokerage. this is based solely on hard cost savings. other bene!ts to add to total revenue not considered, but realistic – increased agent roster size and utilization, increased side per agent, lower payroll and other employment expenses, reduced !xed expenses for agent support services.

target audience

•  agents looking to expand their real estate business from an agent status to ownership of their own brokerage, but are fearful of large cash outlay, lack of systems knowledge, extended time frames to get brokerage components in place and feeling of isolation in the industry.

•  brokers, currently in franchise models (which follow traditional models mostly associated with brick and mortar operations, large staff, high turnover in agents) who are looking for a real estate business that offers a “plug and play” system that keep start up and operational costs low, and agent recruiting and retention levels high.

•  franchise conversions

managed services - branch

R E A

U S A

P R E M I E RL T O R S ®

Managed Services - Branch Levela better real estate experience

STAGES Premier, REALTORS USACorporate O!ces110 Hammond Dr. NESuite 410-143Atlanta, GA 30328

[email protected] (697.8243)

Agent Management

Distribute and Collect all new hire paperwork Process all forms and add to Associate Branch File (cloud server) Transfer any listings into company from previous brokerage Build agent pro"le in brokerWOLF Build agent website and make branch updates in globalWOLF (template) Email agent Welcome Pack containing all new logins, passwords and company messages New agent announcements to company and agent email databases

Process Agent Billing (Broker Charged Monthly Fees)

Out-process departing agents

Listing Management

Build transaction management checklist Enter listings into MLS and Paperless Transaction Management System (PTMS) Enhance listings in WOLFconnect and globalWOLF Create property webpage in WOLFconnect / mapping / enhancements Create o!ce slideshow / virtual tour deck (if applicable) Create Just Listed e-#yer and send to o!ce / agent databases Maintain listing process checklist / audit for completeness and timeliness Email 30/60/90 day listing review reminders to agents Create property #yer / postcards, send hi-res PDF to agent / print house (upon request) Manage / update and enhance any brokerage syndication subscriptions Manage all communications with MLS

Closing Management

Paperless transaction administration and closing checklist audit Provide broker with "le completness reporting and enforcement tools Update / remove listing from marketing / syndications when sold/exp/wd Update property status with MLS

Closing administration in brokerWOLF HUD update, commission reconciliation Commission disbursement (EFT) (Optional) Package and Distribute Closing Documents (CD) Just SOLD E-Flyers / Social Media and MLS Updates File Closing Management Corporate Cloud

Accounting ComplianceMaking sure your STAGES o!ce is in compliance with the various boards, commissions and state entities, is an often overlooked element of running a brokerage - until it is TOO late. STAGES Compliance Services makes sure the details are handled - Commissions Management, MLS and State Board Compliance, Agent Licensing, Expense Management and Tracking, 1099 issuance and much more - all included for being a STAGES branch.

Technology Management (see branch / services pricing for any additional cost details)

Branch Technology Platform Administration Telephone System Email Systems Set-up of Branch Facebook, Twitter, Google+, Instagram and Pintrest Listing Syndication Management Mobile Phone Application Set-up and Lead Distribution

Cloud server set-up and Management MLS Coordination and ongoing issue management

naturesig

Specialized all-inclusive virtual assistant services for busy real estate professionals and teams.

•  agent management (virtual hr department) •  listing management •  closing management •  technology solutions and management •  accounting and compliance

•  license model, not a “franchise” •  set-up fee goes to work for the branch

•  majority of OPEX collected on a per transaction basis •  reduced staff / occupancy costs •  creates more efficient and consistent consumer experience

agent productivity services

•  agent support at transaction level •  social media and marketing •  contract to close •  business planning

•  cost effective support services for busy agents and teams •  billed at transaction closing •  reduces license law risk for brokerages •  dedicated staff

R E A

U S A

P R E M I E RL T O R S ®

@stagesrealtors /stagesre stagesre.com/blog m.stagesrealtors.com

a better real estate experience

Signature $185Signature Social $270Signature Select $750Contract to Close $385 one-side $490 two-sides $160 terminated

Agent Website $300Website Maintenance $30 per hourAgent DB Marketing $150 per monthAgent Social Postings $20 per listingAgent CRM Campiagn $300 one time set up Listing Book $250

GeneralS ervices $30 per hour

.

Signature Package Pricing

STAGES Premier, REALTORS USACorporate O!ces110 Hammond Dr. NESuite 410-143Atlanta, GA 30328

[email protected] (697.8243)

naturesig Specialized all-inclusive virtual assistant services for busy real estate professionals and teams.

Upload additional photos & tour links to all listing services Write creative descriptions and captions on photos in MLS Assign lockbox & setup Showing Feedback site Create two page !yer - 5 template choices Create a property advertisement with Postlets.com Trulia: Claim listing to agent account, add verbiage, photos & tour links Zillow: Claim listing to agent account, add verbiage, photos & tour links Realtor.com: Enhance agent account by adding verbiage, photos & tour links Set up Custom Search for Seller

Send Agent all links and PDF Flyer Post Listing to Agent's Personal Website or Blog Create QR Code for marketing materials Create YouTube video, upload to Agent YouTube channel Post Listing on Agent's Facebook Business Page Post on Twitter and Schedule 3 Additional Tweets Post Open House !yer/announcement on Twitter Post Open House !yer/announcement on Facebook Business Page Update/Create Listing on Agent's Personal Programs (V-!yer, RealBird, etc) Compile Marketing Statistics for First Month and Send to Agent

Create property placards Create Listing Book for Property including Features/Improvements Page, Utility Info, School Info, etc Select print material for Property

Receive and review the contract, addendums and additional documentation; note deadlines and special stipulations Con!rm Escrow has been at Title Company (or with Attorney) and Earnest Money has been deposited; Obtain copy of EM Receipt and provide to necessary parties Send 'Introductory' email or call and notify all parties that we are working on the Agent's behalf and the Transaction Coordinator will be the central point of contact At the Agent's request, !ll out Broker Sales Processing/Commission Sheet based on Agent's speci!cations Set advance reminders for all contract deadlines Con!rm buyer docs have been received by the Loan O"cer and the Appraisal has been ordered/scheduled Update Agent via email or phone as needed; copy agent on all correspondance Con!rm that Termite Inspection has been ordered and ensure copy of Termite Report is provided to the Title Company, if required Con!rm Buyer Home Inspection has been ordered/scheduled and notify all parties Email, fax or mail any additional documents received and pertaining to the transaction to the necessary parties, as needed Communicate with Lender or Loan Processor for status, and update Agent Con!rm HOA contact information has been provided to the Title Company and Lender if applicable Con!rm Title Company/Attorney has received Seller's payo# information Remind Agent of deadlines and help to oversee that all contingencies and stipulations are met on a timely basis Con!rm Lender has received Buyer's Homeowner's Insurance Policy Coordinate Buyer/Seller meeting or signing appointment times with Title or Attorney o"ce. Schedule the closing with all parties. Con!rm loan docs arrive at Title /Attorney prior to Closing Con!rm Home Warranty has been ordered by Closing Coordinator or Agent. Obtain copy of Order Con!rmation, provide to Agent/Attorney. Follow up with Title Company /Attorney and Lender to con!rm parties have received all necessary documentation for closing Request copy of Preliminary HUD for the !le and forward to the Agent for their review prior to closing/Signing Appointment Obtain utility provider information from Seller and transfer this information to the homebuyer with a reminder to contact Utility companies ahead of move-in If needed, order closing gift for client like gift certi!cates, online orders, etc

Signature Package

Signature Social (includes Signature)

Signature Select (Includes Signature and Signature Social)

mobile solutions

social media outlets

facebook.com/stagesre

twitter.com/stagesre

proposed network - US

•  Per office sales price is $10 – 20,000.00 for any single office

•  low monthly management fee, most other fees transaction based

•  Goal is 600 US offices over 15 years •  CITY, STATE and REGIONAL purchase

opportunities on a case by case basis. •  5% retained in each office •  Combination of Licensed and Corporate

Owned Stores

proposed network - canada

•  Per office sales price is $10 – 20,000.00 for any single office

•  Goal is 80 Canadian offices over 10 years •  SRS services revenue opportunity once

the office up and running •  INDIVIDUAL, CITY and PROVINCIAL

purchase opportunities on a case by case basis.

•  5% ownership retained in each office •  Combination of Licensed and Corporate

Owned Stores •  Sold the Province of Nova Scotia,

currently establishing initial operations in Halifax.