First Post including Rough Draft Business Plan

[Sam Duisterhof]

Bigger Pockets Community, I am excited to start my REI journey and I wanted to get my first post out so I can start become more active in this community. I am completely new to real estate but I'm finding immense value in the BP articles, posts and other media. As per the beginners guide I have started my business plan and I wanted to post it here a hopefully receive some feedback. I hope that the sheer entertainment of reading a total newbs lofty REI dreams will provide you with enough value to comment!

Mission Statement:

Delta Fox Properties mission is to create a path to financial freedom through strategic real estate investments. My goal is not just personal financial success but also to create opportunities for others, providing the guidance, resources, and support needed for them to achieve their dreams. I believe in the transformative power of real estate as a wealth-building tool, and I am dedicated to sharing knowledge and opportunities with others.

Goals:

• 3 Months: Educate, Educate, Educate. My sole focus is improving my knowledge of REI through books, podcasts and the information on the Bigger Pockets website. I am aware of the 250 hour recommendation, and I am dedicating 2 hours each day to education related to REI.
• 6 Months: I plan to close on 1st property.
• 1 Year: By the end of 2024 I plan to have 3 properties under contract.
• 2 Years: I plan to continue aggressively grow my portfolio utilizing capitol from W2 and partnerships.
• 5 Years: I plan to have 10k a month in passive income via REI. Additionally, I will be working as a Life/Performance Coach to supplement my passive-ish income from REI. At this point I will no longer need to have a W2 to support me, and I will be fully working for myself.
• 10 Years: Expand my REI ventures so that I can acquire land to build a retreat center on. I plan to focus on wellness retreats specifically focused on meditation, psychedelics, sleep performance and ocean therapy for SOF Veterans. While I plan to prioritize the SOF community, I would like to open the center to as many Veterans as I can.

Strategy: I plan to utilize my experience in the military to shape my strategy. I want to build my portfolio in an efficient manner that balances risk and speed. I plan to start small so I can build my confidence closing on smaller deals and then push myself outside my comfort zone by partnering with more experienced investors and close on bigger deals. To do this I plan to bring REI experience, a unique investor mindset shaped by my experience in the SOF community and 150-200k in liquid capitol (this should be attainable NLT 01 Jan 25).

I am most interested in utilizing STR and house hacking strategy. STR is enticing because it carries the largest potential for short term cash flow returns however, I understand the market is cooling down and I need to remain sober about the potential risks and challenges with the STR strategy. House hacking and multifamily is also an attractive option to me because I have a unique work schedule that affords me 60 days of uninterrupted time off several times a year to put the sweat equity into a property. I am above nothing and I am willing to get my hands dirty working on a property. Additionally, because my work schedule brings me overseas for 70 day stretches I will be able to practice short and midterm rental techniques while I am away.

Market: I am struggling with understanding how to select a market; however, I think that I am looking for C neighborhoods that are getting ready to move up to B status. I heard about this on a podcast, and I liked the idea even though I have no idea how to identify such a market. It is in line with my values of providing value and opportunity for my community. Since I am a nomad, my strategy will need to be distance REI. I understand this can complicate things a bit and I plan to offset the increased complexity with knowledge and developing a solid team. I believe that while my cash flow may suffer because I will be utilizing a team to manage a property, I will ultimately have an advantage in that I can diversify my portfolio and take advantage of unique markets.

Financials: I currently have an excellent financial situation. My DTI ratio is approximately 4%, a credit score of 750 and I have access to a VA loan as well as FHA loan as I have not owned property up until this point. By the end of Q1 2024 when I am planning to enter the market I will have 150k cash to invest.