I have already laid out varies techniques and approaches that you can all use in terms of writing up an effective business plan. I have on a number of occasions been asked various questions which I will answer now.
The perfect way to acquiring bulk packages
Q. Can you expand on the concept of a writing a general business plan
A. My approach to a successful business plan has always been to consider the use of bulk package of REO buildings.
Instead of looking at distance areas, I try to focus in the local area that I live in and my surroundings. This creates a great possibility to even get hold of some private lenders.
Most of the times when ever I get large bulk orders in terms of millions, they are most probably bulk REO’s.
Q. What role do banks play in these packages?
A. Quite a lot
Q. That means you do not purchase anything your self but more are acting as an agent?
A. Well not really, we kind of fall in between. We look for possible properties which we buy but then later on sell it while acting as an agent.
I would have a look around my local area for example in Arizona. I would have a look at the portfolio and research if it was a good investment. Based on that I would then take the time to purchase the property and fill in any missing gaps if necessary.
Q. By the looks of thins you seem to know what you are doing. By looking at the amount of times that I have spoke to you, you seem quite experienced and smart in this particular business. I guess you have been in this business for quite some time now.
A. Yes I have, I also take time to building my own personal software’s for home builders
Q. Seeing that you are going through the use of REO building packages, doesn’t this give you a competitive edge over others seeing that you are first in line to take the gems of the market?
A. Yes that is correct. That’s the reason I have to make sure I’m very careful in where I invest my money otherwise I could find my self in quite a “pickle”.
I’ve kind of taken the idea of software developing and real estate and combined them to my advantage in terms of wholesaling. I could most probably expand by business prospects, but that would require a number of more people in my team like electricians, plumbers etc.
Even though you may have caught be saying to avoid wholesaling, trust me when I say, if the prices are low go for wholesaling.
Q. Trying to get a cheap price in wholesaling isn’t the main concern. The true fact is that with the current economic downturn, many investors are simply not investing. Event though we are faced with tough times, I believe the market is fairly lucrative.
The idea that you should adopt in the current financial situation is to buy and hold it for quite some time. Seeing that the market is quite volatile at the moment, will give you more time to get a better profit.
The buy and hold technique is being used and is very successful. You need to remember that you would be expected to hold the property for about a two to three year period.