building my first business plan

[Rob Ringlehan]

BP, 

I'm just starting in REI and still looking for my first peoperty. I feel kind of lost with everything; what niche to start in, how to finance, realtors, lawyers, and GC's. I want to start with a business plan to focus my efforts. Would anyone be willing to share a business plan template or their first? Any advice or stories would be great to hear too. Thanks everyone.

Rob

[Wendell De Guzman]

Here's a business plan template:

Objective - write down your objective (e.g., I want to own enough properties so I am financially independent)

Goals - put specificity in your objective (e.g. 

1. Passive income equals $10K/mo or better;
2. Own enough single family homes to meet #1)

Strategies - these are 3-5 choices you make to help you achieve your goals
e.g.,
1. Learn my RE market and focus on buying single family homes in B & C areas
2. Utilize my good credit to acquire Homepath properties to be able to put 10% down
3. Raise the downpayment from saving 20% of my income + raise it from family & friends

Tactics - these are ACTIVITIES or TASKS you intend to do to help you implement the Strategies, by whom (at the beginning, everything is going to be done by YOU) and by when
e.g., On Strategy #1 (to learn my RE market)
Tactic #1: Identify and talk to 5 RE agents in my city by 8/12
Tactic #2: Research on Google facts about different areas of my city by 8/7
On Strategy #2 (to buy Homepath properties)
Tactic #1: After identifying 2 good agents, visit 10 properties and make 10 offers in the next 10 business days (by 8/15)
Tactic #2: Learn how to calculate ARV by talking with an experienced real estate investor by 8/7
etc.

The whole point of having a business plan is to start with your end-in-mind. Then think of focusing your thinking on the few strategies you want to pursue. But don't stop at big picture strategies: you have to bring it down to the level of actionable tactics or tasks. Then your job everyday is implement those tasks and add more tasks as you finish them.

Once a quarter revisit your Strategies. If they're not working change them.