What are the basics of a good business Plan when property investing?
a. Executive summary
b. Market analysis
c. Implementation plan
d. Sales/exit strategy
e. Financial forecasts
f. Future plans
Nice short headings aren’t they? But your business plan should be long and very detailed, down to the last degree.
6 steps to a successful Business Plan
The idea of the executive summary is to be a summary of all you have written about in your plan. It is a quick overview of your thoughts, plans and goals for your property investing. Write it after you have finished the rest of your business plan and update it when necessary.
Give a quick overview of the market and an outline of the particular market that you are going to work in. It will help you stay clarified if you can detail right down to your postcode the areas that you are going to invest in. There should also be the details of the type of property that you are going to invest in, whether it is a 3 bedroom home, a 2 bedroom unit, inner city, on a railway, needs renovation and so on.
This section of the business plan goes into detail about:
· how you are going to buy
· when you are going to buy
· if you are going to renovate
· your requirements re your rentals
- your rental income analysis
- your thoughts on rental vacancies
- policies in relation to property management
Write down your strategies for selling under normal trading times and your strategies for selling in a falling or rising market. Are you intending to buy and sell in a short period of time, if so, give details?
· in this section list everything to do with your finances from current properties you own, their income, expenses, profits and losses.
· keep a sheet for each property that lists its details
· If you are going to take a salary from rental properties list this as well
· do projections for 1 year and out for 5 years
As much as you can, detail what you intend to achieve with your property portfolio over the years to come. If you plan on using you
Filed Under: Investment Strategies