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How to Create a Simple Real Estate Business PlanBecoming a full time property rehabber is actually a veryeasy process. So why do so many investors get it wrong, or even worse, do nothing? Simple: NO BUSINESS PLAN! Make no mistake about it: This is a business!. If you invest time and capital with the aim of making a profit, then you are in business, regardless of wether you purchase one or fifty homes. Before you commit a single dollar or a minute of your time, you should step back and have a good think about what it is that you want to achieve. When developing your business plan, you may wish to consider the following questions: - How many renovations do you wish to complete in one year? - Do you have sufficient capital/finance to achieve this target? - Will you sell for profit or hold? - Do you wish to create an additional income stream? Do you wish to do it as a full time job? Why you need to write a business plan? To plot the course - To create the "big picture" - to recognise long term direction and think about staying in business and not just starting a business To create a feasibility study - Test the viability of your goals - Is it going to be profitable - What kind of financing will you need - Recognise the barriers to your success Become a better decision maker - Anticipate problems - The process of gathering information ahead of time will allow you to make more informed decisions - Your plan will provide you with an organised way to face issues For a reality check - The plan will challenge some of your pre-conceived assumptions - Your plan will raise questions that will inspire solutions before you need to face those problems - It allows you to recognise what will be required of you - Identifies your strengths and weaknesses and highlights needed areas of assistance Guide and measurement tool The business plan will act as a guide throughout your development and allow you to measure your progress against planned expectations. You can make adjustments accordingly. Your business plan should contain the following elements: 1. Executive Summary: Include general information about your business; your objectives; and your Start-Up details. 2. Market Analysis Summary: Give a brief description of the market that you intend to work in, and your acquisition strategy. 3. Implementation Plan: Outlines your renovation strategy and process. 4. Sales Strategy. 5. Sales Projection 6. Projected Profits and/or Losses 7. Financial Plan. 8. Management Summary. 9. Important Assumptions. 10. Summary. ================================= ##Attn Ezine editors/Site owners## Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify the content and include our resource box as listed above. If you do use the material please send us a note so we can take a look. Thanks. Feel free to substitute your affiliate link in place of our link in the resource box. Earn 50% on every purchase you refer. Affiliate details are available here: http://www.fastfixerupperprofits.com/affiliates.htm ================================== About the author: Sal Vannutini is a successful real estate investor and author of the best selling "Fixer-Upper Fortunes". Free e-book and 6 Part mini-course reveals how to make a fortune in real estate. Visit: http://www.fastfixerupperprofits.com Circulated by Article Emporium Real Estate Inspection - Do It Yourself Why should you do your own real estate inspection? To get a better deal. It isn't necessary to learn building codes, and you probably should use a professional inspector in any case. The point of learning what to look for is to have negotiating points. Home Inspection Chec... 13 Extra Costs to be Aware of Before Buying a Home Whether you're looking to buy your first home, or trading up to a larger one, there are many costs - on top of the purchase price - that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an un... The Right Time to Buy Your First Home There are many real estate market forecasts and predictions available - however the bottom line is that if you want to buy your first home—there is no wrong time. This is because the motivation to buy is not determined by regional market conditions or by location, but rather by yo... How to Create a Simple Real Estate Business Plan Becoming a full time property rehabber is actually a very easy process. So why do so many investors get it wrong, or even worse, do nothing? Simple: NO BUSINESS PLAN! Make no mistake about it: This is a business!. If you invest time and capital with the aim of... Tips & Advice on Choosing an E-Lender/Broker WHAT TO AVOID - WHAT TO LOOK FOR! • E-Lenders/Brokers who are solely web-based. These include mortgage sites that promise you three to four quotes on your loan. • Lenders that will not give you their loan officer's last name, cell phone or home phone number. ... Sell Your Real Estate Notes People sell real estate notes to raise cash quickly. A real estate note is just the loan document created when you financed the sale of your house or investment property. It could be a mortgage note, or a land-contract or contract-for-sale. The point is that the buyer is making pay... Real Estate Investor Question: Rehab and Sell, or Rehab and Keep? Here's another awesome question I received from my discussion board. The question; Why bother keeping property after it's rehabbed? Why not sell it after the rehab and GET PAID! Of course, the first questions that you must answer is how emergent is your need for quick ca... Protective Covenants – Buying Land or Homes In addition to zoning, some properties have covenants recorded at the courthouse that “run with the land.” These “protective covenants” can put a serious pinch in your plans for a piece of property. Protective Covenants A protective covenant remains in effect as... Selling Your Home – What Can Go Wrong With Pricing and Loans So, you're selling your home (house, townhouse, condo, apartment, land, lot, farm, ranch, etc.), what can go wrong? The sad fact is that a lot of things can go wrong. However, don't despair, there are almost as many solutions as problems. In this article, we look at problems rela... Pricing Your Home To Sell When you're selling your own property, whether it's a house, townhouse, condo, apartment, a finished lot, raw land, a farm, a ranch, or whatever, the first thing to get right is the price you ask for it. If you work with a broker, the legwork is done for you. When you work as a F... LIGURIA, MAY 2004. In a small, hill-top village home, overlooking the sea in the Italian region of Liguria, one can find the heartbeat of a vibrant, new, online marketplace, which - up against some of the world's e-shopping giants LIGURIA, MAY 2004. In a small, hill-top village home, overlooking the sea in the Italian region of Liguria, one can find the heartbeat of a vibrant, new, online marketplace, which - up against some of the world's e-shopping giants, like E-Bay and Amazon – is quickly becoming a for... Fix And Flip - A Real Estate Formula Making money with a "fix and flip" property is a great way to make money in real estate. However, it isn't about repairing drywall and planting flowers. It's all about how you do the numbers. People often buy and sell a fixer-upper without a definite plan. They buy a house... Real Estate Appraisal - Do Your Own For single family homes, there are two basic methods used in real estate appraisal. They are replacement cost analysis, and using comparable sales. A third appraisal method, based on capitalization, is used for income properties, and is covered in another article. In figur... Negotiating the Sale of Your Home Negotiating a successful sale of your home requires good communication skills. You must sustain the buyer's interest and trust during the process. Many of our clients have been very experienced negotiators, and from them we have learned that the goal is to reach a “good agreement... Hard Money Lenders -- "No Money Down" The Easy Way Would it help you as a real estate investor to be able to "Close For Cash in Days," even if you're tapped out financially? Hard money lenders are perhaps the best way to get 100% financing with easy qualifying, money for fix- up, and fast closings.
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