I started investing in real estate slowly. It was just one house at first. I performed renovations and that process went well. I ultimately sold that property for a tidy sum, using the proceeds to buy another piece of real estate. After that, I bought another. And, then another. My investing was going fairly well, but I wanted to do it full-time and knew that I could get better returns if I simply invested more time into this venture. There have been some ups and downs, but over the years, I’ve learned that outlining my goals and focusing on a handful of key principles in a real estate investing plan is critical to strategic business growth.
Key Principles for Your Real Estate Investing Plan
To effectively grow your revenues from real estate investing, you need to treat it like a business. And, as you know, every business needs an effective business plan. This allows you to not only set your objectives but also lay out a viable way to reach them. It also helps you to see the big picture rather than getting caught up in the details of each individual real estate transaction. Real estate investing plans can vary, but there are some core elements that everyone should have. Let’s take a closer look.
Picture in your mind what you want to achieve this year. How about next year? And, the next? Perhaps it’s simple, like buying and rehabbing three to four houses and selling them for some extra income. Maybe you have loftier goals like making real estate investing your full-time career and replacing your current income. Others are aiming toward saving for retirement. Either way, your goals need to be both concrete and achievable.
What you will do
How do you plan to get from here to there? Being specific with this step is critical. If you want to buy and sell real estate, you will need to understand your niche and how to reach your market. For instance, if you decide that distressed houses will provide the best opportunity for business growth, you will need solid lead generation strategies and the best marketing tools for real estate investors.
If you don’t set a deadline, your goal is just wishful thinking. When you set an achievement date, you are developing a framework for tracking your progress. Don’t worry about making the date too soon or too far ahead because you can always adjust it if necessary. Just remember that every day spent holding a property is a day that you are not working on the next money-making project.
Describe the results
What will it look like when you achieve your real estate investing goals? You need to decide how much money you intend to earn with your investing business and what you will do with the proceeds. Don’t forget to factor in what it will take to pay back any hard money lenders you involved in the deal and the cost of all the repairs. You’ll also need to be sure that you put money aside for taxes.
It might feel a bit overwhelming as you try and get it all down on paper within that real estate investment plan, but you don’t have to make it complicated.
That first year, I met my initial goal of buying and selling three investment properties. However, I found it somewhat difficult to find leads on distressed properties that would provide me with the returns I was looking for, until I became a HomeVestors® franchisee. Since then, my real estate investment goals—and my ability to meet them—have increased significantly.
Reaching Your Real Estate Investment Goals with Better Planning
Establishing a realistic real estate investment plan requires knowledge of your particular market and insight into how you can effectively pinpoint the best opportunities. Frankly, if you don’t have an effective lead generation strategy, you won’t be the first investor in line for the deal. HomeVestors’ “We Buy Ugly Houses®” brand is recognized and trusted by distressed home sellers nationwide. They call franchisees first when they need someone to buy their home on short notice. As the leading cash buyer home in the nation, HomeVestors’ lead generation methods are unparalleled. If you are ready to meet—and even exceed—your real estate investment goals this year, reach out and learn more!
Each franchise office is independently owned and operated.
Image Source: Unsplash user Glenn Carstens-Peters
HomeVestors of America® is the nation’s only real estate investing franchise, providing wonderful business opportunities to real estate and investment professionals across the nation.