How My Business Plan Will Hold Me Accountable

I am not a seasoned investor. In fact, I have never closed a deal. I didn't start this Blog to mentor potential investors or show anyone my road map to success in this game. I did it because I am tired of talking to myself about the "things I'm going to do".

My name is Ben Barredo. I am live in Knoxville, Tennessee. I'm a chef in healthcare currently managing at East Tennessee Children's Hospital. Though this is the most cushion job I've ever had, I am so tired of hot kitchens, grumpy cooks, and long days. Most of all, I'm tired of only have a couple hours a night with my family and not having the time to do the things I want to do, like travel, take martial arts lessons, read a book from cover to cover, and nap in the middle of the day.

I have studied Real Estate for a few months now. I got into it after going to a lame conference where a so-called guru wanted me to pay $500 to go to another course where they'd ask me to pay $30k to get a mentor. I walked out, went home, and searched about real estate online. I came across BiggerPockets. I joined and I loved what I found. I've been on BiggerPockets scanning  forums, blogs, watching podcasts on Youtube, and watching Webinars to prepare myself for the first deal of a lifetime.

Still, I find that I am wading in the shallow end of the pool watching the big kids play in the deep end, laughing it up as I shyly stand by.

No more.

So, my big idea was to start a blog. Sure, this could be posted and not read by a single living soul. But the idea of it being out there and possibly having just one person expect to see my journey evolve into something worth calling a climactic ending makes me feel like I really need to make a move. It's social network holding me accountable.

So my first step is to share my Mission Statement, my goals, my strategy and my time frame. If time permits and I don't run over the word count, maybe I'll share a little more. I've been meaning to put this stuff in writing anyway. Maybe it's all that's been missing for me to gather the courage to take action.

So, without further ado, here we go:

Mission Statement - I work hard and create wealth through REI for my family and our quality of life. I do this by finding opportunities that help both myself and those people involved, without whom my endeavors would be impossible.

This is my reason for being right here. My wife Laura and my daughter Kateryna.

My Short Term Goals

• To create passive income of at least $5000 so I can quit my job.
• To own a minimum of 25 units in 3 years.
• To partner with a team that is honest and lifts me as I lift them.
• To pay for my family to go on a month long vacation to anywhere in the world.

My Long Term Goals

• To own a portfolio worth a million dollars.
• To vacation anywhere I want every few months like Brandon Turner - VP of Marketing.
• To pay for Kateryna (my daughter) to go to college with passive income.
• To be debt free (except for the good kind).
• To create a legacy that I can leave to Kateryna and that it will allow her to live the life she wants.
• To give Laura (my wife) the ability to live her life the way she wants.
• To live the life I want - Boss free, paycheck-to-paycheck free, stress free.

My Strategy

My strategy in real estate to become financially free is to invest in Buy and Hold single-family and multi-family rentals to create the passive income necessary to leave my job. After I leave my job, I might try to diversify and do rehabs to grow my wealth. Eventually I'll purchase other wealth creating businesses that won't take my presence to run them therefore I can avoid the whole job thing.

If necessary, I'll try wholesaling to create some quick cash opportunities to initially fund my first few deals. In the meantime I will attend REIA meetings to seek out a mentor, as well as potential partners, investors, attorneys, and realtors who will be necessary to make this REI thing come true. I'll initially invest in single-family units because they seem to be more manageable in the beginning as I learn the ropes of property managing and closing deals.

Time Frame

I want to have $5000 in cash flow in 3 years.

Market

My local area has a few colleges and universities. I want to find single family homes that I can rent by the room to college students. This, I believe, will maximize my earning potential while minimizing my vacancy rate. From there I will grow outward and bring in lower and middle class working families that can't yet afford to buy their homes. I will attract them with lease options that are rent-to-own so that I can help them improve their lives and buy their first homes. I will not cheat them or lie to them to make a quick buck.

Criteria

Deals need to be less than $75k with an ARV of over $100k for 3 beds / 1 bath minimums. They need to have a cash flow of at least $200 per unit so that I can meet my 25 unit goal and $5000 monthly income. Rehab costs have to be no more than $10k. I don't know what my LTV should be, yet.

That's all I have for now. I'll need to think a little more about the rest. My fingers are also cramping up and my eyes are crossing. If you're wondering, I got this outline from BP's Ultimate Beginner's Guide to Real Estate Investing. It's free and available on this site.

Until next time.