Executive Summary NYCrentals.

com
“Vertical search sites have a big advantage over general search:
They are able to go much deeper and present much more
structured information for the user.”
[Forbes 18 January 2006]

Vertical searches take the niche between usual search engines like Google or Yahoo and specialized
real estate websites that actually provide information about specific properties. Our search specializes
on specific theme in internet: real estate rentals in NYC. The advantage of such search engine is that
it lists down the search results in more structured way, its search capabilities allow to look “deeper”
and on top you are able to refine the found results.

The page-example below shows the list of found results in such engine: it shows the map of all
properties in chosen area, shows relevant pictures, dates of creation and prices. Also the additional
filter on a side allows to illuminate all irrelevant information.

The objective is to make the entire real estate market in NYC rentals available from one source. It is
using crawling technology that allows for properties to appear in database without any human
interaction.

The product will have residential and commercial section. By specializing on narrow region it will allow
for a system to gather not only information about letting but also create rich with information database
with buildings, city infrastructure, other useful and relevant for choosing real estate to live area
specifics. So the meta-data supporting the navigational layer can be further enhanced with information
gathered independently of that collected from the net.

Advantages. NYCrentals.com is a new, technology-driven, property vertical search engine that will
deliver:
• For consumers: the freshest, most comprehensive information on rentals due to number of
sources, in NYC.
• For estate agents: free property listings, no manual means to input properties and measurable
ways to acquire clients using performance-based advertising approaches. Uniqueness of business
model of such project is selling leads and clicks to real estate brokers. All content crawled via

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automatic robots in area of New York will have a lead capture capability (on each page describing the
property): either an email request via the online form or a call via NYCrentals.com call center.

Market:
1. Recently there has been a substantial shift from sales to rentals in NYC due to difficult mortgage
deals.
2. There is less competition in rentals market right now then sales as all national start-ups went into
sales first and during the crisis never moved into new rentals or commercial real estate.
3. Ever increasing share of internet advertising and thousands of realtors. Online real estate ad
spending is expected to grow.

Technology. As PropertyFinder LLC is formed as an affiliate of a holding company in Russia by Anna

Chapman who owns the majority shares in that company as well, NYCrentals.com receives the
proprietary unique technology developed and patented in Moscow in exchange for 50% shareholding.
Therefore the high risk of failure and cost of such expensive development is waived and the
investment required will not be as large.

Competition.

1. One of the biggest U.S. online property players, Move.com, has very recently changed its model
from subscription to performance and is currently revamping its entire online operation. Move.com
services approximately 6.5 million unique users a month, and powers the Home & Real Estate
Channel for America Online, Yahoo! Real Estate and the House & Home Channel for MSN.

2. Streeteasy.com – uses the same crawling technology, new player and not yet profitable. Has less
properties in database.

3. Graigslist.com – very strong player, BM is based on payments for each ad (from 6 to 10 dollars).

4. Rent.com – national portal, based on commission (PPA) – one of most profitable portals
worldwide, they have earned $80 million (http://www.globaledge.co.uk/news/world-s-most-profitable-
property-portals-35128)

The business model and core systems operated by the major portals have a number of features that
we consider to be significant drawbacks.

A ‘PFI’ will never be comprehensive

The business model of pay-for-inclusion (PFI) of online content includes only properties from paying
subscribers and excludes all other properties.
The PFI model used by most incumbents. Our analysis is that, as more players offer a range of basic
property listings at low or zero cost (the NYCrentals model), the market price for basic listings will
drop, and the pricing power of the main PFI players will decline significantly.

No performance measurement
Internet advertising is a performance-based industry, where advertisers are tracking and controlling
return on investment at a granular level and only paying for what they get. PFI is a model that makes
subscription charges, independent of performance. Internet advertising, under the influence of the
Google model, is becoming a performance-based industry where advertisers are tracking and
controlling return on investment at a granular level. PFI is a model that will steadily decline as PFI
processes are eroded and as performance becomes dominant in the sector. It comes back to the old
adage that “half of all advertising spend is wasted, I just need to know which half!” Now, due to the
inherent trackability of the Internet, advertisers can find this out– and they do want to.

Contact: Anna Chapman (+1 917 XXX-XXXX), xxxxxx@gmail.com. PropertyFinder LLC, based in
New York, USA.

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