How can you compete with the large constructors?

We don't. Large constructors have massively jumped on middle class housing, yet they are limited to large projects with hundreds - or often thousands - of housing units, either in apartment blocks or "horizontal" condominiums.

Who are your competitors?

There aren't any well-organized competitors yet. Usually we see small constructors, real estate agents, architects, or hands-on investors, do little projects of 2-5 houses. Yet they have limited financial and operational resources, so they build slowly, overpay for materials... and still make good profits. The stronger ones are good candidates for our franchising model.

How do you build?

We build low-rise homes with well-thought, fully standardised designs that are quick and easy to build with common materials and low-skilled labour.

They are built with structural walls out of concrete blocks - it takes only 4 days for two bricklayers to put up all walls of a standard 72m2 house.

All rooms are identical and symmetrical. Tubing for energy and plumbing is installed during construction using special modular blocks - hardly any cutting of walls is necessary.

Roofs are made from self-supporting concrete slabs that take 2 days to put in place - but importantly, allow us to immediately start finishing inside.

Those materials are in widely available, but seldom used by our competition as they cost slightly more. Yet this small premium allows us to rotate our investment at least one more time each year.

Is it hard to get the building licence?

Our homes are designed conservatively so they meet with all requirements of most townhalls. As we repeat the same designs over and over again, design and approval is very quick - usually a matter of weeks after purchase of the land.

How do you select licensees?

We select local entrepreneurs who know the market well - real estate agents, architects, small constructors. Some of those are able to invest a little in their first project. With the support we give them, they can grow their business fast and safely.

Do you provide financing to home buyers?

Not ourselves - but we are studying partnerships with banks and lenders who make financing available to the buyers. It is safer and easier for those financial partners to finance i-movel homes, and we expect to have co-operation agreements in place by mid 2010.

How do you sell the properties?

We use a centralised sales & marketing department that handles all phone and email inquiries, whatever the location. This way, clients get attended by reps who know all advantages of i-movel homes - and we keep the control over the client database.

This way, we can keep prospects informed whenever we start new homes in their area.

We advertise properties in local media and through local door-to-door flyers, as often those already living in the neighbourhood (or their friends) are the ones most likely to buy.

Site visits will be scheduled with the help of the local licensee. We may also work with selected local real estate agents who operate for us at discounted sales commissions.

Is title insurance available?

Although not common in Brazil, several US title insurance companies do provide this service in Brazil and can provide total peace of mind to the investor.

Generally, however, we develop in recently urbanised areas with simple and clear documentation so due diligence is pretty straightforward. There is so much land to choose from that we simply discard anything that isn't 100% clean.