You've probably heard that if you fail to plan, you plan to fail. That's good advice. Planning is the key to success in any business and it is no different in cases of multi-family investment. I'll show you how to create a business plan super-simple, based on my own business.
Now I must tell you first say that there are actually two types of business plans. One is the type that is used to show potential investors if you are looking for capital or bank if you are after a loan. It is clean and shiny and looks pretty. This is not the kind I mean.
The other type is a document down and dirty, roll up the shirt, dog-eared every day and review. (After a while, you will be as familiar with what you get out every two days, then every two weeks, and soon you'll know it by heart, as I do). I call it a "living document" because you're still in it, always changing, and is useful for you. No one else will see and will use this plan to boost your business.
A business plan should be a document, or if you were to wake up with total amnesia, one morning, your spouse tell you "you are a successful investor multi-family building, and that's the plan step-by- step you I did it "and then you can go out and repeat the same success. So your business plan should be helpful, friendly and fun to interact with. (Unfortunately, too many people believe that their business plan should be the first form - the kind polished -. In order that rests on a shelf collecting dust) You can create it on your computer, print it and the take with you, take notes and update regularly.
So what's your plan contain? Well, mine covers the three main activities I do: acquire, operate and improve. I started writing a page for each step with the ideas and best practice and reminders to myself, all in a step-by-step. "Acquire" is to find apartment buildings for several families and to determine my exit strategy, "exploitation" is about to run them, "improve" is what makes them better.
As my business grew and developed in my process, I began to refine my plan. I changed all the things I've learned so aggressive all the new multi-family investments. Today, I plan the structure is not very different from my first days in the performance of these three tasks, but you can be certain that each of these measures must be strictly defined, and a lot of value. If I were to suddenly lose everything I had, that the plan would still be worth millions to me.
In each of the three sections that include the steps on what I do, I do, time to take, I work with, what my results are, and what happens if things go the rails. It is a step by step, so you can just follow the first step, step two, step three, etc. Of course, I trust my instincts and experience in banking, but this plan ensures that it does. But he added a fourth category - teach.
Today, not only to acquire, operate and improve investment in the community, also teach others to do the same. Your plan will probably start the first three, and you may find in time that can be expanded to the fourth. But you have to start somewhere. So start with a gain of 3 points, operate, improve the business plan and make the most valuable pieces of paper you have.
Think about what you need in money and expertise to make houses? Well, Lance Edwards is living proof that you can start investing in multi-family - just as he did, and use the money of their own. Using multi-family apartment strategies currently teaches and writes about work, Lance retired in July 2005. For more information on how you can achieve financial freedom to use other people's money.
