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    4 Replies Latest reply on May 11, 2008 9:36 PM by MRFINANCE

    Rennovation start-up help

    exterra69 Newbie
      I am wanting to start a business purchasing, rennovating and selling homes. The market is great for buyers now and with the renovations I will do it will sell fast. I have no capital to start with, I can not afford another house note, are there any startup loans for the money I am needing to get this off the ground? (at least 300k) I have been working on a busness plan and almost have it complete.
        • Re: Rennovation start-up help
          LUCKIEST Guide
          69, Welcome to this web site. Renovation start-up help.
          Before I put a check in the mail, I would like to see your FINISHED Business Plan.
          Where are you located?? LUCKIEST
            • Re: Rennovation start-up help
              exterra69 Newbie
              I am in Marietta, Georgia. I only have a rough draft for investors, not for loans. What I am looking for is enough to secure a 15-30yr fixed mortgage, renovate and resell the house. I am also looking to use the money for capital expenditures like, replacement tools, blades, larger trailor and a small salary for myself while I am getting started. I tried to get a hard money loan but the interest is so dang high. I have a very great credit score. If you are in the Atlanta area lets get together and discuss this sometime.
              • Re: Rennovation start-up help
                exterra69 Newbie

                Business Plan


                For House Flipping


                "Average Joe Home Renovation"


                I have a business plan to buy, renovate, and sell houses. I plan to start small with one house. Purchase, renovate and sell with-in nine months. The first house will cost approximately $190,000.00 to accomplish and yield a profit of, approximately, $60,000.00. With this profit I will pay investors their share and reinvest the remainder. I plan to have the second home purchased, renovated and on the market by the time twelve months has expired.


                By the time 36 months comes I am sure I will be doing house after house while I have two to three on the market and one or two waiting to be renovated. With-in five years I want to be incorporated as an LLC (limited liability Corporation) and have a few employees' working on these with me as helpers and in ten years be able to have multiple homes under renovation at any time.


                I want to keep my business in the Cobb County area due to its proven resale value. This is a very affluent area with some of the best schools in Georgia. I believe I am uniquely qualified to do this. I have taken my own home, a fixer-upper when I bought it, to a wonderful home for my own family. I have learned more about renovating homes since I renovated mine while working for Home Depot Home Services. I believe I can produce a product that is extremely marketable with a greater profit margin than others because I will be doing it myself.


                My strengths are I am a young energetic man that has too much time on my hands. I also have an eye for décor, tile, cabinets colors etc... To start, I am willing to put in at least 36 hours a week on these houses on top of the 40 hours that Home Depot is holding me at. Once we get off the ground and making a good profit I will leave Home Depot and put all my energy to creating a largly successful business.


                My weaknesses are I tend to try to take on too much. I have a partner that will keep my reins tight and watch over me. The opportunity to purchase homes is ideal at the present time due to the fact that there are so many on the market and they are slow to sell. I can virtually name my own price. I want to purchase foreclosed homes at an even larger discounted price. The only threat I can foresee is the time it takes to sell but with the products I plan to install into these homes that should not be as large of a threat.


                The people I am planning to attract to these homes are the young professionals and first time home buyers. They are the modern era, they want everything right and right now. My attitude is give them what they want, a nice home at a nice price, while making as much profit as possible.


                The market is flooded with homes that have been foreclosed or just need to be renovated with updated materials, even in Cobb County where I want to focus my efforts. There is competition out there doing what I am wanting to do but I have an edge over them, my overhead will be extremely low. They are making money out there doing what I am wanting to start doing.


                The success of this business is dependant on two things. First being able to purchase, renovate and sell a home in less than nine months. The first two, purchase and renovate, should take no more than twelve weeks. The selling is the key. I have a few acquaintances that are in the real estate business and am hoping they will give my properties greater attention. The second is having the capital to venture into this business.


                The one thing I am tired of is being dependant of others for employment. I believe I am more than qualified to run this business. I am going to give this every effort possible. My strategy for this is striving for perfection, achieving excellence.


                My advantage over others doing this same thing is either they are either living in the house during the renovation, taking two to three years for each home, or they are a larger business paying people to do this. The location I am planning to focus my efforts in is ideal for the family oriented, great schools, convenient to shopping, major traffic arteries etcetera. By doing the work myself I can offer the homes at a more reasonable price to young professionals while still making a great profit for my investors and the company.


                The key area's that I plan on focusing my attention are the bathrooms, kitchens, and landscaping. I will make the rest of the house attractive as well, but the majority of the money will be invested in those areas, because they give the largest returns.


                This plan is the basis for growth. I plan to grow this into a lifetime of guaranteed work for myself and family. The advantage for me is doing the work myself with help from family, nephews, nieces, sons and daughters. The reality of this is it will take years of hard work and perseverance.


                For the long term I plan to keep reinvesting, renovating and reselling with the possibility of keeping a few for rental properties.


                The doors for starting this business are ajar but I am having a hard time reaching the knobs. I need to extend my reach with a little help. I am a realistic person, although I do dream a lot, I know I can not do everything and I know what I can and can not do.


                My plan for the ones who invest in my business is simple. You get twenty percent of all profits made off each sale of property. The rest will be reinvested into more properties. After each sale you will receive another twenty percent of the profits. The funds you provide will purchase the properties and renovate the properties. My sacrifice is working for one company while trying to get this company off the ground at the sacrifice of my family. I am also going to provide all the necessary insurances, licenses and permits for this business. Your equity grows with the business, the more we make the more your investment is worth. The residential market has always been a roller coaster, it goes up and down and sometimes goes sideways, the one thing it has always done is return what you have invested plus a little.


                The team I have put together consists of two people. Myself, Andrew Kraemer, as President, Contractor, and Project Manager, and my wife, Frances Kraemer, as Vice President, Account Manager and laborer, I also have at my disposal a state licensed Master Electrician and a state licensed Class II Master Plumber, both are bonded and insured, and will be used as sub-contractors when needed.


                The description of this company has been laid out for you above with the general location of where I will be doing business. Our office is at my home and will be started kind of under the radar for the first years of its existance. The only facility we will have is the property we purchase, and a trailer that will be used solely to transport tools and material from store to job to job.


                The strategy is to keep it affordable for the Average Joe. The market is so that we can affordably do this and keep the homes affordable for the first time home buyer. The market will always be there weather it is strong or weak we will have the advantage of keeping our labor cost down for maximum profitability.


                My mission is to provide for your family and mine as well as giving the public a nice, affordable home. My Vision is to make us all financially independent. My objectives are to keep this a family business. Your family is the key to your success; they support you in times of need and lean on you when they are in need.


                The start date will be the date we purchase the property, all plans, measurements, and pricing for the renovation will have been done prior to closing on each property. The estimated renovation completion date for each project will also have been set prior to closing, which will be determined by the estimated work involved in renovating the property. The budget will also be determined prior to closing each property. The work will be done by the Project Manager with some help from temporary labor. The outcomes will differ slightly from job to job but will net a similar profit margin.


                Our objectives for this Corporation are simple; spend as little as possible, keeping quality in mind, and making as much as possible. The volume of our company is dependant on the sale of each property so the quality of the products we install will need to be there as well.


















                Your Benefits to Investing in


                Average Joe Renovation


                Each investor will receive their share of twenty percent (20%) of the profit off each property renovated and sold.




              • Re: Rennovation start-up help
                MRFINANCE Adventurer
                ASK ASK ASK!

                Talk to everyone you know. Offer them a 10%-12% return on thier money.
                If you must,give them a mortgage on the property. Don't give away too big a share of the profits while you do ALL the work.