4 Tips For Making A Good Real Estate Business Plan

The Makings of a Good Real Estate Business Plan

Real estate business isn’t something you dive into nose first and worry about what to do later; that’s a surefire way of failing from the start. On the contrary, it is something which should be approached only once you have a careful and well thought-out plan under your hand. Needless to say, the exact plan which you are going to make will be very subjective, but regardless of that there are some steps which you can take to ease the whole process and at least give yourself some sense of direction as to where to go with your business plan. Here are a few steps which you would do well to go through when making your plan.

Finding out the Why

First off, you shouldn’t be going into this kind of business without having some kind of driving force behind you… something which lights your fire and keeps you going. You need to define your purpose, what you are trying to achieve with this business on a personal level; if you are only chasing money you will inevitably get bored, inattentive, and chances are you’ll slip somewhere and ruin everything.

Marking your Goals

The second step in writing up your real estate business plan is to determine the goals you are going to be chasing after. The surest way to do this would be to analyze your current situation, or what you have managed to do within the year. Have you achieved the goals you envisioned yourself completing by this stage in your life? What kind of progress, or regress, are you dealing with? Basically, you will need to set certain goals (usually people prefer to set goals in terms of money) depending on how things have been going so far.

You should make two types of goals: short-term and long-term. With the long-term goals you shouldn’t really hold back and think big, imagining what you want to attain five to ten years from now. When it comes to your short-term goals, remain realistic and calculated, meaning you shouldn’t expect to become a millionaire in a couple of weeks.

The Plan of Action

This may very well be the hardest part of the plan as you will actually need to put together a method for making your goals reality. The first part in making a plan of action would be to give yourself some value by defining your niche and becoming a specialist in it. Valued proposition always plays a huge role in whether or not clients trust you and should never be neglected.

The next part in making a good real estate business plan is to find a way to generate leads. If you’ve been in this business for some time as an agent you will probably need to fine-tune the ways you already use to generate leads. If you are not, you should definitely consider various types of marketing such article directories, video marketing, or perhaps even commercials if you can afford them.

When making a business plan in real estate it is also extremely important to set up a development plan for the future. Make sure to know in advance what you are going to be researching for your business, which is good if you are looking to try some new and intriguing concepts for your business but aren’t sure they are going to actually work.

Needless to say, you probably aren’t going to be working alone because let’s face it, a lone real estate agent won’t be able to manage this kind of business by him or herself. You will need to have a team with you, and the next step in making this business plan for real estate lies in creating an organizational structure. While it may not sound like much, each member of your team needs to know what he or she is doing and how they fit into your plan.

Keeping Track of Everything

Naturally, in order to make sure that your business is right on track to achieve your goals you will need to monitor it, and one of the first things you should do is schedule expense reviews every year. In addition, you should also look into implementing a production-check plan which would allow you to monitor your progress in regards to your goals on a monthly basis. The easiest way to do that would be to look at the leads and sales generated during the month, not to mention the total profits.

All in all, making a real estate business plan is indeed a lot of work, but if you go at it methodically with a calculated mind and base everything on numbers and calculations, you should be just fine.

Learn more about building a profitable real estate business by visiting my blog below.

How to Get Your School-Age Children Involved in Your Real Estate Business

Are you a mommy real estate agent with kids in school? You already know how to maximize your real estate business work while the kids are out of the house. With all those hours to yourself, getting the nitty-gritty business stuff done is a cinch! After you get them off to school in the morning, you should have plenty of time to network with others in the business, make phone calls, develop your next marketing campaign and get all your office work done.

But what about when the kids are not in school? What about the holidays and in-service days? What about weekends and the after-school time when homework is done? Have you thought about making your real estate business a family affair? Your kids can be your own real estate assistants, helping you grow your real estate business and learning valuable lessons about life, teamwork and business.

As long as your child isn’t doing anything that your state deems work that should be done by a licensed real estate assistant, the sky’s the limit as to what your son or daughter can help with. That teenager who’s a whiz on the computer can help you develop your website. Your little artist can design your marketing materials. Kids can really be a help…and if you pay them a few bucks, there’s even more motivation to help Mom make her real estate business the best!

Just think of all the ways they can help you:

— Scan documents

— Make photocopies

— Fold letters, brochures, etc.

— Stuff and stamp envelopes

— Clean the car prior to a buyer appointment

— Take pictures of properties

— Develop marketing materials

— Filing paperwork

— Co-hosting Open Houses

There are many ways in which you can make your real estate business a lesson in teamwork. You get help to grow as a Mommy real estate agent and your children can feel like a part of your real estate business. It’s a win-win situation for kids and Mom!

Fundamentals When Building Your Real Estate Business

If you want to be successful in a real estate business, the first thing that you need to do is to be familiar with the basics. The reason why there are a lot of people who are getting into real estate business is because once you purchased a property, the value of it will continue to appreciate. Aside from this, you will also be able to build a strong passive income that can generate thousands of dollars every year. However, you still need to make sure that you know the basics, because your investment could be wasted if you weren’t able to follow the building blocks of real estate business.

The first and probably the most important part of a real estate business is looking for a reliable realtor. We can say that they are your partner in business, because they will be the one to look for the property that you can purchase. Aside from this, you will also be able to receive advices from them regarding the best way to invest in the real estate market. If you were able to find a reputable realtor, we can say that your business is almost guaranteed to succeed.

If you are a person who would love to take risks, the best property that you can purchase are the ones that are in short sale. The reason why you need to look for these properties is because they are being sold for a price that is much lower than the mortgage rate. However, you still need to be very careful because there are several reasons why the owner wasn’t able to pay for the mortgage. Nonetheless, it is still a good investment because the price that you have to spend for it is lower than its market price.

If you want to build apartments for rent, it would be better if you are going to look for lots for sale. Since there are no establishments placed on the lot, you don’t have to spend a lot of money for it. Aside from this, you will also be able to save money since you won’t have to demolish an existing building just to have your building built. If you want to determine whether the place is a good place for apartments, you can ask your realtor because they are well-aware of the things that should be considered before building your property.

If you are just starting to build your portfolio of real estate properties, it would be better if you are going to start buying small houses and have it rented by other people. This will cover the money that you have to spend for the mortgage, and you won’t have to think about anything. The good thing about this is that after you’ve finished paying the mortgage, the property will be yours and the income that you are generating from the rent could be used to invest in a new real estate property. Just make sure that you are going to consult your realtor when getting into such investments.