Originally Posted on 5/17/2016 by John Dessauer
In order to enjoy a high level of success in almost any business, you will need to formulate a solid strategy, and property investing is no exception. Having a concrete business plan(Our clients have access to a business plan template) is the best tool to guide the real estate investor toward abundant future growth and the meeting of financial goals.
Putting together a business strategy for property investing requires a lot of research, reflection, and decision-making. To develop your own strategy, you will need to carefully analyze the real estate market, as well as the competition, in order to understand what components bring success in this field. Mentally dissecting a competitor’s business strategies can provide valuable information from which you can learn to build your own business plan. Can the competitor’s formula for success and profitability be improved upon? What apparent mistakes are they currently making that is costing them money? Property investors can definitely learn from other’s mistakes as well as their success.
On the positive side, you will need to identify your own best talents and resources. Do you have good credit? Do you enjoy meeting and talking to new people? These are highly desirable skills and will help you immensely with the negotiations required of a property investor. Our students get the best chance for preparation through our courses.
Seriously consider any other factors that could possibly impact your investing career, such as the state of your health. If you have any health related issues, for instance, this could affect many things. All such factors should be considered and be included in your business strategy. In the case of health preventing travel, property investing as close to home as possible would be the most logical option.
When formulating a sound business strategy, it is vital that a property investor understands the real estate market as completely as possible. Study and read about the subject constantly. Talk to the experts and learn what they predict for property investors in the near future. Incorporate this advice into your strategy. You should also discover what challenges the property investor must overcome in the present market. Combine all of this information to determine how will these factors will influence your career and goals as a property investor.
When it comes to property investing options for your business strategy, choose to pursue the fewest possible in the beginning of your career. Then you will be able to focus all of your attention in a narrow area of real estate and develop a lot of expertise quickly. As you become more successful, you can decide to branch out into other areas of real estate investing. However, it may bring you more success to specialize long-term in just one area of property investing. Also, don’t aim for the higher risk investments right away and set yourself up for failure.
A careful analysis of your financial goals is in order as well. Do you want short term or long term profit? Can you afford to tie up your money for years or do you desire a quick turnover? All of these decisions will ultimately affect the business strategy that you adopt for your property investing career.
“Remember, wealth has nothing to do with money, success has everything to do with failure, and life is as simple as you make it!” – John Dessauer