I’ve continue to work on my business plan and here is the next part that I’ve gotten to
II. Market Analysis Summary
Costello Home Buyers invests in distressed residential real estate. The main target areas will be those areas that are in high demand by first time home buyers in the Morris County area. These areas are Morristown and Morris Plains to name a few. They have stable resale values yet provide sufficient amount of opportunity. Once the target property is acquired it will be quickly resold to a rehabber or landlord for a $5,000 to $10,000 profit. The wholesale of a property take 30 to 90 days.
1. Market Segmentation
Costello Home Buyers plans to wholesale most of its properties; however, as we progress and our profits allow it, we intend to begin rehabbing to sell for retail as well as holding select properties as rentals for the long-term investments. The cash flow generated from these holdings will be reinvested into the business and pay down the mortgages. With this strategy we believe we can sustain ourselves through real estate down cycles.
2. Market Strategy for Acquisitions
The properties targeted by our company are affordable single-family homes in predominately first time home buyer neighborhoods located in Morris County. The resale value of the homes ranges from $250,000 to $400,000.
Due to our limited marketing budget, we will focus our efforts in finding motivated sellers in a smaller, more local area at first. We will market to Notice of Defaults Pre-foreclosures (NODs), For sale by owners (FSBO), For Rent By Owners (FRBO), Expired Listings, Free and Clear, Center of influence, Probate, Divorces, Bankruptcy and vacant land in need of repair.
We will obtain these leads by searching public records for Morris County, as well as from our relationships that we’ve created through our networking with other Real Estate Investors and professionals. For networking with other investors we have joined a local real estate investors association and attend all their meetings. We have established relationships with investors, who obtain more leads, then voice their interest in buying and we pay them for the properties that we actually purchase. This will help us keep our marketing costs down in the early stages.
C. Market Strategy For Sales
We will market our homes to other investors who are looking to rehab the properties for resale or renting. To find these investors Costello Home Buyers will do the following
* Offer the properties to investors on our buyers list that we have built up through networking.
* Advertise online at Homes.com, Harmonhomes.com,Homesandestates.com,NJMLS.com., GSMLS.com,Activerain.com, Zillow.com, Trulia.com, Realtor.com, Googlebase.com, OurNJHouse.com, ExitGolden.com, Exitrealty.com, Postlets.com
* Advertise in local news papers The Star Ledger and Daily Records
* Present the property at our monthly Real Estate Investors Association meeting.
* Bandit sign out in front of the house
An added bonus to our marketing is that we will identify potential buyers for any future properties we wholesale. This will enable us to target areas/properties that we know our buyers are looking for.
D. Competitive Edge
Our Contracts get accepted even when they are lower than the competition because they have none of the contingencies that are typically associated with real estate contracts. In addition, we offer quick settlements, usually less than 30 days.
III. Implementation Plan
A. Marketing for Purchase
1. Send out Mailers to our distressed home owners ever month
2. After receiving calls from potential sellers we will determine motivation over the phone by asking leading questions and listening to what they have to say.
3. If seller is motivated enough we will setup an appointment to look at the house and evaluate them.
4. Before appointment we will do our due diligence on the prospective property.
5. At meeting with home owner we will determine a repair estimate
As of right now Scott Costello is responsible for marketing and purchasing properties. It is the goal of Costello Home Buyers to follow up on all leads within 24-48 hours.
B. Pre-Purchase Duties
Once we have the property under contract we immediately contact our settlement company to order the title work and schedule a settlement date. During this time we contact our lender and forward all of the necessary information to them so that a file can be opened and the financing process can begin. We will also start to market the property to our buyers list in order in order to find a buyer before we even settle with the seller. If we were to rehab this property this is where we would contact the contractors and set up a scheduled base on our closing date and also call the insurance company to obtain the appropriate insurance policies.
C. The Rehab Process
At current time we do not plan on rehabing any properties, but it will be one of our backup exit strategies in case we are unable to wholesale to another investor. There will be a separate business plan for this situation.
- Suspended From YouTube – for no reason - April 11, 2022
- Make Calls and Send Texts in Podio using smrtPhone - April 26, 2019
- Email Marketing with Podio and ConvertKit: Dealing with Unsubscribes - February 27, 2019