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Step 5: Make an Offer

❶Similar to commercial real estate agents, business brokerages are fairly sophisticated offices.

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Apartment Rental Business Plan Package
The Long Road to Closing
Finding the Property

Felix will perform routine maintenance requirements and repairs. Agatha will manage the daily bookkeeping requirements. Agatha will then pass on payments to vendors such as trash service and recycling service, and forward the required information to the company accountant for preparation of the annual income taxes.

Felix will also take care the day to day maintenance of the rental unit, and he will always replace air filters monthly, inspect the grounds, and make notations of the overall physical condition of the property. The tenant will be put on notice for example if the yard needs to be mowed or weeds appear to be an issue.

We at Liberty World LLC believe that the tenant will have enough time to the notice and will be fined daily until the issue has been resolved. We at Liberty World LLC know that the success of our business depends on an organized division of responsibilities in order to run an efficient, diversified enterprise.

Just we must have start above, the main decisions and Responsibilities in the company will be divided between the two top partners. They will focus on maintaining high quality and a cohesive business entity. Here are the workforce we hope to start with:. It is very important to explain that SWOT stands for strengths, weaknesses, opportunities and threats. We at Liberty World LLC believe that our two prong approach to real estate will allow our business to grow successfully in the rapidly changing real estate market.

We also hope that our business strategy will allow us at Liberty World LLC to offset the risks from each business unit so that there is a diversified balance in our real estate portfolio.

This is especially important as the business uses leverage to finance the acquisition of its properties. This industry is constantly evolving and leaving many inflexible companies stagnant. One of the major trends is the need to adapt to technological advancements as well as maintaining the overall appearance and condition of the complexes. We believe that this is not new; it was how the original global programmes were won for the past 15 years.

But as we all know, being an agent is not easy, and its challenges should never be underestimated. It is also important to note that Europe was the second-largest global region for serviced apartments, although the relative maturity of individual country markets varied considerably.

We at Liberty World LLC hope to build and operate among several different investment and operating units, which is why it is nearly impossible or hard to characterize any specific tenant that will occupy the our apartment complex property. But we plan to enact strict tenant quality and credit review procedures to make sure that the revenues will not be interrupted by tenant default at Liberty World LLC.

We at Liberty World LLC understand that the real estate is effectually one of the most free market oriented businesses in the country, competition cannot be accurately categorized. But we know that there will be a sizable amount of competition from both single owner investment firms to large construction companies that are looking to ripe from the unusually high real estate prices throughout the New York metropolitan area.

We at Liberty World LLC understand that there are very few apartment units that offer the same level of quality and technological amenities as Liberty World LLC properties, but we believe that we possess high regard for customer service; something that is not very common in this industry. We will makes sure that all our staff and personnel go through a training program that teaches many of the skills needed for successful client relations and customer service.

We at Liberty World LLC understand perfectly that marketing in a highly competitive housing industry rests on the recognition of excellence, as well as a point of difference to display our units in an individualized light. Our astounding service starts with the commitment to our prospective satisfaction and fulfilling their demands.

Our commitment to quality and comfort includes safety and hour customer service. The aspect of our living developments that differentiate Liberty World LLC from all other real estate companies is our focus on giving and implementing the most advanced technological innovations on the market for our tenants throughout our business and operation.

We plan to use the following strategies to market our business:. We at Liberty World LLC hope to focus on providing high-quality living in convenient locations with a wide customer base. We particularly understand that we need to remain at the upper echelon in the quality range when compared to competitors in the industry.

We also understand that we can only do this by organizing and implementing a sound publicity and advertising plan that will assume responsibility for the functionality and appearance of all our properties at Liberty World LLC. We plan to make use of the following strategies:.

It is very crucial to note that the direct finance and purchase of apartment complex properties is our main business at Liberty World LLC. We believe that residential real estate will provide a continuous stream of rental income that we at Liberty World LLC will use for reinvestment and profit stability for our business.

We have without delay sourced a 20 unit apartment complex that will be initial property acquired as a starting point. We at Liberty World LLC plan to develop a complex economic pricing strategy that will determine the fair market rate of a property based on its capitalization rate in conjunction with the market values of residential property. Residential real estate is the least risky form of real estate investing because the service offered is a necessity. Our main source of income at Liberty World LLC is acquiring apartment complex properties with the sole purpose of renting the properties to the general public.

Liberty World LLC plan to generate profits from both the ongoing rental income. While generating capital appreciation from the long term holding of these properties.

We will like it to be known that the founders of Liberty World LLC will personally lease their properties and do not need to pay incentives to sales agents, and just like sales agents, the founders of Liberty World LLC are motivated to lease properties quickly- after all vacant properties do not generate revenue!

We believe that if we at Liberty World LLC is unable to find a perspective tenant in a reasonable amount of time approximately 30 days then the cost of doing business are the advertising costs associated with placing classified ads with the local newspaper and Craigslist. We believe that as time goes on; the monthly per-unit rental price will slowly ascend, joined by the reduction in cost over time, producing an increased per-unit profit.

We believe that from our opening in January to June, we expect that all units will be completely rented out. In the summer months we expect fewer tenants, so we have planned on a rent lowering process to entice renters to stay. Also, we will only rent on yearly leases to make sure that all rented units remain filled year round. With the estimated profits from the previous months the annex will be completed in September, adding 14 more units.

Listed below is the summary of our sales projections:. We believe that we are competing with large firms who have similar complexes. Our prices will be competitive with these larger firms while maintaining the high level of quality and expert management. We believe that Liberty World LLC thorough due diligence process will never buy the highest priced property or the lowest priced for that matter.

We plan to make sure we follow market pricing trends in order to maintain a competitive advantage in the huge industry. We all at Liberty World LLC after our extensive research and thorough discussion understand efficiently that different customers prefer different payment options as it suits them but at different times and ways.

If we ran out of money, I would have to go back to the investors, tell them that their capital reserve money that was slated for renovations was exhausted, and that they needed to put in more money. Failing that, I would lose the building in bankruptcy and never raise money again. With each certified letter containing violations or a summons to appear in court, my despair grew. I had trouble sleeping, I was tense.

A paralyzing fear was starting to overwhelm me. In situations like these, my wife is a rock. She can always put things in perspective and offer support that can lift me up. She has tremendous faith. She reminded me that God loves me no matter what happens, that God is good, and that He only wants good things for me. Maybe I am supposed to learn something. And I slowly started to believe it. However, it took about a week to set in. But when it did, the sense of peace I felt was inexplicable yet tangible.

My body relaxed, and I was able to sleep again — despite the fact that I was scheduled next week for yet another hearing at the Superior Court in WashingtonDC. Because we had been in court so often, the judge wanted to meet in a less formal setting to work through the issues. In attendance were myself, my property manager, the judge, and Paul. The judge and my property manager excused themselves, and suddenly I was alone with Paul.

Some time ago, I made several attempts to communicate with Paul. Once through a 3rd party, and the other time myself. Both attempts went no where. I just remember that we agreed to grab a cup of coffee afterwards. He said he would like to dismiss all charges. He was sharing about his life, and so was I — more, probably, than our common sense should have allowed given our adversarial history.

I am open to the possibility of miracles. The miracle of child birth, the mystery of human consciousness, or a series of coincidences. This development with Paul was so inexplicable that perhaps it was some kind of miracle, too. I also concluded that perhaps the circumstance changed because I had learned the lesson I was supposed to have learned. If you master a lesson, will a situation always improve? But I think I was rewarded in this case with a sudden change of heart that I could not take any credit for.

I had spent thousands of dollars more than expected. My business plan was out the window — I had missed my annual projections by a mile. I felt my credibility with my investors was shot. However, they have been very patient with me, for which I am grateful. This goes a long way with maintaining their trust. I have learned a valuable life lesson, which is to be at peace regardless of the circumstance.

It is a lesson that I am still working on. We have been able to raise the rents in several of the units. We have the cash flow to quickly respond to repairs and make some cosmetic improvements. And we have a good relationship with our tenants.

For me, the key to achieving success as an entrepreneur is a mix of ambition, guts, persistence, discipline, and faith. His focus is buying apartment buildings by raising money from private individuals. You told the good, the bad, and the ugly. And the best part is you nailed the fear explanation. Any investor who steps into a new type of deal and is learning how to do it knows that cold, sleepless, paralyzingly fear sensation when things start to go sideways and you feel like its slipping out of your control.

I believe the difference between the successful entrepreneur and going back to the JOB mentality is how you respond to that fear and what do you do to reduce the effects of it on you. I look forward to your sharing with us more in the future. Congrats, on your commercial deal and making it work. That way they were already familiar with the deal and could move faster.

We had done this early on 2. Congrats Micheal for having victory over this issues and listening to your wife voice you, know thats your angel. So what was the deal with Paul? Did he just want to show you who was in charge? What motivates someone to do that and then just quit like that? He said he wanted to make sure the city inspectors did their job. Thank you for being so open and honest about this, it will help so many people in the future.

I recently heard about Topa and. Reallyglad u wrote this article. Thanks so much for sharing. I look forward to having you here on the blog! I am a firm believer that faith and learning lessons is a big part of this for more people that we often think. I know in my life that faith in God had gotten me through many highs and lows. Congrats to your wife for helping you keep a solid foundation. Thanks for sharing Micheal. The bottom line is the property was way overpaid for.

Owner financing is good IF you are not way overpaying for a property. Owner finance should be market value not over market. The property might eventually catch up with rents and cape rate compression on resale. That is like playing the lottery instead of buying right going in. This was a great article Michael. Thanks for being open and honest with this dealing.

What a crazy story about Paul. Any idea as to what caused his change of heart? Did he realize you were truly trying to improve the property and not just a slum lord? Yes, I think after speaking with him he could see that I was planning on owning the building for a long time and wanted to do a good job. Thanks for your story, Mike. I know what it feels like to fear a big financial loss so I empathize with you.

However, I am wonder if anything aggressive could be done against Paul had he not changed his mind? For instance, could you evict him? Or could you pay him to move out, etc…? The issue is that the tenant was well within his legal right to do what he was doing. He knew the system and was using it to his advantage.

This is easier to do in Washington DC than some other places in the country. In DC, you can really only evict someone who is not paying rent. And even can be complicated if the tenant claims there are housing code violations.

Not easy to navigate. Fortunately, he settled down and we have a good relationship thank God! Never heard of Topa before and boy am I glad. Now i have an idea what to expect if I am ever in a deal that involves more Govt. I love your second point! I learned after investing in one tenant friendly vs landlord friendly states, the difference!

And Paul, come on, he was using the system like he was being paid for it, or as if his housing depended on it. What a happy surprise to see you here. That, and the below-market rents. Michael, great to hear that you survived and prospered.

Congrats to you and thanks for sharing. I really enjoyed the story and learned from your experience. Thank you for sharing! Thanks for sharing the ups and downs. Good luck moving forward! I appreciate all the affirmations from all of you. Now I gotta work on another article for next week -; Thanks again! Learned a lot in each section. Im purchasing single family homes at the moment and trying to build up saving sto purchase a similar sized building.

You gave me a lot to look into while pursuing this. Michael — Thank you so much for sharing your real life experiences doing your first multi-family deal. You provided a real perspective on the ebb and flow of deals and how quickly things can come together, fall apart or drag on. In any case the way yours did. Hey Michael, Great post! Thanks for the detail; it helps to understand the many circumstances that can affect real estate investing.

Thanks again for your help and insight. May He continue to bless you. This is a great article. One of my biggest obstacles of why I have come to a hault on my investing is finding money investors. I have to use my own cash all the time.

I would love to know the details in how you did this instead of just a summary. I have spoken with many just to get me nowhere. So obviously I am doing something wrong. Thank you for sharing this story. I hear this a lot. Raisin money is not hard, but as everything in life, it requires discipline and focus, and a little bit of knowledge -;. Wow Michael that is pretty brutal! Glad that he eventually got over what ever crawled up his butt.

Tough lessons to learn and tougher experiences to go through. Looks like you came through it okay and the property is performing now. Not a bad example of the general resilience of real estate as an investment vehicle! The timing of this is great I started reading about commercial real estate this week, I am looking to make the leap from SFHs 3 to date to apartment buildings with as little of that legal pain you endured. Thank you for the lessons. Could you expand on that? It sounds as though he was baiting you to take illegal action against him, giving him cause for a lawsuit.

Questions about the loan: If so, what type of guarantees did they ask for? Appreciate the sharing — it was enlightening. How is the building operating now? Also I think Joel made an earlier comment about the priced paid for the building being too high. Just reading your moving story has giving me confidence that I too can one day acquire an apartment building. He sounds like an exceptional person, better friend than foe.

I have never done apartment buildings either, although I look for them as a bird dog for a couple investors. This story absolutely reinforced my belief in using local attorneys, engineers, even contractors for large projects. Thank you so much for this story. My husband and I are seeking to become entrepreneurs my vision that he is supporting by purchasing a 40 unit complex.

We currently own rental property, and they are all paid for. Your story has truly inspired me to move forward. Wells … Yes, I am truly grateful for my wife who puts up with me -; good luck with that 40 unit, how exciting! I have a 14 unit apartment building for sale in Helena, AR if anyone is interested in investments. I will finance it for 30 years with low down payment. Was this a hard money lender or was a conventional lender okay with you using investor money as a down payment?

So you did not buy it with no money down? And this was a buy-and-hold long-term investment with your investors? How did you split the profits with them or what was your intended plan here? Notify me of follow-up comments by email. Notify me of new posts by email. Free eBook from BiggerPockets! Click Here to Download the eBook Now! September 11, September 1, 4. August 24, 1. Randy Phillips on December 9,

A Serviced Apartment Complex Business Plan Template

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Buying and Selling a Business; Non Profit Organizations; Home-Based Businesses; Law and Taxes; Real Estate Management Business Plan. a unit apartment building on the corner of Hilyard and 14th in Eugene. The price of this building is $ million. The company will make a down payment $, and spend an additional $75, on /5(59).

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Business Plan For Apartment Complex Posted in Articles by Masterplans The business plan for apartment complex should show the number of units in the building you'll own and give reasonable estimates for the value you can attach to each.

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A business plan should be a document where, if you were to wake up with total amnesia one morning, your spouse could say to you “you are a successful apartment building investor and this is the step-by-step plan of what you’ve done”, and then you go out there and repeat the same success. Free Apartment Complex Business Plan For Raising Capital from Investors, Banks, or Grant Companies! Inc. plans to actively pursue a real estate acquisition program that will focus on the purchase of multiunit apartment buildings and apartment complexes with the intent of creating a recurring stream of income. Management will use .

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This step by step guide will show you how to buy an apartment building. Get pre-qualified online in minutes and funded in as little as 7 business days. Visit Patch of Land. Buying an apartment can be broken down into the following 7 steps: Unless the multi-unit building is 4-units or less and you plan on living in one of the units. A Serviced Apartment Complex Business Plan Template Business Overview It is known fact that Serviced apartment businesses are responding creatively to the increasing demand for, and undersupply of short-term rented accommodation in some parts of the world.