Here is my business plan for starting in the REI area.
Mission: Long term wealth building by acquiring real estate assets that are paid for by others.
These are just my targets that I'm looking at:
Target areas:
1) Saint Clair Shores
2) Warren
3) Roseville
Style of house/investment:
3/1 1000 sq ft
Question- What do most of you investors look for when buying houses? Does it have to have at least 3 bedrooms? do you have to have at least a 1.5 bath house? Whats the minimum square footage you'll accept?
Target price of home/investment:
50 - 75K with taxes under 2500 dollars a year
Since I'm not that handy, or do not have the cash flow to do major renovations I want to keep the repairs under 5k.
Question- what are some of the things that disqualify a house for your investments?
Plan:
6 month: Attend as many REI meetings as possible, Find investors in the area or out of area and bird dog for them to learn the ropes. Begin building a buyers list and a business savings account with the money earned from Bird dogging.
Buy 1st investment home in my target area. This is going to be a live in and fix up home and then sell for profit. Take that profit and invest in another house and do the same thing.
While doing this, I will still be building contacts, bird dogging and learning. And would like to find a mentor during my first 6 months.
6 months to a year:
With mentors help/teaching, would like to transition between bird dogging and wholesaling. Since spending the last 6 months building contacts and knowing what certain investors are looking for that should boost my knowledge on what makes a good investment property.
Still would be taking profits from all and putting them in the bank, building available cash flow for future investments.
1 to 3 year plan:
With the contacts that I have met either through learning, investing, partnering with etc, I would begin to assemble a small team of like minded individuals.
Would still continue to wholesale in my target areas.
Continue to build bank account.
Put first house on market within one year of purchase, begin looking for another fixer upper to invest in.
Between my 3 and 4th year I would like to buy my first rental property. I would like to wait until this time so I can have money in the bank to allow for any of the uncertainties or emergencies that may arise.
5 + year plan:
Acquire more rental properties to start building long term wealth.
That is what I have so far, I know this is a work in progress and the business plan should always be treated as guidelines and should have some room to maneuver as well as grow and adapt to the ever changing market.
As far as how much money I would like to have in the bank, well I haven't come up with a realistic goal yet. I think my plan is simple and with a mentor or with you guys picking away at it, I'm sure it will fine tune its self, but I needed somewhere to start with....
Once again I would appreciate all comments, feedback and constructive criticism!
I have this posted in my blog also, but I need to clarify a few areas that were pointed out by someone else.
My 3/1 1000 sq ft target houses are what I want to buy, fix and sell. When I begin bird dogging/wholesaling I will search for whatever the investor is interested in.
By March 1st 2012 I want to have a buyers list built up and have learned enough through bird dogging to be able to wholesale 3 houses by the above date.
