Questions To Ask When Drafting Your Real Estate Investing Business Plan

Questions To Ask When Drafting Your Real Estate Investing Business Plan

by Brad Wozny

When formulating a real estate investing business plan, your final aim is to have a polished and formally written report about your business and your company's future. However, that formal plan often begins with a lot of questions and brainstorming. You might want to begin writing up your plan on a large piece of paper, using lots of multicolored pens and plenty of space. This will help ensure that you can capture everything before you commit it to a formal plan. While brainstorming your plan, you might want to ask yourself these questions:

Do you plan to sell properties for profit or hold? Your plan will be very different in each case.
Do you wish to run this business as a full time job, or will it be a part-time venture? It is essential to decide this up front. You don't want to spend a lot of time and resources on something that is only a part-time opportunity for you.
Do you want to create an additional income stream, or do you want this business to be your main income generator?
How many renovations do you plan to complete in one year? How many in six months? How many in three years?
How many property purchases do you plan to make in one year? How many in six months? How many in three years?
How many properties do you plan to sell or rent in one year? How many in six months? How many in three years?
Do you have enough capital/finance to achieve these plans?
Where can you get additional funding or capital for your business?
Who are your mentors?
What investing books and business do you plan to read in the next six months and in the next year? What classes or courses do you plan to take? When? How will you pay for this?
What resources do you have currently for your business? List people, qualities, education, experience, businesses, and companies.
How much time can you devote to your business each week and each month?
When you do want the first draft of your real estate investing business plan complete? When do you need it complete to show to lenders and potential partners?
What is your credit like? Have you ordered a credit report? What can you do in the next three to six months to improve your credit so that you can enjoy more funding?
Is your business, as you have outlined it, going to be profitable? Where is the specific evidence of this?
What kind of financing will you need?
What are the possible roadblocks to your success? What can go wrong? How can you reduce the possibility of this happening? What can you do now, specifically, to prevent problems down the line?
Asking all these questions will ensure that your real estate investing business plan is complete and sets you up for future success. Don't start writing a formal plan until you have all these answers down on paper.