| Writing a business plan is essential for developing a | | | | 2. Mission Statement - This section expresses the |
| successful real estate investing business. There are | | | | focus of your company, what you stand for, your |
| many ways to obtain industry planning tools at no cost. | | | | target market, and what sets you apart from |
| The Internet provides a variety of free and paid | | | | competitors. |
| software. Many programs focus specifically on real | | | | 3. Products and Services - Provide a detailed |
| estate and include templates that can be customized | | | | explanation of the products and services offered |
| to suit your needs. | | | | through your real estate business. Do you buy houses |
| Writing a business plan allows investors to determine | | | | in a niche market? Can you guide people through |
| their real estate objectives. The primary purpose of | | | | difficult situations such as bankruptcy, foreclosure or |
| creating a plan is to develop a road map for starting or | | | | short sales? |
| expanding a successful business. | | | | 4. Market Analysis - Utilize graphs and charts to |
| A strategic plan helps investors establish goals and | | | | emphasize specific market analysis. Discuss both |
| determine a plan of action. If you are uncertain of | | | | present and future trends and describe how your |
| which direction to take your real estate business, | | | | organization will capitalize on those trends. |
| strategy planning software can help you determine a | | | | 5. Strategy and Implementation - Detail strategies |
| niche. | | | | which will be implemented to develop a successful and |
| Some real estate business software is | | | | profitable business. Explain your real estate goals and |
| pre-programmed with questions about various types | | | | how you plan to achieve them. |
| of investment opportunities. These questions are | | | | 6. Management Team - Whether you plan on |
| designed to help users decide if they are better suited | | | | establishing business as a sole proprietor, partnership |
| for retail or commercial ventures, rental properties, | | | | or corporation, it is important to include a resume of |
| house flipping or wholesaling. | | | | your management team. Include details of each |
| When developing your concept, it is important to stay | | | | member's qualifications, experience, and duties they will |
| focused on the requirements of your business. For | | | | perform. Even if you are flying solo, chances are you |
| example, a start-up company will have different needs | | | | will require assistance in some areas. |
| than an established business. | | | | 7. Financial Projections - Considering real estate is a |
| Writing a real estate investing business plan requires | | | | turbulent market, this step can be one of the most |
| time and patience. This is particularly true if the plan will | | | | challenging. Use the information provided within the |
| be used to obtain start-up capital or expansion | | | | previous sections to assess financial projections. If the |
| financing. On average, business plans consist of 20 to | | | | presentation will be used to obtain financing, include |
| 30 written pages which include charts, graphs and | | | | sales forecasts for a minimum of three years. |
| financial projections. | | | | Writing a business plan can appear to be an |
| Typical plans focus on seven topics and should include | | | | overwhelming task. Breaking it down into sections |
| the following information: | | | | makes it more manageable. Real estate business |
| 1. Executive Summary - In most cases, the summary is | | | | plans are intended to provide insight for developing and |
| the first thing investors, lenders and potential business | | | | expanding your company. They are not written in |
| partners will read. The executive summary should be | | | | stone and should be reviewed three to four times per |
| concise and contain attention-grabbing information | | | | year to ensure you are on track. |
| while summarizing the overall plan. | | | | |