Project Description:

Executive Summary

Business Proposition

Charles Alexander Real Estate (CARE) is an innovative real estate agency poised to disrupt the Australian property market through a hybrid model that blends traditional agency operations with network marketing. By acquiring an established real estate agency in Perth, Western Australia, and leveraging its existing rent roll cash flow, CARE will rapidly expand into Melbourne and Sydney within six months, followed by Brisbane and Adelaide within nine months. Our unique recruitment strategy will attract part-time affiliates who will prospect and qualify sellers for commissions, ensuring a high-volume sales pipeline with lower operational overhead.

Market Opportunity

The Australian real estate market, valued at over $9 trillion, presents a substantial opportunity for disruption. Despite the high demand for real estate services, traditional agencies rely on costly full-time sales teams and slow organic growth. CARE’s hybrid model taps into the gig economy by empowering a decentralized network of affiliates to drive leads and transactions. With increasing digital adoption and shifts towards flexible work arrangements, our model is well-positioned to capture market share and redefine industry norms.

Australia recorded more than 723,312 property sales across Australia’s five mainland states in 2024, with an aggregate value of $714.7 billion. With average commission between 2 - 2.5% and generating between approximately $14.29 – $17.86B on real estate commissions – the opportunity is there for our referral partners to share in this bonanza as well as growing the Charles Alexander Real Estate revenue base.

Revenue Model & Financial Projections

CARE’s revenue model is built on multiple income streams, including:
• Sales Commissions: Earned from completed property transactions.
• Property Management Fees: Recurring revenue from an established rent roll.
• Affiliate Recruitment: A scalable commission-based structure incentivizing growth.
• Digital Marketing & Lead Generation: Monetizing high-intent property leads. Financial Projections (Year 1 - Year 3):
• Year 1 Revenue: $6.5M | Net Profit: $2.66M | NPM 41.0% |ROI 53.3%
• Year 2 Revenue: $29.9M | Net Profit: $10.19M | NPM 42.1% |ROI 315%
• Year 3 Revenue: $50.85M | Net Profit: $19.058M | NPM 38.0% |ROI 483.25% These projections are based on aggressive affiliate recruitment, high lead conversion, and rapid expansion into key markets.

Competitive Advantages

1. Hybrid Business Model: Combining traditional agency expertise with network marketing scalability.
2. Low Operational Costs: Leveraging a commission-based affiliate network reduces salary overhead.
3. Fast-Track Market Expansion: Immediate entry into multiple cities through an acquisition-driven strategy.
4. Recurring Revenue: Established rent roll provides stable cash flow for sustained growth.
5. Technology & Automation: Digital platforms for lead generation, customer relationship management, and affiliate training enhance efficiency and scalability.

Investment Requirements & Use of Funds

CARE seeks $5M in capital through a public offering to fund:
• Acquisition of an existing Perth real estate agency & rent roll ($3M)
• Digital marketing & affiliate recruitment campaign ($.4M)
• Expansion into Melbourne & Sydney (offices, staff, branding) ($.5M)
• Technology development & automation tools ($.32M)
• Working capital & operational expenses ($.78m) Investor Benefits
• High ROI Potential: Expected 3X revenue growth within three years.
• Scalability & Sustainability: Recurring revenue from rent rolls ensures financial stability.
• Early Market Entry Advantage: First-mover in a hybrid real estate model tailored for Australia.
• Exit Strategy: Potential IPO or acquisition by larger industry players within 5 years.

Charles Alexander Real Estate is set to redefine how real estate is transacted in Australia. We invite investors to be part of this transformative journey, capitalizing on an innovative business model that delivers high growth and sustainable profitability.

Key investment risks:

When considering purchasing or investing in a business, it's important to be aware of the potential risks involved. It is advisable to consult with your accounting and legal advisors before entering into any contracts. While we strive to exercise due diligence, we cannot guarantee the accuracy of the project. It is essential that you verify all financials and legal agreements before proceeding.