Why it is important to have a real estate plan?
Wednesday Oct 26th, 2022
The first thing that comes to one’s mind when they hear the word “estate” is mansions or owning big end grounds; but what if we tell you that being wealthy isn’t the primary requirement to have an estate?
People spend their lives working hard and earning finances so that they and their loved ones can have a luxurious life when they reach a certain age - somewhere near the retirement period. One such way to improve and maintain your finances is to invest in or start your own real estate. But what most people get confused with is the word “how” - how to invest? Well, the first step is to have a sustainable real estate plan.
As the Equity Master, the reason I talk about having a plan is because it’s the most important element to getting started. Let’s learn some doable tips that can help you form a Real Estate Plan.
What is Real Estate Planning
In the past, it was just about buying properties - purchase price, down payment, mortgage payments, property appreciation rates, etc. Nowadays, real estate planning has widened to encompass everything from building construction to ground-breaking deals and deals with hard cash.
Real Estate planning is the process of establishing and maintaining effective management that ensures the financial and operational efficiency, security, and sustainability of a real estate property.
Real Estate Planning Breakdown
1. Real Estate Mission Statement
This is the easiest step of all. Just ask yourself “what do I do?” This way you will be able to define your purpose and come to a specific ground of value proposition and likewise identify what kind of benefit you provide.
2. SWOT Analysis
In this stage, you need to identify your Strengths, Weaknesses, Opportunities, and Threats. This will help you assess yourself as a real estate agent and get know-how about the industry. Moreover, you can also identify who you are up against and on what ground you can be better with those you will be competing with. This likewise will help you set strong goals, boost your strengths, improve your weaknesses, and take advantage of your opportunities.
3. Set Specific Goals
Think about what you want to achieve as a real estate investor. Think how much you want to make in a month and how many properties you want to sell in each quarter. Write all of this down. Writing down can help you track these and counter check because your goals can change down the road. Through this, consider your short and long term goals and separate your real estate business goals into these two categories.
4. Define your Target Audience
In this stage, think about what kind of people and property you will be dealing with? What kind of property will you buy and sell: either commercial or residential? What kind of customer will you cater to: either luxury home buyers or families willing to relocate to the area?
5. Define your Processes
Now once you have set your goals, mission statement, did a thorough SWOT analysis and identified your market and target audience, the next step is to determine specific processes and systems that will help you achieve your real estate business goals. Always keep a track of systems that you want to grow into. Think of processes you will opt for i.e., whether you want to use a CRM system to keep a track or will you use any specific marketing programs or not.
Have you ever wondered what your future holds? What do you want to achieve in life? It is important to plan for the future before it happens. That's why having a long-term real estate business plan is crucial for success.
Real estate planning is a crucial part of the real estate business. It helps people to not only plan ahead but also identify and prioritize potential risks and opportunities. I’m here to do just that. If you’re interested in planning for your future, contact me today and let me help you create a fool-proof plan to set you up for life.