Q&A with Michael Mathe
Little Pink Houses of America LLC
What is the business model of your company?
We are a real estate investment firm that specializes in nontraditional strategies, specifically what we call an Executive Lease Purchase. There are no real estate agents involved in the buying or selling process, nor is a real estate license required. Our strategy allows us and our partners to acquire an equitable interest in title of the home. As a result, we can successfully market the home without being the owner on title. The biggest demographic that we work with is the for-sale-by-owner population, who wish to sell their homes, but in most cases, do not want to work with agents because of their high fees.
We have taken this very niche-specific business model and put infrastructure, support, and branding behind it to turn it into a “business in a box” for people who want to be involved in real estate investing without the capital risk for inventory and also want to be a part of a national brand that is growing quickly.
What is unique about your business platform?
We do not have a national competitor! Lease purchases and nontraditional real estate strategies aren’t new, but we took a very viable strategy and refined it and added an infrastructure to create a win-win-win for everyone involved. Sellers and buyers win as well as the business.
Where does the company name come from?
Real estate investing is usually not attractive so we wanted something more attractive and decided on pink. Pink attracts women and women have a strong say in the purchase of a home. Our founding partners also had several family members affected by breast cancer. Singer John Meloncamp has a song with the lyrics, “little pink houses for you and me” – which we interpreted as the idea that everyone can get a little slice of America and the American dream of home ownership.
How are you different from other real estate investors?
Many other investors deal with run down or distressed properties in unattractive or struggling areas. We focus on pristine properties, great neighborhoods, good school districts, and elite areas, which typically brings us a higher caliber buyer. Our model is also far less competitive than the strategies that most investors utilize, such as wholesaling and fix-and-flip.
Do you also work with clients that want to sell their homes?
Yes. We market to sellers by offering them an alternative way to sell their homes in exchange for waiting 6-12 months to get their cash out of the house. Typically sellers make anywhere from 10 to 20% more just by using this method and waiting. When they work with us, sellers typically get what they are asking for the house or very close to it since our buyers aren’t necessarily in a position of leverage to negotiate. The sellers save on commission fees and don’t pay seller costs or other fees.
What type of buyers do you work with?
Our biggest demographic of buyers are self-employed individuals, who make money but don’t look good on paper due to tax write-offs, which create an issue with their debt to income ratios. They can’t make it through underwriting for a traditional mortgage, even though they make enough money to support a mortgage payment. Some buyers have credit issues, so we also offer credit repair options. About 70% of the population in America today cannot get a mortgage; our company helps them get into a home. That’s the tremendous void that we fill in the real estate market.
What is your Mortgage Readiness Program?
Our mortgage readiness program helps people on the path to getting a mortgage. Each buyer we work with is provided a specialized blueprint that is specific to their needs and it is designed to give them a roadmap to successful mortgage financing. The mortgage readiness program provides them with the steps they need to take to get mortgage qualified as well as a timeline needed, which is usually 6-12 months. While the buyer is going through the process, they are already living in the home and enjoying the benefits of home ownership.
How many offices and locations do you have?
We are approaching 100 offices in over 30 states. We expanded internationally a few months ago and opened three offices in Canada, with plans to add more.
What are your future plans for the business?
To expand to over 300 offices internationally. We want to be in all 50 states and want to be a household name in the U.S. and Canada. We want people to “Think PINK” when buying or selling their home. We are in the middle of the franchising process and will be a formalized franchise by the end of 2019. Coinciding with the franchising, we will also be rebranding to PINKhouse, so it’s a very exciting time for us.
How is your business giving back to the community?
A portion of the proceeds that we make are donated to multiple charities. One in particular is called, Little Pink Houses of Hope, a breast cancer charity that focuses not only on the patient, but their entire family. Giving back to charities and our community is something that we hold very dear in our company core values.
Partner/New Market Development
PINKhouse/Little Pink Houses of America LLC
11808 San Jose Blvd