Home Remodels, Additions & Interior Design for Houston Real Estate Investors
Owner works part-time and does no field work!
The owner of this company works part-time and does no field work! With an infrastructure set up to support larger clients and maintain relationships, a highly skilled staff of 12 is already in place and continues to build solid client relationships. Employees include 1 PT Admin Assistant, 1 PT Office Manager, 1 PT Network IT, an Operations Manager, 1 Residential Estimator, 2 Superintendents, 1 Commercial Specialist, 2 Client Support staff, 1 Document Control staff, 1 Inside Salesperson and 6-12 field crew employees. Clients include corporate real estate investors, private entities, and some residential work, along with commercial and military when needed. The team works all over Texas, with 70% of their work being done in Houston, 20% in San Antonio, and 10% in Dallas. Services vary from complete home remodels and home additions, to maintenance, repair, and interior design. The owner’s position has been designed to be strictly part-time operations and financial work.
Assets include $261k worth of equipment, $124k in vehicles, $180k in A/R, and $210k in work-in-progress. The 4,200 sq. ft. warehouse, ½ acre equipment yard, and 2,500 sq. ft. office building currently used is available for sale or lease, separate from the sale of the business.
Priced at $990,000, a down payment of $123,750 returns $214,318 in the first year after debt payments – a 173% return on investment! The current owner is willing to stay on for 6 months to 1 year, if desired. Growth opportunities include expanding into business to consumer residential projects as well as taking on more governmental commercial contracts.
- Year Established: 2004
- Location: Houston, TX
- Service Area: Houston (70%), San Antonio (20%) and occasionally Dallas (10%)
- Services: Light Remodeling and Renovating
- Clients: Large real estate investors, private entities, some residential, commercial and military
- Building: 4,200 sq. ft. warehouse; 1/2-acre equipment yard; 2,500 sq. ft office building (3 offices, 15 workstations, conference rooms, etc.)
- Reason for Selling: New non-competing endeavors
- Employees: 12: PT Admin Assistant, PT Office Manager, PT Network IT, Operations Manager, Estimator, (2) Superintendents, Commercial Specialist, (2) Client Support, Document Control, Inside Sales and field crew
- Hours: M-F 8-5
- Seller Training Period: 6-12 months
- Growth Opportunities: Take on more governmental commercial projects
- Current Owner’s Responsibilities: Part time operations and financials; no field work
List Price: $990,000
- 3-Year Average Cash Flow: $340,922
- A/R: $180,000
|Description of Financial Statement||P&L Statement|
|Net Income Shown on Financial Statement||$-13,035||$29,868||$-235,826||$-18,837||$14,653|
|Compensation to Owner||$91,423||$97,000||$97,000||$97,000||$97,000|
|Other unrelated Salaries||$0||$12,000||$18,000||$18,000||$18,000||Family members - don't actually work in the business|
|11% Tax on total W2 Salaries||$10,057||$11,990||$12,650||$12,650||$12,650|
|Meals & Entertainment||$2,118||$1,503||$2,032||$788||$1,485||70% personal|
|Cell Phones||$4,200||$4,200||$4,200||$4,200||$4,200||Cell Phones- $350/month for 4 personal lines|
|Employee Benefit Plan||$3,718||$5,881||$18,149||$11,454||$0||Paid for owner & family|
|FR Assoc Deferred Payments||$0||$0||$24,285||$25,790||$10,643|
|Training & Education||$40,000||$0||$0||$0||$0|
|Seller's Cash Flow = Total Addbacks + Net Income||$204,760||$434,772||$383,234||$419,240||$384,382|
|Profit Margin||9.57 %||17.80 %||18.11 %||23.23 %||15.98 %|
- Real estate investors
- Private entities
- Residential projects
- Governmental commercial contracts
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- Complete home remodels
- Home additions
- Concrete projects including foundations, driveways, flat work, etc.
- Interior design
- Maintenance and repairs
- PT Admin Assistant
- PT Office Manager
- PT Network IT
- Operations Manager
- 1 Estimator
- (2) Superintendents
- Commercial Specialist
- (2) Client Support
- Document Control
- Inside Sales
- Field crew
- Expand into business to consumer residential projects
- Take on more governmental commercial contracts
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
3-year average cash flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
3-year average cash flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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