I am a newbie with a business plan. I have a 20 year plan in REI. Renovate - Investment - Development. I have ethics (moral and business) and am not trying to get rich quick. I do however need some good sound advice.
First, my plan is to renovate a few houses to build up my seed money. (Eventually, I will get to Invesment (rental) and Development). I am able and have the time to put in some elbow grease and sweat equity. My plan is to find a SFR in which I can do some yardwork, flooring, light plumbing and electrical, etc. Sell the property for a fair profit, turn around and invest that profit into the next project.
I have a couple of partners to help with the closing costs and repair costs. I also have a real estate agent/broker who specializes in cleaning up credit and get buyers into homes. (He works on referals and has many folks lined up to “Buy the right home for them”.)
Here is the question: What is the best way to aquire a house that will allow me to gain a respectable profit after closing and repair improvement costs?
There are Pre-forclosure, foreclosure, HUD, FSBO, MLS, farming neighborhoods, etc. Everyone has there own opinion and I would like to know what would work best for my situation.
My vision is that I aquire a home for $60k, spend $10k in closing costs and repairs, sell the house for $85k-90k, pay my commission and net $8k-$15k in profit in 90 to 120 days. I live in Charlotte, NC.
Am I on track, are my numbers skewed, asking for too much? Any help would be greatly appreciated!
Here is my plan. Buy some real estate and make some MONEY and buy all I can however I can over the next 50 years. Work every day helping others avoid some of my mistakes along the way and helping where I can.
The just buy real estate plan my be too simple for a banker but it is working great for me. I have kind of focused on Killeen, Texas where the cash flow seems to be better but am looking at office buildings and other stuff besides residential.
First, let’s be clear. Right now, you don’t have a plan, you have a goal. A goal is a written statement that says that you want to get from point A to point B. It will only become a plan when you actually are able to write down exactly HOW you plan to get from point A to point B.
What is the best way to aquire a house that will allow me to gain a respectable profit after closing and repair improvement costs?
As you’ve stated, there a number of ways to acquire properties. There is no one “best” way to do so. It greatly depends on exactly what you are planning on doing, and you and your mentality on each method.
My vision is that I aquire a home for $60k, spend $10k in closing costs and repairs, sell the house for $85k-90k, pay my commission and net $8k-$15k in profit in 90 to 120 days. I live in Charlotte, NC.
Do you have a place scouted out where properties retail between the $80-90K that you’re shooting for? Have you researched that area for foreclosures and found out what they are actually selling for? Allowing only $10K for closing costs, holding costs, AND repairs is pretty slim. At best you’re looking for a PP&C house (that’s patch, paint and carpet), and a minor PP&C at that. One where the carpet can be cleaned and not replaced. Those are going to be difficult to get at 60-70% of value, especially for a first-timer.
You want to sell within 3-4 months after buying or repairing? Can you repair something that quick? Do you know if your market is selling that quick anyway? How do you plan on marketing?
Since you live in Charlotte, I’d suggest that you look at financialhelpservices.com or larrygoins.com (basically the same website). Larry’s company(s) specialize in buying properties and wholesaling it to other investors, but you have to act fast. He usually sells his properties within hours of sending them out to the investors.
Thanks for the advise. Yes, it is a goal. (but at least it is written down). I have also started a business plan. Thanks for asking the tough questions and being blunt. I will get back to you with those answers and let you know exactly what “the plan” is.
