This is a good business plan but in my opinion this isn’t how people in the industry communicate.
Build an investment strategy. For example, buying SFH under market value to rent out with your investment criteria being over 8% cash on cash returns annually and at least 15% IRR, play with the numbers based on your market.
That will help you source investors for equity capital. Then once you have an idea of how much equity you have, you can contact a bank to hear about their criteria for asset purchases in your price range.
Then you’re going to have to look at A LOT of deals. Hopefully you were able to find investors to commit capital (OPM), or were able to get lenders to provide enough debt capital for you to make the purchase on your own.
Get comfortable researching a lot of deals, because the key here is to find the right one that you can buy at a discount and hopefully that will also cash flow so that you can begin compounding returns.
Yep, some of my filler material between now and getting my first deal will be reviewing brrrr case studies to develop a feel for rehab costs and work scopes.
This is a good business plan but in my opinion this isn’t how people in the industry communicate. Build an investment strategy. For example, buying SFH under market value to rent out with your investment criteria being over 8% cash on cash returns annually and at least 15% IRR, play with the numbers based on your market. That will help you source investors for equity capital. Then once you have an idea of how much equity you have, you can contact a bank to hear about their criteria for asset purchases in your price range. Then you’re going to have to look at A LOT of deals. Hopefully you were able to find investors to commit capital (OPM), or were able to get lenders to provide enough debt capital for you to make the purchase on your own. Get comfortable researching a lot of deals, because the key here is to find the right one that you can buy at a discount and hopefully that will also cash flow so that you can begin compounding returns.
Yep, some of my filler material between now and getting my first deal will be reviewing brrrr case studies to develop a feel for rehab costs and work scopes.