Make $1M in 12 Months - Week 27 (When Do You Develop 2016 Plan?)
This post is part of the my on-going quest to make $1M Profit in 12 Months Through JVs with BP Members. Here's the start of that quest:
Below is my Week 27 Update:
Financial Update:
I put under contract a property in Joliet which is a good rent to own candidate. Hence, over-all projected profit increased substantially.
The Good
We put under contract a possible rent to own property. Below is the picture of the property. Here are the numbers on it:
ARV - $250,000, Repairs - $10,000 to $15,000
Acquisition Price: $180,000
Our Exit: Rent to Own at $270,000
Also during this week, we got 2 tenant/buyer applicants - one for 2520 Heather and another for 2200 Seaton. One came through bandit signs and another through a leasing agent. Rehab on Seaton is just about done (fastest turnover: 1 week! - we got a good GC now for our rent to own operation). Rehab on Standish is also 90% complete. Only thing we're waiting for is permit for dry wall work in the basement. We can list it and stage it next week as well.
Another good news. I got a FULL TIME Sales person to help us sell our properties - specially rent to own. Welcome to the team @Flor Guevarra!
The Not So Good
Rehab on Heather has not started yet. My PM is compiling bids from 3 different GCs.
Bank account for Harvest is running low and if it does not sell soon, I will have to get cash from my own bank account to keep it afloat (at times like this, I love the quick cash from wholesaling). Argh. We got 3 showings but not offers as of yet. My JV partner needs to refi out of expensive hard money.
Question of the Week:
When do you develop your strategic plan for 2016 and HOW do you do it?
Me, I've decided to start early. I met my team last Thursday. Here's how we developed our strategic plan for 2016:
1. I showed them the state of the Chicago real estate market from Sept 2014 to Sept 2015. Based on the state of the market, we've decided to focus on 2 exit strategies.
2. We did a SWOT Analysis - we listed the Strengths, Weaknesses, Opportunities and Threats that the business faces based on what's happening in the market. I took the time to hear everyone's inputs. My acquisition and sales personnel are in the frontline so to speak so I want to get their perspectives.
3. Based on the SWOT, we develop what I call our OGSA - Objective, Goals, Strategies and Action Plan. Good thing I listened to the team and they gave pretty good suggestions on what we should change to achieve better business results in 2016.
For instance, because of our strategic action planning session, the Real Estate Joint Venture School was born as a way to provide a lot of value to BP Members and by doing so, meet more JV partners.
So, what about you?
When do you develop your strategic plan for 2016 and HOW do you do it?