Writing a business plan free is the first step in developing a successful real estate investing business. A variety of business plan tools are available at no cost via the Internet. Some focus specifically on the real estate industry while other programs provide templates that can be customized to suit the requirements of your business.
Writing a business plan free allows real estate investors the opportunity to establish business objectives. One of the primary objectives of any business plan is to develop a roadmap for success.
Strategic planning helps investors establish goals and develop a plan of action to achieve those goals. Real estate investors uncertain of their course can utilize strategy planning software to help determine the most profitable niche.
Most real estate software includes questionnaires about various types of real estate investments. Answering these questions can help investors determine if they are best suited for retail or commercial investments such as rental properties, wholesaling or house flipping.
Business plan software helps business owners stay focused on requirements of the business. For example, a startup company has different needs than an established enterprise.
Developing a real estate investing business plan requires time and commitment. This is of particular importance when establishing a plan to obtain startup capital or financing for expansion.
The average business plan consists of 20 to 30 written pages and includes financial projection charts and graphs. Most plans focus on seven topics including:
- The Executive Summary – The summary is a crucial element of any business plan. It is the first thing lenders, investors and potential business partners will review. The executive summary needs to be concise, while summarizing the overall plan. This section should include attention-grabbing information which entices the reader to review the remainder of the plan.
- Mission Statement – This section is reserved for presenting the focus of the business, what it stands for, the target market, and what sets this business apart from other real estate investing companies.
- Products and Services – Real estate investors should include detailed explanations of products and services offered. If you buy houses in a niche market, explain how these houses are purchased and the benefits offered to tenants or home buyers. If you specialize in helping homeowners facing hardships such as foreclosure or short sales, explain how your business solves their problem.
- Market Analysis – This section focuses on present and future real estate trends and should describe how the business will capitalize on those trends. Graphs and charts can be included to emphasize market analysis.
- Strategy and Implementation – Use this section to explain investment strategies and steps required to achieve them.
- Management Team – Whether your real estate business will be established as a sole proprietor, partnership, corporation or limited liability corporation, it is important to include a resume of each management team member; even if you are the only manager. Include each management team member’s qualifications, experience, and duties they will perform.
- Financial Projections – Since real estate is an unpredictable market, making financial projections can be challenging. Use information provided in previous sections to project future financials. If the business plan is used to obtain financing, include sales projections for a minimum of three years.
Writing a business plan can seem like a daunting task. Experts suggest working on one section at a time to make writing the plan more manageable. Real estate business plans are intended to provide insight for creating and expanding your business. They are not written in stone and should be reviewed on a regular basis to ensure you stay on track.