With GPS Data Out, Feds Eye Warrantless Cell Phone Surveillance

• By David Kravets
• Email Author
• March 31, 2012 | 
• 5:13 pm

Prosectors are shifting their focus to warrantless cell-tower locational tracking of suspects in the wake of a Supreme Court ruling that law enforcement should acquire probable-cause warrants from judges to affix GPS devices to vehicles and monitor their every move, according to court records.

The change of strategy comes in the case the justices decided in January, when it reversed the life sentence of a District of Columbia area drug dealer, Antoine Jones, who was the subject of 28 days of warrantless GPS surveillance via a device the FBI secretly attached to his vehicle without a warrant. In the wake of Jones’ decision, the FBI has pulled the plug on 3,000 GPS tracking devices.

In a Friday filing in pre-trial proceedings of Jones retrial, Jones attorney’ said the government has five months worth of a different kind of locational tracking information on his client: So-called cell-site information, obtained without a warrant, chronicling where Jones was when he made and received mobile phone calls in 2005.

“In this case, the government seeks to do with cell site data what it cannot do with the suppressed GPS data,” attorney Eduardo Balarezo wrote (.pdf) U.S. District Judge Ellen Huvelle.

Balarezo added:

The government has produced material obtained through court orders for the relevant cellular telephone numbers. Upon information and belief, now that the illegally obtained GPS data cannot be used as evidence in this case, the government will seek to introduce cell site data in its place in an attempt to demonstrate Mr. Jones’ movements and whereabouts during relevant times. Mr. Jones submits that the government obtained the cell site data in violation of the Fourth Amendment to the United States Constitution and therefore it must be suppressed.

Just as the lower courts were mixed on whether the police could secretly affix a GPS device on a suspect’s car without a warrant, the same is now true about whether a probable-cause warrant is required to obtain so-called cell-site data.

A lower court judge in the Jones case had authorized the five months of the cell-site data without probable cause, based on government assertions that the data was “relevant and material” to an investigation.

“Knowing the location of the trafficker when such telephone calls are made will assist law enforcement in discovering the location of the premises in which the trafficker maintains his supply narcotics, paraphernalia used in narcotics trafficking such as cutting and packaging materials, and other evident of illegal narcotics trafficking, including records and financial information,” the government wrote in 2005, when requesting Jones’ cell-site data.

That cell-site information was not introduced at trial, as the authorities used the GPS data for the same function.

The Supreme Court tossed that GPS data, along with Jones’ conviction, on January 23.

The justices agreed to decide Jones’ case in a bid to settle conflicting lower-court decisions — some of which ruled a warrant was necessary, while others found the government had unchecked GPS surveillance powers.

“We hold that the government’s installation of a GPS device on a target’s vehicle, and its use of that device to monitor the vehicle’s movements, constitutes a ‘search,’” Justice Antonin Scalia wrote for the five-justice majority.

The government has maintained in a different case on appeal that cell-site data is distinguishable from GPS-derived data. District of Columbia prosecutors are expected to lodge their papers on the issue by April 6 in the Jones case.

Among other things, the government maintains Americans have no expectation of privacy of such cell-site records because they are “in the possession of a third party” (.pdf) — the mobile phone companies. What’s more, the authorities maintain that the cell site data is not as precise as GPS tracking and, “there is no trespass or physical intrusion on a customer’s cell phone when the government obtains historical cell-site records from a provider.”

In the Jones case, the Supreme Court agreed with an appeals court that Jones’ rights had been violated by the month-long warrantless attachment of a GPS device underneath his car. Scalia’s majority opinion, which was joined by Chief Justice John Roberts, and Justices Anthony Kennedy, Clarence Thomas and Sonia Sotomayor, said placing the device on the suspect’s car amounted to a search. (.pdf)

www.landasiacebu.com

Real Estate Broker Licensure Exam Results Released in Six Working Days

The Professional Regulation Commission (PRC) announces that 3,192 out of 4,801
passed the Real Estate Broker Licensure Examination given by the Board of Real Estate Service in Manila, Baguio, Cagayan de Oro, Cebu, Davao, Iloilo and Legazpi this March 2012.

The members of the Board of Real Estate Service who gave the licensure
examination are Chairman, Dr. Eduardo G. Ong, Members, Ramon C.F. Cuervo III,
Florentino C. Diño II & Rafael M. Fajardo.

The results were released in six (6) working days after the last day of examination. Registration for the issuance of Professional Identification Card (ID) and Certificate of Registration will start on Thursday, March 29, 2012 until Tuesday, April 10, 2012. Those who will register are required to bring the following: duly accomplished Oath Form or Panunumpa ng Propesyonal, current Community Tax Certificate (cedula), 2 pieces passport size picture (colored with white background and complete nametag), 1 piece 1” x 1” picture (colored with white background and complete nametag), 2 sets of metered documentary stamps and 1 short brown envelope with name and profession and submission of Original Surety Bond, minimum amount of which is P 20,000.00, with the Professional Regulation Commission (PRC)/Housing and Land Use Regulatory Board (HLURB) as Obligee and to pay the Initial Registration Fee of P600 and Annual Registration Fee of P450 for 2012 to2015. Successful examinees should personally register and sign in the Roster of Registered Professionals.

www.licensedrealestatepractitioners.com

BI keeps an eye on Palawan ex-governor

A lookout bulletin memorandum (LBM) was issued yesterday against former Palawan Governor Joel Reyes and several others in connection with the January 24, 2011 killing of broadcast journalist Gerardo “Gerry” Ortega.

Justice Secretary Leila de Lima in a two-page memorandum ordered the Bureau of Immigration “to be on the lookout on” Reyes, et al. “should any of them pass through immigration counter in any international airport.”

Reyes’ brother Coron Mayor Mario Reyes Jr., former provincial administrator Romeo Seratubias, close-in aide Arturo Regalado and Valentin Lecias were also included in the LBM.

De Lima said unlike a watchlist order or hold departure order, an LBM would not prevent Reyes and his cop-accused from leaving the country.

The DOJ chief said an outstanding temporary restraining order from the Supreme Court prevented her office from issuing a hold departure order against Reyes, et al.

“Relative thereto, please find the attached copy of the memorandum dated March 13, 2012, wherein the Secretary of Justice directed the Commissioner of Immigration “to instruct all immigration officers to be on the lookout for the following accused should any of them pass through the immigration counters in any of our international airports and/or seaports.”

In the meantime, Mika, the eldest daughter of Ortega, lauded De Lima for issuing the directive.

She said they were hopeful the Regional Trial Court (RTC) of the Puerto Princesa City handling the case would issue an HDO and warrant of arrest against Reyes which were expected to be released on Tuesday.

“Tuesday (today) might be the earliest for issuance of warrant,” Mika stressed.

On March 13, the DOJ indicted Reyes (MJT) and several others for murder charges after the DOJ reversed its own ruling in connection with the killing of Ortega.

The panel of prosecutors in its new ruling found probable cause to indict Reyes, et al. for the crime.

Although the panel upheld the finding of probable cause against those previously indicted—and are behind bars— for murder, namely, Rodolfo Edrad, Jr., Armando Noel, Jr., Dennis Aranas, and Arwin Arandia, it reversed the finding of insufficiency of evidence in the same charge against Reyes, et al.

The panel, however, found no enough evidence to charge Jose Antonio Carrion, former Marinduque governor as there was no sufficient proof presented to prove that he was part of the alleged conspiracy.


www.manilatimes.net

Banks’ real estate exposure up 20%

The exposure of banks to the real estate sector, particularly in the form of extension of property loans and investments in bonds issued by property firms, rose by nearly 20 percent in 2011 to a new record high of over half a trillion pesos.

The Bangko Sentral ng Pilipinas said the increase in the banks’ exposure to real estate came on the back of higher household incomes and increased economic activity that led to more demand for residential and commercial properties.

Data from the BSP showed that the exposure of banks—both universal/commercial and thrift banks—to the real estate sector totaled P518.6 billion by the end of 2011, rising by 19.6 percent from the P433.6 billion reported during the same period the previous year.

The latest amount was also higher by 6.8 percent from the P485.6 billion seen in September 2011.
“The combined exposure to the real estate sector of universal and commercial banks, and thrift banks breached the half a trillion mark and reached the highest level [in 2011],” the BSP said in a statement Friday.
Rise in loans for residential properties was attributed largely to growth in remittances from overseas Filipino workers. Growing household incomes, supported by remittances, allowed many Filipino households to feel confident about buying homes with the help of bank loans.

On the other hand, rise in demand for commercial properties was partly credited to sustained investments by business process outsourcing (BPO) firms.

Data showed that loans to individual and corporate borrowers to support purchases of residential and commercial properties accounted for bulk of the banks’ exposure, or P506 billion.

The small remainder came from banks’ investments in bonds issued by property firms.
Also, universal and commercial banks accounted for P398 billion of the total, having catered to large corporate borrowers.

Although banks extended more real estate loans, the BSP said, their exposure to bad debts had in fact declined.

Nonperforming real estate loans ratio—the share of soured real estate loans to total real estate loans—improved to 5 percent by the end of 2011 from the 6.8 percent of the same period the previous year, and the 5.5 percent of September 2011.

Soured loans or bad debts are those that have remained unpaid at least 30 days upon maturity.
The growth in bank loans to the real estate sector earlier elicited concerns over potential asset price bubbles, similar to what had happened in the late 1990s. But the BSP shrugged this off.

Unlike in the late 1990s when demand for properties was mostly speculative in nature, recent purchases of real estate were fueled by actual demand from households and enterprises that were in need of assets for expanded operations, the BSP explained.

business.inquirer.net

Now Available: Philippines Real Estate Report Q2 2012

The Philippines real estate sector is generally considered to have outperformed in 2011. Almost 300,000 square metres (m2) of Grade A office space came to market across Metro Manila. The booming offshoring and outsourcing industry boosted office rents, while positive investor sentiment buoyed capital values. Remittances continued to provide local Filipinos with the spending power to drive the retail market, which saw the entry of new local and international retailers, such as Emporio Armani, LeSportSac, Paris Hilton Bags, HTC and Jamba Juice, enhancing the demand for retail space.

Despite the weak global economy constraining demand for Philippine exports, the local economy is fundamentally stable, though underperforming. While little can be done to prevent the exogenous factors affecting the Philippines, it may

be said that the government could have done better in 2011. Weak government and private spending was little offset by resilient private consumption. Public spending targets were missed throughout the year, with Philippine President Benigno Aquino III's US$1.7bn stimulus package in Q411 having a relatively mute effect on the quarter's GDP growth. Private sector participation has also been hampered by Manila's inability to enact coherent investment policies, emblematic of which has been the government's highly touted Private-Public Partnership programme, under which not one project made it into fruition in 2011. Private consumption, which comprises 70% of total GDP, slowed from Q2 to Q3 but still posted year-on-year (y-o-y) growth of 7.1% for the quarter.

 Full Report Details at
- www.fastmr.com/prod/335701_philippines_real_estate_report_q2_201 ..

 Overseas remittances play a large role in household expenditure and managed to keep private consumption buoyant amid the weakening wider economy. However, this is not expected to continue as BMI forecasts that private consumption will be limited to 4.3% in 2012 following a 5.8% performance in 2011.

A recent pledge by the Philippine government to boost infrastructure spending in 2012, as well as improve monetary conditions, suggests that a recovery in construction activity is on the cards. As a result, we are revising up our forecasts for the Philippine construction sector, with real growth expected to reach 6.5% in 2012 (from 5.7%). Beyond 2012, we believe that construction activity in the Philippines could improve further, with real growth for the sector forecast to average 7.5% per annum between 2013 and 2016.

Some of the key opportunities in the real estate market are:

* The Philippines is one of the fastest-urbanising countries in East Asia. With an English-speaking and relatively low-cost workforce, it is ideally placed to participate in high-demand services such as business process outsourcing.
* Many residents of cities in the Philippines continue to experience poverty, environmental degradation and live in slums or other inadequate housing arrangements. Economic development has created rural-to-urban migration.

Some key risks to the real estate market are:

* Political unrest in the Middle East and North Africa causing a decline in overseas remittances.

* Economic difficulties in the US and eurozone, and commodity price fluctuations, pose risks to private consumption growth.
* Despite President Benigno Aquino III's pro-foreign direct investment (FDI) policies, the changes in the law affecting REITs mean developers that had planned to set trusts up have stopped. In August 2011, mall developer SM Prime Holdings dropped its plans to raise US$500mn via a REIT and Ayala Land dropped its plans to raise US$400mn following the tax rises by the BIR and the tax agency.

reports.pr-inside.com

Debt watcher retains top rating for ALI bonds

A DEBT WATCHER yesterday announced it was keeping its top rating for proposed and outstanding bonds from Ayala Land, Inc. (ALI) due to the company’s reportedly well diversified nature and strong capitalization.

The interior of the Tower One & Exchange Plaza in Makati City, headquarters of Ayala Land, Inc. is seen from the lower floors. Philippine Ratings Service Corp. has retained its top rating for the listed developer’s proposed and outstanding bond issuances. -- Photo By Jonathan L. Cellona

Following a recent review, local credit ratings agency Philippine Ratings Service Corp. (PhilRatings) retained its outstanding “Prs Aaa” score for Ayala Land’s proposed P5-billion bond issuance, as well as its outstanding bonds worth P4 billion, the press statement showed.

“The ratings reflect the following factors: Ayala Land’s well-diversified portfolio complemented by solid brand equity and a highly-experienced management team; sound profitability coupled with strong cash flow generation and cash reserves, and conservative capitalization with ample room for additional debt,” PhilRatings said.

Last month, the real estate firm said it was issuing the multi-year bonds worth P10 billion in order to fund general capital expenses. This comes on top of an earlier P4-billion bond issue first issued back in 2008.

In the meantime, the company announced last week that it was earmarking as much as P60 billion -- its biggest investment in a single area yet -- to develop six districts within Makati City, the country’s so-called financial capital.

Ayala Land has allotted a record P37 billion in capital expenditures this year alone to fund new residential and leasing projects, as well as for the acquisition of new properties moving forward.

This amount will be partially sourced from seven- and 10-year corporate bonds worth P15 billion that were issued last month, earlier reports said.

Ayala Land hiked its net income for 2011 to a record P7.14 billion versus P5.46 billion it generated in 2010, while total consolidated revenues rose by 17% to P44.21 billion from P37.8 billion two years ago.

Total expenses last year grew by 12% to P33.50 billion in 2011 from P29.95 billion, year on year.

“Indications are strong that the growth in profitability will continue in the medium-term given the current favorable industry and general economic environment,” PhilRatings noted.

philippinerealestatenews.blogspot.com

JG Summit to ramp up spending this year for expansions

 LISTED CONGLOMERATE JG Summit Holdings, Inc. is ramping up capital spending this year in line with expansion plans in place for its real estate and aviation units, an official said.

The Gokongwei-led firm has pegged capital expenditure at P52.87 billion for 2012, up 79.89% from the P29.39 billion spent in 2011, Bach Johann M. Sebastian, JG Summit senior vice-president and corporate planning head, told Business World in an e-mail.

A bulk of JG Summit’s will be accounted for by the company’s real estate arm Robinsons Land Corp. and low-cost airline operator Cebu Air, Inc., Mr. Sebastian said.

Robinsons Land will be spending P19.25 billion this year, a 73.74% increase from the P11.08 billion spent last year, the e-mailed data showed.

Robinsons Land, which hiked its full-year net profits by 10% to P3.97 billion last year, earlier said it will be sourcing its capex from cash operations and debt, with more than 60% of the funding going to malls, office buildings, and hotels, and the remainder for condominiums and other housing units.

Cebu Air, for its part, nearly tripled its budget to P12.50 billion this year versus only P4.22 billion last year.

“Funding for Cebu Air will contribute to the growth of its fleet acquisitions this year,” Mr. Sebastian said in a separate telephone interview.

Cebu Air, which operates budget carrier Cebu Pacific, aims to expand its fleet to 47 aircraft by the end of 2014 in line with plans to embark on long-haul flights within the year.

Other JG Summit units, particularly its unlisted petroleum and banking firms, will also ramp up spending this year.

JG Summit Petrochemical Corp., the unlisted petroleum subsidiary of JG Summit, has pegged its 2012 budget at P15.54 billion, up by 88.82% from P8.23 billion in 2011.

JG Summit Petrochemical aims to open the country’s first naphtha cracker raw material factory in Batangas City in the third quarter next year, in a bid to drive down raw material production costs according to earlier reports.

Robinsons Bank Corp., for its part, will be spending P390 million this year, more than double the P190 million figure earmarked in 2011.

Listed food and beverage firm Universal Robina Corp. will be spending P4.56 billion this year, unchanged from its last year’s capex.

JG Summit, established in 1990, is the Gokongwei family’s holding company for various interests. JG Summit shares were traded unchanged on Friday at P28 apiece. -- Franz Jonathan G. de la Fuente.

www.bworldonline.com

M & A CONSTRUCTION AND DEVELOPMENT

M & A Construction and Development Company is the construction and real estate development division of the M. Lhuillier Group of Companies. It was established in the early part of 1996 as the contracting and construction arm of the new sites of ML Pawnshop and Jewelry Stores nationwide especially in the Visayas and Mindanao areas. Estimated number of employees reached 110 skilled workers including office personnel.

In the early months of operation, M & A Construction has constructed hundreds of new pawnshop branches and jewelry stores. During the first quarter of 1996, Mr. Panfilo F. Elma, the Chief Financial Officer of the business conglomerate and presently the company’s general manager, proposed the idea of a residential subdivision with a combination of high-end, middle-class and socialized housing units. The initial P10M investment made the company sustain its operation in the succeeding years.

Pioneer projects are the Sta. Monica Homes and Charle’s Peak Subdivision situated at Lapu-lapu City and Mandaue City respectively, with 160 total units combined. The company is also tasked for the land development, house construction, renovation, repair works of the M. Lhuillier Group real property holdings like Las Palmas in Danao City, Club Pacific in Sogod, Cebu and several northern town properties.

One of the main concerns of the company is to contribute its share in alleviating the housing shortage in the Metro Cebu area by increasing the accessibility of home ownership and improved housing facilities among the middle and low income group. Top management is considering other properties available for this purpose in the near future.

www.mlhuillierinc.com

Lhuilliers plan P100M park investment

AFTER allotting some P70 million as initial investment for the development of Cattleya Gardens and Memorial Park, the M. Lhuillier Group will be spending an additional P100 million for the completion of the project, which is due next year.

In a press briefing yesterday, Michel Lhuillier, president of the M. Lhuillier Group of Companies, said that Cattleya is one of the latest and biggest real estate developments of the company in Cebu, and is positioned to provide affordably-priced memorial park lots.

 “We have been building properties for the living, so why not also build beautiful homes for our departed loved ones?” Lhuillier said.

Cattleya Garden is a 5.4-hectare development located in Cordova, Mactan. It sells 12,728 lots of various types. Cattleya is also the first to offer a park cemetery in Cebu.

According to Cattleya sales and marketing manager Maria Lovena Ordaneza, the company has already sold some 500 lots worth P31.7 million since it opened its pre-selling program last March 6.

Cattleya targets the ABC market. “Our competitive advantage is that we are offering various product types for Cebuanos to choose from, on top of the amenities we are going to feature inside Cattleya,” Ordaneza said.

Cattleya’s various lot products include lawn lots, designed for underground internment and priced at P75,000 to P85,000, and the wall niche that can house 710 outdoor niches remains priced at P67,000 to P73,700. Places in the bone ossuary cost P51,000 to P56,100; the cinerarium, designed for those families who have not yet finalized their permanent memorial plans, will go for P41,000 to P45,100. Places in the pet memorial are priced at P21,000 to P23,100.

Cattleya also offers garden lots, where families have the option of building an 18-inch-high granite monument with 25 percent of the lot. Garden lots are priced at P1.1 million to P2 million. Families may also choose Cattleya’s biggest size, the family estate, with a regular lot size of 37.5 square meters. Its price ranges from P2.1 million to P3.9 million.

Among the amenities to be developed at Cattleya are an orchidarium, playground, central pond, multi-purpose hall, animal habitat and pocket garden and meditation area.

“We wanted to develop this not just a memorial park, but a place where families can enjoy and have a deeper sense of connection with their loved ones,” Lhuillier said.

The Cattleya is Lhuillier’s third biggest project in real estate so far. The company ventured into residential developments in 1997, building Charles’ Peak Subdivision and Sta. Monica Homes located in Lapu-Lapu City and Mandaue City, respectively.

Lhuillier said the company will launch more projects in the coming years, including the development of properties in Carmen, Sogod and Talamban into mixed-used commercial properties.

The M. Lhuillier Group is into various businesses such as financial services, food, and pawnshops, among others.

www.sunstar.com.ph

Aboitizes overtake Ayalas

SPY BITS By Babe Romualdez


It is now confirmed, the Aboitiz family’s Aboitiz Equity Ventures (AEV) is now bigger than the Ayala Group’s (AG) holding company. Market capitalization of the PSE-listed AEV is at P277.75 billion, higher than Ayala Corp’s P244.197 billion. Despite a higher market cap, however, AEV is trading only at 13.18 times price earnings ratio or PER, compared to AG’s PER of 20.93 times – which could only mean that AEV is still cheap compared to Ayala, the same source disclosed.

Last year, Aboitiz Equity Ventures posted a net income of P21.068 billion while AG posted a lower netincome of P11.665 billion. Many find it interesting to note that the Aboitiz holding company was able to overtake the Ayalas’ net earnings, but those in the know attribute this to the Cebu-based family’s power company whose contribution to the net income has been described as “enormous.” AEV is currently the second most valuable PSE-listed holding company next only to Henry Sy’s SM Investment Corp.

Residential condos driving real estate profits

Leading securities and investment firm ATR Kim Eng (which is now known as Maybank ATR Kim Eng following Maybank’s acquisition last year) forecast an increase in real estate sales this year to P19 billion, up from last years P16 billion. Net profits are predicted to reach P4.9 billion for 2012, higher than 2011’s P4.18 billion – with the sale of residential condominiums identified as the growth driver.

That’s very good news for Henry Sy’s SM Development Corp. (SMDC) – which was named top condo developer with 22-percent market share in Metro Manila. In the last eight years, SMDC booked an estimated P36 billion in real estate sales from its existing and past projects out of the total estimated P64 billion. The company posted over P4 billion in profits for 2011, up 38 percent from 2010 figures of P3.02 billion. ATR adjusted its previous profit forecast for SMDC after incorporating possible sales contribution from the developer’s new residential projects with an estimated total sales value of P27 billion in the next four to five years. The new profit forecast is now P4.9 billion, almost nine percent higher than ATR’s previous projection and 18 percent higher year-on-year.  

Maybank ATR’s vast network of offices in Asia makes it a significant regional force in the area of investment banking, offering a wide range of services that includes corporate finance, investment banking, venture capital and private equity, research, corporate finance advisory and asset management services.

Orange revolution

No – this item has nothing to do with the political protests that rocked Ukraine in 2005 due to massive election fraud – but the potential “revolution” workers might stage after being fired by a law firm in Florida. Apparently, the employees were set to join an after-working-hours event in New York to celebrate payday and decided to wear the same color to easily spot each other in the crowd. The color coding scheme convinced management that the workers were staging a protest – which resulted in their immediate sacking with no due process and no severance pay given them.

Florida is known for its orange juice exports and prides itself for being the “Sunshine State” – but there’s nothing sunny about the unceremonious sacking of the employees. Apparently, Florida is what is called an “at-will” state – meaning the state law allows employers to fire anyone for any reason, whether it is a good reason, a bad reason or even the wrong reason, as long as no legal violation are made. Ironically, the orange loving employees would have stood a very good chance of fighting out their termination had they been wearing the color as a form of protest – because that would have made their sacking unlawful.

Spy tidbit

Powerhouse business group Philippines Inc. held its annual conference the other day at the Tower Club in Makati, with Philippines Inc. chairman Tonyboy Cojuangco and its president Tony Lopa – both of whom are relatives of President Noynoy Aquino. PNoy who confirmed his attendance as guest of honor and speaker for the conference, was unavailable at the last minute due to “pressing matters” in Malacañang.

Several Aquino Cabinet officials attended the conference, among them Trade and Industry Secretary Greg Domingo (who read P-Noy’s speech), Board of Investments chief Tito Panlilio; Tourism Secretary Mon Jimenez and Foreign Secretary Albert del Rosario who arrived late due to a meeting with the deputy prime minister of Chechoslovakia who we are told intends to run for president of the Chech Republic.

The conference was well attended, with no less than presidential special friend Grace Lee hosting the event.

www.philstar.com

Real estate startup offers 'Zocial' platform, buyer rebates

Before forming ZonicRealty.com Inc., founder and CEO Eric Eckardt served as founder and president of Empire Home Realty Inc., a brokerage based in Sarasota Springs, N.Y. That company was acquired in 2009by Hunt Real Estate ERA, where Eckardt served as general manager and partner until November 2011.

The following is a Q-and-A with Eckardt:

Q: What idea launched the company?

A: After selling my independent brokerage firm, which I founded in 2004 to a nationally ranked Realogy brand in 2009, and then managing that "traditional" model over two years, my thoughts were validated that our industry is going through a necessary correction.

Specifically, social media technology has redefined our industry, while consumer behavior has changed (and) traditional firms were trying to justify their relevance.

Therefore, I wanted to launch a brokerage, ZonicRealty, that would leverage every medium while ... utilizing an online platform and an "in-house" social platform, Zocial.

This, combined with assembling a strong leadership team with proven business development experience, allowed me to finally launch ZonicRealty.com with an aggressive growth strategy to scale quickly and disrupt traditional markets.

"Zonic" was chosen because we believed it was "futuristic" and resembled technology, versus a typical name like John Doe Brokerage.

Q: What are the major products and services offered by your company, and the cost of these products and services?

A: (ZonicRealty offers) real estate brokerage services, providing significant cost savings per transaction through buyer rebates and a lower commission structure for homebuyers and sellers, respectively.

The commission rebate is for buyers, where we rebate 20 percent back to the buyer at closing. (Sellers) can list (for) as low as 4 percent (commission) while still receiving maximum exposure and professional service. 

Q: What is the company's core business model?

A: Our core business model is a residential, consumer-centric real estate brokerage utilizing an online platform that leverages social medial and technology. Our business model generates revenue (gross commission income) through buyer and seller representation.

We offer buyer rebates to consumers to qualify and save thousands on the sell side while offering them a wealth of services, including an aggressive online marketing campaign for each respective home. Our sources of revenue will be through ancillary partnerships, although our primary source of cash flow is gross commission income.

Q: What makes the company's product and service offerings unique?

A: ZonicRealty.com's product and service offering is unique due to the following attributes:

·         Social platform, Zocial (derived from the word "social" and "zonic," hence "Zocial"): inspiring collaboration between all market participants (and) links to Facebook. We are steering our ... homeowners to post about their home, neighborhood, schools, etc., from their perspective -- encouraging collaboration and market insight.

·         Buyer rebate: offering the opportunity to earn 20 percent back at closing with no diluted requirements (such as a minimum commission) or fine print.

·         List online: Sellers can list online through our website, creating efficiency and minimizing a traditional role in the process.

·         3-D virtual environment: Through our intranet site, ZonicCloud, our agents can collaborate through (an online virtual) environment across all markets.

·         Leadership: Proven real estate professionals that have business development experience at the executive level.

·         Paperless transactions: Our agents can manage their business (and) deals in the "cloud" through our platform.

·         Scale: In seven weeks, we (were) in three separate markets in Long Island, Syracuse and the Greater Albany Capital Region in New York state, with Florida pending in the Tampa-Sarasota region. (In) other markets we have secured partner agents in advance of our formal launch(es).

·         Disruptive: We are targeting "traditional markets," providing consumers with a viable option.

Q: As the founder, what is your background?

A: I started my career on Wall Street in investment banking, where I worked for more than eight years, providing senior bank financing for acquisitions, leveraged buyouts, and general working capital needs for Fortune 500 and middle-market companies.

After departing investment banking in 2004, I launched an independent real estate and mortgage company that I ultimately merged into a joint venture with one of the leading real estate firms in the country in 2009.

I stayed with this company (Hunt Real Estate ERA) as the general manager and partner for our region in New York state growing revenue by more than 400 percent in less than two years by executing organic and acquisition initiatives. (I) departed ... this traditional firm in November 2011 to launch ZonicRealty.com.

I've also been involved in several other startups since 2004, including a crowd-funding platform for small businesses and entrepreneurs.

Q: What is the amount of outside funding received to date?

A: ZonicRealty.com is self-funded, although (I) had preliminary exploratory conversations with (a) venture capitalist and angel investor regarding an equity injection to accelerate our growth initiatives. As the sole shareholder, I'm on the fence with regard to diluting my equity position with a (venture capital firm), unless it is a strong strategic partner.

Q: Is the company profitable now? If not, when is it projected to reach profitability?

A: No, although our break-even will be within the second quarter of operations, given our pipeline of business and low cost structure (no brick and mortar).

Q: What are the company's growth plans for the current calendar year?

A: Outside of penetrating several markets in New York state, which we already did within two months in Syracuse, Albany and Long Island, we are launching in Florida and several other states.

Q: Which technology trends and market trends is the company watching most closely?

Outside of specific technology, we are focused on consumer behavior.

Q: What new products, product features and services is the company investing in most heavily?

Social media and technology.

Q: Any upcoming releases/developments?

A: ZonicRealty Inc. is launching in Florida around April 1, pending application status, in addition to other markets outside of New York state. Again, we are currently conducting business in Syracuse, Long Island and the Greater Albany Capital Region in New York state, with teams in place carrying our flag, ZonicRealty.com.

http://www.inman.com

Clive Thompson on the Power of Introversion

• By Clive Thompson
• Email Author 
• March 21, 2012 
• 12:34 pm

Guy Kawasaki, by all appearances, seems like an outgoing guy. A former Apple “evangelist,” he’s an omnipresent voice online, blogging his ideas about entrepreneurship and tweeting 40 times a day to his half-million followers.

But a few years ago he posted a surprising 140-character revelation. “You may find this hard to believe,” Kawasaki wrote, “but I am an introvert. I have a ‘role’ to play, but fundamentally I am a loner.” His followers were gobsmacked.

You can understand their confusion. As Susan Cain points out in her much-discussed new book, Quiet: The Power of Introverts in a World That Can’t Stop Talking, introverts get a bad rap in American culture. Ever since Dale Carnegie began writing manuals might l on glad-handing your way up the corporate ladder, US society has embraced the idea that extroversion is key to success: Your achievement—and even your level of creativity—depends upon your being gregarious and outgoing and able to work well in a team.

But as Cain’s work indicates, a new picture is emerging. Forcing everyone to act like extroverts harms the quality of our work and our lives. The good news that I’d add? Many digital tools are helping to mitigate that harm.

About half of Americans are introverts, Cain says. These are people who have a superb ability to focus but work best alone and become drained by too much enforced socializing. Yet the US workplace has evolved in complete opposition to their needs. Private office space has shrunk dramatically: 30 years ago, companies averaged more than 500 square feet per employee; today it’s less than 200. Meanwhile, corporations have pushed employees to work in face-to-face teams, marching them endlessly into conference rooms for brainstorms.

“There’s such a stigma against introversion,” Cain says. “To reveal that you’re an introvert puts you in a bad light.”

Yet this incessant teamwork isn’t useful. A mountain of studies has shown that face-to-face brainstorming and teamwork often lead to inferior decisionmaking. That’s because social dynamics lead groups astray; they coalesce around the loudest extrovert’s most confidently asserted idea, no matter how daft it might be.

What works better? “Virtual” collaboration—with team members cogitating on solutions alone, in private, before getting together to talk them over. As Cain discovered, researchers have found that groups working in this fashion generate better ideas and solve problems more adroitly. To really get the best out of people, have them work alone first, then network later.

Sounds like the way people collaborate on the Internet, doesn’t it?

Indeed it is—and as I’ve noticed, my introvert friends love it. Sure, the digital era has uncorked a fire hose of interaction, but it’s mostly asynchronous. With texting, chat, status updates, comment threads, and email, you hash over ideas and thoughts with a pause between each utterance, giving crucial time for reflection. Plus, you can do so in private.

“This is precisely what brings out the best in introverts,” Cain agrees. It’s why someone like Kawasaki thrives online. And it’s how the epic collaborations of the digital age—like Linux and Wikipedia—function: with a constellation of folks, many of whom probably peg the needle on the Introvert-O-Meter, working intimately but remotely.

Granted, not all online tools are good for introverts. As Cain says, research shows that Facebook’s endless friend-collecting is more appealing to extroverts than introverts.

But overall the irony here is pretty gorgeous. It suggests we’ve been thinking about the social web the wrong way. We generally assume that it has unleashed an unruly explosion of disclosure, a constant high school of blather. But what it has really done is made our culture more introverted—and productively so.

www.wired.com