My business is a start-up business venture developed by myself for the sole purpose of investing in residential and commercial real estate. This business plan lays out a simple strategy for developing a long-term real estate investment company by leveraging an initial investment of 500.000.
My business model is to market the company to a consistent stream of motivated sellers that are willing to accept the discounted wholesale prices for their property. The properties are primarily rehab if needed and rented out to generate working capital for the company.
Often, there is not a substantial difference between our offer and the net cash an owner would receive by listing their property with an agent. When listing with an agent, the owner will pay 6% of the sale price in agent fees and 4% in closing cost. We can close on a property in as little as ten days, while the average days on the market for a house listed with an agent is 60-120 + in our regions in addition to a thirty-day escrow. Our value proposition of an all-cash offer with a fast escrow close is often a good option for the owner/seller who recognizes the benefit of speed to cure their financial situation.