A cut-rate commission realty brokerage in Austin, Texas, closed funding this week on a $1 million private placement offering.
One Percent Realty announced that JMM PHLP Ltd., an Austin-based private investment partnership, provided the equity investment capital. The principal investor in JMM PHLP is James Mansour, a director of Grande Communications and ATX Technologies in the telecommunication and technology sector.
“We have always been interested in industry-changing business models and are confident that One Percent Realty will make substantial progress toward revolutionizing a real estate industry that largely exists through overcharging the public for transaction services,” Mansour said in a statement.
One Percent Realty opened for business in July 2002. The company provides full-service residential real estate brokerage services at commission rates as low as 1 percent. One Percent Realty places seller’s homes in the local MLS, markets them on the Internet and provides “professional guidance from a licensed agent to assist with negotiating offers and coordinating the transaction,” according to the company. The brokerage helps buyers locate suitable properties, provides them with an opinion of value, assists them in developing offers and represents them during contract negotiations for a total fee as low as 1 percent of the sales price. Buyers can receive up to 2 percent of the home’s price as a rebate at closing, the company said.
Steve Malachowski, founder and president of One Percent Realty, said the capital infusion will enable the brokerage to expand to other Texas cities. Plans to enter San Antonio and Houston are moving forward, he added.
“We are pleased that our business model is being so well received by the public, and is now being affirmed by this substantial investment into our company,” Malachowski said.
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