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UTFC Invests $250K in Provo-Based Property Solutions; Property Management Software Firm Also Announces Major Strategic Alliance
SALT LAKE CITY --(Business Wire)-- Dec. 2, 2005 -- UTFC Financing Solutions, LLC today announced a $250,000 investment in Property Solutions International Inc., which provides Web-based software that enables property managers to collect automated payments and build and maintain resident portals and community Web sites.
The Provo, Utah-based firm (www.propertysolutions.com) was founded in 2003 by CEO David Bateman with capital he earned from his earlier successful Internet company, DearElder.com. Its software is currently used by property management companies representing more than 60,000 apartment units across the country. Property Solutions also announced a major strategic alliance this week with AMSI, a Geac(R) company, which means Property Solutions' software will be provided to users of AMSI's eSite product.
"We chose to invest because Dave Bateman is absolutely dedicated to making Property Solutions work," said UTFC CEO Steve Grizzell. "He has invested almost everything he has."
Bateman and his associates pride themselves on keeping costs to a minimum. He says he has never taken a salary since the company's first day, choosing instead to continue living in an apartment community managed by his wife. That's an arrangement that has netted him both free rent and the idea for his successful company. He noted that the companies making the accounting software his wife was using, and other offerings in the property management sector, were slow to take advantage of the Internet to communicate with residents. He envisioned the types of products his company now offers, portals that allow property managers to easily create Web sites to process residents' credit card or direct debit rent payments and allow prospective renters to explore properties and submit applications, among other functions.
In keeping with the "bootstrap" approach to growing the company, Bateman and his employees work out of a converted garage located near railroad tracks. When they go to major industry trade shows, four or five people ride in the same vehicle and share a hotel room.
"We spare no expense on developing great software for the customers and the residents, and we are able to do that by keeping other types of costs low," said Bateman. He anticipates the UTFC funding will go toward further research and development of the software and also to beef up the company's sales force -- but still no salary for him.
"UTFC offered the perfect financing for a company of our size, close to breaking even with revenue increasing at a good clip," Bateman said. "I was really impressed with how thorough they were in analyzing our business. Steve went so far as to go to one of our trade shows and talk to our competitors and many different entities out there in the industry."
Bateman hopes the strategic alliance with industry giant AMSI means Property Solutions will be able to further increase its revenue from processing credit card and direct debit rent payments. The company keeps a small portion of each transaction it processes, a total that is growing 10 to 15 percent per month, Bateman said.
UTFC Financing Solutions, LLC is a small business investment company (SBIC) in Salt Lake City that fills a unique niche in the market, providing the needed capital to start and grow businesses. It specializes in funding new businesses with little operating history and provides up to $500,000 in subordinated debt to startup companies in and around Utah. Read more at www.utfc.biz.
Property Solutions International Inc. is a leading provider of automated payment, community Web site, and resident portal technology to the multifamily industry. Property Solutions' suite of property management software tools facilitate new efficiencies to multifamily managers and owners by easing rent collection, promoting occupancy, and improving communication to residents. For additional information, visit www.propertysolutions.com.
For more information, contact Steve Grizzell, UTFC's CEO, at 801-741-4200 or sgrizzell@utfc.biz; and David Bateman, Property Solutions' CEO, at 801-375-5522 or dbateman@propertysolutions.com.
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