Many people who decide to go into real estate investing to earn money jump right to the exciting parts.
They may be drawn into the business because they have the opportunity to purchase a great piece of property at a substantially reduced rate and need to act on it quickly or they may realize that the market is perfect for their first investment and eagerly get out there looking for a fixer upper that can be purchased quickly.
There is nothing wrong with jumping head first into the real estate market if you are presented with a great opportunity, but making a purchase shouldn't be the first thing you do for your business.
By the time it comes to that you should have a good idea what you are doing in the market and you should have a business plan down on paper.
The more detailed your business plan is the more helpful it will be in the future as you make decisions on behalf of the business.
Along with a detailed overview of the business, a current analysis of the real estate industry and how you see yourself realistically fitting into it, your business plan should include the following information: Marketing Plan You may not think that a lot of marketing goes into real estate investment, but the top investors actually spend considerable amounts of time and money making sure their name gets out there and everyone knows what they do.
Your goal with marketing should be to establish a presence in your local area so your name gets passed around when someone needs to put their house on the market or make a very fast sale.
Your marketing plan should detail how you will go about establishing a reputation in the industry so you can get the most lucrative deals.
Financial Plan Your financial plan should go into great detail regarding the amount of money you have to invest, your ability to get financing, and what realistic returns on your money might look like.
This is the most critical portion of your entire business plan because it is what banks will use to determine if they will give you financing for multiple properties or not.
If you are just starting out with real estate investment and haven't made any purchases or applied for financing yet you are going to be reporting estimated projections for the future.
If you have already made an investment or two then you have some real data to work with.
Your first investments can be used to project what you can do in the future.
Your financial plan has to be extremely realistic.
You don't want to end up spending more money than you can really afford to spend under the illusion that you will be okay.
You have to know your numbers and what you can afford to invest prior to looking for property to secure.
Implementation Plans How do you intend to take your marketing and financial plans and turn them into a successful business? Setting these original plans and analyzing your market is the research, but your plans for implementation are where you get down to the real action.
This section of your business plan will help you determine what actions need to be taken next in order to turn this business into a success.
They may be drawn into the business because they have the opportunity to purchase a great piece of property at a substantially reduced rate and need to act on it quickly or they may realize that the market is perfect for their first investment and eagerly get out there looking for a fixer upper that can be purchased quickly.
There is nothing wrong with jumping head first into the real estate market if you are presented with a great opportunity, but making a purchase shouldn't be the first thing you do for your business.
By the time it comes to that you should have a good idea what you are doing in the market and you should have a business plan down on paper.
The more detailed your business plan is the more helpful it will be in the future as you make decisions on behalf of the business.
Along with a detailed overview of the business, a current analysis of the real estate industry and how you see yourself realistically fitting into it, your business plan should include the following information: Marketing Plan You may not think that a lot of marketing goes into real estate investment, but the top investors actually spend considerable amounts of time and money making sure their name gets out there and everyone knows what they do.
Your goal with marketing should be to establish a presence in your local area so your name gets passed around when someone needs to put their house on the market or make a very fast sale.
Your marketing plan should detail how you will go about establishing a reputation in the industry so you can get the most lucrative deals.
Financial Plan Your financial plan should go into great detail regarding the amount of money you have to invest, your ability to get financing, and what realistic returns on your money might look like.
This is the most critical portion of your entire business plan because it is what banks will use to determine if they will give you financing for multiple properties or not.
If you are just starting out with real estate investment and haven't made any purchases or applied for financing yet you are going to be reporting estimated projections for the future.
If you have already made an investment or two then you have some real data to work with.
Your first investments can be used to project what you can do in the future.
Your financial plan has to be extremely realistic.
You don't want to end up spending more money than you can really afford to spend under the illusion that you will be okay.
You have to know your numbers and what you can afford to invest prior to looking for property to secure.
Implementation Plans How do you intend to take your marketing and financial plans and turn them into a successful business? Setting these original plans and analyzing your market is the research, but your plans for implementation are where you get down to the real action.
This section of your business plan will help you determine what actions need to be taken next in order to turn this business into a success.
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