The 5 Areas Of Focus For Your Real Estate Investing Business Plan
As you sit down to write your own real estate investing business plan, you should know that there are 5 major areas that you need to be concerned with. I will briefly discuss each one.
First, everything starts with motivated sellers and locating potential deals. Having a steady stream “not spurts” of motivated sellers and potentials deals coming across your desk on a daily basis is THE part of your business that you ought to spend a significant amount of time, energy and money on. Without it, all the other parts of your plan are worthless.
Second, once you have a steady stream of motivated sellers coming to you, you need a way to pre-screen the deals to identify quickly which ones are worth pursuing and which ones you should politely decline on. Knowing what makes a deal for you is going to be critical in this part of your plan. It is near impossible to sort through motivated seller leads unless you know what passes and what fails your own criteria.
Third, once you have a pile of deals to consider and deals to pass on, you will need to go through the deals to consider and actually make and present offers. Oddly enough, I know many folks that find potential deals, sort them into deals and non-deals but never quite get up the nerve to create and present an offer. You’ve got to be able to create an offer that works for you (or, as I recommend, several offers) and present it, preferably in person.
Fourth, I know this may sound hard to believe but not every one of your offers will be accepted so you will need to follow up with the offers that you’ve made. In fact, if a very high percentage of your offers are being accepted, I am going to suggest that you’re offering too much. Finding the balance of what is a reasonable percentage of offers that get accepted takes experience and you’ll only get that by making a lot of offers. A tip for beginner investors: err on the side of having too few accepted and make lower offers.
The final part of your business plan deals with what you do once you’ve had an offer accepted. It is getting the houses you do buy sold, super fast and for top dollar. Profits can be squandered with a week exit plan, so make sure you know how to get out and have a well thought through plan in place before you buy so you don’t waste any time once you are paying the marketing and holding costs.
Until my next post,
James
P.S. Have you checked out the 100+ free real estate course downloads you can get with your membership?
Related posts:
- Finding a Real Estate Agent for Real Estate Investing – 3 Questions You Must Ask As both a real estate investor and a real estate broker associate, I would like...
- Investing in Real Estate: It’s All About Persistence and Numbers Investing in real estate is all about the numbers. It’s about looking at enough properties...
- Asking a Seller to Carry Back: How to Get Owner Financing Investing in Real Estate Many people are afraid to ask for owner financing when they are buying an investment...
- How To Overcome the Fear of Making Your First Real Estate Offer for Investors Some time ago I met with a couple of clients of mine to write an...
- Using Letters Of Intent With Real Estate Agents Some real estate agents and real estate brokers prefer to write up a contract for...
- Real Estate Investing Means Different Things To Different People When you hear the words Real Estate Investing what comes to mind for you? Do...
- Working With A Real Estate Agent In Your Real Estate Investing Business If a seller is working through a real estate agent, the process of transforming the...
- Real Estate Investing for Lazy and Poor Folks Often times when I talk about real estate investing, I break the topic up for...
- Setting Up Your Real Estate Investing Business – The Business Setup Checklist Since I have had over 300,000 unique real estate investors coming to my various real...
- The Basics Of Financing Real Estate Deals – How To Keep Investing In Today’s Market Every investor needs to be familiar with the different ways of financing real estate deals....
