1. Company Overview
I run a real estate company which is registered by the name Homeland Realtors ltd. It engages in the business of selling and buying commercial, residential and industrial properties. The real estate company has a total of 10 salespersons that are licensed by the Real Estate Commission. They work under contractual terms; each under their own contract. Each sales person is paid on commission basis only which mean that their earnings are not taxed. The salesperson looks for brokers in some cases and they can decide how to split the commission. In some agreements, an independent contractor is used to get listings especially when an agent leaves the brokerage. In that case, the independent contractor will also be responsible for any sales that have already begun and any property on rentals. The company uses the full service office type where it has its own inventory of listings. The agents are able to work from the office without being charged for it.
2. Services Offered
The company offers different types of services. The most crucial is the provision of realtors who provide clients with the more than 200 actions and transactions that may need to occur before a purchase is made (Hines, 2017). These processes and steps are not easy to do for many people trying to buy property and land and therefore a real estate company fills that gap. The realtors carry out all the transactions on behalf of the client. Homeland Realtors provides services in buying and selling of homes, property management, mortgage services, escrow services and relocation services.
3. Company Growth
The company has existed for two years. In that short time, it has experienced tremendous growth in serving the community where it is established.
4. Affordable Payment Options
The company is aimed at serving the needs of those who cannot afford to buy land or property in one cash transaction. It therefore provides the option of paying an affordable deposit and the rest of the money is paid in instalments of up to 25 months. This has made it very popular with the younger generation of house buyers.
Part 2
1. Insurance, Pension Funds, and Finance Companies
Insurance companies provide provides different insurance services to the company and its clients. The two most important policies that insurance companies provide for the company are homeowner's insurance policy and renter's policy. These two policies are for clients who are buying a new home through the company and clients who are renting homes and property through the company respectively. Pension funds companies on the other hand are those that provide a fund or scheme of payment for employees who have retired. The purpose of these companies is to offer continuity of earnings even after retirement to ensure that the former employees of the company can still meet their basic needs. The employees contribute to this fund throughout their employment period on a monthly or annual bass so that they can get the earnings on retirement. The funds may be paid as a lump sum or in monthly instalments depending on the policy the employee entered into with the pension fund company. Lastly, there are finance companies that offer financial services which often times come with advisory services. These finance companies offer Homeland Realtors ltd funds in the form of loans that are to be paid over a certain period of time. These funds are very important to the daily running of the company because they are used for expansion purposes (Hoesli, Milcheva & Moss, 2017). They make the company to have some leverage which translates into profit for the company. The advisory services that these companies offer are also crucial for the financial performance of the company.
2. Differences Between Companies
There are some differences between the three companies; some of which have been mentioned before. One of the main differences is that whereas pension funds companies deal with the employees and their future income, financial companies deal with the current finances of the company. The pension funds firms collect contributions from the employees so that it can pay back those funds to them in the future upon retirement but financial institutions offer the company funds in the current operations with the option of future instalment payments. Insurance companies on the other hand deal with both the company and clients. They offer services where the company is in possession of some property and during the transfer of rights to land and houses from one owner to another. This is an indication that the three companies deal with different sections of the company.
3. Choosing a Service Provider
The companies offer different services to Homeland Realtors ltd, which have been discussed in previous questions. The company needs a re-evaluation of its needs and to reach out to one of the companies to meet such needs. The company settled on is financial companies because they will not only provide help in the re-evaluation of business needs but will provide funds to meet such needs (Saunders & Cornett, 2018). The services from the financial company that will be used are long-term loans. The company is making a long-term business strategy to improve its operations, and therefore, will need to have immediate funds that can be paid in instalments into the future.
References
Saunders, A., " Cornett, M. M. (2018). Financial institutions management: A risk management approach (9th ed.). New York, NY: McGraw-Hill Education.
Hoesli, M., Milcheva, S., " Moss, A. (2017). Is Financial Regulation Good or Bad for Real Estate Companies?–An Event Study. The Journal of Real Estate Finance and Economics, 1-39.
Hines, M. A. (2017). International real estate investment. In The Most Important Concepts in Finance. Edward Elgar Publishing.
