2011 Business Plan - SFR 60% FMV SELL through Year 2 then HOLD for rentals
Hey Everybody,
I'm working on my get rich quick business plan for 2011.
Can you eye this for me? I'd appreciate all constructive insight:
It's detailed, so if you have trouble sitting still, run away now probably pass this one.
Mission
(LLC) is a company comprised of two capital-backed investors. With one Carlton Sheets program over two years of investment knowledge our goal is to secure a portfolio that delivers sustainable growth opportunities amidst any economic climate. The strength of TBD LLC is a transparent, ethical business model which will generate qualified referrals, long lasting relationships and future business.
Our mission is to create passive income through the purchase, hold, and eventual resale of residential real estate. We will judge investment properties solely on their ability to generate positive cash flow, but will take into consideration the ability to add value through rehab or repositioning for any property in a value add scenario. Once initial MAO has been targeted, it shall be policy that no offer may exceed this position.
The target asset of (LLC) will be single family detached residences in areas ranging from small suburbs to major metropolitans. Investments will remain secure in acquisitions limited strictly to those areas which are stable among key indicators; education, employment and percentage of owner occupied residences. An in depth knowledge of residential trends, anchored by solid agent and legal relationships, shall present opportunities to maximize instant equity at each closing.
Short-Term Goals
It is the vision of (LLC) to aggressively pursue opportunities that meet minimum of our requirements in cash on cash returns and value positioning opportunities. The goal is to purchase one SFR during Q1 of 2011, and resell at FMV as quickly as possible. After 60 days, there is a sinking feeling of failure contingent exit-addendum. This process shall be subsequently repeated, generating income and producing a small business credit relationship with local lenders.
All properties purchased must meet minimum leverage requires of 70% FMV and/or rentals at 1% of resale value.
Long-Term Goals
The vision for future purchase and equity position of (LLC) is primarily fixed on delivering results for lenders and individuals motivated to eliminate their claims on property. Through execution of several transactions we aim to create a flawless operations procedure allowing a constant flow of acquisition and inventory reduction.
Ownership & Employees
(LLC) shall operate under the direction of co-founders TBD. A weakness does exist in FY01 of business as any new venture engages the litmus test of experience building. A built in financial equalizer has been established by investment in random middle-class neighborhoods and capping all out of pocket costs at Future growth will be maintained with additional capital investors and all necessary legal and accounting relationships. Looking forward to continued development of business relationships and an increased volume of RE transactions in FY(TBD) administrative and other support staff will be hired to perform routine phone/email functions remotely.
Target Market
(LLC) shall initially operate in (Augusta, ATL, DC, New York) purchasing SFR which offer a (TBD%) return on cash investments. Specifically, 3/2, 10 â€" 15 year constructions in South Augusta will be targeted for purchase. After successful implementation of a strategy focusing on 2 REO transactions in FY01 aggressively priced properties, (<61% FMV) will be targeted in the D.C. metro region.
Our knowledge and expertise will allow us to position ourselves in emerging markets surrounding these staples. A key requirement is visiting a fortune teller[s] research of geographical indicators which present opportunities of the correct variables needed for future equity growth.
All future partners are to invest at least one third of the funds required to secure target properties. After each cycle of quarterly activity, all partners shall meet to discuss strategic portfolio planning and needs for capital liquidity.
It shall be the policy of TBD LLC that all business purchases and/or expenses shall be thoroughly integratedisolated from personal funds. No co-mingling of these two spheres shall occur on the part of any partner.
Numbers:
Target FMV: $90,000 - $110,000
Offer maximum: 60/100
Offer range: $54,000 - $66,000
Maximum EMD: $2,000
Cash secure: 5 – 10% d/p
Max. Int. Rate: 6%, fixed
Tax assess: Clear
Title: Clear
Panic Exit Strategy
SELL DOM: FMV until exceeds 60, decreasing 5% every 30 days thereafter
Listing agent: 1.5% incentive for sale within 60 day window
SB Account: Net proceeds transfer
HOLD: Rent at 1% of FMV or $1,000 deposit L/O