My First Business Plan! What do you think?

[Jared Smith]

Hi Everyone (Don't know why this is bold)  I sent this out once or twice in a link, but wanted to see if it was easier to read just printed in text. Please let me know what you think of my Business Plan!  Thanks in advanced

Mission Statement: Our mission is to solve Landlord and Tenant disputes in the most simplistic, quick and cost effective manner. Speed Simplicity Savings

Goals: Own 100 Units in property by 8/1/2020

By Year Goal:

2016:

2-4 Units

2017

10-20Units

2018

30-45 Units

2019

45-70units

2020

100-115 units

2220+

+35 units a year from there on out Market changes will be needed

The Shell

• What:
  • Target absentee owners with recent or current tenant evictions
• Why:
  • Under attacked market
  • Large growth potential
  • Allows scalability in different locations
  • Profit margins

• Where:
  • Cities that have a large multi-family abundance
  • Growing cities
  • Near Transportation preferably
  • Cities with growing house prices

• How
  • Direct Mail
  • Advertisements
  • Word of mouth
  • Lawyers

• Who-Team
  • Property Manager
  • Accountant
  • Lawyers
  • Real Estate Agents
  • Mortgage Brokers
  • Contractor
  • Hard money Lenders
  • Private Money lenders
  • Portfolio Brokers
  • Wholesalers
• Expected Result
  • Obtain lower cost housing with higher margins
  • Creating a team that can handle any and all problems
  • Profit

Buying Points

• Houses at 70-75% or lower APR value
• 12% cash on cash return
• 10% appreciation on asset
• No warzone properties
• Looking for C+ through B houses in C+ through B neighborhoods
• 2-4 unit homes

Pain targets

• Money Loss from tenant not paying rent
• Stress of dealing with tenants
• Time involvement
• Damage Costs (house)
• Vacancy costs

Money acquisitions

• Conventional Mortgage up to10 properties
• Seller financing (difficult because most people won’t be free and clear)
• Portfolio lender past 10 properties
• Hard Money lender with BRRRR strategy
• Private Money Lender with BRRRR strategy

How this differentiates from the competition

This process differentiates from many different Real estate strategies, because execution of this strategy requires information on current and previous evictions. While this information is publicly available, finding and using this information in coordination with locating the phone numbers and addresses of absentee landlords can be difficult. The difficulty in obtaining this information is the greatest asset in this strategy. Information is the name of the game and finding people with tenant pains provide the greatest opportunity to find incredible deals. While messaging all absentee landlords would cover the landlords with tenant problems, this strategy specifically targets evictions allowing us to be prepared for any and all arising situations.

SWOT Analysis

Strengths

• Known pains of customers
• Prospect acquisition helps if evictions are needed in own investments
• Attacks a market people do not want to deal with
• Can be used in all markets
• Prospects increase in worse economic times

Weaknesses

• Hard to find information required to locate potential customers
• Narrows down prospects to a very small niche field
• Scalability becomes difficult in a single market
• Only available where there are evictions, which can be lower income neighborhoods

Opportunities

• Reduced cost housing based on want to dump property and tenant
• Increased Profit margin, because of the lower rehab on houses.(Cosmetic mostly)
• Possible entry into higher end neighborhoods because current prospect cannot afford holding costs with nonpaying tenant
• Prospects and diversity increase as the economy gets worse(repeat)
• Lawyer Advertisements

Threats

• Tenants
• Location
• Judges
• Prospect
• Damage to house from eviction
• Eviction
• Landlord & Tenant law
• Money/Mortgage Acquisition

P.A.C.E and Exit Strategies

Primary Plan

• Buy and Hold

Alternative Plan

• BRRRR Strategy

Contingency Plan

• Wholesale

Emergency Plan

• Fire Sale

Eviction processes

1. Agree to drop back rent for leave
2. Cash for keys
3. Easement program for a month eviction that results and helping tenants leave (such as cash for keys)
4. Eviction process in court

Conclusion

Concluding my business plan, it is well to know that this plan will take a few months to show effect. The goal is to target prospects 3 times, every nine days in the first month of advertising. 2 times in the second month and 1 for every month following up to 1 year. It is expected to take 8 touches to these prospects to generate at least one probable lead. Once the plans is implemented, leads should come in more regularly. Thank you for reading my plan and please provide any feedback you believe is beneficial.