Real estate business strategy evaluation
Hello, everyone!
I am developing a strategy to start a Real Estate Investment business and would love to hear some feedback on how realistic it is and maybe some input and your ideas what could work better.
The current situation is that I am self employed as well as my business partner and we are novices in RE business. From that, financing our first deal with traditional loan would not work ( and it did not as I have tried mortgage brokers and a number of them are very specific on W2 requirements). Me and my business partner are willing to risk 100-120k of our personal liquid assets to start REI business and here is the way we see that:
-Starting a RE company ( corporation ) to get into flipping in order to a) legally avoid / reduce self - employment tax b) develop credibility of the company for possibility of future financing.
-Get connected with local investor friendly real estate agents through open agency relationship ( the one where only the agent who found the deal is entitled for commission split ). I have got to know 2 of them so far that meet our needs and they keep an eye on the right deals
-Get into buying and rehabbing residential multi-family properties as the demand for them is not so high, rehab costs per unit are most likely lower ( as they would most likely be used for renting out) and it always has an exit strategy of being rented out.
-After a good credibility and standing of our legal entity is built, get int BRRRR strategy to build passive cash flow
-Get into commercial lease real estate, again BRRRR strategy as it is not only evaluated by comp method, but based on producing income, that will allow bigger profit after rehab and refinance.
-Possible new construction , development and subdivision.
I know its a long perspective, but I like to think big. Its a basic plan so far and its being adjusted accordingly. Big thanks for any input, looking forward to hear your opinions on what can be reconsidered and your success stories.