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Every business must start with a business plan. No matter how short, not having a plan is planning to fail. The biggest mistake I see with investors is never focusing on one strategy. They spread themselves too thin and never become a master. Here is an outline of a very simple business plan, which can very well be the start to your successful real estate business. 1.Strategy Pick one strategy and become a master. Focus all of you efforts on perfection and you can have an automated system that runs with you there or not. 1.Market Define your market. Many are only comfortable with their local market. Me on the other hand, I did tons of research to identify markets with great returns and ability to mitigate risk. Now I focus on one state where I can cherry pick from incredible LTVs and rent to purchase ratios. 1.Criteria Define your LTV, cash flow, max purchase amount, max rehab amount, max timeframe, etc. 1.How to find deals, marketing plan How are you going to automate a system so motivated sellers come to you. MLS, agents, online searches, direct mail to lists, other? 1.How to finance deals Are you using conventional, hard money, private money, equity or JV partners,...more
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