Turnkey Rental Properties in Pontiac, MI
In today’s blog post we are just going to give you an update on some of the things we have been focusing on over the past couple weeks. We are changing our focus a little bit and we’re developing a business model for turnkey rental properties. Our focus will be on Pontiac, Michigan, but we will look at any property in Southeast, MI. So here’s what we’ve been working on to build this business…
Focus on Systems
First off, with everything we are doing in setting up this business we are focusing on systems. Our plan is to have multiple properties in various stages of the turnkey process (negotiating, buying, rehabbing, tenanting, selling), and to manage all of this we need systems in place to ensure our operation runs smoothly.
Our first step is to lay out our business plan. This plan has our ideas organized on all of the following:
- A description of the product we are selling – Turnkey Rental Properties
- Our pricing strategy for selling
- A description of the “Target Property” we are trying to buy
- Locations for where we want to buy
- The price we need to buy for
- Our formula for rehab
- Our plan for how we will sell the properties
We are putting together our marketing plans to generate leads for buyers. We are going to focus on out-of-state and international buyers because they will benefit the most from what we’re doing. Because of this, the majority of our marketing for buyers will be online.
As we wrote about in our post “Getting to Know The Pontiac Real Estate Market” we are spending a lot of time researching the Pontiac market. We are looking at homes, studying the rental market, and determining the best areas to invest in Pontiac.
Meeting With Investors
To fund our deals, we need money, and to do the kind of volume we want to do, we are going to need private investors backing us. To communicate our ideas, we have put together a business plan that we are sharing with investors, and we are working with them on an equity sharing relationship in the business.
As with any business, you want to be setup correctly to maximize your tax benefits, and minimize your exposure to liability. We are meeting with CPA’s to develop our business structure to accomplish these things.
So as you can see we’ve been very busy getting a bunch of stuff setup. Stay tuned for more…