| You've probably heard that if you fail to plan then you | | | | So, what does your plan include? Well, mine includes |
| plan to fail. That's good advice. Planning is the key to | | | | the three main activities I perform: Acquire, Operate, |
| success in any business and it's no different in the | | | | and Improve. I started by writing one page for each |
| multifamily investing business. I'm going to show you | | | | step with ideas and best practices and reminders to |
| how to create a super-simple business plan based on | | | | myself, all in a step-by-step format. "Acquire" is about |
| my own business plan. | | | | finding multifamily apartment buildings and determining |
| Now, I should tell you first tell you that there really are | | | | my exit strategy; "operate" is about running them, |
| two different kinds of business plans. One is the kind | | | | "improve" is about making them better. |
| you use to present to potential investors if you are | | | | As my business grew and my processes developed, I |
| looking for capital, or the bank if you are going after a | | | | began to hone my plan. I aggressively modified each |
| loan. It's clean and polished and looks pretty. That's not | | | | one the things I learned from every new multifamily |
| the kind I'm talking about. | | | | investment. Today, my plan's structure isn't that |
| The other kind is a down-and-dirty, roll-up-your-sleeves, | | | | different from my early days when I performed those |
| dog-eared document that you pull out every single day | | | | three tasks, but you can be sure that each of those |
| and review. (After a while, you'll be so familiar with it | | | | steps is tightly defined and rich in value. If I were to |
| that you will pull it out every other day, then every | | | | suddenly lose everything I had, that plan would still be |
| other week, and soon you will know it by heart, as I | | | | worth millions to me. |
| do). It's what I call a "living document" because you're | | | | Under each of the three headings I include the steps |
| always in it, always changing it, and making it useful to | | | | around what I do, where I do it, how long it should take, |
| you. No one else will see it and you'll use this plan to | | | | who I work with, what my intended outcomes are, and |
| drive your business. | | | | what happens if things go off the rails. It's in a |
| A business plan should be a document where, if you | | | | step-by-step format so that I can simply follow step |
| were to wake up with total amnesia one morning, your | | | | one, step two, step three, etc. Of course, I rely on my |
| spouse could say to you "you are a successful | | | | instincts and bank of experience but this plan makes |
| multifamily apartment building investor and this is the | | | | sure it gets done. But I've added a fourth heading -- |
| step-by-step plan of what you've done", and then you | | | | teach. |
| go out there and repeat the same success. So your | | | | Today, I not only acquire, operate, and improve |
| business plan should be useful, user-friendly, and | | | | multifamily investments, I also teach others how to do |
| enjoyable to interact with. (Unfortunately, too many | | | | the same. Your plan will probably start with the first |
| people think that their business plan needs to the be | | | | three and you might find in time that it may grow to |
| the first kind -- the polished kind -- so it sits on a shelf | | | | include the fourth as well. But you need to start |
| and collects dust). You can create it on your computer, | | | | somewhere. So start with a 3 point Acquire, operate, |
| print it out, and carry it with you, making notes and | | | | improve business plan and make it the most valuable |
| updating it regularly. | | | | pieces of paper you own. |