Friday, July 7, 2017

Unique Real Estate Model Shares Profits with Owners

Profit Sharing
CEO Shares Why Unique Business Model Thrives!
By CEO Brian Peavey
(For Motherhood Moment)

What was the inspiration behind this business model? 

Like others that are faced with a challenge, the inspiration came out of necessity.  We were struggling to find economically viable projects and we were searching for a way to connect with property sellers so that they might choose us instead of our competitors.  We realized that the property sellers likely realized that the property buyers that were approaching them would likely make money by remodeling and improving the property value.  We also realized that the sellers didn't want to be taken advantage of but didn't have a way to do the repairs themselves for a multitude of reasons (financial, skills, time, etc.).  We wanted to find a cooperative way to work with these people and ProfitShare was born.  We buy, remodel and resell homes and then share our profits with the people we bought the house from originally. 

Why can profit sharing be so successful?

I think people inherently want to do the right long as it doesn't cost them too much in time or money.  Profit sharing at its core creates ownership in the process and can ultimately create rapid growth.  Profit sharing isn't about giving away money, it is about creating an opportunity and then building on it.  We want people to walk away from a transaction with us, knowing that they made more money than they would have otherwise and they enjoyed the process so much that they tell their friends.

Why do ethical business models succeed, while being selfish can often backfire?
The power of the internet and word of mouth is immense.  Doing the right thing and treating people ethically creates ripples of success.  People want to help people who help others.  It just feels good.  When you are selfish and greedy, people put up their defenses and the net result to both parties isn't as beneficial.  Over time, this disparity is even greater.

How can consumers find socially responsible businesses?
A first step is to look toward independent, third-party ranking services like Yelp, Angie's List, Yelp, etc. These services provide reviews and testimonials which should be taken into consideration but they are by no means absolute.  This data can be fabricated.  The next step is to look at a company's track record.  No company is without its challenges, or even failures, so be wary of companies that don't show their track record or if their track record is spotless.  Last, we all have a sense of whether or not the company representative we are working with is being honest.  Listen to your intuition and trust your gut.  If they don't seem genuine or trustworthy, they probably won't treat your money like you would expect.


Brian Peavey is the CEO of ProfitShare, a Boise-based real estate company that buys, renovates, and resells homes...and then shares the profit with owners.  Brian grew up in Boise, Idaho since 1976 and has over 22 years in real estate, first as a Realtor and then transitioning to work in development, remodeling and property management. He holds a B.S. in Business Economics from Willamette University and an M.B.A. in Project Management from Keller Graduate School of Management. His daily responsibilities are to track real estate trends in the industry as well as local market activity, identify viable market opportunities, analyze project projections, track remodel progress, market properties for sale, negotiate contracts, safeguard expedited and cost effective closings, and ensure partner satisfaction. Brian and his wife Elisa live in Bend, Oregon now and he enjoys rafting, skiing, hiking, playing basketball and watching his three little girls grow up.

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