New to Real Estate. Do I need to create a Business Plan now?

[Dana N.]

I have been trying to write a business plan and because we are just starting by doing small investments, it is difficult to find/create a plan that is so basic.

Do I need a business plan before I start investing in to real estate? We plan to start small with buy and hold property and rent them out. Our plan is to start with 2.

Should I wait until we have acquired more investments, obtained cash flow from properties?

Thank you in advance for your advice.

Dana

NicholandSons R.E.

[Susan Gillespie]

Hi Dana, business planning is a process, not just a document. I would start a plan and not worry too much about initial format. You can even use a brief one-pager at first. I would include:

-Strategy: the high level goal you plan to accomplish

-3-5 goals/tasks to work toward that support your strategy

-Dates and milestones, both short- and long-term

-Measures of success: how you know your plan is working

-Next steps: what you'll do immediately to get started and keep momentum

In my humble opinion, focus and discipline are two of the most important characteristics of a successful buy and hold investor. You'll need to keep and manage written documents, especially if you form an LLC or similar and purchase properties.

Start small and build from there.