My First Business Plan

[Shawn Connors]

Hey BP,

I have completely the first draft of my business plan.  I know over time it will grow and expand, but for now this is it, tell me what you think!!!

Business Plan for SKB Real Estate Solutions, LLC

(Created on 7-27-2015)

Mission Statement:

At SKB Investments, our Mission is to help connect people who want to sell their homes with investors who want to buy homes. We accomplish this by marketing to motivated sellers, getting the properties under contract, then wholesaling, flipping or holding the property for a profit. We target distressed sellers and relieve them of their burdensome properties while simultaneously creating a win/win situation for investors and ourselves.

Goals:

Our goal at SKB Investments is to become one of the Tri-State area's top real estate investing companies. We will achieve this by consistently providing our customers with top notch quality service and the best possible outcomes for their wants and needs. We want REI to help us attain financial freedom in order to better the quality of life for our families and ourselves. We are focused on attaining wealth through carefully and strategically purchasing properties that provide us with passive income.

Short Term

• For the remainder of the 2015 calendar year, we plan on wholesaling 6 properties with an estimated profit of $5000-$10,000 per deal. We plan on making $30,000-$60,000 and reinvesting half of our profits back into marketing in order to expand our lead generating channels.
• In 2016, we plan on wholesaling 2-4 houses per month (24-48 deals), purchasing and holding 3-5 properties, in order to start creating passive income, and rehabbing 2 SFR homes.
• In 2017, we plan on wholesaling 5-10 homes per month (60-120 deals), purchasing 10-15 properties for buy and hold investments, and rehabbing 5 SFR homes.

Long Term

• In 2018-2020, we plan on wholesaling 10-20 deals per month (120-240 deals), purchasing 20-30 properties for buy and hold investments, and rehabbing 5-10 SFR homes.
• In 2021-2026, we plan on wholesaling 20-25 deals per month (240-300 deals), purchasing 15-25 properties for buy and hold investments and rehabbing 15-20 SFR homes.
• In 2027-2037, we plan on wholesaling 30-40 deals per month (360-480 deals), purchasing 25-35 properties for buy and hold investments and rehabbing 25-30 SFR homes.
• In 2038 we plan on selling the company.

Strategy:

Our main focus to start will be wholesaling. Wholesaling is the process of finding great real estate deals, writing a contract to acquire the deal, and then selling the contract to another buyer. Generally, a wholesaler never actually owns the piece of property they are selling; instead, a wholesaler simply finds great deals using a variety of marketing strategies, puts them under contract, and sells that contract to another for an "assignment fee." This fee is typically between $500 and $5,000 on average -- or more depending on the size of the deal. Essentially, the wholesaler is a middleman who is paid for finding deals.

We have a small marketing budget to start and will be sending out postcards to Absentee Owners who live out of state. We are targeting 3 counties (Chester, Montgomery and Delaware) in our first direct mail campaign. Our goal is to land 1 deal from this mailing so we can reinvest this back into marketing and have a larger budget. Then, we will focus on mailing to absentee owners in state in the same 3 counties. In October 2015, we will also mail to the inheritance list. We will then reinvest half of the profit from our next 5 deals back into marketing in order to expand our lead generating funnel. During the next 6 months we will also expand our marketing beyond just direct mail by utilizing online marketing though Facebook, Twitter, Google Ads, and Back Page. We also plan to create and launch our website and utilize squeeze pages, and put up bandit signs.

After we start to become versatile in wholesaling, we will expand our business into Buy and Hold investing and Rehabbing. We will use the same marketing strategies in order to find off and below market deals. We will apply the same techniques to all of our investing strategies and streamline the entire process in order to create multiple systems. Using these systems we will bring on more employees and create a business that can operate fluidly at all times. This will enable me to step back a little more from the day to day operations and focus mainly on the acquisitions aspect.

I plan on using this strategy in order to quit my job in the summer of 2016. Through wholesaling, buy and hold and rehabbing this will be an attainable goal to reach. Also using these strategies will allow me to retire at 50 or younger, depending on my situation.

Market:

The markets we plan to initially invest in are Chester, Montgomery and Delaware counties. When we begin to expand, we will continue to focus on these counties and add Philadelphia. We will look in low and high income areas for all possible deals to wholesale. At this point in time we are not focusing so much on criteria because we do not intend to hold or rehab any homes for the next 6-12 months. We know which parts of each county are the high and low income areas and will adjust appropriately with our marketing. If we are not finding enough deals in these areas, we will then expand to Berks and Lancaster counties. We can also expand into some areas in Delaware and New Jersey if necessary.

Team Members:

Mentor- Someone, with experience, that will help and guide me through the process of real estate investing.

Mortgage Broker/Loan Officer --A mortgage broker is the person responsible for getting me loans – especially if I am going “conventional” (not hard or private money). Someone who has the experience of working with other investors. This person should be creative and intelligent.

Real Estate Attorney-- Someone on the team who can go through contracts and who knows the legalities of all our moves. Having an attorney who is skilled with real estate investing is highly important for success. Attorneys can also be compensated through fees collected at acquisition or disposition of a property.

Escrow Officer or Title Rep-- the person responsible for closing the deal - taking me from "the offer" to "the keys."

Accountant—CPA who is aware of the ins and outs of real estate and preferably owns rental properties.

Insurance agent—someone who is local and can help get the best possible insurance for each individual transaction.

Contractor-- someone who gets things done on time and under budget. The contractor must be licensed/bonded/insured, not just affordable

Supportive Friends and Family

Realtor -- An exceptional real estate agent is fundamental. They will be an excellent resource for contract real estate work, which may include the following activities: bird dogging, referring buyers, showing properties, open houses, broker price opinions, etc.

Great Handyman --Someone to take care of the little things that come up on a daily basis.

Exit Strategy and Back Up Plan:

At SKB Investments we plan to use Lease Options, FSBO, 1031- Exchanges, Seller Financing and traditional sales through an Agent to exit contracts and make money. We believe that these avenues to sell are best suited for our business.

What is my “Why?”

I want to use real estate investing as a means to quit my job so that I can spend more time with my family and grow with them every step of the way. With my current career and job, I am not able to spend nearly as much time with them as I would like to, which doesn’t bring me much happiness. When I have kids I want to be a part of their life every day, go to any event with them, travel the word with them, play with them everyday, wake up and make breakfast for them, come home and make dinner for them and do what we want, when we want. My main goal is to be present and available in every moment with them and I know that I can achieve this through real estate investing. My biggest “why” and the most motivating force in my life and succeeding in real estate investing is my family. Nothing else matters more to me than their joy and happiness.

Wholesaling will generate the capital I need in order to quit my job and pursue investing full time. Through a combination of wholesaling, flipping, and holding real estate, I will be able to create enough passive income and capital to obtain financial freedom. This is important to me because I want to be able to provide my family with a healthy and prosperous life style. I don’t want to buy huge houses, the nicest cars, the best clothes and jewelry on the market. I want to provide a comfortable and happy lifestyle where money is not an issue. I want to be able to go on as many vacations as we please. I want to be able to buy the best food available in order to keep us healthy. I want to be able to provide an atmosphere where we can all grow in peace and harmony and not have to worry about how we are going to pay the bills, or stress about being able to put food on the table. In my opinion there is nothing worse than fighting over finances with my wife. I want to completely eliminate this stress from our lives. I want to live long, happy and healthy lives and help others live the same way.

With real estate investing, I want to be able to give back to my community and the world as much as possible. I want to be able to donate to any charity and help others make a significant impact on society. I would absolutely love to start a dog adoption service. This is definitely a dream of mine and my wife’s. I want to be able to help and be of service any way possible to create an atmosphere of growth and prosperity. Also, I want to be able to get back into the food world later in life. We have always talked about opening and book store/restaurant. We want to create an environment where people can come, eat great food and read great books. Some of the most important things in life and education and health. If we can open a place that promotes both, than we will be doing a great service for our community.