2015 in the bank and planning for 2016

[Daniel Raposo]

I always like to take the first month of the year to look back at my past year and plan for the next one.

In 2014 we bought and sold our first flip for a nice profit, I've discussed this in previous posts so I won't get into it here. 2015 was a pretty good year for my team, in both lessons learned and money earned. We purchased a number of properties, including 3 rehab flip properties, a 15 unit multi-family for holding, and a 2 family for holding. We also did our first direct mail which led to two wholesale/listings and the 2 family property we purchased. While this was a nice step forward, we fell a little short of my goals. We dealt with delays on a few projects and some family health issues. I learned that I need my team to be more flexible, less people dependent, and more system oriented.

We completed our second flip in 4 months this spring/summer which we documented in a video deal diary here Video Deal Diary! We earned a total profit of $108,500 on this deal, representing an 81% Cash on Cash Return (not annualized)

We completed our third flip in 6 months this summer/fall which earned a profit of $54,000 representing a 66% Cash on Cash Return (not annualized)

My goals in 2016 are to grow our team and systems to handle more rehabs, but to do this means finding and buying more rehabs, which means ramping up our marketing and stabilizing our deal flow. I plan to focus my personal attention more immediately on the systems we use to find deals while my team works through our current inventory. We will buy what we can handle and wholesale/list what we can't, all the while systemizing the process and outsourcing where we can. The next step will be to grow our investor base and project team so we can slowly take on more deals. My goal is to be buying 1-2 rehab properties per month by year end, and have the people/systems in place to properly manage them. 

What are your goals for 2016?