Local Buys EscapeHomes.com
Local Buys EscapeHomes.com By Loralee Stevens Staff Reporter SEBASTOPOL -- With some help from the North Bay Angels and other private investors, local entrepreneur David Hehman has purchased EscapeHomes.com and intends to build it into a global resource for second home buyers. That market, the fastest growing sector of residential real estate, is expected to reach $150 billion in the U.S. in 2005, according to Mr. Hehman. “With 80 million Baby Boomers, many of them affluent, looking at retirement, we see a huge window of opportunity. EscapeHomes was developed by an Orinda broker, and although it's gained name recognition, it lacked funding to scale and a marketing/management team,” says Mr. Hehman, who owns the startup consulting and private investment company Spartina and teaches a wine entrepreneurship class at Sonoma State University. “We have the team in place, and we've raised $500,000 in angel funding. Later this year we'll raise a larger Series B.” EscapeHomes.com has a San Francisco address, but Mr. Hehman, a Sebastopol resident, hopes to move the customer service and content arm to Sonoma County. Revenues come from Realtor and broker membership fees and a percentage of commissions from referrals. The site currently lists 180 Realtor and broker partners, and Mr. Hehman wants to grow that number to 500-1,000 within 12 months. “The concept works well on a global scale,” he explains. “It makes sense to research remote regions on the Internet instead of flying there. But you want more than listings; you want to get the flavor of the surrounding area. What are the people like? What activities are they engaged in?” The site has received some good press -- it was named one of the best second-home real estate sites by Barron's Online -- which Mr. Hehman attributes to its unique layout. Visitors can select geographical areas in and out of the U.S.; an interest such as golf; a lifestyle such as wine country living; or regions such as urban areas, mountains, or beaches. According to John Chute, former owner of Coldwell Banker Coast Properties and still an active broker at the Bodega Bay firm, prospective retirees will find EscapeHomes.com most useful. “Vacation home buyers generally want properties within a two- to three-hour drive, and they're likely to be familiar with the region,” he says. On the other hand, “retirees will want to check out all the options in other regions.” His company was an early partner in EscapeHomes.com but dropped it when leads appeared scarce. Noting that the site is under new ownership and receiving national press, Mr. Chute says the brokerage is considering rejoining. Mr. Hehman is no stranger to real estate sites. While an MBA student at UC Berkeley, he and some friends started a ski vacation rental site that was eventually sold to Expedia. Before that he helped develop and sell a direct marketing e-mail company and a personal health management site. “I'm an early stage kind of guy,” he says. “I love the process of proving a concept. As the concept matures, it's often better off in the hands of a large company like Expedia or Cendant. “EscapeHomes.com could be picked up by a company like that, or it could stand alone and go public. Either way, we've got the site, the scalability, and a great market.” For more information, visit www.escapehomes.com or www.spartina.com.