| The 6 key sections of your Real Estate Investing | | | | Implementation Plan: This section outlines your |
| Business Plan should include the following sections: | | | | purchasing process, renovation strategies, vacancy |
| executive summary, market analysis, implementation | | | | allowances and rental policies. |
| plan, sales strategy, financial forecasts and | | | | Sales Strategy: This section outlines your disposition |
| assumptions. | | | | strategies. Most investors do not flip homes, they |
| Executive Summary: Write the rest of the plan first, | | | | buy and hold until they are positioned to either |
| then come back and summarize everything, including | | | | leverage their property or move up (usually in the |
| your goals, objectives and assumptions. Even though | | | | form of tax deferred (i.e. 1031) exchanges.) |
| this plan is for your real estate investment business, | | | | Financial Forecasts: Include cash flow projections, |
| write the summary as if you were analyzing and | | | | purchases, income from rentals, repairs and |
| reporting on the finished plan in an objective way for | | | | maintenance, ongoing expenses like property taxes |
| a third party. | | | | and gains and losses from sales. |
| Market Analysis: Give a brief description of the | | | | Assumptions: Outline your major assumptions as you |
| market and the niche that you intend to work in, and | | | | create your plan, including interest rate forecasts, |
| your buy/sell strategy. For instance, state that you | | | | market appreciation and depreciation and other |
| intend to concentrate on four-plexes, or concentrate | | | | economic conditions (such as the effect of home |
| on a particular area of town or a particular price | | | | prices and interest rates on gross rents and |
| range. Also be sure to talk about your exist strategy. | | | | vacancies. |