new investors plan-pick it apart! (long) - Posted by TB Mel
Posted by TB Mel on April 27, 2006 at 18:24:34:
I am about to open the doors on my REI biz. I hope some people can offer me some helpful insights to help me fine tune my approach. Be blunt. I can take it, but critics be prepared to eat your words.
First a little background.
Years ago I took a stab at this and fell flat on my face. I was 25 and nothin but energy. I was tall on action and short on planning. I thought that anyone with a word of caution was just out to steal my dreams. I bought every word of my chosen “guru” hook line and sinker. I was a fast learner and a good student-too bad he didnt tell me that things could and would go wrong or what to do when they did or the importance of due diligence or…
Please don’t mistake this for “sour grapes” I consider myself 100% responsible. I should have thought it through for myself. In fact I will probably purchase his materials again-realizing that they are no substitute for experience and intellegent thought.I am thankful for the lessons.
My goal is to be buying 3-5 properties a month after one year fulltime investing.(I know this is aggresive but I have met people who do this)
I intend NOT to do any extensive rehabs but to flip those and focus on deals that offer up front cash and wont tie up my working capital.
The type of deals I feel I know how to structure are;
Sub2, L/O, Agreement for deed(FL answer to land contract)
options and all cash purchases. I feel like this should cover most situations.
I have a marketing budget of $1000 per mo. to start out. this is my plan.
–Classifed ads( I wrote one last time that got me three deals in two mo.)
–Targeted direct mail( I’m still investigating wich targets and exact copy. Any suggestions?)
–Flyers(to offset costs I will try to get some local businesses to co-op. ie resturants ect.)
–Driving around looking for vacant houses(this will also give me a chance to learn the local markets better)
–Telemarketing to FSBO’s and for rents(a couple hours a week)
I am in the process of putting my team in place. I have investor recomendations for title co., attorney, mortgage brokers as well as hard money lenders, appraisers ect. All from my local REIA wich is great. I will call and ask the right questions-maybe do lunch.
Also I am going to approach some successful investors and ask them if ,in the event I get a large deal, might they be interested in partnering. Last time I lost a deal on a 500K house because this seller knew his stuff and I didnt. I dont want that to happen again.
As well as continuing to read and listen like a madman to REI, sales, comunication books and audio to shorten my learning curve I also am going to become a Notary and offer my services to the pros in my area for free to establish goodwill and maybe chat them up about the deals they are doing.
If I find an actual mentor I’ll jump on it. Not some huge company with hourly employees to “coach” you once a week.I tried that and frankly this site is better than that.
I have some liquid cash to invest with but I am going to try to save it for either emergencies or for REALLY good deals that require it.
I then intend to always be looking for new ways of generating leads. When I find one test it tweek it til its working nicely then automate it as much as possible and look for another. I figure I will spend alot of time and money looking for these profitable marketing/prospecting techniques but if I’m agressive enough then maybe I can get in the range of 3-5 deals a month.
I am going for it. I am going to WORK MY A$$ OFF. Though I’ll not easily be talked out of my goal, I would love all the input I can get-beat me up!
My primary focus is going to be on three areas
Lead generation to include marketing, prospecting and networking.
Improving my knowlege and skills as they relate to REI. The way I see it, this is my businesses product!
And creating a system to keep it running smoothly.
One question; would it be appropriate to post my progress regularly?
I know there are many other things to be brought up but it was gettin a little long already.