Write your real estate business plan today
Do you desire to be greater? The greater you wish to be, the deeper the foundation should be!
Imagine that beautiful building you come across every morning when you are going t work. Do you see it? It started with a plan.
Real estate is not different. In this article, you will learn 12 proven slacks that every serious investor MUST consider before writing any real estate business plan.
Ignoring this is risking your long-term success.
list of 11 things that your real estate business plan must include
1. Mission statement.
It’s a summary of your dream in few words.
For example, I’m on a mission to buy land by 2023.
2. Goals
What do you want to accomplish? Are you familiar with SMART?
S- specific. What is your niche? – Rentals, commercials, condos .etc.
M- measurable. How can you scale them?
A-rchivable. Which strategy are you going to use to achieve your goals?
R- realistic. How much money is it going to cost you?
T-time frame. By when are you going to achieve your goals.
Smart goals will motivate you and keep you on track.
3. Strategy
There are thousand and one ways to make money on real estate. But you don’t need all of them. If you choose commercial real estate, then all your efforts and money should be towards it.
The good this is, a business plan can change with time, and it’s not permanent.
4. Timeline
When do you want your dream to come true? When setting a timeline, you can consider… When are you retiring or quitting your job?
5. Market.
What is your target market? Students, high-income or low-income?
Chose a market that you’re comfortable with and you can easily manage.
6. Flexibility
It’s how you’ll “make a profit” “when you buy”. It’s choosing to invest in a property that will ensure your returns.
7. Criteria
What specifications do you want your property to have?
Some of the items found in the criteria list are:
· Lot size
· Number of units
· Appreciation rate
· Neighborhood
· Town
· Property (square feet)
By specifying this, your search process will be easy and manageable.
8. Marketing plan
Which system of marketing will you use for marketing your property? Are you going to hire an agent or manage it by yourself? Rember both have pros and cons.
9. Financial deals
I have heard the old saying that says… “A bank is a place that will lend you money if you can prove that you don’t need it.”
Some of the available financial deals are:
- Cash payment
- Mortgages
- Private money
- Partnerships
10. Teams and systems
You don’t have to do all the work (actually it’s impossible). Delegating tasks to your team is the best thing ever.
Your team can consist of Realtor, accountant, real estate attorney, loan officer, constructor, insurance officer, family, and friends.
11. Back up plans.
The majority don’t get into real estate as a hobby or fun. You are here to make income and, if possible, appreciation.
In case you’re in a situation that you need to sell your property urgently, how are you going to do it?
You can choose to sell the property by yourself or a real estate agent.
12. Financials
It’s your current financial status.
Are you starting with nothing? Do you have equities? What are you bringing to the table? Put down your current monetary status.
Wrapping it up
Business plans are not rules. They’re guidelines designed to keep you in the right direction.
We believe that you should not waste more hours collecting, maintaining and controlling your property.
We understand, and we don’t just care about the property. We care about you. And that is why Josen Estates have helped 100’s of successful investors manage their property.
