how to write a business plan for real estate investing

How to Write a Real Estate Investment Business Plan + Free Sample Plan PDF

Elon Glucklich

8 min. read

Updated February 19, 2024

Download a free one-page real estate investment sample business plan

With the worst of recent inflation in the rear-view mirror and interest rates projected to start falling in 2024, real estate investors see signs of optimism. 

New apartment construction is rising sharply . These new properties coming onto the market and the prospect of lower borrowing costs point to plenty of long-term opportunities for investors.

However, investing in real estate requires a sharp eye for market trends, as well as significant upfront resources. Investors need to understand the different strategies for securing financing, and how to manage their properties to increase their value before reselling.

A business plan reduces your likelihood of making a bad investment, because it gets you in the habit of organizing your market research, and updating it as conditions evolve. The plan ultimately helps align your investment strategies with your opportunities.

| Looking for a fix and flip , home inspection , or other type of plan? Browse the Bplans library of sample real estate business plans |

• What should you include in a real estate investment business plan?

Here are the most common sections any real estate investor should consider including in their plan:

• Executive summary
• Company overview
• Investment strategy
• Market analysis
• SWOT analysis
• Financial plan and forecasts
• Exit strategy

The length and depth of your business plan will vary depending on your business. For instance, a real estate investment firm with a national portfolio of office and apartment buildings is bound to have a more complex set of financial projections and supporting documents than an investor with single-family houses in a few markets.

Here’s an example of a real estate investment business plan outline.

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• The 8 elements of an effective real estate investment business plan

1. Executive summary

Most business plans start with an executive summary outlining the business opportunity and the core strategies of your business. 

It’s the first section that most readers (including loan officers) will read. You’ll want to highlight any unique value or competitive edge you have, such as a track record of generating positive returns, or knowledge of a specific market. 

You should also give a high-level overview of your financial projections and anticipated returns, which you’ll go into greater detail on in the plan’s financial section. If you’re writing a business plan because you’re seeking bank financing or an investment, this is a good section to state your funding request and how you’ll use those funds.

2. Company overview 

The company overview describes your company’s operational and legal structure . 

List whether you have any partners, and detail your team’s experience, expertise, and roles within the company. Also, outline your portfolio, such as investing in residential properties, commercial buildings, or new development projects. 

3. Investment strategy

There are many ways to invest in real estate — buying homes to rent out, fixing and flipping houses, pooling your resources with partners into a real estate investment group, investing in real estate investment trusts, and more. Describe your strategy and why it will generate the highest returns.You should also describe your criteria for choosing properties to invest in, and whether your primary focus is to invest in a certain geographic region or a type of property, such as apartments or fixer-upper homes.

4. Market analysis

If you have any experience in investment real estate, you know how important market research is. Imagine paying $1 million for an apartment building and adding $100,000 on renovations, only to realize you can’t find tenants to pay the higher rents you want to charge.

That’s where a thorough market analysis comes in. It helps you understand the landscape you’re operating in. 

Use resources like the U.S. Census Bureau to research your target market’s age, income, and population trends. Look online for local data about real estate prices and how they’ve changed over time, or reach out to local realtors to get a feel for the market.

You should also try to determine how much investment activity is taking place in the market and who you’re competing with for opportunities. 

Many cities and larger towns with development departments make their building permit databases available online, since permits are typically public records. Reviewing permit records can show you how much development activity is already occurring where you plan to invest.

5. SWOT analysis

Because of the risks involved in real estate investment, a SWOT analysis can be a helpful exercise. It’s a strategic way of evaluating your company’s internal and external environment (think about your company’s financial health as an internal factor, and interest rates as an external factor).

The SWOT analysis gets you thinking about your company’s:

Strengths: What you do well , and what unique resources you have.

Weaknesses: What you need to improve on, what resources you lack, or what your competitors do better than you.

Opportunities: What are the current opportunities you want to take advantage of?

Threats: What factors could expose your company to risk, or what might competitors do to harm your position?

6. Financial plan and forecasts

Your financial plan should provide a detailed view of the expected financial performance of your real estate investments. Include income statements , cash flow forecasts , and balance sheets projecting the next 3-5 years. 

List the assumptions you used in your projections, such as rental income changes from rent increases or unrealized revenue due to certain amounts of vacant commercial space. 

You should also include a break-even analysis. This calculates when you expect a property’s operating income to exceed the debt taken to buy and maintain it.

7. Exit strategy

If you’re writing your business plan for investors, detailing your exit strategy will clarify their pathways for realizing their returns. It also trains you to think about the long-term timeline for your investments and how to maximize their value. 

Consider strategies that will help you maximize your profits, like refinancing your properties or looking into potential tax-deferral opportunities like a 1031 exchange.

8. Appendix

The appendix is an optional section at the end of your business plan. It’s where you include additional documents that support your business plan but don’t fit in the plan. This might include your detailed market research data, financial tables not covered in the main sections of the plan, legal documents, or permit records.

• Key considerations for writing a real estate investment business plan

To write a business plan that you can use as a guide for your decision making, consider places in the plan to emphasize these key points.

1. Develop a niche

If you’re a small investor or just starting, focus on carving out a specific niche for your investment strategy instead of trying to compete in multiple real estate segments. This could mean concentrating on a particular property type, such as multi-family homes, commercial real estate, or foreclosure properties, and diversifying your portfolio only after you’ve developed some traction. Or, you may decide to focus only on the segment you have the greatest advantage in.

2. Understand your risks

Real estate investment is inherently risky. 

Market dynamics, regulatory changes, and economic fluctuations can all impact the performance of your investments. 

As you compile research for your market analysis, dedicate time to conduct a detailed risk analysis to understand these factors and their potential impact on your investments. This includes assessing location-specific risks, economic cycles, and tenant or occupancy issues. 

Writing these out before they happen will help you think of strategies to mitigate these risks if they actually occur.

3. Network and develop market knowledge

Building a strong network with other real estate professionals, such as brokers and contractors, can provide valuable insights into the markets you hope to operate in. Document in your business plan how you will cultivate these relationships — you can include timelines for developing contacts in the milestones section of your plan.

Also, try to keep up to date on current events in the area, especially news about the regional economy. Look into the tax climate in the area, as well. All of this helps you build a deeper understanding of your market dynamics, and helps validate your investment strategy — or gives you reasons to reconsider.

4. Consider help with your financials

Even if you have the financial background to write financial forecasts, you may want to leave room in your budget for accounting support. 

If you’re starting or investing in an unfamiliar market, a CPA will help you navigate tricky tax issues that could throw off your projections. 

Include the expense of hiring an accountant in your plan if you decide to bring one on, and describe their role, whether it’s helping with budgeting, tax planning, or financial analysis.

• Download your free real estate investment one page sample business plan

Download your free real estate investment sample business plan right now, or explore the Bplans gallery of over 550 sample business plans if you want to see plans for other industries.

You can also see how other real estate businesses have written their plans by checking out our free library of real estate business plans .

There are many reasons why real estate investors should write a business plan . Not only does it demonstrate credibility to the banks or investors you want to fund your acquisitions — it also increases your chances for growth , and gives you a strategy to manage your finances for the long term.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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How To Write A Real Estate Business Plan

What is a real estate business plan?

8 must-haves in a business plan

How to write a business plan

Real estate business plan tips

Success in the real estate investing industry won’t happen overnight, and it definitely won’t happen without proper planning or implementation. For entrepreneurs, a  real estate development business plan can serve as a road map to all of your business operations. Simply put, a real estate business plan will serve an essential role in forming your investing career.

Investors will need to strategize several key elements to create a successful business plan. These include future goals, company values, financing strategies, and more. Once complete, a business plan can create the foundation for smooth operations and outline a future with unlimited potential for your investing career. Keep reading to learn how to create a real estate investment business plan today.

What Is A Real Estate Investing Business Plan?

A real estate business plan is a living document that provides the framework for business operations and goals. A business plan will include future goals for the company and organized steps to get there. While business plans can vary from investor to investor, they will typically include planning for one to five years at a time.

Drafting a business plan for real estate investing purposes is, without a doubt, one of the single most important steps a new investor can take. An REI business plan will help you avoid potential obstacles while simultaneously placing you in a position to succeed. It is a blueprint to follow when things are going according to plan and even when they veer off course. If for nothing else, a real estate company’s business plan will ensure that investors know which steps to follow to achieve their goals. In many ways, nothing is more valuable to today’s investors. It is the plan, after all, to follow the most direct path to success.

8 Must-Haves In A Real Estate Business Plan

As a whole, a real estate business plan should address a company’s short and long-term goals. To accurately portray a company’s vision, the right business plan will require more information than a future vision. A strong real estate investing business plan will provide a detailed look at its ins and outs. This can include the organizational structure, financial information, marketing outline, and more.  When done right, it will serve as a comprehensive overview for anyone who interacts with your business, whether internally or externally.

That said, creating an REI business plan will require a persistent attention to detail. For new investors drafting a real estate company business plan may seem like a daunting task, and quite honestly it is. The secret is knowing which ingredients must be added (and when). Below are seven must-haves for a well executed business plan:

Outline the company values and mission statement.

Break down future goals into short and long term.

Strategize the strengths and weaknesses of the company.

Formulate the best investment strategy for each property and your respective goals.

Include potential marketing and branding efforts.

State how the company will be financed (and by whom).

Explain who is working for the business.

Answer any “what ifs” with backup plans and exit strategies.

These components matter the most, and a quality real estate business plan will delve into each category to ensure maximum optimization.

A company vision statement is essentially your mission statement and values. While these may not be the first step in planning your company, a vision will be crucial to the success of your business. Company values will guide you through investment decisions and inspire others to work with your business time and time again. They should align potential employees, lenders, and possible tenants with the motivations behind your company.

Before writing your company vision, think through examples you like both in and out of the real estate industry. Is there a company whose values you identify with? Or, are there mission statements you dislike? Use other companies as a starting point when creating your own set of values. Feel free to reach out to your mentor or other network connections for feedback as you plan. Most importantly, think about the qualities you value and how they can fit into your business plan.

Goals are one of the most important elements in a successful business plan. This is because not only do goals provide an end goal for your company, but they also outline the steps required to get there. It can be helpful to think about goals in two categories: short-term and long-term. Long-term goals will typically outline your plans for the company. These can include ideal investment types, profit numbers, and company size. Short-term goals are the smaller, actionable steps required to get there.

For example, one long-term business goal could be to land four wholesale deals by the end of the year. Short-term goals will make this more achievable by breaking it into smaller steps. A few short-term goals that might help you land those four wholesale deals could be to create a direct mail campaign for your market area, establish a buyers list with 50 contacts, and secure your first property under contract. Breaking down long-term goals is a great way to hold yourself accountable, create deadlines and accomplish what you set out to.

3. SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis involves thinking through each of these areas as you evaluate your company and potential competitors. This framework allows business owners to better understand what is working for the company and identify potential areas for improvement. SWOT analyses are used across industries as a way to create more actionable solutions to potential issues.

To think through a SWOT analysis for your real estate business plan, first, identify your company’s potential strengths and weaknesses. Do you have high-quality tenants? Are you struggling to raise capital? Be honest with yourself as you write out each category. Then, take a step back and look at your market area and competitors to identify threats and opportunities. A potential threat could be whether or not your rental prices are in line with comparable properties. On the other hand, a potential opportunity could boost your property’s amenities to be more competitive in the area.

4. Investment Strategy

Any good real estate investment business plan requires the ability to implement a sound investment strategy. If for nothing else, there are several exit strategies a business may execute to secure profits: rehabbing, wholesaling, and renting — to name a few. Investors will want to analyze their market and determine which strategy will best suit their goals. Those with long-term retirement goals may want to consider leaning heavily into rental properties. However, those without the funds to build a rental portfolio may want to consider getting started by wholesaling. Whatever the case may be, now is the time to figure out what you want to do with each property you come across. It is important to note, however, that this strategy will change from property to property. Therefore, investors need to determine their exit strategy based on the asset and their current goals. This section needs to be added to a real estate investment business plan because it will come in handy once a prospective deal is found.

5. Marketing Plan

While marketing may seem like the cherry on top of a sound business plan, marketing efforts will actually play an integral role in your business’s foundation. A marketing plan should include your business logo, website, social media outlets, and advertising efforts. Together these elements can build a solid brand for your business, which will help you build a strong business reputation and ultimately build trust with investors, clients, and more.

First, to plan your marketing, think about how your brand can illustrate the company values and mission statement you have created. Consider the ways you can incorporate your vision into your logo or website. Remember, in addition to attracting new clients, marketing efforts can also help maintain relationships with existing connections. For a step by step guide to drafting a real estate marketing plan , be sure to read this guide.

6. Financing Plan

Writing the financial portion of a business plan can be tricky, especially if you are starting your business. As a general rule, a financial plan will include the income statement, cash flow, and balance sheet for a business. A financial plan should also include short and long-term goals regarding the profits and losses of a company. Together, this information will help make business decisions, raise capital, and report on business performance.

Perhaps the most important factor when creating a financial plan is accuracy. While many investors want to report on high profits or low losses, manipulating data will not boost your business performance in any way. Come up with a system of organization that works for you and always ensure your financial statements are authentic. As a whole, a financial plan should help you identify what is and isn’t working for your business.

7. Teams & Small Business Systems

No successful business plan is complete without an outline of the operations and management. Think: how your business is being run and by whom. This information will include the organizational structure, office management (if any), and an outline of any ongoing projects or properties. Investors can even include future goals for team growth and operational changes when planning this information.

Even if you are just starting or have yet to launch your business, it is still necessary to plan your business structure. Start by planning what tasks you will be responsible for, and look for areas you will need help with. If you have a business partner, think through your strengths and weaknesses and look for areas you can best complement each other. For additional guidance, set up a meeting with your real estate mentor. They can provide valuable insights into their own business structure, which can serve as a jumping-off point for your planning.

8. Exit Strategies & Back Up Plans

Believe it or not, every successful company out there has a backup plan. Businesses fail every day, but investors can position themselves to survive even the worst-case scenario by creating a backup plan. That’s why it’s crucial to strategize alternative exit strategies and backup plans for your investment business. These will help you create a plan of action if something goes wrong and help you address any potential problems before they happen.

This section of a business plan should answer all of the “what if” questions a potential lender, employee, or client might have. What if a property remains on the market for longer than expected? What if a seller backs out before closing? What if a property has a higher than average vacancy rate? These questions (and many more) are worth thinking through as you create your business plan.

How To Write A Real Estate Investment Business Plan: Template

The impact of a truly great real estate investment business plan can last for the duration of your entire career, whereas a poor plan can get in the way of your future goals. The truth is: a real estate business plan is of the utmost importance, and as a new investor it deserves your undivided attention. Again, writing a business plan for real estate investing is no simple task, but it can be done correctly. Follow our real estate investment business plan template to ensure you get it right the first time around:

Write an executive summary that provides a birds eye view of the company.

Include a description of company goals and how you plan to achieve them.

Demonstrate your expertise with a thorough market analysis.

Specify who is working at your company and their qualifications.

Summarize what products and services your business has to offer.

Outline the intended marketing strategy for each aspect of your business.

1. Executive Summary

The first step is to define your mission and vision. In a nutshell, your executive summary is a snapshot of your business as a whole, and it will generally include a mission statement, company description, growth data, products and services, financial strategy, and future aspirations. This is the “why” of your business plan, and it should be clearly defined.

2. Company Description

The next step is to examine your business and provide a high-level review of the various elements, including goals and how you intend to achieve them. Investors should describe the nature of their business, as well as their targeted marketplace. Explain how services or products will meet said needs, address specific customers, organizations, or businesses the company will serve, and explain the competitive advantage the business offers.

3. Market Analysis

This section will identify and illustrate your knowledge of the industry. It will generally consist of information about your target market, including distinguishing characteristics, size, market shares, and pricing and gross margin targets. A thorough market outline will also include your SWOT analysis.

4. Organization & Management

This is where you explain who does what in your business. This section should include your company’s organizational structure, details of the ownership, profiles on the management team, and qualifications. While this may seem unnecessary as a real estate investor, the people reading your business plan may want to know who’s in charge. Make sure you leave no stone unturned.

5. Services Or Products

What are you selling? How will it benefit your customers? This is the part of your real estate business plan where you provide information on your product or service, including its benefits over competitors. In essence, it will offer a description of your product/service, details on its life cycle, information on intellectual property, as well as research and development activities, which could include future R&D activities and efforts. Since real estate investment is more of a service, beginner investors must identify why their service is better than others in the industry. It could include experience.

6. Marketing Strategy

A marketing strategy will generally encompass how a business owner intends to market or sell their product and service. This includes a market penetration strategy, a plan for future growth, distribution channels, and a comprehensive communication strategy. When creating a marketing strategy for a real estate business plan, investors should think about how they plan to identify and contact new leads. They should then think about the various communication options: social media, direct mail, a company website, etc. Your business plan’s marketing portion should essentially cover the practical steps of operating and growing your business.

Additional Real Estate Business Plan Tips

A successful business plan is no impossible to create; however, it will take time to get it right. Here are a few extra tips to keep in mind as you develop a plan for your real estate investing business:

Tailor Your Executive Summary To Different Audiences: An executive summary will open your business plan and introduce the company. Though the bulk of your business plan will remain consistent, the executive summary should be tailored to the specific audience at hand. A business plan is not only for you but potential investors, lenders, and clients. Keep your intended audience in mind when drafting the executive summary and answer any potential questions they may have.

Articulate What You Want: Too often, investors working on their business plan will hide what they are looking for, whether it be funding or a joint venture. Do not bury the lede when trying to get your point across. Be clear about your goals up front in a business plan, and get your point across early.

Prove You Know The Market: When you write the company description, it is crucial to include information about your market area. This could include average sale prices, median income, vacancy rates, and more. If you intend to acquire rental properties, you may even want to go a step further and answer questions about new developments and housing trends. Show that you have your finger on the pulse of a market, and your business plan will be much more compelling for those who read it.

Do Homework On The Competition: Many real estate business plans fail to fully analyze the competition. This may be partly because it can be difficult to see what your competitors are doing, unlike a business with tangible products. While you won’t get a tour of a competitor’s company, you can play prospect and see what they offer. Subscribe to their newsletter, check out their website, or visit their open house. Getting a first-hand look at what others are doing in your market can greatly help create a business plan.

Be Realistic With Your Operations & Management: It can be easy to overestimate your projections when creating a business plan, specifically when it comes to the organization and management section. Some investors will claim they do everything themselves, while others predict hiring a much larger team than they do. It is important to really think through how your business will operate regularly. When writing your business plan, be realistic about what needs to be done and who will be doing it.

Create Example Deals: At this point, investors will want to find a way to illustrate their plans moving forward. Literally or figuratively, illustrate the steps involved in future deals: purchases, cash flow, appreciation, sales, trades, 1031 exchanges, cash-on-cash return, and more. Doing so should give investors a good idea of what their deals will look like in the future. While it’s not guaranteed to happen, envisioning things has a way of making them easier in the future.

Schedule Business Update Sessions: Your real estate business plan is not an ironclad document that you complete and then never look at again. It’s an evolving outline that should continually be reviewed and tweaked. One good technique is to schedule regular review sessions to go over your business plan. Look for ways to improve and streamline your business plan so it’s as clear and persuasive as you want it to be.

Reevauating Your Real Estate Business Plan

A business plan will serve as a guide for every decision you make in your company, which is exactly why it should be reevaluated regularly. It is recommended to reassess your business plan each year to account for growth and changes. This will allow you to update your business goals, accounting books, and organizational structures. While you want to avoid changing things like your logo or branding too frequently, it can be helpful to update department budgets or business procedures each year.

The size of your business is crucial to keep in mind as you reevaluate annually. Not only in terms of employees and management structures but also in terms of marketing plans and business activities. Always incorporate new expenses and income into your business plan to help ensure you make the most of your resources. This will help your business stay on an upward trajectory over time and allow you to stay focused on your end goals.

Above all else, a  real estate development business plan will be inspiring and informative. It should reveal why your business is more than just a dream and include actionable steps to make your vision a reality. No matter where you are with your investing career, a detailed business plan can guide your future in more ways than one. After all, a thorough plan will anticipate the best path to success. Follow the template above as you plan your real estate business, and make sure it’s a good one.

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Your 10 Step Guide to Building a Real Estate Investing Business Plan

Real estate empires grow from a blueprint, not last-minute hunches. This guide outlines how to create a real estate investing business plan to help you navigate market dynamics, seek funding, and add to your team so that you can successfully grow your business.

Let’s be honest, the idea of drafting a formal real estate investing business plan probably doesn’t excite you. After all, you got into real estate investing to scout deals and transform properties, not write novels full of financial projections.

But experienced investors know a solid plan spells the difference between profitability and major headaches. It forces clarity on direction and feasibility before you sink hundreds of thousands into property purchases and rehabs.

Think of your business plan as a blueprint for success tailored to your unique investment goals and market conditions. Whether you currently own a few rentals or are launching a full-fledged development firm, a plan guides decisions, aligns partners, and demonstrates viability to secure financing.

So how do you build one effectively without needless complexity? What key strategy areas require your focus? Let’s explore components that set you up for growth while avoiding common first-timer pitfalls. With realistic planning as your foundation, your investing journey can start smooth and stay the course.

What is a real estate investing business plan?

At its core, a real estate investment business plan is simply a strategic guide outlining your intended real estate approach. It defines target markets, preferred project types based on expertise, capital sources, growth strategy, key operational procedures, and other investment specifics tailored to your situation.

View your plan as an evolving document rather than a rigid static rulebook collecting dust. It should provide goalposts and guardrails as markets shift over time and new opportunities appear. You'll be able to refer back to the plan to confirm that these new opportunities align with proven tactics that yield predictable returns.

Detailed upfront planning provides a sound foundation for confident direction. It protects stakeholders by identifying potential pitfalls and mitigation strategies before costly surprises trip up the stability of your real estate business.

So, it's worth it to take the time and develop a customized plan aligned to your niche, resources, and risk tolerance. While initially tedious, the practice of putting together your strategic real estate business plan ultimately provides clarity and confidence moving forward.

Importance of having a business plan

Now that we’ve defined what a business plan is, let’s explore why having one matters — especially if you want to grow a successful real estate investment company.

Have you considered what originally attracted you to investing in properties? Whether it was rehabbing flips, acquiring rentals, or simply a lucrative hobby, your motivations and ideal path can get lost in the daily distractions of life. That’s where an intentional business plan provides clarity and conviction moving forward.

Reasons every real estate investor should prioritize planning are:

• Goals and vision : You might be wanting to quit your day job and focus on real estate full time, or you might simply want to generate some extra income on the side. Either way, a business plan forces you to define what success looks like for you.
• Due diligence : Creating a plan forces you to research the real estate markets you want to invest in — analyzing sales, rents, permits, zoning, demographics, and growth projections. This helps you objectively identify high-potential neighborhoods and properties rather than relying on hearsay or intuition.
• Funding and financing : Lenders and potential investors will want to review your business plan to evaluate the viability and profitability of your real estate investment business before offering any financing . A complete plan builds credibility and confidence with stakeholders.
• Guide decision-making : It's easy to get distracted by the latest real estate seminar or shiny new construction techniques. But sticking to the parameters and strategies laid out in your plan prevents you from making hasty changes or going down rabbit holes.
• Identify potential risks : There are always things that can unexpectedly go wrong: what if interest rates spike and make your loans unaffordable, or your best tenants move out and unreliable folks move in? Brainstorming these scenarios in advance allows you to minimize risks and have contingency plans.
• Systemize operations : As you grow, how will you scale operations? A business plan helps you identify areas that will require attention as your business evolves, like creating maintenance checklists for rentals, standardizing lease agreements , or automating accounting procedures.
• Build the right team : Your business plan provides guidance on the team you'll need for your business. Know if you require a real estate agent to help you find deals or a property manager to handle tenant complaints at 2 AM.
• Track progress : Your plan helps you compare things like actual rehab costs, rental occupancy rates, cash flow, etc. to your initial projections and determine whether you're on track.  You can then make adjustments as needed.
• Maintain strategy : As you scale your operations with new hires or partnerships, you'll want to maintain direction in alignment with your original business plan. For example, if you are considering new verticals like commercial real estate, does evaluation criteria match your proven risk metrics and return hurdles? A real estate business plan keeps everyone focused on the same goals as your business grows.

What to include in a real estate investment business plan

A good real estate investing business plan covers everything from business goals to financing strategy. Here are the ten key elements you should include:

1. Executive summary

The executive summary provides a high-level overview of your real estate investment business plan. It briefly describes your company mission, objectives, competitive advantages, growth strategies, team strengths, and financial outlook.

Think of it as the elevator pitch for your business plan, and write it last after you have completed the full plan. Limit it to 1-2 pages at most.

Make your executive summary compelling and motivate investors or lenders to learn more. Be sure to also summarize your past successes and experiences to build credibility.

2. Company description

The company description section provides background details on your real estate investment company. Keep this section brief, but use it to legitimize your business and team.

• Business model : Explain your core business model and investment strategies. Will you primarily flip properties, buy and hold rentals, conduct wholesale deals, or use another approach?
• Company history and achievements : Provide a brief timeline of your company's history, including its formation, past projects, key milestones, and achievements.
• Legal business structure : Identify your corporate structure, such as LLC , S-Corp , C-Corp, or sole proprietorship.
• Office location : Provide your company's office address, which lends you credibility. If you are initially working from home, consider establishing a local PO Box or virtual address.
• Founders and key team members : Introduce your founders and key team members. Highlight relevant real estate, finance, management expertise, and credentials.
• Past projects : Provide an overview of any successful prior real estate projects your company or founders have executed.
• Competitive advantages : Explain unique resources, systems, or other strengths that give your company an edge over competitors. These could be proprietary analytic models, contractor relationships, deal access, or specialized expertise.
• Technologies and tools : Discuss technologies, software programs, or tools your company uses to streamline processes and optimize operations.

3. Market analysis

The market analysis section validates whether your real estate investment strategy makes sense in a given area.

Conduct detailed research from multiple sources to create realistic real estate investment market projections and identify potentially profitable opportunities.

Outline why certain neighborhoods, property types, or price points pique your interest more than others.

Your market analysis should dig deep into factors like:

• Local sales and rental price trends : Analyze pricing history and current trends for both sales and rents. Look at different property types, sizes, and neighborhoods.
• Housing inventory and demand analysis : Research the balance of supply and demand and how that impacts prices. Is the market undersupplied or oversupplied?
• Market growth projections : Review forecasts from real estate analysts on expected market growth or decline in coming years. Incorporate these projections into your analysis.
• Competitor analysis : Identify other real estate investors actively acquiring or managing properties in your target areas. Look at their business models and strategies.
• Target neighborhood and property analysis : Provide an in-depth analysis of your chosen neighborhoods and target property types. Outline positive attributes, risks, and opportunities.
• Demographic analysis : Analyze the demographics of potential tenants or homebuyers for your target properties. Factors like income, age, and family size impact demand.
• Local construction and renovation costs : Research materials and labor costs for accurate budgets and understand the permitting process and timelines.
• Regional economic outlook : Factor in projections for job growth, new employers, infrastructure projects, and how they may impact the real estate market.

4. SWOT analysis

SWOT stands for strengths, weaknesses, opportunities and threats. Conducting a SWOT analysis means stepping back from day-to-day business to assess your broader position and path from a strategic lens.

Internal strengths for your real estate investment business may include an experienced team skilled in major rehab projects, strong contractor relationships, or access to private lending capital. Weaknesses might be limited staff for handling tenant maintenance issues across a growing rental portfolio or only having a small number of referral partners for deal flow.

External opportunities can come from accelerating population growth and development in your target market, new zoning favorable to multifamily housing, or record-low mortgage interest rates. Threats could be rising material prices that hurt your flip margins, laws imposing restrictions on non-primary residence owners, or an oversupply of new luxury rentals, allowing tenants to be choosy.

The SWOT analysis highlights strengths to double down on and risks to mitigate in the real estate market.

5. Financial projections

The financial plan helps for both internal preparation and attracting investors. For real estate companies, the financial plan section should cover:

• Startup costs : Include the expected startup costs involved to start your investment project, such as getting licenses and permits or paying for legal fees.
• Profit and loss forecasts : Create projected profit and loss statements that outline what you think your revenues and expenses will be over the next 3-5 years.
• Cash flow projections : Put together projected cash flow statements that show expected cash flow for each month.
• Return on investment projections : Project your company's expected ROI over time under the different investment scenarios.
• Funding requirements : Based on your forecasts, detail exactly how much capital you will need to start and operate your business until it is profitable. Specify whether you plan to use debt or equity financing.

6. Investment strategy

The investment strategy outlines your niche — will you focus on flipping, buying rentals, commercial properties, or a blend? Define any geographic targets like certain cities or zip codes backed by your research on growth potential.

Specify your criteria for ideal investment properties based on your goals. Decide which factors — age, size, layout, condition, or price point — matter most to you.

You can also use this section to explain how you plan to find deals, whether that's by scouting listed properties, attending foreclosure auctions, or networking to create off-market opportunities.

Clearly conveying your approach allows lenders and potential private investors to grasp your niche, planned pursuits, and process for finding deals. Having a strong strategy that summarizes how you locate, evaluate and capture deals matching your investing thesis can increase lender and private investor confidence in your ability to execute.

7. Marketing plan

Real estate marketing can’t just be an afterthought; it helps attract profitable deals, financing, and tenants to your business, making it a necessary component of your business plan to prioritize.

Components of your marketing plan can include:

• Networking: Actively networking at local real estate meetups puts you directly in front of promising off-market opportunities and partnerships with motivated sellers, lenders and contractors in your community.
• Social media: Consistently nurturing your social media presence can also pay off to help you find opportunities or potential investors.
• Direct marketing: Never underestimate old school direct marketing — sending postcards to addresses with outdated “We Buy Houses” signs or calling the For Sale by Owners numbers from public listings can help you reach motivated sellers.
• Listings management: Note that marketing does not end once you own property. To keep rental vacancies filled, leverage listing sites that can publish your units to a wide audience of prospective tenants.

8. Operations plan

Without systems, real estate investors struggle through renovations plagued by cost overruns, shoddy contractors who never call back, and frustrating tenants who always pay late . The operations component of your plan should consider aspects like:

• Renovations: Ever lined up a contractor who juggles too many clients and leaves your projects languishing? Create standardized processes for accurate scoping, vetting subs, enforcing deadlines contractually, and maintaining contingency funds.
• Business technologies: As your portfolio grows, tasks like tracking income, expenses , assets, and communicating with tenants can quickly overwhelm. Identify technologies early on that help centralize details to avoid getting swamped. Look into property management platforms that automate listings, tenant screening , digitized lease agreements, maintenance work order flows, and communications.
• Insurance: Tenants or contractors can sometimes damage assets. Discuss landlord insurance policies to protect you against lawsuits, natural disasters, and major property repairs as you scale up.

9. Team structure

If you plan to grow your team beyond just yourself or a few partners, your business plan should outline your organization's key roles and responsibilities. This helps you consider what positions you may need to fill as your company scales.

• Partners or co-founders: These are the main decision-makers and equity holders. Outline their background, skills, and the value they bring.
• Property manager: This person handles day-to-day management of properties, tenants and maintenance issues.
• Bookkeeper: You may need daily help managing bank accounts, invoices, taxes, and financial reporting.
• Contractors and project managers : You'll need trusted renovations, repairs, and landscaping contractors. Dedicated project managers help oversee large jobs.
• Leasing agents : As you grow and add more properties, leasing agents handle showings, applications, and signing new tenants.
• Real estate attorneys : Real estate investing requires proper legal filings and compliance. Attorneys can help you manage this risk.

10. Exit strategies

Every wise investor plans their exit strategy upfront before acquiring a property. Will you aim to flip the asset quickly or retain it as a rental long-term? What factors determine ideal timing and the right profit margin for you to walk away?

Build flexibility into your strategy, as markets move in unpredictable ways. Especially with flips, have contingency plans if your listing gets lowballs or no offers. Be willing to rent short-term, refinance and hold if possible, convert to condos, or just patiently wait until the market changes. Having reserves and backup options allows you to avoid a distress sale.

Also include plans for strategies after a property sale, like a 1031 exchange to defer capital gains taxes and reinvest in another property. You may want to use sale proceeds to reduce or clear outstanding debts, enhancing cash flow and financial standing.

Tips for your real estate business plan 

Now that you know what to include, consider the following four tips to help your real estate investment business plan stand out.

1. Be detailed and specific

Resist the urge to gloss over details as you put together your plan. Drill down on the specifics for parameters like:

• Target purchase and rehab costs.
• Timelines for completing projects.
• Minimum profit margins.
• Maximum allowable vacancy rates .
• Minimum cash reserves.

2. Refine and update regularly

Markets change, so don't create your business plan and file it away. Review your plan regularly to see how market conditions and your actual results compare to projections.

Make adjustments as needed. Tweak your approach if your rehabs are going over budget or your properties aren't selling as quickly as expected.

Aim to update your full plan annually at a minimum. Even if your overall strategy remains consistent, refresh the details around market factors, financials, tactics, risks, and projections.

3. Seek expert feedback

Before implementing your new real estate investment business plan, seek feedback from advisors who can identify potential issues or weaknesses.

Ask experienced real estate investors in your area to review your plan and provide constructive input. It's also a good idea to share your plan and numbers with your CPA and legal counsel as well.

4. Keep it simple

While specificity is good, don't over complicate your business plan to the point where it becomes difficult to follow. You want to inform readers without confusing them.

The goal is for stakeholders, such as co-investors, lenders, and partners, to easily digest your plan and understand it after a quick skim. Make it easy for readers to grasp your reasons behind focusing on a given area or project type based on market conditions and opportunity.

A property investment business plan fit to your goals

After finally finishing your business plan, you’re probably eager to dive into tangible investments rather than tweaking spreadsheets. But in the real estate industry, even experienced investors periodically step back and update strategies.

Approach your business plan as a living document that evolves as the market shifts, as you create new partnerships, or when you need to make changes in strategy. Set reminders to revisit quarterly and confirm your activities of today still align with the vision from day one.

Solid planning is proven to improve outcomes in dynamic industries like real estate investing. Though preparation isn’t glamorous, it pays dividends. Thoughtfully constructing your playbook puts the odds of executing successfully in your favor.

With a solid blueprint backed by your research, you’re now ready to capture the best real estate investment opportunities.

Business plan real estate investor FAQs

How do i stay flexible and adapt my business plan to changes in the market.

To stay flexible, review your real estate investing business plan regularly and update it based on changes in market conditions, trends, and opportunities. If things change in the market, find ways to adapt your strategy. This can include your goals, target market, financing, and even your exit plans.

How do I know if my real estate investing business plan is effective?

You'll know your business plan is effective if you're meeting the key objectives and metrics you outlined. Let's say your plan called for you to purchase a certain number of properties and achieve a specific cash flow or rate of return. If you're falling short, you can use the plan to course-correct.

Are there any specific software or tools for creating a real estate investing business plan?

Azibo is a helpful software tool for creating real estate investing business plans. This comprehensive platform has templates and tools to build out key sections of your plan. Its robust accounting and financial capabilities help construct accurate statements and projections.

Incorporating Azibo's online rent collection allows you to model cash flows. By centralizing lease documents , accounting, and portfolio management, Azibo streamlines the process of putting together a strategically sound real estate business plan.

Important note: This post is for informational and educational purposes only. This post should not be taken as legal advice or used as a substitute for such. You should always speak to your own legal counsel before taking action.

Nichole co-founded Gateway Private Equity Group, with a history of investments in single-family and multi-family properties, and now a specialization in hotel real estate investments. She is also the creator of NicsGuide.com, a blog dedicated to real estate investing.

Whether you’re a property owner, renter, property manager, or real estate agent, gain valuable insights, advice, and updates by joining our blog.

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How to Write a Real Estate Investment Business Plan: Complete Guide

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Last updated on December 19, 2023

Building an investing business without a real estate investment business plan is sort of like riding a bike without handlebars. 

You might be able to do it… but why would you? 

It’s far easier and more practical to set out on your venture with a business plan that outlines things like your lead-flow, where you’ll find funding, and which market(s) you’ll operate. 

Plus, according to Entrepreneur, having a business plan increases your chances of growth by 30%. 

Download Now: Free marketing plan video and a downloadable guide

So don’t skip this critical first step. 

Here’s how to do it. 

Real Estate Investment Business Plan Guide

In this article we’re going to discuss:

• What is a real estate investment business plan?
• Create your mission and vision
• Run market analysis
• Choose your business model(s)
• Determine your business goals
• Find funding / Cash buyers
• Identify lead-flow source
• Gather property analysis information
• Create your brand
• Set growth milestones
• Plan to Delegate

What is a Real Estate Investment Business Plan and Why Does it Matter?

A real estate investment business plan is a document that outlines your goals, your vision, and your plan for growing the business . 

It should detail the real estate business model you’re going to pursue, your chosen method for lead-gen, how you’ll find funding, and how you plan to close deals. 

The kit and caboodle. 

It shouldn’t be overly complicated. 

Whether this real estate investment business plan is only for your personal use or to present to someone else, simplicity is best. Be thorough, be clear, but don’t over-explain what you’re going to do. 

As far as why you should have a business plan, consider that it gives you a 30% better chance of growing your business. 

Also, consider that setting out  without  a plan would be like — full of unexpected twists and turns — is that something you want to do? 

Probably not. 

It’s worth taking a few days or weeks to put together a business plan, even if it’s just for your own sake. By the time you’re complete, you’ll have greater confidence in the business you’re setting out to build. 

And an entrepreneur’s confidence is everything. 

How to Create Your Real Estate Investment Business Plan

Now we get into the nitty-gritty. 

How do you create your real estate investment business plan? Here are the 10 steps!

1. Create Your Mission & Vision

This can be considered your “summary” section. You might not think that you need a mission statement or vision for your real estate business. 

And you don’t. 

We know a lot of real estate investors (many of our members, in fact) don’t have a clear mission or vision that they’ve outlined — and they’re successful regardless. 

But if you’re just getting started…

Then we think it’s a worthwhile use of your time. 

Because if you don’t know why you’re going to build your real estate investing business, if you don’t see what purpose it serves on a personal and professional level, then it’s not going to be very exciting to you. 

You can either use this time to create a mission for your business… or a mission statement for you as it relates to growing your business (depending on your goals).

For instance…

• Our mission is to create affordable house opportunities in the Roseburg, Oregon community. 
• Our mission is to provide homeowners with an exceptional experience when selling their properties for cash. 

Or you could go a more personal route…

• My mission is to create a business that supports my family. 
• My mission is to build a company that gives me more time for what matters most to me.

Or you could do both…

• My mission is to create a business that supports my family, and my business’ mission is to provide homeowners with an exceptional experience when selling their properties for cash. 

Either way, it’s good to think about this before getting started. 

Because if you know why you’re going to build your business — and if, ideally, that reason resonates with you — then you’ll be more excited and determined to work hard toward your goals. 

It is also an excellent opportunity to outline the core values you’ll adhere to within your business as Brian Rockwell does on his website …

With this information in hand, you’re ready to move on to the next step. 

2. Run Competitive Market Analysis

Which market are you going to operate in? 

That might be an easy question to answer — if you’re just going to operate in the town where you live, fair enough. 

But it’s worth keeping in mind that today’s technology has made it possible to become a real estate investor in any market from pretty much any location (remotely). 

So if the market you’re in is lacking in opportunity, then you might consider investing elsewhere. 

How do you know which market to choose? 

Here are the 10 top real estate markets for investors, according to our own Carrot member data of over 7000 accounts, based on lead volume…

• Atlanta, GA
• Houston, TX
• Chicago, IL
• Charlotte, NC
• New York, NY
• Los Angeles, CA
• Orlando, FL
• Philadelphia, PA
• Phoenix, AZ

And here are the top 20 states…

• North Carolina
• Pennsylvania
• Oregon 

That’ll give you some ideas. 

But what makes a market good or bad for real estate investors? Here are some metrics to pay attention to when you’re doing your research. 

• Median Home Value — This will tell you how much the average home sells for in the market, which will impact whether you’ll be willing to operate there. Because obviously, you want to play with numbers that feel reasonable to you. 
• Median Home Value Increase Year Over Year — Ideally, you want to invest in a market where homes are appreciating every year. And a positive increase in this metric is a good sign that the properties you invest in will continue to increase in value. 
• Occupied Housing Rate — A high housing occupancy rate means it’s easy to find tenants, and there’s a healthy demand for housing. That’s a good sign. 
• Median Rent — This is the average cost of rent in the market and will give you a good idea of how much you’ll be able to charge on any rentals you own. 
• Median Rent Increase Year Over Year — If you’re going to buy rentals, it’s a good sign if rental costs increase every year.
• Population Growth — When the population grows, it creates demand for housing, both rentals and on the MLS. That’s a good sign for a real estate investor. 
• Job Growth — Job growth is a sign of a healthy economy and indicates that you’ll have an easier time capitalizing on your real estate investments. 

Fortunately, all of this research is super easy to do on Google. 

You can just type in the market and the metric in Google and you’ll get meaningful results. 

Thank god for technology. 

Want more freedom & impact?

From Mindset to Marketing, join our CEO as he unlocks the best stories, tactics, and strategies from America’s top investors and agents on the CarrotCast . If you want to grow your business, you need to check it out!

3. Choose Your Business Model(s)

There’s not just one real estate business model . 

There are many. 

And the market you’re in — as well as your business goals — will determine which business model you choose. 

Here’s a brief overview of each…

• Wholesaling — Is a prevalent business model in the real estate world. Wholesalers find deals and flip them to other cash buyers for an assignment fee, typically somewhere between $5,000 to $10,000. It’s low risk and requires little capital upfront (you can get started with as little as $2,000). 
• Wholetailing — Wholetailing is a mix between wholesaling and house flipping. A wholetailer will find a deal, do some very minor repairs (if any), and sell the house on the MLS themselves. It results in large profits with far less work. But wholetail deals are hard to come by. 
• BRRRR — This stands for Buy, Rehab, Rent, Refinance, Repeat. It’s a long-term process for buying and holding rental properties. It’s a great way to build net worth and create generational wealth. 
• Flipping — House flipping is the most popularized real estate investing method. It consists of purchasing distressed properties, fixing them up, and selling them at a good profit on the MLS, often making upwards of $100,000 per deal. However, this method involves much more risk than the other methods and each deal takes a lot longer to complete. 

If you’re just getting started, then we recommend choosing just one business model and doing that until you’ve mastered it. 

Down the road, you will likely want to use multiple business models. 

We know the most successful real estate investors are wholesalers, wholesalers, flippers,  and  they own some rental properties. 

That allows them to make the most of every opportunity that comes their way. 

But again… to start, just choose one. 

4. Determine Your Business Goals

At this point, you should have a pretty clear idea of why you’re going to build your real estate investing business. 

Are you going to build it because you want to make an impact in your community? Because you want more financial freedom? Because you want more time freedom? 

All of the above? 

Whatever the case, now it’s time to set some goals related to your mission for the business. 

Remember the SMART acronym for goal setting…

Start by thinking about how much money you’d like to make per month — this should be the first income threshold that you’re excited to hit.

Let’s pretend you said $10,000 per month. 

Okay, now take a look at your business model. How many properties do you need to have cash-flowing to hit that number? How many deals do you have to do per month? How many flips? 

Try to be as realistic with your numbers as possible. 

Here are some baselines to consider for the different business models at the $10k/month threshold…

• Wholesaling – 2-3 Deals Per Month
• Wholetailing – 2-3 Deals Per Month
• BRRRR – $1 Million in Assets
• Flipping – 1-2 Flips Per Year

Now you have a general idea of the results you’ll need to hit your first income threshold. 

But we haven’t talked about overhead costs. 

How much will you need to spend to get those results? 

Your answer to that question will be influenced by the market analysis you already did. But it’s pretty standard for the price of finding a deal to hover around $2,000 for a real estate investor (if you’re doing your own advertising). 

So now you’re spending $2,000 per deal, or whatever your specific number is. That’s going to have an impact on how much money you’re making. So now we can adjust your goals to be more realistic for hitting that $10k per month marker…

• Wholesaling – 4-5 Deals Per Month
• Wholetailing – 4-5 Deals Per Month
• BRRRR – $1.5 Million in Assets
• Flipping – 2-3 Flips Per Year

The idea here is to figure out how many deals you’ll have to do per month to hit your income goals. 

Then work that back into figuring out how much you’ll need to spend every month to realistically and predictably hit your goals. 

At $2k per deal and intending to hit $10k/month, here’s what your deal-finding costs might look like…

• Wholesaling – 4-5 Deals Per Month – $8k-$10k/month
• Wholetailing – 4-5 Deals Per Month – $8k-$10k/month
• BRRRR – $1.5 Million in Assets – $6k-$8k/month
• Flipping – 2-3 Flips Per Year – $4k-$6k/month

That should give you a baseline. 

How do those numbers look? 

If they feel too high for you right now, lower your initial goal — you want to make your first goal something that you know you can accomplish. 

Then, as you gain experience, you can increase your goals and make more money down the road. 

Free Real Estate Marketing Plan Template

Take our short survey to find out where you struggle most with your online marketing strategy. Generate your free marketing plan video and downloadable guide to increase lead generation and conversion, gain momentum, and stand out in your market:

Download your marketing plan template here.

5. Find Funding / Cash Buyers

Are you going to fund your own deals or find private investors ? Or maybe you’re going to get a business loan from a bank? 

If you’re just starting as a wholesaler or wholetailer, then it’s recommended funding your own first few deals — that should only cost $2,000 to $5,000… and why overcomplicate things in the beginning when you’re still trying to learn the ropes? 

However, as a wholesaler or wholetailer, you’ll still need to find some cash buyers. 

Here’s a great video that’ll teach you how to do that…

To consistently grow your cash buyer list (which is an important part of the wholesaling and wholestailing business model), we also recommend creating a buyer website like this…

Learn more about creating your cash buyer website with Carrot over here . 

To scale, you might seek out other sources of funding. 

Here are some options…

• Bank Loan — Getting a loan from a bank might be the most straightforward strategy if you’re just getting started. But keep in mind that the requirements for a loan on an investment property will be more stringent than the requirements were for your primary residence mortgage. And the interest rate will likely be higher as well. For that reason, you might seek out some of the other options. 
• Hard Money — Hard money loans come from companies that specifically serve real estate investors. They are easier and faster to secure than a bank loan and hard money lenders typically base their approval of the loan on the quality of the investment property rather than the investor’s financial standing. 
• Private Money — Whereas a hard money loan comes from a company; a private money loan comes from an individual with a good chunk of capital they’re looking to invest. That could be a friend, family member, coworker, and acquaintance. Interest rates and terms on these loans are typically very flexible and the interest rate is usually quite good. Private money is an excellent option for real estate investors looking to scale their business. 

But before you seek out funding from those sources, get clear on what exactly you’re going to use those funds for. 

Finding funding is even more critical. In fact — if you’re flipping properties or using the BRRRR method. 

(It’s a key part of the BRRRR method)

You’ll likely want to use hard money or private money to fund your deals as you grow your business.

But how do you find and secure those loans? 

Hard money lenders are easy to find — just Google for hard money lenders in your area and call the companies that pop up to get more details. 

Private money (which usually has more favorable terms than hard money) is a bit trickier to find but not at all impossible. 

To find private money lenders, you can…

• Tell Friends & Family — This should be the first thing you do. Tell everyone you can about the business you’re building and the returns you can offer investors. Then ask them if they know anyone who might be interested in investing. 
• Network — After you’ve exhausted all your friends and family, make a point of getting to know people everywhere you go. The easiest way to do this is to wear branded clothing so people ask about what you do. Talk to people at coffee shops, grocery stores, movie theaters, and anywhere else that you frequent. You never know who you might meet. 
• Attend Foreclosure Auctions — Foreclosure auctions are jam-packed with people who have cash-on-hand to buy properties. These people might also be interested in investing in your real estate endeavors. Or they might know where to find private money. Either way, it’s in your interest to build relationships with these people. Attend foreclosure auctions and bring some business cards. 

Here are some tips on finding private money lenders…

6. Identify Lead-Flow Source

Now let’s talk about how you will generate a consistent flow of motivated leads for your business. 

Because no matter which of the business models you’ve chosen… you’re going to need to find motivated sellers.

And you’re going to need to find those people every single month. 

There are essentially two parts to a successful lead generation strategy for real estate investing business. 

Both pieces are critical… 

• The Short Term — We call this “hamster-wheel marketing” because it requires you to  keep working  and  spending money  to generate leads. Examples include Facebook ads, direct mail, bandit signs, cold calling, driving for dollars, and other tit-for-tat strategies that will burn you out if you’re not careful.
• The Long Term — We call this “evergreen marketing” because it requires an upfront investment… but that investment pays off for years and years to come. Examples include increasing brand awareness for your business in your target market(s) and improving your website’s SEO , so that motivated sellers find you . 

Short-term tactics are critical when you’re first starting — in fact, they are likely going to be your only source of leads for at least the first few months. 

Here are some more details on the most popular and effective methods… 

• Tax default mailing lists
• Vacant house lists
• Expired listing lists
• Pre-foreclosure lists
• Out-of-state landlord lists
• Cold Calling — This might be more uncomfortable than stubbing your toe on a piece of furniture, but it can still be effective for finding motivated sellers. We have an article all about colding calling — it even has scripts for you to use. 
• Facebook Ads — Facebook ads is another excellent method for generating leads so long as you have a high-converting website to send them to . If you don’t, get yourself a Carrot website . Each Carrot site is built to convert. Here are some more details about running successful ads on Facebook for your real estate investing business.
• Google Ads — Google Ads is one of the most popular platforms for real estate professionals needing to provide quick results with a minimal to high investment depending on markets.

But over time, the goal is to invest in more long-term evergreen marketing tactics so that you can get off the hamster wheel and build a more sustainable business. 

Check out the video below to learn more about the critical distinction between short-term and long-term marketing. 

At Carrot, we’ve created an online marketing system that makes generating leads super easy and simple for real estate investors. 

And it’s 100% evergreen. 

Here’s an example of one of our members’ websites that converts like crazy…

Try our free Marketing Plan Generator here.

7. Gather Property Analysis Information

We just talked about how you can generate leads.

But once someone calls you, once you’re checking out a property… How will you  know  if the property is a good fit for your chosen business model? 

After all, not every property will be a fit. 

First, ask the following questions when the seller calls…

• What is the address of the house you want to sell?
• How many bedrooms, bathrooms does it have?
• Does it have a garage, basement, or pool?
• If you were going to list it with a Realtor, what repairs and/or updating would you say would be needed?
• How much is owed on the house?
• Do you have an asking price in mind?
• Is the house behind on payments?
• If I come out and look at the property and make you a cash offer to buy it ‘As-Is’ and close as soon as you want, what would be the least you would be willing to take?

That will provide you with a lot of critical information about what you’re dealing with. 

Next, once you’re off the phone, do a bit of due diligence and look at what nearby properties of similar size have sold for in the last 90 days or so — that should give you a ballpark idea for the after-repair value of the property. 

If you decide that the property sounds promising, you’ll want to walk through it and take pictures of anything and everything that’ll need to be repaired. 

Back at the office, estimate the cost of those repairs — here’s a great resource from REISift that’ll help you estimate rehab costs . 

You’ll need to go through this entire process regardless of your business model so that you understand your max offer on the property. 

So how do you calculate your max offer? 

Use the 75% rule — check out this video from Ryan Dossey…

With that, you’ll know how much to pay for the property, how much to spend on repairs, and how much it’ll sell for. 

The more you streamline this part of the process, the better. 

8. Create Your Brand

Building a company is one thing. 

Building an easily recognizable brand and known to be reputable in your marketplace is quite another.

But that’s an integral part of the process. Consider some of these statistics…

• Using a signature color can increase brand recognition by 80 percent.
• It takes about 50 milliseconds (0.05 seconds) for people to form an opinion about your website.
• Consistent presentation of a brand has seen to increase revenue by 33 percent.
• 66 percent of consumers think transparency is one of the most attractive qualities in a brand.

When it comes to building a real estate investing brand, your goals are to…

• Establish Rapport 
• Create Easy Recognizability
• Dominate The Conversation

The first step in this process is building an online presence – that means creating a high-converting website (i.e., one that systematically turns visitors into leads by capturing their contact information), running advertisements, and ranking in Google for important keywords. 

That’s what we can help you with at Carrot . 

Out of the box, our website templates are built to convert visitors into leads – and you can customize them however you want with your branding materials…

You’ll even receive immediate text notifications when someone signs up to be a lead so that you can contact them right away (speed is the name of the game!). 

Having a high-converting website is ground zero for brand-building success. If you don’t have a website that systematically converts visitors into leads, then every dollar you spend on advertising is going to be wasted. 

So that’s where we start. 

Once you’ve got your website up and running, then – if you’re on our Content Pro or Advanced Marketer plan – we’ll provide you with blog posts every single month that are written to rank in Google for high-value keywords relevant to your specific market …

You just upload, make some minor tweaks, and publish – and the more you publish, the more traffic you’ll drive. 

To help you become a true authority in your market, we also have the following tools…

• Keyword Ranking Tracker
• SEO Tool For Optimizing All Pages
• Text Notifications For Leads
• World-Class Support
• Campaign Tracking Links
• Coaching Calls

We want to make generating leads as easy as possible for you… so you can focus on closing deals and growing your business. 

You can try us here risk-free for 30 days. 

If you get yourself a Carrot website, that’ll take care of the “Dominate The Conversation” part of the branding process.

But what about these parts? 

Super easy. 

Establishing rapport is simply a matter of putting testimonials and case studies on your website. The more of these you have, the more people will trust your brand when they arrive on your website for the first time. 

As for creating an easily recognizable brand, create a simple branding package…

• Brand Colors

And then be consistent across all platforms. Use the same colors, font, logo, and brand name on everything – online and offline. 

That’ll make it feel like you’re everywhere – which is what you want. 

So there you go. 

That’s how you create a brand identity as a real estate investor. You’ll know you’ve done it right if people are coming to you out of nowhere – because a friend of a friend told them about you. 

And if you want a brand that dominates your market without all of the footwork, we’ve got just the thing – it’s called the Authority Leader Plan … and we’ll do everything for you. 

9. Set Growth Milestones

Okay – let’s pretend that you’ve taken all of the steps above. 

You’ve got yourself a functioning business and brand with funding, you’ve got consistent lead-flow, and you’re even closing some deals. 

Now what? 

Well… you want to grow, of course!

You don’t just want to do one deal per month… you want to do three, five, or even ten deals per month.

You want to make more money, increase your net worth, grow your business, and have a significant impact. 

How do you do that? 

First, you set new goals and milestones for your business’ growth – how many deals do you want to be doing per month in 6 months? In a year? 

Then break those goals down by quarter – and turn them into actionable to-dos. 

For example, if you’re currently doing one deal per month and you want to be doing five deals per month by the end of Q2, here’s what your goals might look like…

• Send 10,000 Mailers Per Month
• Spend $5,000 on Facebook Ads Per Month
• Hire Salesperson To Answer Phone
• Hire Acquisition Manager
• Create Workflow Process

Or maybe it’ll look a bit different. Make your to-dos as realistic as possible so that if you do those things … you’re virtually guaranteed to hit your goals. 

After all, what’s the point of having goals if you’re not going to hit them? 

All in all…

Set milestone goals to grow your business, turn those into to-dos and break them down by quarter. The next and final step of your real estate investment business plan might be even more important… 

10. Plan To Delegate

At some point, every real estate investor has to come to terms with a straightforward fact…

You can’t build the business of your dreams on your own . You need to delegate .

You’ve got to partner with other people, build critical relationships, hire people, manage people, create systems and processes to streamline your team’s workflow, and lots more. 

One of the most important areas that deserve a highlight is your client communications and satisfaction. Consider setting up a robust cloud contact center software to manage all the communications that will lead to long-term partnerships.

Building a business isn’t so much about hustling and bustling as it is about putting the right pieces in the right place. 

How do you scale your business? 

The answer is quite simple: you do the same things you’re doing now… but at scale – that means hiring people, training people, and creating clean-cut systems. 

That’s how you grow your business. 

Automate, delegate, and step outside of your business as much as possible to build a real estate investment company that serves you rather than enslaves you. 

Final Thoughts on Real Estate Investment Business Plan

What more is there? 

You know how to create a mission and vision statement, run market analysis, choose an REI business model, set goals, find funding, generate leads, analyze properties, create a brand, set long-term growth milestones, and delegate. 

All that’s left is action. 

And reach out anytime with questions – we’re always here to help!

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Real Estate Investment Business Plan

Things to Consider Before Writing a Real Estate Investment Business Plan

Select the right property location.

Selecting the right location to invest in is one of the primary requirements for a real estate business’s success. You should select the location based on what is the potential of infrastructural development in the area. Is it a preferable location for commercialization and urbanization or not? You should always keep these things in mind to ensure the maximum possible returns on your investment.

Know the purpose of your investment

Knowing what you want by investing in real estate is the first step toward making a proper plan. After all, a proper purpose gives you a well-defined goal to work towards and makes it easier to decide what steps you’ll need to take. Hence, decide why you want to invest in real estate. Whether it is for primary income, secondary income, planning for the future, etc.

Do your research

Research is essential if you want to thrive in the real estate business. Doing your research helps you understand what you are getting yourself into and how your different decisions can impact your business. It also helps you make a better and more fact-based plan.

Know all of your options

Although a lot of people go for long-term investments, it might not be the right thing depending on various factors. But that doesn’t mean that you have to give up on your idea of real estate investment. You can simply look into the other options like real investment trust, real investment company stocks, and so on and pick the option that works for you.

How Can a Real Estate Investment Business Plan Help You?

You may want to start investing as soon as possible, after all, investments take time to grow, right? But just like a stitch in time saves nine, a real estate investment business plan can help your investment business prosper in the future even if it seems time-consuming at the moment.

It can help you design a proper business model and formulate a great business growth strategy. Moreover, it can also help you track your progress along the way.

All in all, it can make your investments way smoother than going about without a business plan.

Chalking out Your Business Plan

The real estate sector is one of the most profitable sectors to invest in. Many investors swear by it as a bankable source of secondary income.

Not just that, the real estate investment market increased from 9.6 trillion dollars in 2019 to 10.5 trillion dollars in 2020. Although it may take time, investment in the housing market can help your money grow.

And though the above information invests in the real estate sector as a rosy prospect, it can go horribly wrong without a proper business plan and investment strategy.

Read on to find out what a business plan can do for your investment business.

Real estate investment business plan outline

This is the standard real estate investment business plan outline which will cover all important sections that you should include in your business plan.

• Purpose of the Plan
• Introduction
• The Problem
• The Solution
• A fundamental change in the US housing market
• All three legs of the apartment investment stool are in place
• Weak Housing Market
• Competitive Advantage
• Business Model
• Growth Opportunity
• Corporate Structure Overview
• Source and Use of Funds
• Return on Investment
• Mission Statement
• Business Objectives
• Legal Structure
• Company Ownership
• Location and Premises
• Intellectual Property
• CREI Business Model
• Revenue Projections
• The Amount of Investment Funds Requested
• Business Benefits
• Investment Repayments
• Good Investment Trends in Apartment Rentals
• Rent Spikes Coming For a Good Investment in Apartment Buildings
• Apartments Continue as Good Investment Through 2012 and Beyond
• Apartment Buildings Going From Good Investment to Great
• Filling Basic Needs Makes for a Good Investment
• More Americans renting by choice
• The Apartment Building Investment Triple Opportunity Is Right Now
• Internet Growth Allows Renters to Locate Good Apartments
• Industry Participants
• Competitive Advantages
• Strategic Initiatives?
• Brand Strategy
• Provide Individuals, Families, and Businesses with Quality Rental Properties at an Affordable Price.
• Positioning Statement
• Pricing Strategy
• Sales Strategy
• Sales Forecast
• Sales Programs
• Strategic Alliances
• Social networking websites
• Email campaigns
• SEO (Search Engine Optimization) PPC
• Banner advertisements
• Search Engine Optimization
• Organizational Structure
• SWOT Analysis
• Key Assumptions
• Key Financial Indicators
• Explanation of Break-even Analysis
• Business Ratios
• Long-term Plan and Financial Highlights
• Projected Income Statement
• Projected Cash Flow
• Projected Balance Sheet

How to Write a Real Estate Investment Business Plan?

A real estate investment business plan consists of several key areas that must be included in it and add things that would be unique to you and your business.

Also, there are several ways in which you can write a business plan including online business plan software and pre-designed templates. You can choose the method that works best for your individual needs.

What to Include in a Real Estate Investment Business Plan?

Although a business plan should be customized as per the needs of an individual and market situation, there are certain areas that every real estate investment business plan must include. They are as follows:

1. Executive Summary

The executive summary section is the first and foremost section of your business plan. It consists of what your entire business stands for. It focuses on everything ranging from opportunities and threats, competitive advantages your business has, the structure of the current market as well as the financial needs of the business.

Most importantly for a real estate investment business plan, it would also consist of the prospective return of investment one can expect from the business as well as the expected duration of time for that growth to happen.

2. Business Concept and Revenue Model

This section would include the type of investment concept and revenue model you plan on following with your business. So, before writing this section it is a good practice to analyze the current trends in the market as well as your own finances, to find the concept that fits the best for you in the current market situation.

In this section, you can also include methods of tracking the progress of your investments.

3. Market Analysis

Whenever one starts a new business it is mandatory to carry out market analysis to flourish in it. It not only helps you in understanding the market, but it also helps you in choosing the right strategy for your own business.

For example, in the US rent spikes and increasing demand for rental accommodations make the rent department an extremely profitable segment in the real estate market. A thorough analysis of the market can thus help you choose the most favorable market segment as well as the best locality to invest in.

4. Growth Strategy

In this section, you should include the milestones you plan on having for your investment business. It helps you set well-defined tasks to achieve those milestones and keeps you motivated while doing the same. Also, with the help of milestones, you can always pinpoint when and where you are going wrong and need a shift in direction.

5. Web Plan

Having a web presence can be immensely helpful in building your network and reaching out to potential partners and organizations that can help you grow.

For building an online presence you can use various tools like social media, email marketing, optimized web pages, etc.

6. Management Summary

This segment includes information regarding the roles and responsibilities of the people in your business. The people in your business are a major aspect that decides its success or downfall, therefore a thorough detail of their work and progress is an essential part of your business plan.

7. SWOT Analysis

Carrying out a SWOT analysis before writing your business plan can make the process faster, easier, and way more well-defined. Hence, including it in your business plan is always a good idea.

8. Financial analysis

Even though financial analysis is crucial for any business, it is especially important for investment businesses. In this section, you can include the time required to reach the break-even point, the projected growth of your business, long-term finances as well and strategies to deal with potential changes in the market.

Download a sample real estate investment business plan

Need help writing your business plan from scratch? Here you go; download our free real estate investment business plan pdf to start.

It’s a modern business plan template specifically designed for your real estate investment. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

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Write your business plan with Upmetrics

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So what are you waiting for? Download your example and draft a perfect business plan.

Related Posts

Real Estate Investment Financial Plan

Real Estate Development Business Plan

Real Estate Agent Business Plan

Rental Property Business Plan Guide

Business Plan Presentation Making Guide

Small Business Plan Writers

Frequently asked questions, do you need a business plan for real estate investing.

Indeed. Whether you plan to start a real estate investing, development, or mortgage broker business—you need a solid business plan to make your real estate business a runaway success. You can use Upmetrics’ real estate & rental business plan templates to get started writing your plan.

What's the importance of a marketing strategy in a real estate investment business plan?

Marketing strategy is a key component of your real estate investment business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

What is the easiest way to write your real estate investment business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any real estate investment business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business planning tool .

How do I write a good market analysis in a real estate investment business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry.

We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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How to write your real estate investing business plan: the ultimate guide.

• February 8, 2023
• , Business Advice , How to , Real Estate Investing Tips

Want to create a real estate investing business plan?

Well, you could just launch your business.

You could go door-knocking for the next week, maybe even find a property to buy, buy it, and then try to flip it or rent it out. Then you could do that over and over again.

Heck — maybe you’d even build a healthy business out of it.

Buuuuut, maybe not.

If you’re anything like me, then you favor planning over mindless execution (sorry Gary Vee). You don’t want to just launch a business that may or may not succeed, you want a real estate investing business plan . You want to give your business the best possible chance of success.

For that, you need to spend a little time thinking about the details of how your business will function.

Let me prove it to you…

Why do you need a real estate investing business plan?

I could talk your ear off about why people who make a plan for their real estate investing business will succeed. Or I could tell you about the people I’ve personally  seen set out without a plan and fail. Or I could tell you a story about one person who had the best of intentions for his new real estate investing business, but lost money his first month because he didn’t have a clearly defined budget.

But I won’t…

I’ll  show you.

Research from 2,877 business owners revealed that people with a plan are more likely to grow their business, secure investment capital, and/or secure a loan.

( Image Source )

Here’s how the authors of the study put it:

“Except in a small number of cases, business planning appeared to be positively correlated with business success as measured by our variables. While our analysis cannot say that completing a business plan will lead to success, it does indicate that the type of entrepreneur who completes a business plan is also more likely to run a successful business.”

So whether you want to give your business a better chance at succeeding down the road, or simply  become the kind of person who will likely grow a successful business, drafting a plan is in your best interest.

And it doesn’t have to be remarkably complicated.

12 Steps To Create Your Real Estate Investing Business Plan

Here are 12 steps to get you moving.

Step 1. Create your vision and mission

It might seem like a silly first step to creating your real estate investing business plan.

Because let’s be honest: you’re setting out to make money, achieve financial freedom, and live on your own terms. You’re not setting out to save the world from some big injustice (probably — props if you  are ) or change other people’s lives for the better.

You want to build a business that will benefit  you .

Still, a mission and vision statement can help define  how you’re going to build that business, why you’re building it, and who your business is going to serve. Because even though you’re building a business to benefit you in the end, the only way to build a successful business is by helping  others .

As Bob Burg wrote, “Your income is determined by how many people you serve and how well you serve them.”

Here’s an example of a mission and vision statement.

Just like you personally have a “why?” to your existence, your business needs a “why?” to its existence. Your mission and vision statement will help you determine what that “why?” is and how your business is going to make you money by helping others.

Step 2. Determine your end goal

You also must connect your own personal goals to the goals of your business — you’re the one who’ll be building it, after all. Your business will live or die based on your own daily motivation, ambition, and energy levels.

For that reason, you should ask yourself this dead-simple question: “Why am I building this business? What is my end goal?”

Do you want to be a millionaire? Do you want to live on the beach in Tahiti and sip gin for the rest of your life while this business makes you money on autopilot? Do you want to be the CEO of a large corporation? Do you want to make $200k per year and work 10 hours per week?

What you want out of your business will determine the kind of business you build. And the more attractive your end goal is, the more determined you will be to keep going when things get tough. I love the way that Tim Ferriss puts it: “The question you should be asking yourself isn’t, ‘What do I want?’ or ‘What are my goals?’ but ‘What would excite me?'” Because the more excited you are, the more determined you’ll be.

Step 3. Do market research using a SWOT analysis

SWOT stands for Strengths, Weaknesses, Opportunity, and Threats.

And determining those four things for your own business  before you launch is vital. Ask yourself…

• Strengths: What are competitors already doing well in my market that I likely won’t be able to compete with?
• Weaknesses: What are competitors in my market  not doing well?
• Opportunity: What opportunity in my market are most competitors not leveraging and might I be able to exploit that?
• Threats: What will be the big threats to my business and how can I prepare for these?

Here’s a more thorough graphical breakdown of SWOT to help you perform your market analysis.

Step 4. Choose a real estate investing business model

After you’ve performed your SWOT analysis, you should be ready to determine the  type  of real estate investing that will be most lucrative for your market. Try not to let funding make the decision for you (i.e. I don’t have much capital, so I guess I’m going to wholesale), because the reality is that there’s  always a way to get money to build your business — the important thing is that you’ve chosen a type of real estate investing which is likely to succeed given current market conditions.

Here are the most common real estate investing business models:

• Wholesaling   — This is when you find good deals and flip those deals to cash buyers for an assignment fee. You can usually make $5,000 to $25,000 per deal and it doesn’t require any money down.
• Wholetailing   — Wholetailing is similar to wholesaling except that you purchase a home for a good deal, do very little work to it, and then sell it on the MLS. This can be a very profitable business model, but it’ll require access to more funds than wholesaling .
• Flipping  — House flipping is when you purchase a distressed home, fix it up, and sell for a profit on the MLS. This is a high-risk, high-return strategy.
• Buy-and-hold  — Buy-and-hold investing is when you purchase properties and rent them out to create passive income. The goal is usually to do this with a lot of properties to increase net worth and build long-term wealth.

Step 5. Determine where funding will come from

If you’ve determined that the most profitable type of real estate investing for your market will take some serious capital, don’t worry: there are  tons of different ways to find money for building your business. Lots of people with big money just want their money to work for them and provide a healthy ROI.

Ryan Dossey (my brother) has this great video about raising private money for your business and how he raised his first $100k.

Step 6. Choose your marketing strategies

In many ways, this is where the rubber hits the road for your business: how will you find deals in your market? How will you find motivated sellers ? How will you convince those sellers to work with you? How will you find buyers to purchase those properties or tenants to live in them? How will you fix up properties if you’re planning to fix and flip ?

These are all questions you need to answer on your real estate investing business plan.

And if you’re at a loss for answering them, sitting down with another real estate investor in your market and asking them questions can go a long way.

However you do it, write down your marketing plan of attack — how you plan to find and close deals — what you’ll need to make per deal to remain profitable, and how much you should expect each deal will cost you.

Here are a few common marketing strategies that you might consider.

• Direct mail (check out Ballpoint Marketing if you want to send hand-written mailers en masse).
• Bandit signs
• Door knocking
• Facebook ads
• Search engine optimization
• Cold calling

Here are some more specific suggestions to consider…

1. Send personalized mailers every single week

There is a rhythm to the flow of potential deals in any market.

A market might have a lot of deals during a particular season, and fewer deals just a couple of months down the road. These fluctuations are normal. And where there’s inconsistency in the market, the investor must remain steadfast.

This is as true in the stock market as it is in the real estate market.

Don’t gamble all of your marketing budgets on a single season. Instead, get in the habit of sending the same amount of mailers every single week — whatever is a reasonable number for your business. Send those mailers to different lists and recycle lists every few months or so.

To get the best performance possible, we recommend using mailers from our sister company,  Ballpoint Marketing , where you can get hand-written letters at an affordable cost.

2. Run effective Facebook Ads & do some SEO

Facebook ads and SEO (Search Engine Optimization) are two of the best ways to market your real estate investing business.

The first can provide you with leads quickly and the second can create longevity for your business.

To create effective Facebook ads, just go look at what your top competitors are doing. Go to their Facebook Page, click on “Page Transparency”, and you can see all of the ads that they’re running.

Examine a few of your competitor’s ads and take notes on what their sales copy and images are like. Then contemplate how you might try to do something similar.

Don’t copy them verbatim, of course, but why not try something similar to what they’re doing?

If it’s working for them, it’ll probably work for you as well!

As for SEO, get in the habit of publishing blog posts on your website that target specific keyword phrases. You can use  Ubersuggest  to find high-value keyword phrases. And here’s a  helpful article  that shows you how to optimize your pages to rank in Google.

3. Hire someone to answer the phone for you

If you follow our previous advice of sending personalized mailers every week, running effective Facebook ads, and spending a little time on SEO , the good news is that you’re going to start generating quite a few leads…  predictably .

The bad news is that your phone is going to start ringing like crazy.

The more mailers you send and Facebook ads you run, the more the phone is going to ring.

And while all of those leads are exciting, they can quickly distract you from working on important business-growth tasks like polishing processes, creating systems, and hiring employees.

That’s why more than 100 U.S. investors use our expert-trained reps to answer the phone for them. We answer the phone  when it rings , we know how to talk to motivated sellers , we’ll ask the right questions, and we’ll even schedule a follow-up appointment with you or your Acquisitions Manager.

Sound cool?

Then get a free, no-obligation demo by clicking here!

Step 7. Create a plan for consistently networking with other professionals

When you’re just starting out, no business-building strategy is quite as effective as networking with other real estate professionals within your market. There’s something about those face-to-face connections which can benefit your business for a lifetime.

You might learn a thing or two from other friendly professionals in your market. Or maybe you’ll end up partnering up with them. Or maybe you’ll learn how better to  compete with them.

Whatever the case, networking can help build your business. And you should map out a game plan for consistently networking with other professionals — even if it’s something as simple as going to a monthly meetup or working from different coffee shops every day.

Step 8. Create a plan for delegating down the road

You’re building a business,  not a prison cell. This means that you’ll need to make a plan for delegating tasks to other people down the road.

In the beginning, you’ll likely be the horse, driver,  and carriage — that is, you’ll be doing pretty much everything.

But don’t make that time-intensive phase of business last longer than it needs to. You’ll be surprised at how much faster your business will grow (with less work) when you hire A-players, treat them well, and trust them to do their job.

You won’t have to work as many hours, your business will grow more quickly, and you’ll make more money. So make a plan for which tasks you’d like to delegate when the time comes and which ones you’d like to keep (the ones that you enjoy the most, ideally).

And if you imagine that answering the phone every time it rings is a task you’ll want to delegate, Call Porter can help. We’ve built the only call center designed for real estate investors. Our reps are trained specifically to talk with motivated sellers, convert them, and then schedule a follow-up call with you or your acquisitions manager. You can try us out for yourself over here . 🙂

Step 9. Find your exit strategy

Every good real estate investing business plan includes a thorough plan of attack…  and an exit strategy if things go terribly wrong.

Since you have a business plan, your chances of things going horribly wrong decrease quite significantly. Still, it’s good to have a plan B or a way out if things go sideways. Maybe wait to quit your day job, for instance, until your business starts providing for itself. Choose your investors and/or tenants carefully. And consider including a clause in your contracts that gives you a way out (at least in the beginning).

Step 10. Create your growth plan

Have you ever heard the 80/20 rule?

It’s my fav 🙂

Essentially, it states that 20% of the work produces 80% of the results (and vice versa).

While it’s easy to feel that you must do everything right as an entrepreneur in order to succeed… that’s simply not true. You only have to do some key things right .

In terms of real estate investing, you have to acquire properties, you have to make profitable decisions with those properties, and you have to do that consistently.

That’s it — that’s the formula.

In terms of actual to-dos, here are three things that — if you do them consistently — will virtually guarantee that your business keeps growing.

1. Send mail & run paid ads

To generate leads and close deals, you have to market your business.

That means sending mail and running paid ads  every single month .

Keep in mind: all marketing strategies (especially direct mail ) experience a sort of lag-time. You might send 500 mailers this month and not get very many phone calls, assuming that your mailers were ineffective.

Then you stop and try something else.

Suddenly, you start getting phone calls because of those mailers that you sent a month ago.

This lag-time isn’t bad… but you need to  expect it and  prepare for it … which basically means marketing your business consistently, even when your efforts seem to be less effective than usual.

Pro-Tip:  Want to stand out with your direct mailers? Check out our sister company, Ballpoint Marketing , which produces hand-written mailers (with real ink ) that add a personal touch your competitors won’t be able to match!

2. Answer the phone & follow-up

Yes, Call Porter is an answering service built specifically for real estate investors.

Yes, there’s going to be a pitch at the end of this section.

And yet, it’s still difficult to overstate the importance of answering the phone  when it rings .

Research shows that your chance of having a meaningful conversation with a prospect decreases with every passing moment after a phone call goes unanswered.

Problem is, if your business is thriving and you do manage to answer the phone every time it rings… then you’re probably limiting your business’ full potential (because you’re not spending that time on mission-critical, “quadrant 2” activities).

You want the phone to ring off the hook… but you don’t want to be the one responsible for answering it. 

The solution?

(Pitch incoming)

At Call Porter, we’ve trained all of our U.S.-based reps to speak with motivated sellers. They know what questions to ask, how to stay level-headed, and they’ll schedule a follow-up call with you or your acquisitions manager.

Check out the call below to see for yourself (this lead resulted in a $36,000 profit for the investor!).

The phone needs to get answered… but certainly not by the founder of your business (YOU) 😉

Oh — and don’t forget to follow up! 90% of deals happen during a rigorous follow-up regimen, not during the initial call .

(We recommend following up  at least 15 times).

Get a FREE Call Porter Demo Today!!

3. build processes & reinvest into your business.

If you do the first two things, you’re going to generate leads and get the phone ringing like crazy.

You’re also going to start closing quite a few deals.

But there’s still one problem left to solve:  you will quickly become a bottleneck.

Having Call Porter answer the phone is certainly a step in the right direction… but the more you want to grow, the more you’ll have to delegate and automate the daily operations of your business.

This means hiring someone to answer emails, create marketing campaigns, speak with sellers, collect buyer information, and even acquire profitable properties.

Step 11. Create a memorable brand

Good business is built on trust.

Without the trust of your prospects and your clients, positive word-of-mouth won’t spread and people will hesitate to work with you.

But in the same way that that hesitation creates an obstacle for your business, building knee-jerk trust in your market creates a doorway.

The question is… how do you build a memorable reputation in your market so that past clients know you’re the real deal, prospects trust you to treat them right, and people who’ve never worked with you respect your business?

Well, the primary answer is consistency — day-in and day-out, treating your customers right, sharing case studies, engaging in charity, and whatever else will enhance your brand image.

In fact, here are three things to consider doing more consistently in order to build memorable trust in your market.

1. Choose a charity

Donating to charity doesn’t just help you forge a more meaningful mission for your business, it can  also help you market your business.

For example, you can celebrate your donations publicly and host events to raise money for local charities. These efforts build brand awareness  and trust at the same time.

There’s just something about a highly philanthropic business that feels trustworthy.

(That’s probably why customers are 85% more likely to buy products from a company that is associate with a charity).

Choose a charity that’s in line with your business’s mission, and then get in the habit of donating. Over time, you’ll build trust with people in your market and prove that you care about more than just making money.

2. Care about your clients

This might seem like an obvious piece of advice, but I know how hard it can be to authentically care for your clients when you’re  doing the same thing every day .

It’s easy to become callused.

Still, showing your prospects (even the tire-kickers) and your clients (even the ones who don’t accept your offer) that you genuinely care about them is one of the best ways to increase how many referrals you get and how much word-of-mouth you generate.

This is a simple trick, but perhaps the most difficult.

Be kind to everyone. Care about the people you work with. And be generous in how you serve others.

Do that for long enough and people won’t be able to ignore your business’ impact on the community.

Just think of the businesses that you most admire… how do they treat people? What are their values? And how can your business emulate their attitude toward leads, prospects, and clients?

3. Collect case studies

People might love you and respect you, but how do they know that your business   works ? That is, how do they know it can actually benefit them?

To some degree, trusting you is different than believing in the helpfulness or effectiveness of your service.

The best way to prove to your community that your business is the “real deal” — that what you’re doing can actually help people who are trying to sell their home — is by sharing testimonials and case studies from past clients.

This includes publishing case study content on your website, sharing reviews on your social media profiles, and telling stories of people who you’ve helped in the past.

Don’t undervalue the impact of telling stories to build your business’ reputation.

It’s  extremely powerful .

Step 12. Build your timeline

The final step is to determine when you want everything to happen. When do you want/expect to hit your real estate goals ? When do you expect to start hiring people? When do you expect your business will be able to fully support you and your family?

These timelines need not be written in stone, though — no one can accurately predict how long it’ll take you to build a successful business (the most important thing is consistent progress ). But having a timeline that you can reference and which keeps you heading in the right direction is wildly valuable, especially if you post it on your wall, where you can see it every day.

Final Thoughts

So you know you need a real estate investing business plan. You know that having a plan will give your business a better chance of success and turn you into the kind of forward-thinking entrepreneur that succeeds.

But you don’t only know that you need it, you also now know how to create it.

With the above 12 steps, you can draft a real estate investing business plan which increases your statistical chance of success.

And while you  could just launch your business without a plan, why would you? It’s a far better idea to spend some time thinking about the details of how your business will succeed  in order to succeed than it is to launch quickly and fail quicker.

So get to it — and don’t press the big red button until you’ve drafted a business plan which you’re confident will succeed.

Read more from Call Porter

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How to Create a Real Estate Investment Business Plan for Residential Rental Properties (Free Template)

Ready to unlock the potential of real estate investment and build your financial future? Whether you’re an experienced investor or just starting out , crafting a well-thought-out business plan is critical if you're to succeed in the world of residential rental properties. 

This article will guide you through the essential steps, considerations, and components of creating a real estate investment business plan. Plus, we've got a valuable free template to make your journey even more manageable.

Why You Need a Business Plan for Real Estate Investment

Crafting an effective real estate investment business plan is about more than paperwork; it's about turning your aspirations into achievements.

Creating a formalized business plan for your real estate investment venture is tantamount to success. It forces you—the investor—to organize your thoughts, feelings, goals, and ideas moving forward in the business in a single, powerful document. 

Remember, this is a living document meant to be flexible as your business grows or changes tactics over the years. It keeps you on target, helps expand your business, and keeps your financial goals on track. 

It’s also a helpful document for potential investors, creditors, and partners to peruse before pursuing a business venture with you. 

And speaking of collaborators, finding sample real estate investment business plans or a template to download to get you started is a good idea. But before diving into that, let's look at a few general considerations that will shape your plan.

General Considerations for a Real Estate Investment Business Plan

Before you start actually writing your business plan, there are a few general considerations to keep in mind:

• The Why. When you start any new venture, it’s good to know you’ve got the strength to realize your goals, even when things get tricky. Defining why you’re embarking upon this real estate investment journey is necessary if you want  to reach your destination. Why do you want to invest in real estate? To create financial independence? To serve the community? To provide for your family? Everyone’s “why” is unique to them. As such, your underlying motivation should be the starting point of creating a business plan. Everything follows from this origin.
• Financial Goals. Next, it’s wise to consider your financial goals. What are you hoping to accomplish financially? This is a business, and having defined financial goals will help keep your real estate investments trending in the right direction. 
• Timeline. When do you want to achieve all this? Are you taking this business from now until retirement or looking to flip a few houses before the decade closes? Having a general timeline in mind when planning means you’ll be realistic about what goals you can accomplish. 
• Real Estate Investment Strategy. There are countless ways to jumpstart your real estate investments. Doing a bit of research to discover which real estate investment strategies best suit your financial goals and desired timeline will ensure your business plan is realistic moving forward.

These considerations form the foundation of your real estate investment business plan. But how do you piece it together and create a comprehensive, winning document? 

Spoiler alert: Property managers can be your secret weapon in crafting an airtight plan and guiding you through your investment journey. 

But first, let's explore the essential components of your business plan and how a property manager can make the process smoother.

Essential Components of a Business Plan for Real Estate Investment 

A well-thought-out business plan for real estate investment should help you secure the financing and partnerships needed to bring your dream to fruition. 

To do this, it must include the following components:

• Executive Summary: a bird’s eye view. The first section of a business plan is like an abstract for a research paper. Here, you’ll introduce the plan and give an overview of what comes later in the document. 
• Define your team. Who are you bringing on this journey? What are their qualifications? This section can attract new investors and partners by touting the team's accomplishments. 
• Outline marketing strategy. A business plan won’t succeed without a marketing strategy to connect with potential clients, in this case, future tenants. Your real estate business plan must include understanding the need for top-quality marketing and a method to market your business successfully. Will you run social media ads? Rent local billboard space? 
• Demonstrate initiative and a willingness to learn. Include a section to show that you know this industry, have researched the competition, and are aware of local real estate market trends and areas for growth. This will communicate to potential investors you’re willing to put in the elbow grease it takes to succeed long-term in this business. 
• Describe the “What”. What services will you offer? What type of properties will you invest in? What are the next steps to your plan moving forward? 

As you dive deeper into your real estate investment journey, remember that the strength of every property manager relationship reflects the property owner's dedication. 

How to Create a Residential Real Estate Business Plan Quickly 

If you're looking to create a residential real estate business plan quickly, here are a few must-have tips to get you started:

• Define: Mission. Vision. Values. A business is only as strong as its “big three” pillars: the mission, vision, and values. Begin your business plan by defining what the purpose of your business is (its mission), your plan to bring this mission to life (vision), and the values that will guide your actions when the going gets tough. Careful consideration of these will give you clarity when finding team members to build your business later on. You need people who click with what your business stands for. 
• Identify short and long-term goals. A real estate business is only as successful as it prepares to be. Remember the adage: if you fail to plan, you plan to fail. Spending time identifying short (3-12 months out) and long (1-5 years in the future) term goals gives you and your team ways to mark the journey to success with well-defined milestones. 
• Figure out the finances. How will you fund your business? There are many ways to find capital to bring your real estate business plan to life, but you may have to get creative. And you’ll need to stay organized and on task to bring your financial goals to fruition. 
• Find the perfect property manager. The quickest way to accomplish this magnificent business plan you’re creating? Hire a property manager to help you skip the grunt work. But while finding the right manager for your business isn’t easy—you’ll need to research and interview several property managers before you get a feel for what’s best for you—the road will be much less bumpy with a solid business plan in hand. 

How a Property Manager Can Help You Create a Real Estate Investment Business Plan

A property manager can help you create a real estate investment business plan in five important  ways. 

• Provide you with insights into the local real estate market.
• Help you identify and evaluate potential investment properties.
• Help you develop a marketing strategy to attract tenants.
• Help you manage your finances and keep track of your expenses.
• Provide you with guidance and support throughout the investment process.

When you enter property manager interviews armed with a robust business plan, you demonstrate your commitment and pave the way for a successful partnership. 

Ultimately, creating the ideal business plan for real estate investment begins with you. Every property manager relationship is only as strong as the drive of the property owner. 

Download APM’s free sample real estate investment business plan template to get started.

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Real Estate | How To

How to Write a Real Estate Business Plan (+ Free Template)

Published June 30, 2023

Published Jun 30, 2023

REVIEWED BY: Gina Baker

WRITTEN BY: Jealie Dacanay

This article is part of a larger series on How to Become a Real Estate Agent .

• 1 Write Your Mission Statement
• 2 Conduct a SWOT Analysis
• 3 Set Specific & Measurable Goals
• 4 Plan Your Marketing Strategies & Tactics
• 5 Create a Lead Generation & Nurturing Strategy
• 6 Calculate Your Income Goal
• 7 Set Times to Revisit Your Business Plan
• 8 Why Agents Need a Real Estate Business Plan
• 9 Real Estate Business Plan Examples & Templates
• 10 Bottom Line
• 11 Frequently Asked Questions (FAQs)

A real estate business plan lays the groundwork and provides direction on income targets, marketing tactics, goal setting, lead generation, and an overview of your industry’s competition. It describes your company’s mission statement in detail and assesses your SWOT (strengths, weaknesses, opportunities, and threats) as an organization. Business plans should include measurable goals and financial projections that you can review periodically throughout the year to ensure you meet your goals.

Continue reading to see real estate business plan examples and discover how to write a real estate business plan. Start by making your own by downloading and using the free real estate business plan template we’ve provided below.

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Real Estate Business Plan Template

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💡Quick tip:

Market Leader provides a comprehensive paid inbound lead, automated marketing, and CRM solution to help agents acquire, engage, and nurture real estate leads.

Furthermore, Market Leader offers and guarantees you a number of exclusive seller and buyer leads in your target niche at a monthly rate.

1. Write Your Mission Statement

Every real estate agent’s business plan should begin with a mission statement, identifying your values and why your business exists. Your mission statement serves as the guide to achieving your ultimate business objective. When you create a solid clear mission statement, all other items identified in your realtor business plan should be aimed at fulfilling this statement.

Compass’ mission statement: “Our mission is to help everyone find their place in the world.” (Source: Compass )

Your mission statement should identify your target audience, what product or service you provide, and what makes your business distinct. As seen in the example above, a powerful mission statement should be short and concise but sums up a business objective.

Let’s take Compass’ mission statement above as an example: “Our mission is to help everyone find their place in the world.” The statement identifies what the company offers, for what reasons, and who it benefits.

2. Conduct a SWOT Analysis

SWOT is an acronym that stands for a business’ strengths, weaknesses, opportunities, and threats. The primary objective of these four elements is to assess a business by evaluating internal and external factors that can drive decision-making and help you make more money . Conducting a SWOT analysis as you develop your business plan for real estate uncovers opportunities to differentiate yourself from the massive competition currently on the market.

Strengths & Weaknesses

Strengths and weaknesses are internal parts of your organization. Strengths identify what product or services you provide better than others, your access to resources, and items that benefit your customers. Weaknesses are items that need improvement, lack of resources, or what your competition does better. These are items within your control to change because you can convert a weakness into a strength.

See the example below if “Agent X” was doing their SWOT analysis:

Opportunities & Threats

External factors drive opportunities and threats and are areas you can take advantage of to benefit your business. Examples of opportunities can be shifts in the current marketplace, emerging trends you can capitalize on, features that competitors lack, or even changes with your competitors. Threats, on the other hand, are anything that can negatively impact your business. You don’t have control over changing the opportunities or threats, but you can develop a practice to anticipate and protect your business against the threats.

The opportunities and threats for “Agent X” would be:

When you complete your SWOT analysis, use it as a guide when creating strategies to meet your business objectives. To gain the most benefit from creating a SWOT analysis, make sure you are being realistic about your business and evaluating it in its present state. You don’t want to be unrealistic by listing strengths or opportunities that don’t exist yet, and you want to allocate time and money to the most impactful solution to your business issues.

If “Agent X” completed the above SWOT analysis, a few strategies they could derive would be:

• Incentivize agents to keep them at the brokerage for longer
• Implement a technology-based key machine to reduce lost keys and keep the team accountable
• Find a competitive advantage against competing brokerages and use that in marketing messages

Zillow agent finder (Source: Zillow )

To help agents locate other brokerages operating in your preferred market, agents can use Zillow’s agent finder page as a research tool to see which agents or brokerages are operating in a specific area. You can find an agent by location, name, specialty, and language. Once you click on a Zillow profile , you can read their reviews, see their team members, contact and website information, and property listings. Take a deep dive into your competitor profiles and can use the information to implement strategies within your own business.

Visit Zillow

Read how our experts feel about this real estate lead generation company in our Zillow Premier Agent review .

3. Set Specific & Measurable Goals

You’re ready to set some business goals after clearly defining your mission statement and SWOT analysis. Goals can help set the tone to increase your performance and drive your business in the right direction. Your goals should have a definitive way to show progress, which can be a prime motivator to keep you on track to achieving them.

Each goal should follow a pattern to identify set criteria. This will ensure that your daily efforts are performed to meet business objectives within a set period. A way to do this is by using SMART goals:

Examples of SMART goals for agents or brokerages:

• Increase closed transactions by 20% to a total of 150 deals within the next year
• I will ask all closed clients for a referral and review within 30 days of closing the deal

Goals can be split into short-term and long-term goals. Short-term goal lengths vary between days and weeks but do not exceed six months. Short-term goals can also be worked on simultaneously with long-term goals. Long-term goals can take up to six months or more to complete and require careful planning and perseverance. A mix of short-term and long-term goals will help you maintain motivation.

All goals are equally important; however, success will stem from how you prioritize each one. Slowly add on additional goals as you have the capacity and feel comfortable with the current progress of your current set of goals. Without identifying your business goals, you’ll leave your results up to luck to attain your business objectives.

4. Plan Your Marketing Strategies & Tactics

Developing marketing strategies and tactics and implementing them help you identify and locate your current value proposition in the real estate industry, along with specific timelines for execution. In addition to determining your overall business objectives and goals, your marketing strategy and plan should include the following:

• Pinpoint general marketing goals
• Estimate projected marketing budget
• Know your geographic farm area data and identify your target niche audience
• Analyze market competition
• Identify your unique selling proposition
• Establish a timeline and set your plan in motion
• Track your progress and readjust as needed

While a marketing strategy identifies the overall marketing goals of your business, developing marketing tactics will help you achieve those individual goals. They can include referral business tactics, retention efforts, and ways to acquire new customers. For example, you can offer incentives to anyone who refers your business, or you can implement new email drip campaigns to help increase lead conversion rates.

These tactics should have set key performance indicators (KPIs) to help you evaluate your performance. For instance, a KPI you can set for your business could be that referral business should exceed 20% of your lead generation sources.

If you’re unsure how to put together your marketing plan, check out our article Real Estate Marketing Plan Template & Strategy Guide and download the free template to get started.

Postcard campaign example (Source: ProspectsPLUS! )

If direct mail is part of your promotion strategy, services like ProspectsPLUS! can help easily create and distribute mailers to a targeted area. It also has options for postcards , brochures, newsletters , flyers, and folders. You can also send mailers to prospective clients by geographic or demographic farm areas through its campaigns. Check out its templates and mailing options today.

Visit ProspectsPLUS!

Read how our experts feel about this real estate direct mail service in our ProspectsPLUS! review .

5. Create a Lead Generation & Nurturing Strategy

Having a successful lead generation strategy will help you maintain business growth. Lead generation can be performed organically and through paid advertisements to attract and convert prospective clients. In addition to generating leads, agents should have systems to manage, nurture, and re-engage with contacts to maximize opportunities.

Generating leads through a multipronged approach is the best way to maintain lead flow. Use organic strategies like hosting an open house, reaching out to your sphere of influence, and attending networking events. Employ paid generation strategies, such as purchasing leads from a lead generation company or setting up a website to funnel potential clients. Your marketing strategies will directly correlate with your lead generation strategies.

Every lead is an opportunity, even if they don’t immediately convert into a deal. Effectively nurturing leads can make sure no opportunity falls through the cracks. Agents can nurture leads by continuously engaging and developing relationships with prospective leads . It’s important to provide prospective clients with a constant flow of essential and relevant information, depending on where they are in the real estate buying or selling process.

Here are the top lead generation companies for real estate agents and brokers:

Engage more efficiently with buyer and seller leads using Market Leader’s new feature Network Boost. Network Boost has shown a 40% increase in agents successfully connecting with leads. Market Leader social media experts design highly targeted and optimized ads for your Instagram and Facebook. As visitors engage with your ads, they will be prompted to complete a form and funnel directly into your Market Leader client relationship manager (CRM). This will also trigger an automatic marketing campaign that nurtures your clients and lets you know they are ready to engage with you personally. Try Market Leader’s Network Boost today.

6. Calculate Your Income Goal

Your income goal is one of the most critical items to be included in your business plan. While this may be more difficult for new agents who are still learning the business, it’s still necessary to estimate the amount of money you will earn for the year. Work with an experienced agent or mentor to help you estimate your monetary goals. For professional agents, review your previous years to judge your income goals for the upcoming year.

To calculate your income goal and the amount of work you’ll need to complete to get to that goal, you’ll need to have some basic number estimates:

• Net income: The amount of money you will put in your pocket after commission splits with your real estate brokerage.
• Fee split with brokerage: This is the agreed-upon commission split you have with your brokerage for each completed transaction. For example, if you have a 70/30 split with your brokerage, you will collect 70% of the commission, and your brokerage will receive a 30% commission for each deal.
• Estimate of completed deals per year: You also want to estimate the number of deals you intend to complete yearly. Remember that some months will be busier than others, so make sure to account for holidays, weather, and your schedule.

Real Estate Yearly Goal Calculator

By figuring out these numbers, you can give yourself a realistic number for your income goal. Compute the gross income commission (GCI) or amount of money you must make before the commission splits and the average profit per deal and month you’ll need to reach your goal.

For a more detailed breakdown of your yearly goal, download and use our yearly goal calculator. Input your information into the highlighted yellow boxes, and the spreadsheet will automatically calculate the GCI, total deal count, and gross income you’ll have to earn each month to reach your goal. Adjust the average gross commission per deal and brokerage split as necessary.

FitSmallBusiness Year Goal Calculator

For additional information on real estate agent salaries, review our article Real Estate Agent Salary: How Much Do Real Estate Agents Make?

7. Set Times to Revisit Your Business Plan

Business plans are only effective if you use them. A business plan is a roadmap for your business, and you’ll need to revisit it often to ensure you’re staying on track. It should be a constant resource to guide you through meeting your goals and business objectives, but it’s not necessarily set in stone if you need to make any changes.

Agents should revisit their business plans monthly to measure progress and make any changes to stay the course. If you find that you’re missing the times set for your goals, then you should continue to revisit your business plan regularly. Changing the business plan itself should occur annually once you can have a complete picture of your yearly performance. Evaluating the business plan can help you discover new strategies and ensure you have the appropriate resources for the upcoming year.

Overall status of sales activities in the dashboard (Source: Pipedrive )

Sales software like Pipedrive can help you track your overall business performance when revisiting your business plan. It presents company sales data in easy-to-visualize dashboards that track your business performance and contains forecasting tools to project future revenue. It can maintain company and team goals with progress tracking to keep goals top of mind.

Visit Pipedrive

Read how our experts feel about this real estate customer relationship manager (CRM) system in our Pipedrive review .

Why Agents Need a Real Estate Business Plan

A real estate business plan keeps you up to date on market developments and one step ahead of your competitors. It also enables you to test lead-generating tactics and create new marketing campaigns while keeping track of results over time. A solid business plan for a real estate agent presents the following:

• Where you are at the moment
• Where you would like to be
• How you’re going to get there
• How to evaluate and measure your performance
• When and when to correct the course

Real Estate Business Plan Examples & Templates

Real estate agents and brokerages don’t have to build their business plans from scratch, as many resources provide different examples. Business plan templates can also have different objectives. Some are used to secure financing or help you focus on lead generation, while others are single-page plans meant to get you started.

Here are five real estate business plan examples you can use to create yours:

Lead Generation & Income Plan

Market Leader business plan example (Source: Market Leader )

This business plan is from Market Leader, a third-party lead generation platform. It specializes in lead generation, marketing, and converting leads into customers with an attractive IDX (Internet Data Exchange) website and robust automation tools. Agents can also participate in purchasing leads through their lead products to receive a guaranteed number of leads per month.

A Single-page Business Plan

Business plan for real estate (Source: PngFind )

Agents who are new to writing a business plan can start small. Business plans do not have to be multipage to be effective. This single-page business plan helps identify a single goal followed by three areas to focus on and five objectives for each focus area. As real estate agents begin to feel comfortable with goal setting and completion, they can continue to add to this single-page business plan with duplicate pages, identifying additional goals.

Business Plan for Real Estate Brokers

Real estate broker business plan (Source: AgentEDU )

This robust real estate broker business plan is designed to address organization and management goals. It contains pages identifying personnel information like title, job description, and salary. The business plan also encourages the broker to identify operational goals for future personnel changes. It’s best suited for a broker with a larger team to help drive operational change.

Business Plan With Detailed Financials

Example of real estate agent business plan template (Source: FinModelsLab )

This multipage business plan contains eye-catching graphics and detailed company financial information for real estate agents and brokers seeking funding from outside investors. One of the last sections of the business plan is a financial planning section geared toward showing how viable your business is through your provided income statements, cash flow, and balance sheet reports.

Real Estate Developers’ Business Plan

Realtor business plan template sample (Source: Upmetrics )

Upmetrics’ real estate business plan templates are easy to edit and share and contain professional cover pages to help agents convert their business ideas into actionable goals. The business plans from Upmetrics are geared toward agents looking to transition into real estate development. This plan includes vital sections important for a developer to analyze, such as building location, demand for housing, and pricing.

Real estate CRM (Source: Market Leader )

Market Leader’s business plan is centered around driving more business through lead generation. It helps agents understand their lead sources, average sales price, and how much commission was earned in a given year. It also allows agents to set income and transactional goals for the following year.

Visit Market Leader

Bottom Line

Whether you are a new real estate agent or looking to grow your brokerage, writing a real estate business plan template will help you define the steps needed to build a successful business . It serves as a guided roadmap to help you achieve your business goals, identify areas of improvement, and provide guidance in all aspects of your business, from marketing, operations, and finance to your products and services. Business plans can help determine if your business is viable and worth the financial investment.

Frequently Asked Questions (FAQs)

What is a real estate business plan.

A real estate business plan is a document that presents an outline of your organizational goals. A business plan lays out future company goals and structured procedures to achieve them. Business plans commonly contain plans for one to five years at a time, though they can differ from investor to investor.

A real estate business plan will put you in a position to succeed while also assisting you in avoiding potential pitfalls. It serves as a guide to follow when things go as expected and when they diverge from the initial plan of action. Also, a real estate business plan will ensure that investors know the steps they need to take to succeed.

How do I jump-start my real estate business?

It is important to note that starting a real estate business is not a simple task. Before launching a firm in any field, entrepreneurs should spend numerous hours researching and developing a solid business plan. As you start your real estate business, use the following tips as guidance:

• Think about your professional goals
• Conduct extensive research
• Organize your finances
• Create a business plan
• Establish an LLC
• Make a marketing plan
• Create a website
• Start campaigns
• Keep track of leads
• Develop a network of connections

How can I grow my real estate business?

You can use multiple strategies and ways to grow your real estate business. They include:

• Assess your current situation
• Invest in your professional growth
• Establish strategic alliances
• Take advantage of omnichannel marketing
• Start blogging
• Create consistent social media profiles and campaigns
• Improve your website
• Consider working with a marketing company
• Optimize your signs and direct mail

About the Author

Find Jealie On LinkedIn

Jealie Dacanay

Jealie is a staff writer expert focusing on real estate education, lead generation, marketing, and investing. She has always seen writing as an opportunity to apply her knowledge and express her ideas. Over the years and through her internship at a real estate developer in the Philippines, Camella, she developed and discovered essential skills for producing high-quality online content.

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Real Estate Investing Business Plan

Ready to dive into the world of real estate investing? Embarking on this journey can be exciting and profitable, but it’s essential to be well-prepared and have a solid business plan in place. This comprehensive guide will walk you through the crucial steps of crafting your real estate investing business plan, from defining your investment goals to assembling a skilled team. Set yourself up for success and turn your real estate dreams into reality.

Key Takeaways

• Real estate investing requires a comprehensive business plan to optimize decision-making and utilize resources.
• SMART goals, market research, financial planning & projections are essential for successful real estate investments.
• Building a team of professionals and implementing efficient systems can help investors prepare for potential risks & challenges.

The Importance of a Real Estate Investing Business Plan

A well-crafted real estate investing business plan includes the following elements:

• Mission and vision statement
• SWOT analysis
• Clearly defined short-term and long-term goals
• Tailored investment strategy
• Comprehensive market research
• Robust marketing plan
• Detailed financial plan
• Experienced real estate team

This estate investment business plan, complete with an executive summary, serves as a roadmap to guide decision-making, track progress, and attract potential investors in the real estate market.

A business plan greatly enhances your chances of success in real estate investing, setting you apart as a proactive entrepreneur within the realm of property investment. A well-prepared plan allows you to anticipate potential opportunities and threats and make informed decisions, which is crucial in the ever-changing real estate investment market. In this context, having multiple business plans can be beneficial for diversifying your investment portfolio.

Essentially, a robust real estate investing business plan offers a strategic blueprint for maneuvering through the property market. It ensures:

• The efficient use of resources
• Optimal decision-making
• The ability to adapt to market trends
• Ultimately leading to a thriving real estate investment business.

Defining Your Real Estate Investment Goals

Establishing clear, measurable, and achievable goals in your real estate investing business plan offers direction and sets you on the path to attaining those goals in the real estate investment market. Utilizing the SMART acronym—specific, measurable, achievable, relevant, and time-bound—ensures that your goals provide clear guidance and are attainable within a reasonable timeframe.

Examples of short-term and long-term goals for a real estate investment business could include having a predetermined number of properties in your portfolio or setting a desired return on investment (ROI) to be achieved on an annual basis. Aligning your personal objectives with your business objectives is vital, as the success of your real estate investment business relies on your dedication, enthusiasm, and drive, as well as your ability to adapt to market trends in the real estate industry.

Establishing your investment goals lays the groundwork for a prosperous real estate venture. This clarity helps you stay focused and motivated, ensuring that you consistently make strategic and informed decisions that drive your business forward.

Selecting Your Real Estate Investment Niche

The fundamental principle of real estate investing is to acquire and dispose of properties for financial gain in the real estate industry. Selecting a specific real estate investment niche, such as residential, commercial, or industrial properties, is crucial for maximizing profits. The location of your real estate business plays a significant role in guaranteeing the highest possible returns on investment. Real estate investment businesses should carefully consider these factors to ensure success.

Long-term real estate investments can also consider options such as real estate investment trust, real estate investment company stocks, and other alternatives. Potential issues, like a lack of low-income housing, inefficient management, elevated eviction rates, or a surplus/deficit of a particular type of real estate, can create investment opportunities in the industry.

Selecting a distinct investment niche combined with rigorous research, allows for the identification of profitable opportunities and risk mitigation. This targeted approach allows you to focus on a specialized market segment and develop a deep understanding of the trends and dynamics at play, ultimately leading to better investment decisions.

Crafting Your Real Estate Investment Strategy

Constructing a bespoke investment strategy based on your goals, niche, and market analysis guarantees a successful and lucrative real estate venture. Real estate investment strategies may include:

• A low-risk, slow-roll strategy of maintaining long-term investments
• House flipping for potential quick profits
• Investing in multi-family apartment buildings

Formulating a customized investment strategy based on your objectives, specialization, and market analysis also ensures a prosperous and lucrative real estate venture. Your investment strategy should include exit strategies such as rehabbing, wholesaling, and renting, which can help secure profits and protect your investments. Establishing metrics for measuring success in your real estate investing business plan is essential in monitoring progress and making judicious investments.

An astutely designed investment strategy offers a transparent route to tread, enabling the making of strategic decisions that coincide with your broader business objectives. This approach helps minimize risks and maximize returns, setting your real estate investment business on the path to success.

Conducting Comprehensive Market Research

Conducting market research in real estate investing is essential for staying informed and foreseeing changes due to external influences. A comprehensive market analysis, including a SWOT analysis, is crucial in understanding the strengths, weaknesses, opportunities, and threats before launching your business.

A comprehensive market analysis can assist in selecting the most advantageous market segment and the optimal locality for investment. A thorough market analysis is essential in a real estate investing business plan to identify trends, opportunities, and potential challenges in the target market, thus providing the necessary information to make informed investment decisions.

Comprehensive market research equips you to:

• Recognize trends, opportunities, and potential hurdles in your target market
• Make well-informed investment decisions
• Stay ahead of the curve and seize lucrative opportunities
• Ensure the growth and success of your real estate investment business.

Developing a Robust Marketing Plan

Developing a marketing strategy for your real estate investment business can help establish a strong brand, foster trust with investors and clients, and promote your services. A marketing plan should encompass the strategy for identifying and concluding transactions, essentials for sustaining profitability per transaction, and expenditure for each transaction. The marketing strategy in a real estate investing business plan demonstrates the methods and locations utilized for marketing and acquiring new customers.

Various marketing strategies are available for real estate investing businesses, such as Facebook advertisements and search engine optimization. The specific area of real estate you focus on significantly influences the emphasis placed on marketing and the strategies you choose.

A solid marketing plan is indispensable for drawing in leads, enhancing brand visibility, and cementing a powerful presence within the property market. By implementing effective marketing strategies, you can reach your target audience, generate interest in your business, and ultimately, drive growth and success.

Financial Planning and Projections

Developing a detailed financial plan for your real estate investment business is essential for financial stability and growth. Your financial plan should include:

• Income statement
• Cash flow statement
• Balance sheet
• Short-term and long-term goals regarding profits and losses

By creating a comprehensive financial plan, including projections for income, expenses, and cash flow, you can ensure the success of your real estate investment business.

Accuracy in crafting a financial plan is crucial, as it allows you to identify areas that are and are not performing well for your business. Investing in real estate requires careful consideration of many costs, including:

• Closing fees
• Property management
• Repairs and maintenance

All of these must be taken into account to ensure a successful investment.

An all-inclusive financial plan aids in tracking your business’s performance, pinpointing possible issues, and making well-informed decisions to secure its longevity. By keeping a close eye on your income, expenses, and cash flow, you can maintain financial stability and support the continued growth of your real estate investment business.

Building Your Real Estate Team

Having a real estate team can optimize productivity and bolster your business. Essential roles for a successful real estate investment team include:

• Acquisition manager
• Real estate lawyer
• Money lender
• Project manager
• Civil engineer
• Property manager

Expert-trained representatives can answer incoming calls, converse with motivated sellers, ask pertinent questions, and arrange subsequent appointments with the investor or their Acquisitions Manager.

Real estate investors should have vendors on their team to assist with purchasing, rehabilitating, and buying or selling investment properties. A strong real estate team not only supports your business operations but also contributes to the overall success of your real estate investment ventures.

Real Estate Investing Mentors

BPM REIA is a comprehensive real estate investing mentorship program that offers educational resources and mentorship on real estate investing strategies. Collaborating with BPM REIA offers advantageous insights, direction, and assistance in constructing a prosperous investment venture.

BPM REIA offers:

• Educational and mentoring resources on real estate investing strategies
• Assistance in streamlining the investment process and attaining financial freedom
• Guidance and support in establishing a strong and dependable power team to ensure the success of your real estate investment business.

Partnering with real estate investing mentors, such as BPM REIA, can provide you with valuable insights, guidance, and support to build a successful investment business. Their expertise and experience can help you navigate the complexities of the industry and make informed decisions, ultimately leading to greater success and financial freedom.

Implementing Efficient Systems and Processes

Instituting effective systems and processes in real estate investment is crucial for streamlining daily operations, enhancing productivity, and expanding your real estate investment business. Best practices for implementing efficient systems and processes include:

• Constructing systems and policies for scaling and growth
• Instituting property search, evaluation, marketing, and lead generation systems
• Instituting follow-up systems

Examples of efficient systems and processes in the real estate investment industry include lead generation systems, follow-up systems, marketing systems, bookkeeping systems, and real estate appraisals and field inspection automation. Reinvesting into your business is essential for delegating and automating daily operations, such as responding to emails, developing marketing strategies, communicating with sellers, gathering buyer data, and purchasing profitable properties.

Implementing efficient systems and processes allows for the optimization of daily operations, enhancement of productivity, and expansion of your real estate venture. This approach allows you to:

• Focus on strategic decision-making
• Focus on growth
• Ensure that your business remains competitive and successful in the ever-changing real estate industry.

Preparing for Challenges and Risks

Having a contingency plan or escape route in the event of an unfavorable outcome, anticipating potential issues before they arise, and taking precautionary measures to safeguard investments and guarantee long-term success are all crucial elements of real estate investing. Real estate investment requires an exit strategy. This plan outlines how an investor will dissociate themselves from a deal or the business..

When formulating an exit strategy, consider reducing financial losses, recovering as much of your original investment as possible, and avoiding any unanticipated fees that could reduce profits, such as tax implications. Potential lenders, employees, and clients may inquire about scenarios such as extended market times, seller cancellations prior to closing, and higher than average vacancy rates. These should all be accounted for in your exit strategies and backup plans.

Preparing for possible obstacles and risks helps safeguard your investments and guarantees the longevity of your property investment venture. Developing contingency plans and exit strategies allows you to navigate unforeseen obstacles and make strategic adjustments as needed, ensuring that your business remains resilient and adaptable in a dynamic industry.

Frequently Asked Questions

To write a real estate investor business plan, establish your vision, outline short-term and long-term goals, take inventory of your current finances, conduct market research, develop an investment strategy, and create a marketing plan.

Yes, a business plan is necessary for real estate investing as it can help you to navigate potential obstacles and set yourself up for success.

LLCs are the recommended option for real estate investments, as they offer limited liability protection. However, it is still ultimately a personal decision as to whether an LLC is the right choice for your particular investment.

Real estate investing can be a highly profitable opportunity offering both income and appreciation potential. It also provides diversification benefits, making it an attractive investment for those seeking portfolio balance.

In conclusion, crafting a comprehensive real estate investing business plan is vital for success in the industry. By defining your investment goals, selecting a niche, developing a tailored investment strategy, conducting market research, creating a robust marketing plan, and assembling a skilled team, you set the foundation for a thriving real estate investment business. By preparing for challenges and risks and implementing efficient systems and processes, you can navigate the complexities of the industry and build a successful, profitable business that stands the test of time.

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The Impact Investor | ESG Investing Blog

Investing for financial return is only part of the equation.

12 Best Real Estate Investing Business Plan Templates

Updated on September 26, 2023

Our posts may contain links from our affiliate partners. This supports helps support the site as we donate 10% of all profits to sustainability organizations that align with our values. However, this does not influence our opinions or ratings. Please read our Terms and Conditions for more information.

Investing in real estate can be lucrative, regardless of whether you make it your primary business or a side hustle. It can be a great source of ongoing income and profits from appreciation. Investing in real estate is also an excellent way to build wealth. These are some real estate investing business plan templates to help you get started.

Table of Contents

Key Components of a Real Estate Investment Business Plan

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However, real estate investing requires a business plan, as with all business ventures. A business plan is necessary to guide your decision-making and growth and help you finance your real estate and business operations.

A real estate investing business plan includes several components.

The executive summary introduces your business and provides an overview of your business and the contents of your business plan. It describes how you plan to succeed at your business. It also includes your mission and vision statement.

Your mission and vision statement articulates the values and direction of your real estate business. It is the guiding star that you use for developing your strategy. The mission statement should inspire customers and your team.

You’ll develop your mission and vision statement first, and your strategy will fit your vision. To create your mission and vision statement, consider companies that you admire. (They can be from any industry.) Then, find their mission and vision statements and use them to develop your own.

Your executive summary is the first part of your plan. However, you wait to write the executive summary after you’ve written the rest of the plan.

Your business plan should contain a brief overview of your company, your management team, and your expertise. It describes your legal structure, such as whether you are an S-Corp., LLC, or corporation.

It also describes the type of real estate investing business you will operate; for example, do you plan to make long-term investments in rental properties or embrace a short-term investment strategy where you buy a fixer-upper, renovate it and sell it quickly at a profit?

You’ll provide further details on your company in the rest of the business plan.

This section includes a market analysis, including any market trends that may affect your business. Writing this section requires that you research the business, which educates you. It also should prove to potential funding sources that you are knowledgeable.

The industry analysis section should include answers to several questions, such as

• How big is the market?
• Is it increasing or decreasing?
• What trends are affecting the industry?
• Who are your key competitors?

See Related: Predictive Analytics in Banking: Enhancing Financial Decision-making

Although you briefly mention your strategy for your investment properties in the company description, you’ll deal with it in depth. You’ll also discuss how your strategy will help you meet your business and personal goals.

For example, you may purchase real estate and want to focus on long-term investments that produce income while also appreciating. However, until you can build up sufficient capital, you may engage in wholesaling, where you put a contract on a home and then find an investor to buy it.

Your strategy should also include the types of properties you will invest in, for example, single-family homes, apartment buildings, or commercial properties. If your investments are within a specific geography, you’ll also list that geography in this section.

The customer analysis section briefly overviews your target customers, for example, renters or home buyers. A well-researched customer analysis will break their target market into demographic and psychographic groups.

The competitive analysis section overviews your competitors, their target market, products and services, and marketing share. Many real estate business plans also analyze their strengths, weaknesses, opportunities, and threats (SWOT), especially concerning their competitors. A SWOT analysis is an excellent way to find solutions to potential challenges.

The SWOT analysis starts with strengths and weaknesses. You might consider questions such as

• Are you successful at finding high-quality tenants?
• What is your track record in identifying good properties to renovate and sell?
• What is your competitive advantage, i.e., what do you do better than your competitors?
• How successful are you at raising capital?

The SWOT analysis also looks at opportunities and threats. A potential opportunity could be a new subway stop opening near a property you own that could boost its desirability or an opportunity to increase amenities at one of your apartment complexes. A threat could be a competitor renting similar properties at a lower price.

The marketing plan is a critical component of any business plan. The marketing plan should include

• Your business logo. Your logo should reflect your mission statement in some way.
• The value proposition of your real estate investing business. The value proposition is what the business offers customers that is unique.
• Promotions strategy, including how you’ll gain referrals, use the Internet and social media, advertise in publications, and undertake other promotions.
• Your plan to develop, maintain, and grow relationships with potential customers.
• The type of products or services you will offer are property management services, renovated homes, or brokerage services.
• Your pricing strategy and how that compares with competitors.

The Operations Plan describes how you operate from day to day. It includes information on how you:

• Find properties to acquire
• Oversee renovations
• Market properties when you wish to sell them
• Determine when to sell

It also should include information on how your company’s organizational structure is organized, the status of specific projects, milestones you expect to reach and when, and the steps you’ll take to reach them.

See Related: Free Financial Advisors to Start Financial Planning

You’ll have briefly discussed the expertise of your management team as a whole. You want to provide details in your real estate investment business plan. Highlight the experience of each key team member, emphasizing how each member will help you reach your business goals.

If you feel your team lacks experience, consider assembling an advisory board of experienced real estate professionals and noting the board’s existence in this section.

Also, note if you plan to hire additional managers as your real estate investment business reaches certain milestones. List what experience and skills you’ll seek in your new hires.

Financial information is a significant component of a real estate investment business plan. Begin this section by specifying the source of your revenue as well as what drives your costs. If the purpose of your business plan is to receive funding, state the amount of funding you need and what you’ll use it for.

Then, include financial projections for your real estate investment property and business for the next five years. You’ll include several types of financial statements in your financial plan. In each statement, you’ll also include the assumptions you used to arrive at the projects.

Income Statement

The income statement (or profit and loss statement) shows the revenues minus the costs to show the amount of profit. To derive your revenue projections, you’ll need to assume a certain level of sales or number of rental units at a specific price.

Your costs would include maintenance, repair, or renovation costs, salaries and commissions, office rent (if any), marketing costs, and the cost of utilities and software. Do market research to base your assumptions on reality as much as possible.

Balance Sheet

The balance sheet is a snapshot of the assets and liabilities of your real estate investing business at a specific time. You’ll project assets, such as cash, real estate, and accounts receivables, for each of the five years. You’ll also project liabilities, such as debt and accounts payable. You’ll also launch the amount of equity for each of the five years.

Cash Flow Statements

The cash flow situation of a real estate investment business can significantly affect its success. Some businesses turn a profit but end up in bankruptcy because their cash flow is insufficient to pay bills when they are due.

For example, suppose a new commercial tenant requests a significant build-out. You’ll have to front the money to make the improvements and may not recoup it until the tenant has paid six months or more of rent. You may also have other expenses during that time.

If you have no other source of income, you could run out of money before you recoup your investment. Remember to list the assumptions that led you to project the cash flow as you did.

If potential funding sources will be scrutinizing your plan, add an appendix. The appendix might include all the documents related to your financial plans, such as leases and a potential exit strategy, as needed.

See Related: Best Green Companies to Invest in 2023

Writing a business plan requires considerable research and strategy skills. It also requires a significant time commitment. Templates help reduce the time you need to write your business plan.

Many types of organizations offer business plan templates that you can download for free, although you may have to leave your email. Here are free business plan templates for the real estate investor.

Growthink  is a consulting firm that helps companies develop business plans and raise capital. Its co-founders, Dave Lavinsky and Jay Turo, graduated from the Anderson School of Management at UCLA and started Growthink to help entrepreneurs grow their businesses. The company’s values are “Integrity,” “Courage,” and “Positivity.”

Lavinsky  has designed  a real estate investing business plan template that includes most of the key elements above. Lavinsky also provides advice on how to complete each section.

Fit Small Business  is an online publication to answer questions from small business owners across all industries. It has industry-specific experts and a management team that supports the experts. The company, founded in 2013, claims 80,000 readers.

The publication provides tips on how to write your vision and mission statement, complete your SWOT analysis, and choose an investing model. It also provides tips on measuring business success, writing a company summary, and developing a financial plan. Its business plan template is free and  downloadable.

Upmetrics  is a data analysis and data management software company. Its software is designed to help startups plan. Based in India, its software is used worldwide.

The company aims to help spark business growth, promote job creation, and help foster personal wealth. In addition to software, the company’s website offers several small business guides and resources.

The company provides 200 sample business plans across several industries, including  one  for a real estate investing business. It also explains the various sections of the plan and tips on completing the sections.

See Related: Best Real Estate Investment Websites

FortuneBuilders  teaches people how to invest in real estate through courses, coaching, books, and podcasts. Its four founders have considerable experience in the real estate investment market, having invested more than $1 billion in residential and commercial properties.

They still manage real estate projects, generally 25 to 40 at a time. They also provide additional information through their blogs.

FortuneBuilders  bases its  real estate investing business plan template around eight “must-haves,” including a mission statement, goals, strengths and weakness analysis, investment strategy for each property, marketing plan, management team bios, explanation of financing, and answers to “what if” questions. The introduction to its full business planning template also has excellent information to help you determine whether you are likely to succeed in the real estate investment business.

BusinessPlanTemplate.com  has over 250 customizable business plans for small businesses across many industries. Dave Lavinsky, also a co-founder of Growthink, founded BusinessPlanTemplate.com more than 20 years ago, and BusinessPlanTemplate.com is a subsidiary of Growthink.

The company claims to be a leading resource for business plan templates. In addition to templates, it includes advice on writing a business plan.

The company  template  for a real estate investment business is highly detailed, with more than a page on how to write each of the nine sections. It is also updated for 2023.

PlanBuildr  is another Growthink company founded by Dave Lavinsky, who serves as its president. The company’s management team has deep entrepreneurial experience. Lavinsky, a managing partner in several other entrepreneurial ventures, previously worked as a marketing consultant.

Jay Turo is the CEO. Turo works with Lavinsky in many of his other ventures. He has an MBA and a bachelor’s degree in international business.

The PlanBuildr real estate investment business plan template includes  sections  on the investment company’s success factors and most of the standard business plan sections. The customizable plan is also downloadable.

Real Estate Investing.org  aims to help families “replace their income with passive income.” The company claims to have more than 25,000 investors.

It has articles and stories to help real estate investors succeed. Its values include having an abundance mindset and always empowering others.

Founder Eric Bowlin is an experienced real estate investor who has managed a portfolio of 450 properties. Real Estate Investing.org’s business plan template provides extensive advice on successfully projecting financials.

It also provides some information on other sections of the  plan.  Although you can download a plan for free, the plan’s information includes a link to a business plan software solution that you purchase.

IncFile  helps small businesses manage the paperwork for forming or dissolving a new business or obtaining a trademark. The company also helps businesses develop an annual report and provides a free tax consultation.

It features a lot of information on business entity types. It claims to have more than 1 million customers.

IncFile’s blog contains several guides for startups, including a guide and template for a business plan for a real estate investment business. In addition to the more common sections of the business plan, it also  includes a section  on a backup business plan writing too. It links with a  template.

Carrot  is an online lead generation hub for real estate agents and investors. The company says its members convert leads at a rate of seven times that of nonmembers and earn a profit that is $14,000 greater on each lead.

Carrot also provides SEO and other tools to help real estate business owners market and run their businesses. CEO Trevor Mauch is an experienced real estate investor with expertise in inbound marketing.

Carrot also includes advice on how a real estate investment business can develop a business plan. Its  free template  includes an executive summary, business description, competitive analysis, building credibility section, and marketing strategy.

See Related: Ways to Start Investing in Apartment Buildings

More than 19,000 people have downloaded the Wiki Download real estate investment business template. Available in a PDF or Microsoft Word format, the 12-page document outlines the business plan and uses questions to take you through developing a simple real estate investment plan yourself.

Sections include the executive summary, market analysis, implementation plan (operations plan), marketing efforts, sales strategy, financial forecasts, and assumptions.

Truic  provides business services such as business organization, accounting, and business banking. It provides many of these services through partners and receives a referral commission.

It also provides classes on setting up a small business. The company is mainly focused on helping LLCs.

Truic offers many guides for small business owners; the real estate investment business template is one of those guides. Truic’s real estate business plan guide primarily aims at those who invest in and sell residential properties. Its  template  also differs slightly from others because it starts from the owner’s financial goals.

The owner decides how much they wish to earn, then defines the amount of revenue required, and then the number of houses that must be purchased. It also offers advice on tailoring your business plan to potential readers, including lenders and investors.

Property Geek’s  business plan template is aimed at property investment businesses. Rob Dix, a writer, founded Property Geek in 2012, and property soon became his life. He later launched Property Hub, which offers free courses and a YouTube channel, and created an investment app called Portfolio.

He also has written books and podcasts on property investment issues. He aims to make property investment fun. His website offers investment strategy, financing, property management software, and tax advice.

Property Geek’s real estate investment business plan development starts by determining goals. Then, you build a strategy to get from where you are now to the goal you hope to achieve.

Much of the strategy is developed around compensating for a lack of cash. The site offers a  free downloadable  business plan worksheet.

A business plan will help you succeed at any real estate investment endeavor, no matter the scale or time frame. Startups with plans are likelier to launch and grow than those without.

No, many companies in the real estate industry offer free worksheets and templates for real estate investment businesses. They also provide advice on writing the plan. Most real estate investors can complete the business plan with these resources. If you need additional advice, you can generally obtain it through the SBA or another nonprofit.

Related Resources

• Proven Ways to Start Investing in Apartment Complexes
• Ways to Start Investing in Small Business
• What is the Impact of Foreigners Investing In US Real Estate?

Kyle Kroeger, esteemed Purdue University alum and accomplished finance professional, brings a decade of invaluable experience from diverse finance roles in both small and large firms. An astute investor himself, Kyle adeptly navigates the spheres of corporate and client-side finance, always guiding with a principal investor’s sharp acumen.

Hailing from a lineage of industrious Midwestern entrepreneurs and creatives, his business instincts are deeply ingrained. This background fuels his entrepreneurial spirit and underpins his commitment to responsible investment. As the Founder and Owner of The Impact Investor, Kyle fervently advocates for increased awareness of ethically invested funds, empowering individuals to make judicious investment decisions.

Striving to marry financial prudence with positive societal impact, Kyle imparts practical strategies for saving and investing, underlined by a robust ethos of conscientious capitalism. His ambition transcends personal gain, aiming instead to spark transformative global change through the power of responsible investment.

When not immersed in the world of finance, he’s continually captivated by the cultural richness of new cities, relishing the opportunity to learn from diverse societies. This passion for travel is eloquently documented on his site, ViaTravelers.com, where you can delve into his unique experiences via his author profile.

Writing Your Real Estate Investing Business Plan

In this guide I’m going to outline all the components you’ll want to include in your real estate investing business plan.

You can get started by watching this video tutorial on why real estate investors should create a business plan and the how to steps that go with it. Don’t forget to subscribe to the channel (:

Let me ask you a simple question! Would you drive across the country without a map?

The answer is most likely no! You’d get lost right?

Well the same applies to starting a real estate investment business. You need a plan!

Your business plan will serve as your road map giving you guidance along the way so that you know what you are trying to achieve and how you’ll go about doing it.

That’s phase 1. Phase 2 is the fact that your map won’t always save you.

When taking a road trip you still encounter road blocks and detours that impact the initial route you were trying to take. This will happen in real estate.

Your business plan will serve as a guide only and you’ll still encounter problems you’ll have to get creative and find solutions for. That’s the fun part though!

Alright let’s get into what your business plan should include!

• Real Estate Investing School: How to Retire on Passive Income
• How to Increase Your Income and Master Your Money (Saving, Investing, Taxes)

What Should My Real Estate Business Plan Include?

Mission Statement —

This is the statement that tells people what your business’s purpose is and the benefits your business will provide. Spend some time researching company mission statements to develop yours. Consider it as your “Why” that we discussed earlier.

Goals — 

What will real estate investing help you achieve? What is your monthly and annual income goal? Overtime your goals will change. That’s why in our setting financial goals article we had you create short, medium, and long term goals.

Starting with small, short term goals will help you achieve momentum and not be stressed out about hitting the big goals in the future. Break it down so it doesn’t seem to large to conquer. You’ll stay motivated and forward looking.

Time Frame —

What is your time frame to reach your goal?

Having a time frame will push you along to make sure you are staying on pace and working hard. Back in the school days, teachers set homework deadlines to push students along to get their homework done or else they’d likely never do it.

Be realistic, but don’t be afraid to reach, either.

Market —

This will be the location you target for investments. What city will you invest? What kind of property will you be searching for? Which parts of town or neighborhoods?

As a beginner, choose an area you feel most comfortable with. Try to select an area that’s also within a short driving distance of your home to give you easy access for stopping by the property time to time.

Become an expert of the area and become expert of who the players are within your area. You may find these players useful for partnering on future deals with.

Strategy — 

There are lots of ways to make money in real estate, but you simply need to select one.

Master this one strategy and go a mile deep than spread yourself a mile apart trying to do everything.

The strategy will be your vehicle that takes you to your destination which ultimately will be your goals you are trying to reach.

Criteria —

Before you go out and start looking for deals, you need to establish the criteria which those deals must fall in.

Set financial criteria such as what type of returns you’re seeking, how much cash flow you require, what price range you’ll target for purchase price, what rehab budget you’re comfortable with, etc.

For example someone may want to invest in smaller less expensive houses that require less money for the rehab budget, while another investor may enjoy flipping mansions and spending hundreds of thousands on the rehab budget.

You can adjust your criteria as you see fit over time once you become more acclimated with the market and real estate investing but in general you should try to stick to your criteria.

It will help you stay on course and turn down deals that aren’t up to your standards. Often times people want to get that first deal so bad that they jump into a bad deal that fails their criteria.

Learn –> How to Increase Your Income and Master Your Money (Saving, Investing, Taxes)

Marketing Plan —

The lifeblood of your business will be lead generation. You’ll need to generate a system that brings motivated sellers to you to make offers on their property.

You’ll need to market properties to tenant so you have a large pool to screen and select from in order to find the highest quality tenants to occupy your property.

Think about how you are going to create marketing systems for these different aspects of your business. How will you find the best deals that are listed?

Will you use the MLS, real estate agents, online searches, direct mail to lists, driving neighborhoods, or other means of finding deals? We cover a variety of real estate marketing strategies in this blog article.

Financing Deals —

How do you plan on acquiring your deals? Do you have money of your own to invest?

Will you need to rely on funding help from others such as conventional bank loans , hard money loan, private money loans, equity partners, seller financing, lease options, or some other creative method?

Finding financing is often the hardest challenge in your business. Learn to attract private money, so you’ve always got a steady flow of finance when deals present themselves.

We cover a lot of different real estate financing strategies here.

How You’re Going to Do Your Deals —

What’s your plan of action once you acquire an investment property? How are you going to turn this purchase of a property into profit?

You’ll need to clearly define the steps so that you are ready for delegating work to your teams and systems.

Teams and Systems —

Clearly define your team and the systems you and they will use to delegate and automate tasks.

Who will be on your team? Your team will be very important for helping your business run as well as grow.

Exit Strategies & Backup Plans –

Having multiple clearly defined exit strategies is one of the most important parts of your business plan, especially for new investors.

How are you going to exit the deal? What are your backup plans?

Do you flip, lease option, wholesale, bird dog, sell the note, sell the entity holding title, rent and hold, or some other technique? What is the end game?

This needs to be clearly defined. Your first exit plan may fail to happen which is why it’s important to have multiple exit strategies lined up.

An example would be a flip you thought was going to make you profit but you overran the rehab budget and the home prices have been falling.

This may force you to have a back up plan of holding the property as a rental and receiving monthly cash flow from it to recoup your losses. Years later you may sell it when the market goes up and home values rise again.

Flexibility —

We mentioned that you may need to make adjustments as you learn more about your market and investing. Being flexible and changing your market and/or strategy is important if you are not finding enough deals to pick from.

Example Deals —

This part of your business plan will get you excited and help you build confidence in your plan. You’ll need to illustrate purchases, cash flow projections, profits, return on investment, and more to see what your path will look like to reaching your goals.

We did the exercise earlier where we illustrated an example deal that then allowed you to calculate how many similar deals or units you’d need to own to reach your cash flow goal.

Also, when you approach private money,  understand that they will want to see example deals of how they will earn return on their investment in your business.

Personal Financials — 

You need to take a snapshot of your current financial state and see what you can contribute to your business and where you fall short.

Do you have equity in your home you can use? Do you have steady income and a decent credit score that will help you get bank financing? What is your net worth? How much do you spend per year living?

We did this exercise earlier to prepare you for this, helping you map out what your current cost of living is and how much you’ll need to be able to retire. You’ll want to re-evaluate your financials at least every 3 months, 6 months, or annually.

Net Worth Analysis Worksheet

To wrap up the basic ingredients of your real estate investing business plan, remember that your plan is just a guide not a rule.

It’s to be used for giving you direction and keeping you motivated and on task. When you map all of this out, it will all seem more attainable.

You will have bumps along the way and things will happen that make you adjust and change.

Realize that your plan will not go as perfectly as you desire, but by having a plan you are protecting yourself from the failures that so many have had as a result of never creating a business plan.

Analyzing Fix & Flip Deals Guidebook

Download your free copy of my fix & flip analysis guide. This PDF will show you how to run numbers on a potential investment property.

Business Plan Template for Real Estate Investment

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Thinking of venturing into the world of real estate investment? It's a lucrative market, but it requires careful planning and strategy to maximize your returns. That's where ClickUp's Business Plan Template for Real Estate Investment comes in!

This template has everything you need to create a comprehensive business plan, including:

• Clearly defined investment goals and objectives
• Strategies for property acquisition and management
• Financial projections and analysis to ensure profitability
• Risk assessment and contingency plans for unforeseen challenges
• Exit strategies to optimize your returns

With ClickUp's Business Plan Template, you'll have a clear roadmap to guide your investment decisions, attract potential investors or lenders, and ultimately achieve success in the competitive real estate market. Start building your empire today!

Business Plan Template for Real Estate Investment Benefits

When it comes to real estate investment, having a solid business plan is essential. The Business Plan Template for Real Estate Investment offers a range of benefits that can help investors succeed in the market:

• Provides a clear roadmap for achieving investment goals and objectives
• Guides decision-making by outlining strategies for property acquisition and management
• Enables accurate financial projections, ensuring investors can maximize returns
• Assists in assessing and managing risks associated with real estate investments
• Attracts potential investors or lenders by showcasing a well-structured and professional plan
• Helps investors develop effective exit strategies for their investments, ensuring a smooth transition when needed

With the Business Plan Template for Real Estate Investment, investors can confidently navigate the complex world of real estate and achieve their investment objectives.

Main Elements of Real Estate Investment Business Plan Template

When it comes to real estate investment, having a solid business plan is key to success. ClickUp's Business Plan Template for Real Estate Investment provides all the tools you need to create a comprehensive plan tailored to your investment goals.

Custom Statuses: Track the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that every step is accounted for and nothing falls through the cracks.

Custom Fields: Utilize custom fields such as Reference, Approved, and Section to add important details and categorize different aspects of your business plan, making it easy to navigate and update as needed.

Different Views: Choose from a variety of views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to visualize your business plan in different ways, ensuring that you have a clear understanding of the big picture while also being able to focus on specific details.

Collaboration: Collaborate with your team, share documents, assign tasks, and set due dates directly within ClickUp, streamlining communication and ensuring everyone is on the same page.

With ClickUp's Business Plan Template for Real Estate Investment, you'll have all the tools you need to create a comprehensive and organized plan that sets you up for success in the competitive world of real estate investment.

How To Use Business Plan Template for Real Estate Investment

If you're looking to create a business plan for your real estate investment venture, follow these steps to make the most of the Business Plan Template in ClickUp:

1. Define your investment strategy

Start by clearly defining your investment strategy. Determine if you want to focus on residential properties, commercial properties, or a mix of both. Consider factors such as location, property types, and target market. Having a clear investment strategy will guide your decision-making process and help you set realistic goals.

Use the Docs feature in ClickUp to outline your investment strategy, including your target market, investment criteria, and long-term goals.

2. Conduct market research

Before diving into the real estate market, it's essential to conduct thorough market research. Analyze trends, property values, rental rates, and competition in your target area. This information will help you identify the most profitable investment opportunities and make informed decisions.

Create tasks in ClickUp to track your market research activities, such as analyzing market data, attending local real estate events, and networking with industry professionals.

3. Identify potential properties

Once you have a clear understanding of the market, start identifying potential properties that align with your investment strategy. Look for properties that offer good ROI potential, have strong rental demand, and fit within your budget. Consider factors such as location, property condition, and potential for value appreciation.

Utilize custom fields in ClickUp to track property details, including location, price, potential rental income, and any unique features or considerations.

4. Analyze financials

Analyze the financial aspects of each potential property to determine its profitability. Consider factors such as purchase price, renovation costs, rental income, operating expenses, and projected cash flow. This analysis will help you assess the financial viability of each investment opportunity and make informed decisions.

Use the Table view in ClickUp to create a financial analysis spreadsheet, including revenue projections, expense breakdowns, and cash flow calculations.

5. Develop a marketing and management plan

Outline your marketing and management strategies for each investment property. Determine how you will attract tenants, advertise vacancies, and maintain the property. Consider hiring property management services or handling management tasks yourself. Additionally, create a marketing plan to ensure your properties are effectively marketed to potential tenants.

Utilize the Goals feature in ClickUp to set specific marketing and management goals for each property, such as achieving a target occupancy rate or implementing a maintenance schedule.

6. Monitor and adjust

Once your business plan is in action, continuously monitor the performance of your investments and make adjustments as needed. Regularly review your financials, assess market conditions, and stay updated on industry trends. This will help you identify opportunities for improvement and ensure your investment strategy remains aligned with your goals.

Set up recurring tasks in ClickUp to regularly review and update your business plan, including financial analysis, market research, and goal tracking.

Get Started with ClickUp’s Business Plan Template for Real Estate Investment

Real estate investors can use this Business Plan Template for Real Estate Investment to streamline their planning process and ensure a comprehensive and well-structured business plan.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a solid business plan:

• Use the Topics View to outline the different sections of your business plan, such as executive summary, market analysis, investment strategy, financial projections, and more
• The Status View will help you track the progress of each section, categorizing them as Complete, In Progress, Needs Revision, or To Do
• Utilize the Timeline View to set deadlines and milestones for each section, ensuring that your business plan is completed on time
• The Business Plan View provides an overview of your entire plan, allowing you to easily navigate and review all sections
• Use the Getting Started Guide View to access helpful resources and tips on how to effectively use the template and create a successful business plan
• Customize the template by adding the custom fields Reference, Approved, and Section to provide additional information and categorize your plan
• Update statuses, custom fields, and other information as you progress through each section to keep stakeholders informed and ensure a comprehensive plan.
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Sample Real Estate Investment Business Plan

Writing a business plan is a crucial step in starting a real estate investment business. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring real estate investment business owners, having access to a sample real estate investment business plan can be especially helpful in providing direction and gaining insight into how to draft their own real estate investment business plan.

Download our Ultimate Real Estate Investment Business Plan Template

Having a thorough business plan in place is critical for any successful real estate investment venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A real estate investment business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The real estate investment business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your real estate investment as Growthink’s Ultimate Real Estate Investment Business Plan Template , but it can help you write a real estate investment business plan of your own.

Real Estate Investment Business Plan Example – PropertyProspect Investments

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to PropertyProspect Investments, a trailblazing Real Estate Investment firm located in the heart of Arlington, TX. Our inception aims to revolutionize the local real estate market by providing top-tier investment services that have been conspicuously absent. We specialize in a broad spectrum of real estate investment solutions, including Property Acquisition, Portfolio Management, Financial Analysis, Risk Management, and Exit Strategy Planning. Our firm stands out due to our profound insight into the Arlington market, coupled with our comprehensive services designed to guide our clients from start to finish. Launched on January 4, 2024, we have rapidly positioned ourselves as a formidable entity in Arlington’s real estate sector, attributing our early achievements to our strategic location, a robust brand identity, and an unwavering commitment to excellence.

Our competitive edge is significantly sharpened by our founder, Riley Hernandez’s extensive experience and a previous track record of success in the real estate investment domain. This expertise ensures our adeptness in navigating market complexities, thereby offering unmatched advisory services. Our initial strides include developing a distinctive brand identity and securing a prime operational base, laying a solid foundation for our mission to become Arlington’s leading real estate investment firm. Our unique blend of market knowledge and personalized service models has already set us apart, promising a bright future in serving both seasoned and budding investors in the Arlington community.

The Real Estate Investment industry, valued at over $1 trillion, is on a robust growth trajectory, fueled by increasing demand for real estate as a preferred investment avenue. A notable trend is the emergence of real estate crowdfunding platforms, offering new and seasoned investors alike more diverse opportunities. Additionally, the shift towards sustainable and eco-friendly real estate investments has opened new doors for firms like PropertyProspect Investments to innovate and lead with green investment strategies. These trends not only underscore the industry’s potential for expansion but also highlight strategic avenues for our firm to attract a broader investor base and stay ahead in the competitive market.

Our customer base spans a broad spectrum, primarily focusing on local residents keen on real estate investment, ranging from first-time homebuyers to experienced investors looking to enlarge their portfolios. We also cater to real estate developers and renovation flippers, tapping into growth opportunities within Arlington’s real estate landscape. Moreover, we aim to attract out-of-state investors and individuals contemplating relocation to Arlington, offering them valuable insights and strategies to navigate the local market. Understanding and addressing the diverse needs and goals of these segments enable us to tailor our offerings for maximum impact and satisfaction.

Our competitors, including The Rhodes Team, Judy Vessels, and Compass Dallas Real Estate, bring varied strengths to Arlington’s real estate market, from extensive local knowledge to innovative technology use. However, PropertyProspect Investments distinguishes itself through superior real estate investment advisory services, leveraging market analytics, personalized strategies, and cutting-edge technology. This approach, combined with our extensive network of industry professionals, positions us as the go-to partner for investors seeking to maximize their returns in Arlington’s dynamic real estate market.

PropertyProspect Investments offers a comprehensive array of services, including Investment Property Acquisition, Portfolio Management, and Risk Management, each designed to optimize our clients’ investment journey. Our pricing strategy is competitive, with service fees varying based on the service’s nature and complexity. To promote our services, we will employ a multi-faceted marketing strategy encompassing digital marketing, SEO, content marketing, and social media engagement, complemented by traditional marketing avenues like networking events and direct mail campaigns. Additionally, our public relations efforts and referral program will enhance our market presence, establishing us as a trusted authority in real estate investment within Arlington, TX.

At PropertyProspect Investments, our daily operations are geared towards ensuring excellence and efficiency. Key processes include in-depth market analysis, strategic property acquisition, personalized client consultations, and stringent financial management. We are committed to legal compliance and providing exceptional customer service. We also prioritize networking and leveraging technology to enhance our operational efficiency. Our immediate milestones include securing initial capital, acquiring our first property, and achieving operational efficiency, setting the stage for sustained growth and success in Arlington’s competitive real estate market.

Riley Hernandez, serving as the CEO, brings a wealth of expertise and a successful track record in real estate investment to PropertyProspect Investments. Hernandez’s deep market understanding, strategic vision, and leadership skills are pivotal to our mission of delivering unparalleled real estate investment services. Their experience is instrumental in driving our company’s growth and in establishing us as a leader in the Arlington real estate investment sector.

Welcome to PropertyProspect Investments, a pioneering Real Estate Investment firm dedicated to serving the vibrant community of Arlington, TX. As a fresh face in the local real estate sector, our mission is to fill the void left by a lack of high-quality local real estate investment services. Our team is deeply ingrained in the Arlington real estate market, making us the go-to experts for anyone looking to make their mark in the local property scene.

At PropertyProspect Investments, our offerings are meticulously designed to cater to a wide array of real estate investment needs. Our services encompass Investment Property Acquisition, ensuring our clients have access to the best properties Arlington has to offer. We take pride in our Portfolio Management services, providing customized solutions that align with our clients’ investment goals. Our Financial Analysis and Reporting services are second to none, offering precise insights for informed decision-making. We understand the importance of Risk Management in real estate investment and have developed robust strategies to protect our clients’ interests. Lastly, our Exit Strategy Planning ensures that our clients can optimize their returns when the time is right. In essence, we’re here to guide our clients every step of the way, from acquisition to exit.

Our base of operations is in Arlington, TX, a dynamic and rapidly growing city that presents numerous opportunities for real estate investors. Our deep understanding of the local market nuances and our strategic location allow us to provide unparalleled services to our customers right where they need us the most.

What sets PropertyProspect Investments apart is our unique blend of expertise and local market knowledge. Our founder brings a wealth of experience from successfully running a previous real estate investment business, ensuring that we are well-equipped to navigate the complexities of the real estate market. Our commitment to delivering superior real estate investment advisory services places us a cut above the rest, making us the ideal partner for both seasoned and aspiring investors in Arlington.

Since our inception on January 4, 2024, as a C Corporation, we have hit the ground running. Our initial accomplishments include crafting a distinctive logo that embodies our brand’s ethos, developing a company name that resonates with our mission, and securing a prime location that serves as our operational hub. These milestones are just the beginning of our journey towards becoming Arlington’s premier real estate investment firm.

The Real Estate Investment industry in the United States is currently estimated to be worth over $1 trillion. This market size encompasses various types of real estate investments, including residential, commercial, and industrial properties. With a growing demand for real estate assets as an investment option, the industry is expected to continue expanding in the coming years.

One of the key trends in the Real Estate Investment industry is the increasing popularity of real estate crowdfunding platforms. These platforms allow investors to pool their resources to invest in real estate properties, providing access to a wider range of investment opportunities. This trend is particularly beneficial for new players in the market, such as PropertyProspect Investments, as it opens up new avenues for attracting investors and expanding their portfolio.

Another trend in the industry is the rise of sustainable and environmentally friendly real estate investments. With a growing emphasis on sustainability and green building practices, investors are increasingly looking for properties that are energy-efficient and eco-friendly. PropertyProspect Investments can capitalize on this trend by incorporating sustainable practices into their investment strategy, attracting environmentally conscious investors and staying ahead of the competition.

Below is a description of our target customers and their core needs.

Target Customers

PropertyProspect Investments will target a diverse range of customers within the real estate market, with a primary focus on local residents looking to invest in property. This segment includes individuals aiming to purchase their first homes, as well as seasoned property investors seeking to expand their portfolios. By understanding the unique needs and preferences of local residents, PropertyProspect Investments will tailor its offerings to meet the demands of this primary market.

The company will also extend its services to real estate developers and renovation flippers, recognizing the potential for growth in these areas. This customer segment is essential for a comprehensive investment strategy in the Arlington, TX real estate market. PropertyProspect Investments will offer specialized investment opportunities and advice that align with the business models and profit objectives of these customers.

Furthermore, PropertyProspect Investments will target individuals from outside the Arlington area looking to enter the local real estate market. This includes both out-of-state investors seeking profitable opportunities and those considering relocation to Arlington for its economic and lifestyle benefits. The company will provide valuable market insights and investment strategies to attract and support this customer base.

Customer Needs

PropertyProspect Investments caters to the burgeoning demand for high-quality real estate investment services among residents who prioritize excellence in their financial ventures. Customers can expect a comprehensive suite of options tailored to maximize returns and mitigate risks in a dynamic market. This dedication to quality ensures that every investment decision is informed, strategic, and positioned for optimal growth.

Understanding that the real estate landscape can be complex and intimidating, PropertyProspect Investments simplifies the investment process for its clientele. By offering expert guidance and accessible resources, investors can navigate the market with confidence. This support empowers customers to make savvy investment choices, fostering financial growth and stability.

Furthermore, PropertyProspect Investments recognizes the importance of personalized investment strategies to meet the unique goals and risk tolerances of each client. The firm’s commitment to providing individualized service ensures that every investor feels valued and understood. This approach not only enhances customer satisfaction but also bolsters the potential for successful outcomes in the diverse and ever-evolving real estate market of Arlington, TX.

PropertyProspect Investments’s competitors include the following companies:

The Rhodes Team is a renowned real estate group operating primarily in the Dallas-Fort Worth area, with a strong presence in Arlington. They offer a comprehensive range of services including buying, selling, and leasing of residential properties. Their price points cater to both the mid and high-end markets, aiming to provide value through personalized service and deep local market expertise. The Rhodes Team reports robust annual revenues, indicating a strong market position and a high volume of transactions. Their key strength lies in their extensive knowledge of the local real estate market and a well-established network that facilitates quick sales and acquisitions. They also have a strong digital presence, with an interactive website and active social media platforms that engage customers effectively. However, their focus on primarily residential properties might limit their appeal to investors looking for commercial real estate opportunities.

Judy Vessels is an experienced real estate agent serving the greater Dallas area, including Arlington. She specializes in residential real estate, offering services in buying, selling, and property management. Judy Vessels targets a broad customer segment, from first-time homebuyers to seasoned investors, with price points that accommodate a wide range of budgets. Her personalized approach to client service contributes to her competitive edge in the market. Judy Vessels leverages her extensive network and knowledge of the Dallas-Fort Worth real estate market to provide clients with valuable insights and opportunities. One of her key strengths is her ability to foster strong client relationships, which has resulted in a loyal customer base and numerous referrals. However, the reliance on personal brand and network might be a weakness in scaling her business to compete with larger firms.

Compass Dallas Real Estate operates across the Dallas-Fort Worth area, offering a wide array of services including buying, selling, and renting both residential and commercial properties. They cater to a diverse clientele, from individuals and families to businesses and investors, with competitive price points designed to meet various needs. Compass Dallas differentiates itself through its use of cutting-edge technology and data analytics to enhance the buying and selling process. The firm’s strength lies in its innovative approach to real estate, utilizing a robust platform that streamlines transactions and improves client experiences. They also boast a large team of experienced agents who have deep local market knowledge. However, Compass Dallas may face challenges in maintaining a consistent quality of service across its extensive network of agents and in distinguishing its brand in a crowded market. Each of these competitors brings unique strengths to the Arlington, TX real estate market, from deep local expertise to innovative technology platforms. PropertyProspect Investments will need to carefully consider these dynamics as it crafts its own strategy to compete effectively in this competitive landscape.

Competitive Advantages

At PropertyProspect Investments, we pride ourselves on offering superior real estate investment advisory services compared to our competition. Our team of experts harnesses the latest market analytics and insights to ensure that our clients make informed and profitable investment decisions. Understanding the complexities of the real estate market in Arlington, TX, and beyond, we tailor our strategies to meet the unique needs and preferences of each client. This personalized approach not only sets us apart from our competitors but also maximizes the potential returns for our investors, making us a trusted partner in their investment journey.

In addition to our unmatched advisory services, we leverage cutting-edge technology to provide our clients with real-time data and trends in the real estate market. This technological advantage enables us to identify lucrative investment opportunities quickly and accurately, giving our clients a competitive edge in a fast-paced market. Furthermore, our extensive network of industry professionals, including builders, contractors, and legal experts, ensures that our clients have access to all the resources they need to make successful investments. By combining our market expertise, technological prowess, and strong professional network, PropertyProspect Investments offers a comprehensive and unparalleled investment experience to our clients.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

PropertyProspect Investments offers a comprehensive suite of services designed to cater to the needs of real estate investors, ranging from newcomers to the field to seasoned professionals. Their robust service lineup includes Investment Property Acquisition, Portfolio Management, Financial Analysis and Reporting, Risk Management, and Exit Strategy Planning. Each of these services is crafted to optimize the investment journey, ensuring clients can navigate the complexities of real estate investment with confidence and clarity.

Investment Property Acquisition stands as a cornerstone service, where PropertyProspect Investments leverages its market expertise to identify properties that align with the client’s investment goals and budget. This service is fundamental for investors looking to expand or initiate their property portfolio. The average selling price for this service can vary significantly based on the property’s size, location, and potential for appreciation, but clients can expect to invest approximately 2% to 5% of the property purchase price as a service fee.

Portfolio Management is another critical offering, providing ongoing oversight and strategic guidance for an investor’s portfolio. This service ensures that each property is performing optimally and aligns with the investor’s long-term financial targets. The fee for Portfolio Management typically ranges from 0.5% to 1.5% of the total asset value under management annually, offering a scalable solution that adjusts as the investor’s portfolio grows.

For those seeking to understand the nuances of their investment’s performance, Financial Analysis and Reporting is invaluable. PropertyProspect Investments delivers detailed analyses and reports, shedding light on the financial health and performance trends of the investment. Clients can expect to pay between $500 to $2000 for these services, depending on the complexity and frequency of the reports required.

Risk Management is essential in navigating the uncertain terrains of real estate investment. This service involves identifying potential risks, from market fluctuations to property-specific issues, and devising strategies to mitigate them. The average cost for Risk Management services hovers around 1% to 3% of the property value annually, providing peace of mind and safeguarding the client’s investment against unforeseen challenges.

Finally, Exit Strategy Planning is offered to investors looking to divest from a property or portfolio strategically. This involves market analysis, timing considerations, and financial planning to ensure the exit maximizes returns. The fee for Exit Strategy Planning typically ranges from $1,000 to $5,000, depending on the complexity and scale of the portfolio.

In conclusion, PropertyProspect Investments presents a well-rounded portfolio of services tailored to the needs of real estate investors in Arlington, TX. With a focus on delivering personalized and strategic solutions, the company positions itself as a valuable partner for anyone looking to navigate the profitable yet complex landscape of real estate investment.

Promotions Plan

PropertyProspect Investments leverages a comprehensive suite of promotional methods to engage and attract customers in the competitive real estate investment landscape. Understanding the importance of a robust online presence, the company will employ a targeted online marketing strategy. This strategy encompasses search engine optimization (SEO) to ensure high visibility in search engine results, engaging content marketing to educate potential investors, and strategic use of social media platforms to build community and interact directly with the audience. Paid advertising campaigns on social networks and Google Ads will also play a crucial role in driving targeted traffic to PropertyProspect Investments’ website.

Beyond online marketing, PropertyProspect Investments will engage in traditional marketing tactics, recognizing the value of a multifaceted approach. Networking events and real estate seminars will provide opportunities for face-to-face interaction with potential investors, fostering trust and establishing a solid local presence in Arlington, TX. Direct mail campaigns, tailored to the specific interests and investment goals of the recipient, will serve as a personalized touchpoint, differentiating PropertyProspect Investments in a crowded market.

Public relations efforts will be another key component of the promotional strategy. By securing coverage in local newspapers, real estate magazines, and participating in interviews on local radio stations, PropertyProspect Investments will position itself as a thought leader in the real estate investment sector. This approach not only enhances credibility but also broadens the company’s reach beyond digital channels.

To further amplify its market presence, PropertyProspect Investments will implement a referral program. Encouraging satisfied clients to refer friends and family by offering incentives will catalyze organic growth and reinforce the company’s reputation as a trustworthy partner in real estate investment.

Finally, PropertyProspect Investments will embrace the power of content marketing through a company blog and YouTube channel. By providing valuable information, tips, and insights about real estate investment, the company will attract a following of engaged readers and viewers. This content strategy will not only educate potential investors but also drive additional traffic to the company’s website, enhancing overall online visibility.

In conclusion, PropertyProspect Investments employs a diverse range of promotional methods designed to attract customers and establish a strong foothold in the Arlington, TX real estate market. Through a combination of online marketing, traditional methods, public relations, referral programs, and content marketing, the company expects to build a solid client base and achieve long-term success.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of PropertyProspect Investments, there are several key day-to-day operational processes that we will perform.

• Market Analysis: Conduct thorough market research to stay informed about the latest trends in Arlington’s real estate market. This enables us to make informed investment decisions and offer valuable advice to our clients.
• Property Acquisition: Identify and evaluate potential investment properties. This involves inspecting properties, assessing their value, and negotiating purchase terms.
• Client Consultation: Meet with clients to understand their investment goals and preferences. This includes providing them with market insights, investment opportunities, and tailored advice.
• Financial Management: Manage the company’s finances, including budgeting, forecasting, and accounting. This ensures that we maintain a healthy cash flow and can fund investment opportunities as they arise.
• Legal Compliance: Ensure all business operations comply with local, state, and federal laws, including real estate regulations and tax requirements. This protects both our company and our clients from legal issues.
• Marketing and Promotion: Implement effective marketing strategies to attract new clients and retain existing ones. This can include digital marketing, networking events, and partnerships with local businesses.
• Property Management: For properties owned by PropertyProspect Investments, perform regular maintenance and management tasks to keep them in good condition and attractive to tenants or buyers.
• Networking: Build and maintain relationships with other real estate professionals, including agents, brokers, and investors. This expands our opportunities for collaboration and referrals.
• Customer Service: Provide exceptional customer service to address clients’ questions, concerns, and feedback promptly. This fosters trust and loyalty among our client base.
• Technology Utilization: Leverage technology to streamline operations, from property management software for tracking investments to CRM systems for managing client relationships.
• Continuous Education: Stay informed about new real estate investment strategies, technologies, and regulatory changes. This ensures that we can adapt and continue to provide top-notch service.

PropertyProspect Investments expects to complete the following milestones in the coming months in order to ensure its success:

• Securing Initial Capital : Obtain the necessary funding to cover the startup costs, including property acquisitions, renovations, working capital, and operational expenses. This may involve reaching out to investors, securing loans, or leveraging personal assets.
• Acquiring First Property : Successfully close on the first investment property. This involves identifying potential properties, conducting due diligence, negotiating prices, and completing the purchase process. This milestone is critical as it will serve as a proof of concept for the investment strategy.
• Renovating and Preparing Property for Rental/Resale : Depending on the business model (flipping or renting), complete necessary renovations and repairs to make the property attractive to renters or buyers. This step is crucial for adding value to the investment and achieving a good return.
• Securing Tenants or Selling Property : For rental properties, this means finding reliable tenants and signing lease agreements. For properties being flipped, this involves marketing the property effectively and completing a sale. Achieving this milestone is essential for generating revenue.
• Reaching Operational Efficiency : Streamline operations to minimize expenses and maximize profitability. This includes optimizing property management processes, establishing efficient maintenance routines, and implementing cost-effective marketing strategies for property listings.
• Building a Portfolio of Properties : Acquire additional properties to diversify the investment portfolio. A diversified portfolio helps mitigate risks associated with market fluctuations and property-specific issues.
• Establishing Strong Local Partnerships : Form alliances with local real estate agents, contractors, legal advisors, and property management companies. These partnerships are vital for gaining local market insights, securing deals, and ensuring smooth operations.
• Generating Positive Cash Flow : Achieve a steady state where the monthly income from rentals or the profit from flipping properties exceeds the monthly operational costs and mortgage payments (if applicable). This milestone is crucial for long-term sustainability.
• Reaching $15,000/month in Revenue : This specific financial milestone is key for demonstrating the viability of the business model and supporting further growth and reinvestment into the business.
• Expanding Market Presence : Increase the company’s footprint in Arlington, TX, by acquiring more properties or expanding into new areas within the city. This will involve marketing efforts and possibly adjusting the investment strategy based on market feedback and performance data. Achieving these milestones will significantly reduce the risks associated with starting a new real estate investment firm and pave the way for PropertyProspect Investments’ success in the competitive Arlington, TX market.

PropertyProspect Investments management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Riley Hernandez, CEO

Riley Hernandez brings a wealth of experience and a proven track record of success in the real estate investment sector to the helm of PropertyProspect Investments. With a background that includes running a successful real estate investment business, Hernandez possesses a deep understanding of the market dynamics, investment strategies, and leadership skills necessary to steer PropertyProspect Investments toward achieving its business objectives. Hernandez’s ability to identify and capitalize on investment opportunities, combined with a strong focus on sustainable growth and value creation, makes them an invaluable asset to the company and a key driver of its future success.

To realize our growth objectives, PropertyProspect Investments requires $407,000 in funding. These funds are earmarked for critical areas including capital investments like location buildout and equipment, as well as operational expenses such as working capital and initial marketing efforts. This investment will lay the groundwork for our business, enabling us to secure and renovate our first property, reach operational efficiency, and ultimately, achieve our goal of becoming Arlington’s foremost real estate investment firm.

Financial Statements

Balance sheet.

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Income Statement

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Cash Flow Statement

[insert cash flow statement]

Real Estate Investment Business Plan Example PDF

Download our Real Estate Investment Business Plan PDF here. This is a free real estate investment business plan example to help you get started on your own real estate investment plan.  

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Sample Real Estate Investing Business Plan

If you’ve been scouring the web trying to find a sample business plan so you can get your real estate investing business off the ground, look no further.

On this page, I will provide you a real, sample real estate investing business plan.

I will also give you step-by-step instructions to help you create your own business plan so you can stop sitting around and start investing in real estate.

Need a Business Plan Before Investing in Real Estate?

Real estate financial projections, real estate is predictable, and your numbers should be too, business financial plan, how to write a real estate investing business plan..

I put together this infographic which will help break down the elements of planning (and backward planning), then we’ll pick it up on the other side with more information about crafting your sample business plan.

There are a lot of paths to go down in our quest to achieve  financial independence  and create a long-term residual income. With a business plan, you are: ** Nearly 2x more likely to succeed than those without a plan ** **49% more likely to grow than those without a plan** ** 2x as likely to get investment capital ** ** 30% more growth potential than those without a plan **

Writing Your Business Plan

Before you even start typing, you need to know your goals and write them down. The infographic above has an example of how to backward plan and fill in the blanks.

Alright, now that you have a general idea of where you are going and how you will get there, you are ready to start writing your business plan.

What You Need Before Starting Your Investing Business Plan

Before you get started writing your business plan, you need to put together a few pieces of information:

• Business plan writing software (I use  LivePlan )
• Your  target market
• Your  analysis criteria
• How you will  find real estate deals
• How you plan to  finance your properties
• How you plan to rent/sell your properties (exit strategy).

1) Start Writing the Pitch

The first thing I like to do is write the pitch. Imagine yourself on a 30-second elevator ride to the 10th floor of some building, and you happen to be riding along with the CEO, or finance manager of some investing firm. What could you say to that person in 30 seconds to make them want to sit down and hear more?

That’s your pitch.

Click on the image to see an example of a “pitch” (it’s just a fictitious company I made up for this example).

The  business plan writing  software that I use puts this all together for me and even hosts it on a unique webpage so I can email the pitch if I want. Obviously, you don’t have to get that fancy – you could even put something together in PowerPoint if you want.

Writing this pitch is going to help you start working on a few important details:

The Real Estate Problem You are Solving (and Your Solution)

This is how you will position yourself and be better than everybody else…and fully expect it to change over time.

• When we first started investing, we focused on student rentals. More specifically, we realized that foreign students had a hard time finding good apartments and trusting their rent and security deposit wouldn’t be stolen before they arrived in the United States.
• Though that was our focus, we also bought other buildings if the numbers made sense…and our mission changed to acquiring under-valued properties and using my expertise to renovate them cheaply.
• Finally, as we grew, we have incorporated those other things into our target investments but now we are focused on building systems that other smaller landlords couldn’t have in place.

The great thing about real estate, when compared to other startup businesses, is the financials are already out there for you. You can easily look at any property and get the current owner’s proforma rent (rent and expenses on paper under ideal circumstances).

In other industries, you may be stuck guessing what your retail demand will be, what your advertising, marketing, and other overhead might be.

In real estate, it’s easy to find and easy to estimate in the absence of actual numbers. My point is, there is no reason why your financials section shouldn’t be  amazing . It should be spot on so you can impress whoever your lender will be.

Since the financial section should be easy to figure out, it’s what I like to work on second.

2) Create an Amazing Financial Forecast

The financial forecast should be pretty boring and not hard for you to determine.

There is nothing terribly exciting about the financial section of a business plan. There is even less excitement with real estate financials. If you aren’t actively buying more property, then your revenue and expenses should literally never change.

And in this example, you can see how I plan for absolutely no change throughout most of 2016 for this made-up company.

But then something happens – I plan to buy more property!

But then it flatlines again.

Your banker, financier, or private lender will know real estate inside and out. They will know how much people spend on maintenance, collections, etc.

So, if the numbers in your plan are out of line, they will see it.

If you’re lucky, they will assume it’s a simple mistake, let you amend the numbers and move on… or they may think you’re a novice and it could jeopardize your financing. So spend more time on this section than any other

Honestly, I probably spend 3 or 4 hours just making up numbers for this example. It would take me a few days to get everything perfect if I were using this for funding.

3) The Rest of the Business Plan

Maybe it seems weird that I just throw it all together at the end, but in real estate, it’s pretty true. If you’ve created a solid plan utilizing the backward planning method, then created a pitch and did a solid job on your financials, the rest of the plan will fill itself in.

Sure, there may be a few areas that you haven’t put thought into yet, but that’s the purpose of the business plan.

The great thing is, the pitch uses these categories as well, so it gives you a great starting place.

Here is a quick breakdown of the real estate business plan categories

Executive Summary

The  Executive Summary  is a brief outline of the company’s purpose and goals and should include:

• A brief description of products and services. For real estate, this could mean single family vs multi-family, self-storage, commercial, etc.
• A summary of objectives.
• A solid description of the market. How is your niche growing and what does the future look like in your particular market?
• Financial justification. What your profit margins look like and how you plan to make money. Include growth potential
• An overview of funding requirements.

Find your Business Opportunity

Every business finds an  Opportunity  to exploit. Essentially, opportunities are created by problems which you will solve. There may be a lack of low-income housing, or on the opposite side, a lack of luxury apartments. Other problems may be poor management, high eviction rates, or a lack/excess of a particular type of real estate.

It may be helpful to answer these  four questions  to help you define your opportunity:

• Where do you make your money?  – What niche of the market will you operate in?
• How do you spend your time?  – Will you focus on management, maintenance, finding investments, etc.
• Who do you sell?  – Are your target tenants businesses, low-income, high-income, students, or something else.
• What do you sell them?  – Are you selling tiny (green) homes to high-income individuals or large homes to middle-income people with families?

Execution of your Business Plan

Writing the execution part of your business plan isn’t always easy because it includes some big sections. In the execution section, you will have Operations, Marketing & Sales, Milestones, Metrics, and anything else that will affect your investments on a day-to-day basis.

Operations  –  This includes technology you may use (property management software), locations, management plan, and anything else that affects the day-to-day operations of your business and investments.

Marketing & Sales  –  This may include how you plan to stage and rent properties or to sell your real estate. From online listings all the way down to your concept for showings.

Milestones –  How fast do you want to grow, when will you raise rents, when do you want to hire your first employee… anything can be a milestone and it’s unique to your particular investing strategy.

Metrics –  It’s important to determine how you measure success. There are many ways to measure this, but in real estate, it could be the number of units, yearly income, or net worth among other things.

Company Profile

The  company profile  section is where you “sell” the management team and history of the company. If you have a lot of experience in real estate, then really highlight it in this section.

If you don’t have a strong real estate background (a lot of new investors have very little experience) then focus on talking about your “team” such as your real estate agent, accountant, attorney, contractors, and other professionals

Remember all the numbers you worked on before? Well, this is the where they go.

Try not to create pages and pages of useless graphs, charts, or spreadsheets. Try to put the important information up front, and tuck supporting spreadsheets in the back as a reference.

Another note – profit is really important in business, but cash-flow is more important. In real estate, it’s quite possible that a company can be profitable but cash-flow negative. It’s also possible to exhaust cash reserves and fail to meet debt obligations, even if you planned on earning a fortune in just a few months.

Your financial section should show your solid cash-flow management plan.

Don’t forget to download your free sample real estate investing business plan

Wrapping up Your Real Estate Investment Business Plan

The design is an important last step. People are more likely to read through your business plan and judge it’s content if it has a beautiful and easy to read design. Spend plenty of time making it colorful, make the headings pop, and work hard to draw attention to the areas you want to highlight.

With that last piece of advice, I hope I’ve been able to give you some specific advice about real estate investing and your business plan.

Check out  LivePlan  and give it a shot. It’s an amazing product!

And if you haven’t already yet, get a copy of the free business plan for real estate investors

Eric Bowlin has 15 years of experience in the real estate industry and is a real estate investor, author, speaker, real estate agent, and coach. He focuses on multifamily, house flipping. and wholesaling and has owned over 470 units of multifamily.

Eric spends his time with his family, growing his businesses, diversifying his income, and teaching others how to achieve financial independence through real estate.

You may have seen Eric on Forbes, Bigger Pockets, Trulia, WiseBread, TheStreet, Inc, The Texan, Dallas Morning News, dozens of podcasts, and many others.

Reader Interactions

June 20, 2023 at 8:49 am

This is a great blog post! I’m a recent college graduate and I’m looking to get into real estate investing. This post has given me a lot of great information to work with.

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Realestateinvesting.org is a run by real estate professionals and the results they achieve may not be typical. All information is the opinion of the author and should not be construed as advice of any sort, including but not limited to legal, accounting, tax, or investing advice. No content should be considered a solicitation for any sort of investment.

Copyright © 2024 · RealEstateInvesting.org

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An in-depth exploration of real estate investment strategies.

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Gianluca Sidoti is an Independent Financial Advisor, Founder of TraDetector and Managing Partner at Citadines Capital SCF.

Real estate investment remains a cornerstone of strategic financial planning, offering unparalleled opportunities for portfolio diversification, tax optimization and estate planning. Through detailed client examples (names are fictional to protect their privacy), this article delves into how real estate can fortify an investment strategy, drawing on my experience as an independent financial advisor.

Elevating Portfolio Diversification With Real Estate

The comprehensive approach: john's journey.

John, a recently retired educator, sought a resilient investment strategy to weather market volatility while ensuring a steady income stream. His initial portfolio, a traditional mix of stocks and bonds, was susceptible to market swings, which could jeopardize his retirement stability.

I introduced John to real estate investment trusts (REITs), an accessible means to diversify into real estate without the complexities of direct property management. By pooling investor money to buy properties, REITs offer exposure to a variety of sectors, including commercial, industrial and residential real estate. This strategy not only broadened John's investment horizon but also imbued his portfolio with the inherent stability of tangible assets. Over time, his investment in REITs yielded consistent dividends, bolstering his income while tempering portfolio volatility through the addition of an asset class that historically moves independently of stock markets.

Best High-Yield Savings Accounts Of 2024

Best 5% interest savings accounts of 2024, the entrepreneur's expansion: emily's strategy.

Emily's narrative underscores the dynamic role real estate can play in an entrepreneur's growth strategy. With most of her wealth tied to her technology startup, Emily was highly vulnerable to industry-specific downturns. Seeking to mitigate this risk and protect her burgeoning wealth, Emily invested in a multifamily residential property.

This direct investment not only afforded Emily a tangible asset with potential for appreciation but also generated rental income, offering a counterbalance to the speculative nature of her startup investment. Moreover, the hands-on aspect of managing a property provided Emily with valuable insights into market dynamics, enhancing her entrepreneurial acumen. This strategic move exemplified how real estate could serve as both a financial bulwark and a growth catalyst for entrepreneurs.

Mastering Tax Implications Through Real Estate

Tax efficiency and growth: mark's method.

Mark, a high net worth investor, faced significant tax liabilities due to his extensive investment income. Real estate investment offered Mark a pathway to mitigate these liabilities through strategic tax planning mechanisms inherent to real estate. By leveraging depreciation, a noncash deduction that reflects the perceived decline in property value over time, Mark could substantially reduce his taxable income, thereby lowering his overall tax burden.

Additionally, I executed a 1031 exchange for Mark, allowing him to defer capital gains taxes by reinvesting the proceeds from one property sale into another. This not only preserved his investment capital but also facilitated the strategic rebalancing of his portfolio, illustrating the dual benefits of real estate investment in tax efficiency and portfolio growth.

Opportunity Zones: Sarah's Social Impact Investment

Sarah's case illuminates the intersection of tax strategy and social impact investing within real estate. By investing in opportunity zones—economically distressed communities designated for development incentives—Sarah capitalized on the chance to defer and reduce capital gains taxes. This investment strategy aligned with her values, enabling her to contribute to community revitalization while benefiting from significant tax advantages.

Strategic Estate Planning Through Real Estate

Preserving the family legacy: the thompson estate.

The Thompson family, with a vast portfolio of local real estate holdings, exemplified the importance of strategic estate planning in preserving and passing on wealth. Concerned about the impact of estate taxes and the continuity of their legacy, they engaged in comprehensive planning to ensure their wealth served their family and community in perpetuity.

By establishing a family limited partnership (FLP), the Thompsons could centralize control and management of their real estate assets, facilitating easier transfer to the next generation while minimizing tax liabilities. Furthermore, a carefully structured real estate trust ensured that their assets would be managed and distributed according to their wishes, securing their legacy and providing for future generations.

Charitable Intentions: Elizabeth's Legacy Plan

Elizabeth's scenario highlights how real estate can be leveraged to fulfill philanthropic goals within estate planning. By establishing a charitable remainder trust (CRT), Elizabeth found a way to support her charitable interests while providing for her heirs. This trust allowed her to convert her real estate assets into a life income stream, with the remainder designated for charity, achieving her dual objectives of philanthropy and family provision.

Conclusion: The Bedrock Of Strategic Investment

The narratives shared above illuminate the profound impact real estate investment can have on achieving a well-rounded, strategic financial portfolio.

Real estate investment transcends the mere act of buying and selling property; it embodies a comprehensive approach to wealth management. By integrating real estate into their portfolios, investors can not only hedge against market volatility but also leverage unique tax benefits and ensure the transfer of wealth aligns with their legacy goals. The versatility of real estate, from REITs and direct property investment to the strategic use of opportunity zones, provides a robust toolkit for investors seeking stability, growth and impact.

As markets evolve and personal circumstances change, the importance of a nuanced approach to real estate investment becomes ever more clear. Tailoring real estate strategies to individual goals and market conditions requires a deep understanding of both the asset class and the regulatory landscape. Collaborating with financial advisors, tax professionals and estate planners, investors can navigate these waters, crafting an investment strategy that not only meets their financial objectives but also contributes to their lasting legacy.

In closing, the role of real estate in a strategic investment portfolio cannot be overstated. It can offer a concrete foundation upon which investors can build a diversified, tax-efficient and legacy-minded financial future.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

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business Real Estate

Real estate investors still hot on D-FW, plan to buy more in 2024

D-fw is the darling among investors that report they see the highest returns from the region and find it to be the most attractive for investment this year..

By Anna Butler

8:41 AM on Apr 5, 2024 CDT — Updated at 4:00 PM on Apr 5, 2024 CDT

Investor optimism is heartier in 2024, though it does come with hesitations .

In a U.S. Investor Intentions Survey from CBRE Research released during the first quarter, results show investors’ biggest concerns involve higher-for-longer interest rates , tighter credit availability and loan terms, and differing buyer and seller expectations.

So far this year, interest rates haven’t budged, exacerbating tighter credit availability and loan terms.

But Dallas-Fort Worth continues to be a bright spot for investors. Survey results showed the region was the strongest-performing market in the country for total property returns.

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Investors also reported in the survey they felt D-FW is the most attractive market in the country for investment.

More than half of the investors said they planned to buy more in 2024 than they did in 2023. Nearly three quarters expect to sell the amount or more than they did year over year.

The majority of investors project transaction activity to pick up in the second half of 2024, both for the market as a whole and for their firms and companies.

Already in North Texas, developers are priming sites to finance projects in a better capital markets environment, and investment firms are readying for potential distress in the market among the potentially overleveraged.

Companies, such as Dallas-based CBRE, are hiring accordingly as well. The commercial real estate services and investment firm tapped Kelly Whaley to lead its investor services business in the D-FW market. Whaley will lead investor leasing, capital markets and property management in the role, with an emphasis on institutional clients.

Those moves anticipate potential rate cuts teased on Wednesday by Federal Reserve chair Jerome Powell during a speech at Stanford University.

Further survey results showed investors had a preference for multifamily real estate , followed by industrial and logistics.

While D-FW is projected to taper construction in both asset classes compared to previous years, it will still add more than most metros in the U.S.

The majority of respondents to the investor intentions survey were developers, owners and operators. Other respondents included those involved in real estate funds, private equity funds and real estate investment trusts, among others.

Anna Butler , Real estate reporter . Anna is a real estate reporter for The Dallas Morning News. She previously served as managing editor and real estate editor of the Dallas Business Journal. She is a graduate of Wake Forest University. A seventh generation Texan, Anna grew up in Austin.

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TODAY 9AM US EASTERN Two-Day LIVE Summit With 20+ Ecommerce Trailblazers.

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The best advice in entrepreneurship

Subscribe for exclusive access, business ideas for women entrepreneurs in 2024.

Written by Mary Kate Miller | December 28, 2023

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More women are starting their own small businesses every day. Working women continue to face unique challenges, especially as small business owners, so what are the absolute best business ideas for women? Starting with the most profitable businesses , best online business ideas , low investment business ideas , and best side hustles , we’ve curated a list of industries where women entrepreneurs are set up for success.

These business ideas either offer flexibility for when you work, flexibility for where you work or are in women-dominated industries. Some of the business ideas are a combination of all 3. We’ll walk you through some of the top business ideas for women, pointing you to helpful resources to help turn your idea into reality.

Let’s look at the 26 best business ideas for women. With creative ideas, home business ideas, and service business ideas, there’s something for every entrepreneur.

Table of Contents

Creative Business Ideas for Women

Home business ideas for women, service business ideas for women, how to start a small business, are there other business ideas for women, questions to ask before you start your small business, business ideas for women faqs, real stories of successful women entrepreneurs.

You may already have experience working in one of these creative fields, which will give you a leg up when starting your own business. Many of these small business ideas can be done as freelance work, which involves the shortest launch time. You can also incorporate your business and work as a consultant or form your own agency, which gives you the opportunity to scale and hire employees in the future.

1. Start an Etsy Shop

Etsy provides a space for creative female entrepreneurs to market their products to an existing customer base. In 2022, there were 95.08 million active buyers on the platform worldwide. If you make something that fits into a particular niche, if you’re known for a scalable craft, or if people are always complimenting you on your embroidery or bridal denim jackets, then you might want to start an Etsy shop .

Opening an Etsy shop isn’t a guaranteed win. While there are millions of active buyers on the platform, there are also millions of active sellers (7.5 million in 2021). To stand out and grow a successful business on the platform, you’ll want to:

• Learn how to optimize your product titles and descriptions for Etsy’s search. You can use a keyword tool like this one to research the best terms to use so your listings show up in search results.
• Grow your own social media presence so you can drive customers to your shop directly from your social media profiles.

2. Interior Design

Interior design and decorating can help you monetize your impeccable taste. While many interior designers go through professional training and licensing, they are generally not required to work as an interior designer in the US (In some states, you need to be licensed to work in commercial spaces ).

Interior design can be a great career for women entrepreneurs looking for flexibility. If you run your own design business, you can decide how many clients and projects to take on. Because it’s client-based work, you can adjust your workload to make it heavier or lighter depending on your personal, family, and financial circumstances.

If you want to start your own interior design business, you can begin by creating an Instagram account to showcase your work. Because Instagram is a visual medium, it’s well-suited towards boosting your interior design profile within the industry and to prospective clients. Many of the most popular interior designers, like Studio McGhee, have found their success in large part due to the platform.

But how do you grow your Instagram followers? Learn the top growth tips to help your Instagram reach 10k+ followers.

3. Graphic Design

With the emergence of digital marketing as a driving force for most brands, there is a greater need for graphic design than ever before. A graphic designer might begin their career at an agency or in-house at a brand and then later go out on their own. Graphic design is one of the professions best suited towards a consulting model. When you start your own graphic design business, you can control what you charge and who you work with.

4. Build an AI Tool or App

Would any 2024 article on the future of business be truly complete without mentioning AI?

While the snake oil salesmen climb over each other to try and sell get-rich-quick AI courses that will ultimately come crumbling down, you can get to work on using AI to produce a proper business, such as building a new AI tool or app, either by yourself or with the help of freelancers.

As AI in the mainstream is still very much in its infancy, now is the perfect time to try and get in on the action and build your own AI business .

5. Freelance Writing

Freelance writing is another business that has boomed thanks to the advent of digital marketing. To turn your words into a profitable business, you’ll want to ensure that you develop a solid understanding of search engine optimization (SEO) or social media engagement. You don’t have to know both, but you will want to specialize in at least one of these areas.

Here are some resources to help you get started:

• The Art and Science of Writing Good Instagram Captions
• A Proven 10-Step Framework for Writing Copy That Converts
• 5 Important Steps to Becoming a Highly Paid Freelance Writer

6. Social Media Marketing

Social media is driving sales for everything from clothing to education. According to research from The Content Factory , the average organization spends $250-$300/day on social media. That’s an average of $6,000 to $10,500 every month. Given the demand, there’s a wealth of opportunity for savvy entrepreneurs to carve out a niche for themselves in social media marketing.

One of the reasons social media marketing has become such a hot business for female entrepreneurs is that it can be done fully remotely. Because posts are usually scheduled (there’s always the odd exception), you can also organize your work around your lifestyle, making this an ideal creative career for working moms.

An easy way to differentiate yourself is by becoming an expert at TikTok, the fastest-growing social media platform. Here’s some TikTok 101 info:

• How to Make Money on TikTok: 14 Surefire Ways
• How to Use TikTok for Your Business (Ultimate Guide)
• TikTok Ads Guide: How to Capitalize on the Fastest-Growing Social Platform

7. Brand Ambassador/Content Creator/Influencer

Instead of helping a business with its social media, why not get paid for doing it yourself? You can swap out labels like an influencer , brand ambassador , or content creator , but they essentially are all the same thing .

Do you have a social media presence that has enough influence that brands want to work with you?

This doesn’t mean you need 100K followers to earn income as a content creator. Many microinfluencers can earn four to five figures speaking to a niche audience. Here are some of the fields in which brands are looking to partner with ambassadors or influencers to promote their products:

• Fitness and exercise
• Diet and health
• Cooking and baking
• DIY and home improvement
• Parenting and childcare
• Beauty, skincare, and makeup

So, if you have a passion or hobby that people are interested in hearing about on social media, think about how you can leverage your following to get compensated.

Pro Tip: Women can carve out a niche in stereotypical male hobbies and interests like sports, hunting, fishing, grilling, beer/whiskey. 

Over the past couple of years, more and more people have discovered the joys of working from home. These business ideas are mostly online, so you can run your small business from your home. We’ve collected some of the most profitable, low-investment home business ideas for women.

8. Become an AI Consultant

As we have already touched on, the world of AI within the workplace is still in its infancy, making now the perfect time to strike.

A few decades ago, some individuals made the bold decision to become experts in a little-known industry called “computing.”

Needless to say, many of those gentlemen went on to become extremely valuable, in high demand, and successful.

But it’s 2024. So this time, why can’t women lead the tech revolution? Check out this great video on how to get started.

9. Affiliate Marketing

Affiliate marketing is a type of advertising where a company pays an affiliate based on the performance of their referrals. Think of it like working a commission sales position, only instead of earning commission from in-person sales, you use affiliate links and referral codes.

You’ve likely come across affiliate marketing on your favorite influencer’s posts. While it might seem like the kind of profession that only the already-internet-famous can do, it’s actually a lot more accessible than that—and it can be profitable.

Want to start your own affiliate marketing business? Check out these resources to hit the ground running:

• The Ultimate Guide to Affiliate Marketing for Beginners
• Is Affiliate Marketing Worth It? Yes.

10. Dropshipping

Dropshipping is a business model that allows an entrepreneur to sell products without having to keep those products in stock. The store (often an ecommerce store) sells the product, and then the order is fulfilled by a third-party supplier and sent to the customer.

So what makes dropshipping a fantastic business for a female entrepreneur? Think of it like the anti-Lula Roe. Instead of being required to purchase stock before you can sell anything, dropshipping allows you to start selling without having any products on hand. It’s a really accessible business to start because it requires low investment, outsources many of the logistics of order fulfillment, and it’s incredibly flexible.

In recent years, Amazon FBA (Fulfillment by Amazon) has become a popular hybrid dropshipping option. Amazon FBA isn’t a true dropshipping business because you’re only outsourcing the shipping to Amazon. They’re not responsible for inventory. Small business owners have found this to be a profitable dropshipping model because it allows you to leverage Amazon’s substantial logistical and shipping resources to sell products, along with making products available on one of the internet’s most popular marketplaces.

11. Ecommerce

Ecommerce refers to any business selling goods or services online. Ecommerce consistently ranks as one of the most profitable businesses you can start. It doesn’t require significant investment to get your ecommerce business up and running, and you can start making money relatively quickly.

Considering whether you should start your own online store? You won’t want to miss these resources.

How to Start a Profitable Online Store in 12 Weeks or Less How to Start an Ecommerce Business 13 Free Resources to Help You Start an Ecommerce Business Scaling to 7 Figures Ecommerce Masterclass

12. Life Coach

A life coach counsels their clients on personal and professional challenges. Many life coaches work with the intention of helping their clients find greater fulfillment and success. If you’re someone who really enjoys helping others find their path, this might be the business for you. There aren’t any state or federal agencies that regulate life coaching, so pretty much anyone can be a life coach. That’s both good and bad. It makes it a really easy career to enter or test as a side hustle, but it can also be harder to make yourself seem credible to prospective clients without a certification. While it’s not required, some formal training will likely help you make more money as a life coach.

You can also make your life coaching business more marketable by getting more specific. There’s tons of competition out there for general “life coaches,” but by getting more specific about the strengths of what you can offer and who would be served by it, you can carve out a highly profitable niche for yourself. Think “life coaching for working moms,” “body-positive life coach,” etc.

13. Career Coach

Career coaches help professionals navigate job searches, career development, career transitions, and meet their professional goals. If you have developed certain expertise through your years in the workplace and you enjoy working with people, career coaching might be the business for you . Thanks to Zoom, there are no longer strict geographical limitations to career coaching, meaning you can offer your services as an online business without ever leaving your home.

14. Online Tutoring

Online tutoring platforms are booming, and many are in search of new tutors. If you are an ace in a certain subject or if you have teaching credentials but don’t want to commit to working in person, you might want to consider becoming an online tutor.

15. Online Course

An online course, where students can sign up to learn on-demand, requires time and effort upfront with the potential to turn the course into passive income. The beauty of an online course is that you only have to build it once, and then students can continue to enroll over time. This business model can be equalling appealing to a woman entrepreneur who is working a high-stress job full-time and would like to make some side money or for a woman business owner who is trying to minimize the hours she spends bringing in revenue so she can maximize the time she can spend with her family.

To start building your online course, you first need to determine your niche. Then you need to do market research, decide which platform you want to use, build your course, and market it. Want to learn more about building an online course? We’ll help you learn absolutely everything you need to know to start making money from your personal expertise.

How to Create an Awesome Online Course How to Sell an Online Course Without Being an Expert Every Tool You Need to Create Your Online Course

16. Real Estate

Real estate is another business that has the potential to turn into a passive revenue stream. There are different ways to make a business out of real estate. If you want to create a real estate business from home, you’ll probably need some capital to start. Let’s start with the downside, real estate requires substantial investment to start and it does carry some risk.

But the upside is huge in that you can potentially generate a passive income that’s relatively low risk compared to other investments (assuming you’re investing in a rental property and not trying to flip houses with no experience).

It is important to note that the real estate market is ever-changing, meaning there are certainly better times than others to get involved. Before investing heavily, we recommend speaking to market experts to get their advice on what the best way to enter the market is and what the right time to strike might be.

17. Web Design

Web design includes many disciplines related to website maintenance, including interface design, web development, user experience (UX) design, search engine optimization (SEO), and interface design.

You can approach your web design business in a couple of ways. You can go direct-to-consumer and help end-users design websites, or you can sell your services to other businesses to help design their customer-facing websites.

18. Digital Marketing

Digital marketing encompasses many disciplines, including social media marketing, freelance writing, graphic design, and email marketing. Digital marketing is a booming industry, and you can do the work from anywhere. All you need is a computer and an internet connection, making this an ideal home business idea. If you’re just starting out, you might want to begin working in digital marketing as a freelancer. It’s often easier for a company to hire a freelancer than an agency (there’s typically less vetting required), so you can drum up business and start making money faster that way.

Once your digital marketing business is well established, you can always incorporate it, giving you the opportunity to hire employees and grow your business(if that’s something you want to do).

19. Virtual Assistant

A virtual assistant provides administrative, technical, or creative support to clients in a remote capacity. Most virtual assistants are self-employed and work from their homes. If you’re looking for a way to make some extra cash, this can be a great option.

20. Virtual HR

One of the only benefits that came from the recent years many of us spent working from the kitchen table (or hunched over by the washing in the spare room), is that it showed employers that virtual work can, well, work!

And in some instances, it’s not just a solid substitute but a better alternative to in-person work. As a result, there are many more companies open to the idea of hiring virtually, with industries like HR becoming on of the popular options for this.

It allows the employer to keep costs low and meet business requirements, and it allows you to keep impartiality when dealing with issues, all without getting out of your slippers.

The service industry, the business sector that provides customers with services or intangible goods, is ripe with business ideas for women. Many sectors of the service industry have been dominated by working women historically, so why not leverage your power within the industry to start your own small business?

21. Wedding Planning

Weddings are one of the most important days in life for many, and they’re usually one of the most complicated. A wedding has many moving parts—from navigating the catering to the ceremony and reception decor, coordinating with vendors, and managing the families—there’s a lot that couples need help with when planning a wedding. If you’re a really organized person who loves details, solving problems, and helping couples realize their dream weddings, then wedding planning might be the business idea for you. You can begin by leveraging your network to find clients. Ask for referrals and testimonials when you work with a client, so you can continue to build your business by word of mouth.

No matter what’s happening in the world, people keep getting married. Even during the height of the pandemic, optimistic couples found innovative ways to tie the knot and celebrate their nuptials. For this reason, wedding planning can be an incredibly stable business to start. It also has a seasonal cadence, allowing you portions of the year to relax and regroup while gearing up for the next wedding season.

Not sure you want to work all the time? That’s easy to control. Once you get your business started, you’ll have a sense of how much time and energy each wedding takes. Then you can determine how many clients you want to take on based on how many hours you want to dedicate to the business.

Keep Learning: This Founder Turned Her Wedding Hacks into All-in-One Bridal Business

22. Personal Chef

Personal chefs work in private settings to cook for an individual or family. There are a few different ways to approach a personal chef business. Many chefs work in a family’s home to prep the meals for the day. Then they leave the family with heating/cooking instructions so they can finish the meal themselves and enjoy a private family meal. Other chefs cook the meal from start to finish with the client present. There’s also a hybrid model, where a chef might cook for several clients at once at an offsite kitchen and then deliver packaged meals with reheating instructions to their clients. As you can see, there’s a lot of flexibility for what kind of business model and what kind of workday you have as a personal chef, making it one of the best business ideas for women.

23. Event Planning

An event planner manages the process of planning a ceremony, party, meeting, convention, tradeshow, or other events. While the industry took a hit during the pandemic, it’s returning to continued growth now. You might make a great event planner if you enjoy being around and working with people, you’re organized, you’re a quick thinker who knows how to problem solve, and you love to process of bringing a vision to life.

Tech-savvy? Know how to run a Zoom event like a pro? The pandemic has ushered in a new market for hybrid and virtual events. These events come with their own set of challenges, which means that you can tailor your services to meet these new needs directly.

24. Makeup Artist

If you’re a pro with makeup, you might want to consider starting your own makeup artist business. Instagram, YouTube, and TikTok have provided novel ways for makeup artists to showcase their work and create a portfolio. If you’re just starting out, you can start by posting your work on social media. Eventually, you can build a bustling business helping people look their best for work events, holidays, special events, and anything else that calls for a professional beauty touch.

25. Animal Care

70% of US households own a pet, and at some point, they’re going to need help taking care of them. So, whether you walk dogs, have space for overnight care, or are willing to pick through fur as a groomer, pet care is a booming industry. Because a majority of pet owners need care during business hours or while on vacation, this is an easy way for stay-at-home moms to earn extra cash while their kids are at school.

26. Cleaning Business

People are messy. This universal truth has long made a cleaning business a solid, reliable business idea. But the pandemic (and our subsequent need to disinfect literally everything) made a cleaning business one of the most opportunistic small business ideas out there. Everyone needs cleaning, especially spaces where people gather. You can offer commercial cleaning for office spaces, restaurants, or other businesses. Or you could carve out a niche for yourself by offering “pre-event” cleaning to help clients feel safe as they gather with friends and family. Now, more than ever, there’s an enormous opportunity in the cleaning sector to carve out a niche for yourself. All you need is an idea and the wherewithal to test it.

Now that you’ve combed through all our small business ideas and nailed down the business that works for you, how do you go from idea to revenue-generating machine? We’ll review the major points in every entrepreneurship journey. For a step-by-step walkthrough, check out our guides 15 Steps to Starting a Successful Small Business and Learn How to Start a Small Business at Home .

Test Your Idea as a Side Hustle

Before you put all your resources into your new small business idea, you want to test it to ensure that there’s demand in the market and that your idea has the potential to make money. One of the best ways to do that is to start your small business as a side hustle. This requires a smaller investment, will help you make some extra cash, and will give you valuable information about your business—allowing you to see what’s working and what needs adjustment.

Our Start Your Side Hustle course can help you create a roadmap for how to start an online side hustle in 30 days or less, including how to “fail-proof” your ideas, how to come up with your unique value proposition, and how to identify your money-making skills.

Create a Business Plan

A business plan states what your business is, what you’ll do, and how you’ll do it. It will act as a road map to help you determine how your business will achieve its goals. A business plan will help you avoid losing money. And it will also help you secure outside capital if you need it.

Here are some helpful resources to help you craft the perfect business plan:

• How to Write a Business Plan (Tips, Templates, Examples)
• The Guide to Defining Your Target Market
• The Complete Guide to Market Research: What It Is, Why You Need It, and How to Do It

Determine How Much Capital You Need

Money. You can’t start a business without it. To set yourself up for success, you need to first determine how much money you need to start your business. Your business plan should give you a sense of how much capital you’ll need upfront.

Find Funding if You Need It

Once you have that estimate, you can figure out how to get it. Many small business owners raise money first by bootstrapping (the process of self-financing) and asking friends and family to invest. A business loan is another popular, common way to finance a new small business. Venture capital, on the other hand, is a less likely form of financing. Venture capitalists tend to prefer investing in established, scalable businesses.

For a full rundown of everything you need to know about getting funding for your new small business, read our guides:

• Startup Funding: How Does It Work and What Are Your Options?
• How to Find Investors

What if you have an idea that wasn’t on this list? Are there other business ideas for women? Yes, the world is full of opportunities for entrepreneurs. When starting a small business, the 2 most important things to consider are whether you’re passionate about the work and whether there’s an opportunity to make money. Without the first, you won’t have the energy or the fortitude to put in the work required to start a small business. Without the second, it’s going to be a money pit.

These questions will help you determine whether your idea has what it takes to become a successful small business.

• What products or services will you offer? (It’s best to begin by getting as specific as possible. It’s better to do one thing well than 10 things poorly, especially for a new business)
• Who needs your product or service?
• Do you already have the skills, experience, certifications, or licenses required to start this business? If not, what would be the financial and time investment needed to acquire them?
• How much money would be required to cover startup costs? Will you need further financing down the road? If so, how much?
• Are there people in your network who can help you—either financially or by lending their expertise?
• What are your goals for this business? Do you want it to become your main source of income? Are you hoping it will become the primary income source for your family? Do you want it to be a side hustle? (Get specific. It will help you reach your goals.)

Is it worth starting an LLC for a part-time business?

First and foremost, we always suggest talking to a tax professional about business finances. The rule of thumb is that if your side hustle earns you $600 or more net profit, you'll need to file that as income as a self-employed freelancer. However, if you hope to turn your side hustle into a full-time business, then as soon as it financially makes sense, get started on filing for an LLC and securing your trademarks. If your business involves contracts or anything that could be liable to legal action, separating your business and personal finances is a must.

When is the best time for women to start a business?

Yesterday. If not, today. There's never a perfect time to start a business, so don't get caught up in the timing. Instead, focus on your long-term purpose of starting a business. Timing can be even more difficult for female founders trying to navigate starting and raising a family. Make sure you have a robust support system and understand the sacrifices it will take to make your business sustainable.

What challenges do women face in starting a business?

Unfortunately, we still live in a world where women earn less on average than men. That trend trickles into business ownership as well. As a female founder, you will face unique challenges because of your gender, especially in a traditionally male-dominated field like IT, finance, or consulting. The key is not to go it alone and seek out female mentors, female-friendly incubators and investors, and a community of customers that will have your back.

There’s nothing that matches the inspiration or information you can get from stories of real women entrepreneurs who’ve turned their ideas into highly successful businesses. Here are some of our favorite resources and stories from women business owners who have been there .

• What It’s Like to Go On Maternity Leave When You’re a Founder
• Why Kendra Scott Risked Everything on the Customer Experience
• 3 Ways to Build Confidence from Quest Nutrition Cofounder Lisa Bilyeu
• How This Ukrainian Female Founder is Building an Agency in a Time of Crisis
• How Samantha Brett Built Naked Sundays into Australia’s #1 SPF Skincare Brand
• How Jessica Sepel Built JSHealth’s Women-Run Brand
• How Holly Thaggard and Supergoop! Took Sun Protection Global
• Eat My Baby Co. Founder Turned Nostalgic Snacks into an Apparel Brand That Celebrates Heritage
• Brow Code’s Melanie Marris Doesn’t Need Motivation to Innovate – Founder Q&A

This article was updated with support from Graeme Whiles .

About Mary Kate Miller

Mary Kate Miller writes about small business, real estate, and finance. In addition to writing for Foundr, her work has been published by The Washington Post, Teen Vogue, Bustle, and more. She lives in Chicago.

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