45 Day Plan

Finding, purchasing, and operating an investment property with potential asymmetric returns is not easy. It involves time in the market which creates market familiarity ensuring the assumptions and projections to our analysis are accurate.

Finding a deal involves relationship building with other investors, brokers, property managers, property owners which takes a significant amount of time and energy.

Purchasing a property is a completely different step but has similarities. A track record is necessary to create credibility with lenders, partners and investors. Without a track record, you may need a partner’s credibility to qualify for a commercial loan. There may be similar challenges to find investors and/or private lenders to assist in funding the down payment, closing costs and improvement budget to reposition the property.

Once again, solid relationships are necessary!

OPERATIONS… A good operator will make a good deal great and can make a lesser quality deal good!

A bad operator will mess can turn a good deal bad!

We are focused on our 45 day plan for our most recent purchase, The Raven at the Palms.

Here it is…

· Collecting resident contact info for proper notifications.

· We are sending out 8 lease renewals with $200 - $350 rent increases.

· We will measure the feedback for the first round of renewals and adjust the renewal strategy if necessary.

· Removal of existing landscaping and replacing with fresh plantings.

· Exterior painting which includes the trim, soffats, sills, railings, doors and frames.

· Replace exterior lighting and door #’s

· Seal and stripe the parking lot

Relationships with property managers, contractors and vendors determines the efficiency, quality, and the speed necessary to stabilize a property in a reasonable time.

Our plan is stabilizing the property in 1 year. We are keeping a close eye on the local rental and business environment, as well as the overall economy to be pro-active with all of our decision making.

Regards,

Bill

REAL ESTATE LINGO:

Asymmetric returns - The potential upside returns outweigh the potential downside returns.

Assumptions and projections - Assumptions are your educated, best guesses of the future progress. The financial projections are numerical versions of the assumptions.

Track record – An operator’s past performance.