All Forum Posts by: Jared Smith

Thanks @Kerry Baird for your advice on my question. I do agree with you that I need to take action and send out a marketing piece. While this is true, I also agree with your last statement, and because of that  I am doing the marketing research before hand to try and learn and target the pains of potential prospects. I am planning on sending my first mailing out in November to my created list. Sorry to hear about your terrible tenant, I hope you have been able to recover from the incident. Thanks for your story it has helped me understand better what difficulties landlords face and how I can appeal to their challenges. If you don't mind me asking how do you market to your prospects?

Hey Everyone,

I know this may seem like a very basic question, but is their an incorrect way to wholesale properties? Can anyone briefly explain the ways to not wholesale illegally so I don't find my picture on the front page of the paper. Thanks for the help!

Hi Oleg Shalumov hey may have a referral in mind could you PM me where in Bergen county and what your looking to do with the flip?

Thanks for the comment Raymond McGill , I totally agree with you. My goal for this knowledge at the moment is direct mail marketing. My goal is to target people that are currently or have in the past gone through evictions. I'm trying to figure out if evictions make people want to sell and sell quickly at a reduce priced. I know every scenario is a case by case, but do you think evictions would provide an environment in which people would want to sell their properties and sell for a discount?

Thank you for the advice Patrick L. and Michael McDevitt . Do you think seller financing would be an option assuming they owns it free and clear?

Do you think that it has to be a cash offer, or do you think it could also be a regular house acquisition?

Thanks for the response Patrick L. When would you say people become most frustrated in the eviction process?

Hi everyone, I'm trying to do some market research. My question is Are people inclined to sell, and sell at lower prices after or during evictions?

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.

Would it be better to not put it as a link