Our Business Model
Some people dream of success. We make it happen.
We are expert strategists, helping our clients with their most complex strategic challenges and build tailored solutions to help them achieve sustained growth.
We begin by helping our clients choose where to focus in order to get the most effective boost to their business. We aim to find the quickest route to success.
DREI is a different type of investing company. We have some of the best industry experts and offer unique access to specialist expertise and analytical tools.
Our solutions are innovative and brave, while at the same time being based on industry knowledge and key marketing strategies. There is always a solution.
Our investing services focus on our clients' most critical issues and opportunities.
We work on strategy, marketing and technology for new and seasoned investors. We bring deep, functional expertise, but are known for our fun approach to work. We love what we do and we love bringing our success to our clients.
Business Model and Value Proposition
The business model of the company is to buy residential properties and mortgage notes at discounted prices and resell the properties or notes at retail prices. We market our services to property owners and note owners who are highly motivated to sell their property or notes. When a property or note owner contacts us, we evaluate their property or note and determine whether to make an offer to purchase. Our offers are based on wholesale pricing with a fast closing. The value proposition to the owner is that they be willing to accept less net profit for their property or note in exchange for a fast escrow to quickly relieve their financial situation.
Because we pay all closing costs and don’t charge an agent's commission, we’re able to demonstrate to the owner that they’re not giving up a substantial amount of net profit in the end. We often buy properties ‘as-is or non-performing mortgage notes’, further relieving the owner from the burden of properly staging the property or getting the borrower back on track with payments. If the owner were to pursue a more traditional sales path and engage a real estate agent to represent the property, the owner would pay a substantial commission of up to 6% plus closing costs, generally totaling 10% of the property's sales price. Often, the net cash difference to the owner is not dramatically different from our offer.
Additionally, if the property is listed with an agent, the owner must wait for the property to sell and close escrow. In our region, we are currently experiencing fifty to sixty days on the market for properties listed on the regional Multiple Listing Service. In conjunction with a standard thirty-day escrow, the owner may not relieve their financial distress for as much as ninety days. We can often close escrow in seven to fourteen days. Our value proposition of an all-cash offer with a fast escrow close is often a good option for the owner who recognizes the benefit of speed to cure their financial situation.
““When it comes to savy real estate investing, nobody knows more than DREI. Meshawn teaches a wealth of strategies to help you make money and grow your business–including $0-down investing. She is a charming and caring professional who everybody loves.”
Brian Weiss, Weiss Management