The eight elements of a real estate-investment business plan
- 1. Organizational structure
The section is typically one of the shortest. However, it's still important. This is the section that introduces the reader to you and your top team members as well as gives essential background on your company.
- 2. SWOT analysis
A SWOT analysis is an essential feature of any business plan. In this case, "SWOT" stands for strengths, weaknesses, opportunities, and threats.
- 3. Market analysis
The market analysis section of your business plan is important in demonstrating your knowledge of the real estate market in your area.
- 4. Financing strategy
The financing strategy section is where you outline the different financing methods you intend to use to grow your investment portfolio. However, in addition, it should also include a financial projection for your company, stretching at least a few years into the future.
- 5. Growth strategy
Every successful business needs to have an idea of how it intends to grow.
- 6. Lead and acquisition strategy
Your lead and acquisition strategy will cover how you intend to find the real estate properties you're going to invest in.
- 7. Exit strategy
While a buy-and-hold real estate investment strategy won't have the same exit strategy as, say, a house-flipping business, it's important to outline the details of your marketing plan for finding tenants and any ongoing property management strategies you intend to employ.
- 8. Goals and objectives
Lastly, your goals and objectives section will cover the specific metrics you'll use to define the success of your business. However, rather than focusing on your long-term goals the way you might in the "growth strategy" section of your business plan, this section will detail the specific goals you'd like to achieve within the next three to five years.
Topics: Real Estate, Investment
Work cited: Tara Mastroen, Million Acre, July 30, 2020
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