Dave had already bought and sold a few investment houses when he decided to make it a full-time career.Deciding to leave his corporate job for a new career in real estate investing was actually quite easy—he’d already accomplished everything he sought to achieve in his now-former position.
At first, your real estate investing business will likely be a one-man show, with you handling everything from lead generation to financial planning via your home-based office.
It’s acceptable to articulate this in your business plan, but you will want to be sure that you think ahead to the future.
Selling these types of properties may put you face-to-face with wholesalers or a typical home buyer.
It’s important to determine precisely who you will serve and how you will meet their unique needs.
Let’s take a look at what you should include in a business plan document.
This section should be an overview, or general description, of how your business is uniquely positioned and qualified to succeed in your particular market.Marketing is perhaps the biggest challenge for new real estate investors. Some new investors find themselves actually pounding the pavement and knocking on doors in their target neighborhoods.Others purchase lead lists and make cold calls in hopes of finding an opportunity.But starting a real estate investment business from scratch proved to be a bit more challenging than he anticipated. A business plan is a comprehensive document that explains your business structure, strategies, and goals.The process of creating a business plan provides a good opportunity to carefully consider your real estate investing business goals.You’ll also have a chance to create a roadmap that you can follow as you work to achieve those objectives.Some find the business plan development process to be overwhelming—and it does require a lot of thought and consideration—but it doesn’t need to be an unpleasant or arduous task. You don’t need fancy formatting or overly elaborate detailing.The key to writing an executive summary is to describe the market opportunities that you intend to leverage.It’s important that you articulate the actions you will take to make this plan a reality.Of course, organizational growth relies upon a growth in revenue, so make sure that your future business structure-related objectives align with your financial goals.In a nutshell, you need to have a firm understanding of whom you will buy properties from and you must know who comprises your target audience when you’re selling the property.