For anyone dreaming of becoming a real estate investor, the first question is usually where and how to start. By following these simple instructions, you can develop your real estate business plan. Your business plan will provide the road map to guide you through the entire process.
Before you can write your real estate business plan, you will need to become familiar with the trends in your local real estate market. Some of the information you need includes the market for real estate and new ways for reaching investors. Sources for research include community college classes, web site research, or a local real estate training center.
Next, you must include your staffing needs in your real estate business plan. Your staffing plan includes agents for scouting and service, as well as designers and Web site consultants.
Once you have completed the staffing portion of your real estate business plan, the next step is to determine your marketing and advertising principals. Before you can write this section of your business plan, you must research the various advertising costs to determine your course of action.
Your real estate business plan must include the resumes or biographies for your ownership team. Highlight their skills and competencies, particularly how they are related to the daily operations, specific industry experience, any relevant certifications, and other successful real estate projects. This will provide confidence to potential investors that you have qualified management and ownership in place.
Next you will need to detail any future plans to expand, such as opening new branches. This should focus on how any expansion supports your core goals. Your real estate business plan will include projections for profit from your proposed expansion. Be realistic and honest in these projections; investors can lose confidence in you if they do not trust your projections, either because it seems you are being dishonest or unrealistic.
Finally, your real estate business plan will include an estimate of the agency's overhead costs over the first two years. The bulk of these expenses will include salaries, building costs, and initial real estate investments. Investors will of course be interested in this information, so be sure to make it easy to locate in your real estate business plan.
Once you have these key elements determined, pull everything together in an organized, easy-to-read format. Investors must be able to easily locate the information they are seeking.