How to create a passive income real estate company

[Axel Meierhoefer]

I have been an entrepreneur for several decades and am ready to create my final - hopefully, masterpiece - company. The idea is to develop a business that is a hybrid of the turnkey model, where the majority of the services to operate, manage, renovate, etc of a property is taken care of by one or more entities/service providers, but the property selection, purchase, and determination of renovation needs is determined by this new company. Another twist will be to have a mix of long term rentals away from the tourist attractions and vacation rentals close to the beaches.

I am looking for advise, tools, samples, insights on how to best create a business plan and identify the best tools (software/apps) for the establishment of this new company. The goal is to get all legal aspect, founding capital and entity structure in place by the end of 2019 (earlier if possible).

The help of the BP community is highly appreciated

[Chris Clothier]

Originally posted by @Michael Glaspie:

Hey Alex,

We do a turn-key model here but with partnered companies just like you are mentioning. Your ideal model would emulate that of Memphis Invest or Morris Invest in terms of transparency and fluidity. (There are many others but those two come to mind immediately).

So, you will be looking to have an arm for the following functions:

• Real Estate transaction (brokerage)
• Property mgmt
• construction

So, what we did was vet our 3rd party service providers with things we would want personally as investors and ensured they can provide that not only locally but at a distance as well:

• Transparency 
• Communication
• Quality

Then we made sure they all were aware of the intent and understood not only our process but in which order each step would need to be completed. Then we put them in contact with everyone else that was a party to the process as well. 

It becomes really simple after a few test runs because of being able to work out the kinks with the team. It also is simply because as you leverage other companies, it is what they do every day. It's just them organizing the volume you provide. 

So, as mentioned me and my team are the broker side of the house in this process for our local market. We have been able to create this company on the residential side and now we are working on the commercial side with the same intent. 

It is very doable. Best of luck and continue to grind away at it. Let me know if I can help at all

I appreciate your mention of our company.  However, as a point of pride in our reputation and the level of integrity that we operate with, mentioning our company with the company Morris Invest should never happen.  From what I know, our two companies could not be more polar opposite from the standpoint of philosophy to execution.  To that point, from what is said here on the forums, Morris Invest is neither a Turnkey company nor a company that most entrepreneurs would want to emulate.