House Flipping Business Plan

[Dustin Miller]

Hey guys,

I am working with someone to help them create a business plan/infrastructure for a new business. The goal of the business is to touch every county across his state (if each county can be deemed profitable), but that will be tweaked as seen necessary. He wants to set this up to be quite large. The idea is to have five "Regional Managers" manage "x" amount of county employees (1-3 per county), where these employees will be the ones actually completing the flip. The county employees will be trained and expected to use his techniques to acquire properties, and the main investor will also be pumping them leads through the Regionals far before hitting the market because of his connections that he has built. He has enough capital to fund this, so that is not a worry. In summary, the supply and financials will be there. I know that seems wild and vague, but just roll with it for discussion's sake (he's built an incredible network I've never seen before).

In this business, the county employees will be taking no risk, but will have some very specific vetting. They will be given leads, given the necessary funds, and the property will be entirely under the main investor's name. They will have 0 financial risk. Once the flip is completed, they will split the profit with the main investor 50/50. The Regionals will be compensated 5% of the main investor's overall profit. Regionals will be mostly in place as mentors and supervisors, because the main investor's idea is to receive little-to-no phone calls once this is established and running well--it's a fun retirement plan and a personal goal.

Here's where I would like to reach out to BP: Does anyone have anything similar to this? Or know of something similar? As I am writing the procedural side to all of this, it is pretty extensive. I want to be sure I am hitting all of the right questions as far in advance as I can. Therefore, I would love to be able to talk to others that have done something along these lines and hear how they go through these processes and actual implementation. Furthermore, what most immediate issues do you foresee with this structure other than the tasks being carried through by the county employees and financials? The main investor has the necessary amount of funding in cash, therefore taking a ton of headaches out of funding this endeavor and going through lending on such a large scale. I know I've been vague with some of the details, but it would take quite some time to type up all of the specifics!

Thanks in advance for any feedback!