Business Plan Outline; NW Suburbs of Chicago

[Justin K.]

Hi All,

I've been reading this site for some time now and have listened to almost all of the podcasts.  I'm very interested in getting into real estate and I've boiled everything down into a very basic set of steps to follow.  Does this seem to be on the right track?

Business Plan

1. Purchase list of SFR Absentee Owners with greater than 70% Equity in Mount Prospect, Arlington Heights, Prospect Heights and Elk Grove Village.
   1. Use listsource.com or melissadata.com.
   2. This should result in about 750 addresses. Assuming 500 are good with a 3% response rate gives me 15 leads.
   3. Is 70% equity the correct number?
2. Send 1 postcard each month to the list for 6 months.
   1. Print my own or use yellowletters.com.
   2. Content of cards?
3. While mailing postcards, call all FSBO ads I can find in my target area.
4. Call leads and get this information:
   1. Need more ideas/help with this list of questions.
   2. What is the lead’s situation?
   3. How much equity to they have in the home?
   4. What do they believe the home is worth?
   5. What are they looking to get for the home?
   6. What is the best case scenario for them?
   7. What scenario would they be happy with?
   8. Are they interested in seller financing or
   9. Address of home?
5. Research property and ask BP what the heck to do with the deal.
   1. Need more ideas/help with this list of options.
   2. Wholesale
   3. Lease Option
   4. Buy and hold with seller financing
6. Return to lead with offer(s) and/or request to see the home.
7. Profit!

Thank you,
Justin