My Plan - Please offer your thoughts and help keep me accountable

7 Replies

Alright, I've been lurking for a while, read a bunch of books, listen to dozens of BP podcasts, and killed hundreds of hours "researching" my market online.  At this point, I really don't think there's anything more I can learn without DOING.  So here's my plan with deadlines.  Please let me know if you think I'm missing something.  And feel free to ridicule me if I don't follow through with this.

1.  Reach out and schedule a conversation with an asset protection attorney (by 11/4).  

2.  Talk with my bank about a loan pre-approval (by 11/11).

3.  Contact three small local banks/credit unions to see if they offer better rates/services (by 11/18).  

4.  Apply for mortgage pre-approval and/or home equity loan (by 12/2).  

5.  Write out tenant screening policies (by 12/9).

6.  Draft lease (by 12/16).

7.  Write out move in and move out plans/policies (by 12/23).

8.  Prepare to make an offer (set aside funds) and open accounts for new business (by 12/30).

9.  Talk with my insurance adjuster AND reach out to three real estate agents who invest in my market (by 1/6). 

10.  Hire an agent and view a potential property (by 1/13).  

11.  Make an offer (asap).

Good job on making mini measurable and attainable goals.
Do you have the neighborhood and criteria of the property you will be searching for?

I don't mean this in a bad way, but why such a long timeline?  Unless you have credit or liquidity issues, much of this doesn't take very long.  You might find some good properties to make offers on much sooner, so you might want to prioritize the activities that get you ready to throw out some quick low offers and see if anyone will bite.  Or, if something good comes along, you're ready to pounce!  That said, great job writing down attainable goals, and I wish you great success!

You remind me of me... I like my ducks in a row and it really holds me back. It looks great having everything planned out and a schedule in place but things often don't work that way. If you really push your self to jump in you'll feel extremely comfortable but you'll learn a lot more. You can still fail of course and the downside to jumping in is that you may not see it coming, i.e. when a tenant starts breaking a lease you'll have a plan of what to do vs. 'HOLY CRAP, A TENANT DID WHAT?' and then deal with it. If you consider the best written lease ever you'll still have 'HOLY CRAP, A TENANT DID WHAT?' moments regardless.

My first suggestion is to share with us all on BP what it is you're hoping to find and FOCUS. I dedicated myself to a specific niche for 9 months without getting distracted by the next shiny object and it worked out okay.

My second suggestion is to team up with a local investor. Find someone who is a flipper at your local REIA(s) and offer to work on the project. This means showing up consistently (not just a day here and a day there) and it means possibly working for free. If you get paid, then that's just all the better.

Keep in touch and keep us updated. Feel free to private message me and I'd be glad to be a pain in your rear.

I would recommend to start analyzing deals.  At least 2 a day if not every home that comes on the market in your area and niche.  That way on 1/13 you will know what is and what is not a good deal. Then you can make #11 happen with confidence.  

Where's your local Mentor?
Please don't tell me the line I hear often "everything you need is hear on BP"

Get a Mentor!

First of all, this isn't a Plan...it's a list of things to do before you get started.  A plan is what you put together that has a set of goals (financial) at the end.  You start with the goals, and reverse engineer the plan, laying out a series of achievable milestones (financial)...then turn around a follow the breadcrumbs.

OK.  Number 1.  You don't pick the market you are going to invest in...your set of Goals will.

Now, onto your "list":

Jerry:  Reach out and schedule a conversation with an asset protection attorney (by 11/4).

Joe:  OK.

Jerry: Talk with my bank about a loan pre-approval (by 11/11).

Joe: OK.

Jerry:  Contact three small local banks/credit unions to see if they offer better rates/services (by 11/18).

Joe: OK.

Jerry:  Apply for mortgage pre-approval and/or home equity loan (by 12/2).

Joe: OK.

Jerry:  Write out tenant screening policies (by 12/9).

Joe:  No necessary.  There are plenty of forms already done.  Just use them.

Jerry:  Draft lease (by 12/16).

Joe: No necessary. There are plenty of forms already done. Just use them.

Jerry:  Write out move in and move out plans/policies (by 12/23).

Joe: No necessary. There are plenty of forms already done. Just use them.

Jerry:  Prepare to make an offer (set aside funds) and open accounts for new business (by 12/30).

Joe:  OK

Jerry:  Talk with my insurance adjuster AND reach out to three real estate agents who invest in my market (by 1/6).

Joe:  OK, but I'm unclear on why they need to be investors in your market?

Jerry:  Hire an agent and view a potential property (by 1/13).

Joe:  If you mean "hire a real estate agent", then this is wrong.  You don't hire a real estate agent.  Homeowners do that.  You establish relationships with at least 3, and work with them regularly.  Have them set up a continuous stream of property notifications (when properties in your markets, that fit the profile your Goals have dictated, are available).

Jerry:  Make an offer (asap).

Joe:  Wrong...on the ASAP.  There is no timeline to make an offer.  You make offers based on the quality of that offer/property/deal...not based on a target date.  One sure way to fail is forcing yourself to make an offer on a deal because of time.  Time does NOT make your decision...money, ans in profit, does.

Sometimes the best deal you make, is the one you don't.

Sometimes the worst deal you make, is the one you think you have to make.

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