"Setting a target is not the main thing. We have to decide how you intend to do to get there and stay with this plan." - Tom Landry, Legendary Coach Dallas Cowboys
I'd say about 71% of property market participants are running their investment business without a business plan. I say "business" lightly, since many of these people would be better described as a "mom and pop landlords."
There's nothing really wrong with it if it is your goal. However, the most successful investors I've worked with over the years written business plans. This does not mean they have 100 pages of documents with the 4 colors, tables and graphs on the inside. Far from it ...
Department richest investors focus worked, led the business plans that simply do the job. In fact, not have time to work on a brilliant business plan. This is because they are too busy to build their assets and work on increasing cash flow from their properties.
Having a written business plan, investing in their homes is embedded in the competition. One of the most common questions I get from investors is, 'What is the most important part of the house to invest in a business plan? "
Many people think that the most important part of their business plan is the current flat market information, experience as an investor, education, or even the property-specific information such as income, expenses and net income.
These are all great puzzle. But the most important part of your business what I would call "mental strength and investment real estate." This is an area of the floor, where you're going to look inward than outward to identify what you want to get as an investor.
Examples of questions that I have all the investors in the workplace as part of its business plan:
1. What I really want to achieve, due to the properties for rent?
Which is the second most important for you to maximize cash flow, minimize problems of management, wealth creation or retirement planning?
3. What kind of return you expect?
4th How much time, effort and energy are you willing to put into building your investment firm?
5. Where would one, three, five, and beyond? This part is very important.
I could go on but I think you get the picture. This is an internal exercise and facts vs. LIABILITIES article, such as market research and identify your "Dream Team" members.
All the elements of a business plan is good to have, but when you take the time to focus on "mental toughness" There is much in front of your competition because you can quickly identify the functions that allow you to achieve the "big picture goals ".
