Can you critique my business plan?

Question

Hey,

Thanks Paul

I. TableofContents

I. Table of Contents...................................................................................................2

II. Executive Summary................................................................................................3

III. General Company Description...............................................................................4

IV. Products and Services..............................................................................................5

V. The Market..............................................................................................................6

VI. Operational Plan.....................................................................................................7

VII. Management and Organization...............................................................................8

VIII. Personal Financial Statement..................................................................................9

II. ExecutiveSummary

Buying a property at just the right price is like buying stock at the right price. Naturally when a stock price is doing well people want to buy it, however, the growth of that stock has already happened and thus the profit already made. A wise investor will always buy low and sell high, sometimes creating a list of great companies and waiting for the right dip in price to buy knowing the company will rebound. The same with property, no one really wants to buy property that needs work or that is not appealing to the consumer's eye, but these are the properties that have potential to grow. For Dalton Capital, LLC to buy property low and sell it at or above market value will give us the profit margin to operate and create an extra income and retirement flow for its owner and legacy for its owner's future generations.

Dalton Capital, LLC is entering the real property investment market looking to sell or lease real estate to the Knoxville community. Dalton Capital, LLC knows as stated before the best way to make money on real estate is to buy real estate at under market value and to sell or lease it at or above market value through proper marketing strategies as our creative marketing strategy which gives its clients the option to either lease, purchase or lease purchase each property.

Dalton Capital, LLC is poised to enter the real estate investment market soundly with wise counsel and the capital needed to not have to go to initially go to a lender or pay interest. Though Dalton Capital, LLC is a start up business its owner has the experience and network that has a proven track record that makes Dalton Capital, LLC unlike most start-ups. Moreover, all investments will be real estate secured.

In our first deals we are going to purchase a property in our niche community of North Knoxville that needs renovations to increase the price to market value and market the property across the leasing market and buyers market for a profit. When it is favorable to lease the property for long term gains and possible sale at a later date we will make the purchase price higher to make the lease more advantageous. When it is advantageous for Dalton Capital, LLC to sale the property we will competitively list the property at market value and list the property to lease higher than market value. Each time we will give consumers the option to lease, purchase, or lease with the option to purchase.

III. GeneralCompanyDescription

Dalton Capital LLC is a real estate investment company. We generate a profit through the buying, developing, holding, leasing, and selling of real property.

MissionStatement: Dalton Capital LLC's mission is to profit from win-win scenarios that better the community through development, rehab of real estate and providing property or housing for the public.

CompanyGoals and Objectives: It is Dalton Capital LLC is to build a portfolio of income producing assets by buying/holding/selling real property assets to supplement Dalton Capital, LLC's owners income and to diversify the owners retirement through real estate. We plan holding no more than 5 properties a year while touching at least 10 a year.

BusinessPhilosophy:We will be profitable while being wise and ethical. Being wise we will never overextend our debt obligations or chase a failing dream. Moreover, since real estate is investment properties that are held will always be kept in great condition to hold their value. We will reinvest profits into properties because at times minor repairs can help residual value and appreciation of property over time.

Customers

We will market our products to the general public and investors alike.

Current Market

Real property investing has been in decline due to the mortgage crisis and the previous culture of over lending and overspending on real estate. There is a slew of foreclosures and investors upside down on their portfolio due to making unwise decisions of the investment culture. There is great potential to grow investing soundly. There is a short-term growth from renovating and selling foreclosed properties and long-term growth by holding great properties and leasing them to the public. Dalton Capital, LLC is poised to take advantage of the growth by entering the market with enough capital to work its first deals strictly with cash, not having to use the mortgage industry to make a profit.

Experience

Dalton Capital, LLC has the strength of experience and advisors in the family that specializes in holding and developing property for profit. Dalton Capital, LLC's sole owner has personally 14 years of experience in helping his families business before starting his own venture through Dalton Capital, LLC. Moreover, Dalton Capital, LLC's advisor/father-in-law has a successful track record in development in upper scale communities such as Guettysview/Lashbrook/River Club and is a licensed realtor and contractor. Moreover, the owner currently is in management and has been trained and developed by one of the most successful companies in America, AT&T.

Company Formation

The owner of Dalton Capital, LLC has chosen to form as a Limited Liability Company due to the favorable pass through taxation and liability benefits it holds.

IV. ProductsandServices

Dalton Capital, LLC will provide real property for sale or lease to the public.

Moreover, Dalton Capital, LLC will provide leasing management services to other real property owners. Dalton Capital, LLC will also help potential investors make wise business decisions through consultation. Our property management fee will be half of first month's rent and also 10% of the leasing fee. Consultation and coaching will be charged for $150 an hour unless specifically written different in contract form.

Dalton Capital, LLC will be competitive in these avenues by experience and a proven track record.

V. The Market

Knoxville

Knoxville’s median home price is floating around $110,000 with an average price per square foot being $95 a square foot. Knoxville median household income is $33,000 with a median rent of $774. Home ownership sits around 50%, which means there is an equal market for selling property and renting.

Dalton Capital, LLC will specialize in 3 bedroom 2 baths homes greater than 1,100 square feet. Depending on the purchase price and initial intent the property will be purchased to make a profit of a minimum of $350 a month or $4200 a year in rent after mortgage. If reselling property I would follow the 70% rule in purchasing. This rule states that a rehabber should pay no more than 70% of the after repair value, less any repair costs or other profit needed.

The demographic we would want to market to is working households or people with a steady job for 2 years or more making more than the median household income of $33,000. We would search for applicants who don’t desire to move within 2 years.

Niche

Dalton Capital, LLC Beginning niche would be leasing and/or reselling of properties under $100,000 with at least 3 bed rooms that are in the North Knoxville area.

VI. OperationalPlan

Beginning Product Strategy

Our strategy would be to buy the property at a price to do either of two things: first would be the option to sell the property for a reasonable profit then to keep and hold the property for leasing. First, the property will be listed to be sold at a fair price to turn quick profit, however, after a predetermined time the property will be offered to lease at the same time as sell. The property will be on the market until a leasing contract or sale has occurred. Property will be offered by Dalton Capital, LLC doing business as Home Sweet Homes of Knoxville and will be marketed that the customer has the convenient choice to either lease, or purchase with owner financing option available.

VII. ManagementandOrganization

Dalton Capital, LLC is member managed by Paul Stephen Dalton, Junior. Though all decisions are made and finalized him, he in constantly receiving counsel from seasoned investors, relators, and financial advisors.

Dalton Capital, LLC is open to other member's however, does not currently have plans to pursue adding other members to the limited liability company.

Account Closed · Answer

Its aspirational but lacks any specifics. Where are the numbers? How much capital will you invest yourself? How much do you want others to invest? What will your cost of money be? Example: I want to rehab 10 houses in my first year. At the most I would have 2 at a time. Total capital needed for that would be $140K. I have $30K of my own money to invest. I expect a profit of $15K per house. Etc.... A business plan is about numbers. Words are fine but the game is about money right?

Andy Collins · Answer

You have put a lot of work in it,,,don't take this wrong, but I have a question,,what will you do with it. If your going to use this to help get financing, (which is what I am guessing),I would first go and sit across the desk from bankers in your area, find out from them what they want from you to get you the financing you want. If it is to get financing, I would go find a deal or two, bring them something concrete, a certain house, the plan for the house, the details of how the deal would work,,,that along with your financial situation and credit (if this is a new LLC I don't see them loaning without a personal guarantee). Good luck with your investing,,,REI is a great world to play in!