JLB Title services, llc

1. Real Estate Title Company Business Plan JLB Title services, llc By: Jessica Breto

2. Introduction: • JLB Title Services, LLC is located in South Florida • The company has a wide range of real estate closing services • Partner’s have extensive knowledge and background in the real estate industry • The company will gain market position through outstanding customer service on all refinances, mortgage modifications, purchase/sales and foreclosure transactions offered at competitive prices Executive Summary

3. The Company: • JLB Title Services, LLC is a limited liability company in the state of Florida • Equally owned and operated by two partners: Jessica Breto and Estelio Breto • Jessica Breto has worked in the real estate title services industry for over 10 years and has a Bachelor’s Degree in Business Management and Business Marketing Executive Summary

4. The Company Cont’d: • Estelio Breto owned and operated a Real Estate Brokerage and Mortgage Company in South America for 5 years. • His skills include business operations and administration, residential and commercial real estate sales and loan consultations • JLB Title Services, LLC expects to hire 1 full-time REO Administrative Manager, 2 full-time Title/Loan Specialists and 2 full time Closing Agents. Executive Summary

5. Products and Services Summary: • Primary focus is to provide high quality customer service. • Specialize in performing title searches, clearing title defects, performing lien searches, requesting estoppels, preparing loan documents, coordinating closings. • Clients have access to their closing transactions through a self service internet database. • Closing services and title insurance offered for all transactions Executive Summary

6. Products and Services Summary Cont’d: • All staff members have a notary public • Private conference rooms available for closings • Mortgage modification opportunities for clients in financial despair. • The company contracts with mobile notaries all of the state of Florida so clients can hold a closing in the leisure of the homes Executive Summary

7. Financial Considerations: • Partners will comprise $160,000 of capital in startup funds. • $120,000 will be obtained through a 10 year Small Business Administration Guaranteed 7 (a) Loan Program Executive Summary Projected Sales Year 1 : $557,360 Year 2: $667,489 Year 3: $715, 657 Projected Net Profit: Year 1: $43,000 Year 2: $82,000 Year 3: $95,000 Projected Gross Margin: Year 1: 56.9% Year 2: 60.2% Year 3: 61.7%

8. Financial Considerations Cont’d: Highlights Executive Summary

9. The Mission for JLB Title Services, LLC: JLB Title Services, LLC provides a standard of high quality professionalism, customer service and satisfaction to our clients in the real estate closing industry. It is the mission of JLB Title Services, LLC to become the leader in closing REO real estate in the state of Florida. Our closing team will ensure all service is done with a smile and will guarantee accurate and precise work at all times. We will take grave care of servicing our clients with respect and will be diligent in our closing efforts. Executive Summary

10. Keys to Success, Profitability and Survival: • Establish close relationships with REO banks nationwide such as Wells Fargo Bank to enhance foreclosure activity. • Establish, maintain and build relationships with local real estate agents and mortgage brokers to uphold a reputation of highly skilled closing agents. • Establish a threshold of identifying mistakes and prepare corrective actions that will enable our firm to furnish satisfactory customer service will minimal errors Executive Summary

11. Company Objectives: • Establish a minimum of 97% customer satisfaction. • Obtain the business of a major bank as a sole client by the end of year one. • Establish and maintain healthy, growing and sustainable relationships with local real estate agents and mortgage brokers by offering competitive prices for outstanding services. Company Summary

12. Company Ownership: • The company is established as a limited liability company. • The company is domiciled in the state of Florida. • The company is owned and operated by 2 equal parnters Company Summary

13. Company History/Startup Costs: Startup Company Summary • Startup Costs Include: • Legal Costs • Licensing • Advertising • Insurance • Utilities • Rent • Office Equipment/furniture • Software/Databases • Phone • Supplies • Website Design • Business Cards/ Brochures • Other Expenses

14. Services Include: • Examining title, clearing defects, preparing liens searches, ordering estoppels, requesting payoffs, preparing settlement statements, organizing loan packages and coordinating closings. • Offers closing services and title insurance for refinances, purchase/sales, REO transactions, foreclosure transactions, and mortgage modifications. Product & Services Description

15. Services Cont’d: • The company offers mobile notary services so closings can be held in the luxury of home. • Staff consultants will provide advice for clients wishing to modify an existing mortgage. • The company offers a full service interactive website database for our clients including customers, mortgage broker, real estate agents and lenders. Product & Services Description

16. Two Defined Market Segments: • Florida residents age 50 and older – they amount to 26% of Florida’s population and are more likely to be in the 2nd stage of foreclosure or in default status. • Foreclosure Sector of Wells Fargo Bank - Wells Fargo Bank holds nearly $650,000 in bank owned properties and $1 million in properties that are sale by owner, auction properties and short sales. • Wells Fargo Bank has approximately 66,104 mortgages in default in Palm Beach, Broward, and Miami-Dade County Market Analysis

17. Foreclosures from high to low: Market Analysis

18. Target Market Segment Strategy: • Provide excellent customer service, competitive prices and superior work ethic. • Tradeshows will be held in local meeting areas. • free consulting sessions for individual that fit the criteria of this market segment. • visit 55 years + communities to hold events and raffle off prizes. • visit local bank branches in an effort to develop durable contacts in the banking industry Market Analysis

19. Target Market Segment Strategy Cont’d: • Travel to Wells Fargo Bank headquarters and hold lunch meetings with the directors and CEO’s of the foreclosure department. • Hold tradeshows in the local areas in an effort to establish the quality of services at competitive rates. • Offer free training sessions to keep this client update on regulations and standards of the industry Market Analysis

20. Market Needs: • Florida is one of the top 10 states in the nation with the highest foreclosure rates. • Florida residents are seeking relief from their financial burdens. • Female and male residents ages 50 and older are finding themselves in financial distress. • Senior citizens and elderly find it more disabling to be able to seek additional work. Market Analysis

21. Market Needs Cont’d Our target market segments needs: • Relief from their mortgage payments. • To sell their homes that have been appraised at low values. • To relive the burden of numerous foreclosure, REO and auction properties that have flooded the economy during the topical recession. • Competitive prices and quality service. Market Analysis

22. Foreclosure real estate title industry in the U.S. has experienced rapid growth due to the increasing rate of foreclosures. Changes in RESPA guidelines and underwriting standards have provided more opportunities for lenders to lend higher quality and more sustainable loans. New borrowers are more sensible in seeking out risk. There are still many properties in foreclosure and many homeowners seeking assistance in their current financial situations. Service Business Analysis

23. How will we establish a market position? JLB Title Services, will position itself in the Broward County location which is the central location of south Florida - central location will enable the company to service business in both Palm Beach County and Miami-Dade County as wells as Broward. The company can expand operations to the entire state of Florida thus taking full advantage of the new era of clientele brought in from the recent changes in the RESPA guidelines and underwriting standards Service Business Analysis Cont’d

24. Who is the Competition? Currently there are a handful of title companies in the tri-county area but they have grown so big that the level of customer service is less than acceptable. The size of the few remaining title companies in the south Florida area is to our advantage because our competitive edge is to put the client’s needs first. Service business analysis - Competition

25. How will JLB Title Services Excel? We will develop and withhold a standard of excellence in the quality and precession of our work as well as preserve the relationships of our clients. We will exploit partners experience to assemble broad base of clients include real estate agents, mortgage brokers, customer, and lenders. We will develop a self service website that will enable clients to view their closing transactions as we do. This will provide a competitive edge as clients will appreciate the amount of information available to them. Service Business Analysis - Competition

26. Our policy at JLB Title Services, LLC will be to provide competitive market rates keeping in mind long term profitability. Service Business Analysis - Pricing

27. How will you advertise and promote? Our most important form of advertising is customer’s word of mouth. Offer rewards to any client that refers business to the company. Offer discounts for early closings. Attend local tradeshows to advertising the company’s service offerings - provide free pens, key chains, note pads, coffee mugs, and we will raffle off prizes for those people who provide us with their business cards. Service Business Analysis - Promotion

28. How will you advertise on the internet? • By purchasing Google Adwords, Google Adscenes and Google Places to enhance the company’s profitability Service Business Analysis - Internet

29. How will you use direct mail to advertise? • By keeping track of public records and maintain a database to mail brochures and business cards. • By maintaining a database of Florida residents that are 50 years and older to mail brochures and business cards Service Business Analysis – Direct Mail

30. REO Executive Officer : Jessica Breto Account Executive Officer: Estelio Breto REO Administrative Manager: Victoria Breto Management Team

31. Personal Plan: JLB Title Service, LLC intends to hire 2 full-time Title/ Loan Specialists and 2 full-time Closing Agents. Year 1 Year 2 Year 3 Managers (1) $65,000 $70,000 $75,000 Title/ Loan Specialists (2) $60,000 $66,000 $70,000 Closing Agents (2) $80,000 $84,000 $88,000 Other $0 $0 $0 Total People 5 5 5 Total Payroll $205,000 $220,000 $233,000 Management Team

32. JLB Title Services, LLC with invest $160,000 of its capital from partner’s savings and personal resources. The company expects to finance the remaining capital of $120,000 through a Small Business Administration Guaranteed 7 (a) Loan Program. This will provide the necessary financing required for JLB Title Services, LLC. Financial Plan

33. Projected Profit and Loss _______________________________Year 1 Year 2 Year 3__________ Sales $557,360 $667,489 $715,657 Direct Cost of Sales $240,010 $265,470 $274,126 Other Costs of Sales $0 $0 $0 Total Costs of Sales $240,010 $265,470 $274,126 Gross Margin $317,350 $402,019 $441531 Gross Margin % 56.9% 60.2% 61.7% Expenses Payroll $205,000 $220,000 $233,000 Marketing/ Promotion $10,800 $11,900 $13,600 Depreciation $8,000 $9,500 $13,800 Lease Equipment $2,500 $2,700 $2,900 Utilities $4,300 $5,300 $5,600 Insurance $11,400 $12,600 $13,000 Maintenance $0 $5,000 $7,500 Rent $2,800 $3,600 $4,600 Payroll Taxes $11,580 $13,860 $15,300 Other $0 $0 $0 Total Operating Expenses $246,380 $284,460 $309,300 Profit Before Interest $70,970 $117,559 $132,231 Interest Expense $20,000 $19,500 $18,250 Taxes Incurred $8,066 $16,256 $19,424 Net Profit $42,904 $81,803 $94,557 Net Profit/ Sales 7.7% 12.3% 13.2% Financial Plan – Projected Profit & Loss

34. Pro Forma Cash Flow Year 1 Year 2 Year 3 Cash Received Cash from Operations: Cash Sales $557,360 $667,489 $715,657 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $557,360 $667,489 $715,657 Additional Cash Received Non Operating (Other) Income $0 $0 $0 Sales Tax, VAT, HST/ GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long- term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $557,360 $667,489 $715,657 Expenditures Expenditures from Operations: Cash Spending $20,600 $24,100 $30,596 Bill Payments $317,084 $410,649 $435,312 Subtotal Spent on Operations: $337,684 $434,749 $465,908 Additional Cash Spent Non Operation (Other) Expense $0 $0 $0 Sales Tax, VAT HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 Other Liability Principal Payments $0 $0 $0 Long-term Liabilities Principal Repayments $0 $16,000 $40,000 Purchase Other Current Assets $0 $23,000 $50,000 Dividends $0 $0 $0 Subtotal Cash Spent $385,684 $473,749 $505,908 Net Cash Flow $171,676 $193,740 $209,749 Cash Balance $194,439 $388,179 $597,928 Financial Plan – Pro Forma Cash Flow

35. Financial Plan – Cash Flow Chart

36. Assets Current Assets Year 1 Year 2 Year 3 Cash $194,439 $388,179 $597,928 Other Current Assets $12,000 $12,000 $12,000 Total Current Assets $206,439 $400,179 $609,928 Long-term Assets Long-term Assets $98,000 $118,000 $138,000 Accumulated Depreciation $13,800 $28,379 $49,291 Total Long-term Assets $84,200 $89,621 $88,709 Total Assets $290,639 $489,800 $698,637 Liabilities and Capital Year 1 Year 2 Year 3 Accounts Payable $36,049 $32,482 $38,069 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $36,049 $32,482 $38,069 Long-term Liabilities $120,000 $104,000 $64,000 Total Liabilities $156,049 $136,482 $102,069. Paid-in Capital $160,000 $160,000 $160,000 Retained Earnings ($92,580) ($49,676) ($17,238) Earnings $42,904 $81,803 $94,557 Total Capital $110,324 $192,127 $237,319 Total Liabilities and Capital $290,639 $489,800 $698,637 Net Worth $110,324 $192,127 $237,319 Financial Plan – Balance Sheet