Startups: 1st House Bought! - PTP Protect the Profit (Pics & SOW)

LAST WEEK STATS:

• Purchased: (1) House
• Wholesaled: (2) Houses
• In Escrow: (3) Houses
• Under Contract: (2) Houses
• Pipeline: (15) Houses

We closed on our first house Thursday! The plan is to rehab it, put a tenant in, and sell it turnkey. Here are the numbers:

• Purchase Price: $15,000
• Rehab Costs: $21,000
• Misc Costs: $4,000
• Rent Rate: $675/mo
• CAP Sell: 9%
• PROFIT: $14,000

(RR x 0.60 x 12 / 0.09 = $54,000 Sell - $40,000 Expenses = $14,000 PROFIT)

Project 1 (P1) Pictures: Click Here

Scope of Work (SOW): Click Here

I'm learning about how to best communicate what needs to be done to our team. Evernote seems to be affective, but I plan on implementing Podio more with time for rehab work.

Our "Protect the Profit" meeting was yesterday and served the purpose of brainstorming the best ways to achieve our goals for the following week. Our GC Philip and Investment partner John both attended for a few hours and discussed quite a bit.

• How to communicate work schedule with team members
• What contractors we are working with
• What materials we are using
• How can we cut costs
• What standards do we want to maintain for the image of the company
• Who needs to do what
• Action plan and scheduling
• Paperwork needed
• Marketing plan to sell houses turnkey/retail
• Using Podio as CRM and Project Management
• Etc

We met Saturday at 7:00am and concluded around 12:00pm. I stayed at the office until 3:45pm.

The cleanup/demo work is being done for around $8.00/hr so Philip told me I should be as detailed as I could for the SOW for what needed to be kept or removed.

Since many of the Technicians on our team don't have smart phones we decided it would be most efficient to send the scope via text message.

DEMO Text Message Script Here

We will be trying out this technique with our handyman scope as well. I figured this may be a great way to communicate for our scheduling in the future using Google Voice text messaging? How do you feel about that idea?

Podio will likely be used for this in the future.

I'm not sure if I mentioned this in a recent post, but the Indiana Real Estate Commission (IREC) will be changing the requirements for becoming a Broker Salesperson as well as being a Principle Managing Broker July 30, 2014.

Prior to this year, to open your own RE brokerage you were required to have your REA license held Active by a brokerage for a minimum of one year. After July 30th that duration will be increased to two years... but there is a loophole.

If you receive your brokers license between now and July 30th then you are able to open your own brokerage immediately (must be before July 30th) and will be grandfathered in as a Principle Managing Broker. With no experience... awesome.

With the vision I have for REILDeals.com (RD) I don't want to wait two years to start it. So, I have to incorporate RD and file it as a brokerage with the IREC as soon as possible. /add ToDo

I will also be opening a separate division under RD which will do property management. "REIL Property Management"?

Here is the vision broken down:

• Jennings Home and Property LLC
  • Wholesaling/acquisitions
  • Marketing
  • Project Management
• REILDeals.com
  • Wholesaler (WS) deal acquisitions
  • Turnkey (and Retail?) sales (For JHP and other Turnkey Providers)
  • Buyer management and marketing
• REIL Property Management
  • Manage properties for buyers who purchased through RD

The RD structure has evolved time and time again, but the thought now is to use RD as a way to guide WS in their marketing by directing them to the areas we (JHP and selected affiliates) are buying properties.

Then give the WS the tools to make everything they do easier. (Create dependency)

The WS listings will be private and only available to view by JHP and Affiliates to purchase for now.

The Turnkey Buyer's identities will all be private and RD will provide them with the properties that are available to purchase in the markets they desire (Starting with Indianapolis). Listings will be laid out in a comparison format to show each registered Turnkey Company's inventory, property expenses, materials, warranties, rent, and ROI. (Sort of like Hotel.com)

Would love to hear your feedback! Sorry if it seems like I'm all over the place lol Everything is clear to me which is what matters for now!