All Forum Posts by: Pat S.

Thanks @Jon Klaus & @J Scott !

Excellent advice! And to be truthful to myself, my goals are set where they are based on desired achievement of other other goals in life and keeping that balance. It's so exciting and inspiring to read about other folks who set their real estate numerical goals and exceeded them! :)

I have learned from this thread that my goals are clearly too low and should be reconsidered!
Current goal: $3.5K/month passive in 10 yrs.

Matt, I can't answer that specifically, but connect with @Joe Sillaman here on BP (Sorry my auto @ thing doesn't work on this computer)
He bought a less expensive rental property while he was there TDY and now lives out of state. He might have some stats, connections, PMs, etc to help you out.

Pat

Great post Steven! Glad to hear your experience. As I've been comin up with my business plan and rehab concepts for buy/holds I've documented some of those same assumptions into my plan. Good to know that your experience confirms that in some cases, offering an above average unit can result in in both tangible and intangible benefits.
Pat

Awesome effort! Thanks so much to @J Scott for sharing the experience and to @Joshua Dorkin for transforming it into a great easy to read format!

Pat

@Matt Granger

Congrats on the decision to move on to something new! I'm about a year behind you and plan to become and agent/investor as well.

To your question about jumping in full-time, I say do it!

We are in a unique situation that I think gives us advantages over most folks who start.

1. You have a steady income stream from military retirement. It might not be enough to live on, but it does help to know that not all your income is tied to commissions.

2. You have health care covered for little costs. So again, some additional risk mitigation that makes it a little easier to jump right in to full time.

Pat

Slightly bigger strategy slide attached...

Susan Gillespie , thanks for the review. Yes the goal was for $125 cashflow per unit. However that would be after PITI + Property Management (even if self managed), maintenance reserve (based on property condition, age, location, etc), and other costs such as utilities, landscaping, or applicable association fees. However I do see there would still be some risk accepted at that number. Obviously more cash flow would always be better. :) Of course anything can cash flow with enough down, but I'll be wanting to leverage as much as I can.

@Kenneth Hynes Initially I'll be investing in the same local area where I'm working as an agent to capitalize on that knowledge. Later I will likely expand regionally (anything within a few hours drive) Thanks for the input. I think I'll add those in in my transition plan section.

I no longer have any of the other 4, they weren't bought for their investment qualities, and we're spread out from OH to CO, so would have required absentee management.

I'm working the second draft of my business plan, as I didn't like the first one, and would like feedback from the group here on the goals, the conceptual framework, and the content proposed in the outline. Am I way off on an assumption or goal? Is it feasible, complete, executable? Any recommendations for something to consider adding or removing?

Audience: It's for me. Something to help me set goal, stick to criteria, and organize myself as I prepare to transition into this in 18 months. I'm not writing it for investors …. yet.

Overview: I plan to be a full-time agent and an investor in residential single and multi-family homes. The agent part has many benefits, but also is helpful for general income. You'll see that my main investment goal is to acquire long-term holds, and to get the capital needed for the down payments by doing some flips.

Other Context: I'll probably move to NC from HI in about 18 months and would execute the plan there. I have some start-up capital to make the initial acquisitions feasible in that market. I'll also be retiring from the military so will have a small income stream and low cost health care to reduce some of my risks.

Thanks to all those who post on the forum for your inspiration and specifically to the BP Podcast for tons of fantastic ideas and to J Scott who's sample plans I've studied while drafting my own plan.

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Strategic Framework:

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Business Plan Outline:

• Business Strategy
  
  • Introduction
  • Strategic Goals
  • Management and Organization
  • Shortfalls and Mitigation
  • Financial Overview
  • 10yr Financial Plan Projections
  • 10yr Asset/Liability Sheet Projections

• Main Effort – Long Term Hold (Rentals)
  
  • Goals and Benefits
  • Process Overview
  • Acquisition Criteria
  • Funding Options
  • Rehab Concepts
  • Property Management
  • Maintenance and Repair Assumptions
  • Property Disposition & Marketing Plan
  • Sample Long Term Hold Investment
• Supporting Effort 1 – Real Estate Agency
  
  • Goals and Benefits
  • Transition Plan
  • Marketing Plan
• Supporting Effort 2 – Short Term Hold (Flipping)
  
  • Goals and Benefits
  • Process Overview
  • Acquisition Criteria
  • Funding Options
  • Rehab Concepts
  • Property Disposition & Marketing Plan
  • Sample Short Term Hold Investment
• Appendices
  
  • Market Analysis
  • Negotiation Methods
  • Rental Analysis Sheet
  • Rehab Analysis Sheet
  • Inspections Philosophy
  • Rehab Process Checklist
  • Sample Contractor Statement of Work
  • Sample Contractor Lien Waiver
  • Sample Rental Contract
  • Key Partners and Contacts
  • References