PT 5/5: Lead Conversion

[Sam Valme]

Hey BP Family! This is the last section in my new business plan methodology. The first post can be found here: PT 1/5: Capital Acquisition. This section is arguably the most important because this is where we actually put the rubber to the road. We've gone through and Gathered Capital, Analyzed The Market, Generated Leads, and Analyzed Our Opportunities. 

This is our conversion process. There is TON of gray area in this section. Once again, I just want to validate our methodology. Make sure that we are headed in the right direction. As, there are a few questions I'd love to get some veterans options on. Thanks so much for all of the help!

• Buy
• Present offer w/ Contingencies (Home Inspection & GC Contractor Inspection)
• Home Inspection -Verify unknowns not determined in Lead Analysis
• GC Inspection - Verify Rehab Budget if project requires extensive work.
• Rehab
• Hire Contractors in correct order (GC if large project)
• Pull permits w/City if necessary
• Oversee rehab projects to meet timeline and QC.
• Rent
• Hire Property Manager to list property and lease.
• Refinance
• Pull out Investors Capital, Profit and put under long term loan.

OR

• Flip
• List with Agent
• Finalize contingency to convert to Hold. If necessary.

Questions:

1. What are other contingencies that should be in place with an offer?
2. What would constitute a "large" enough project to bring in a GC?
3. What is the correct order to hire contractors?
4. What happens if the Property Manager can't rent out the property?
1. How long is long enough to fire them? 1 month vacant? 2 months?