If you’re new to the world of property investment or want to start your own investment business, you may know what an investment property business plan is but have no idea where to start. Here are a few tips for writing an investment property business plan to help you determine your company’s goals and how you can achieve them.
What Is the Goal of Your Business?
When writing the goal of your business, you’ll want to use clear and concise sentences to keep it down to one digestible page. Your executive summary should be accessible and easy for anyone to read and understand. You should also include the different topics you’ll be explaining throughout your document.
In addition, there are a few questions your executive summary should answer. Some of these questions include:
- What is your five-year plan?
- What is your business’s purpose?
- How will your property generate income?
Ultimately, the executive summary is an outline of what will be covered in the document. Not only is this useful for your reader, but this first page will be critical as you draft.
What Is Your Main Market?
When investing in property, it’s essential to know what market you’re aiming for. Rental property can include single-family homes, vacation homes, or condos. Understanding your primary market and its audience will help you adjust prices and understand the wants and needs of tenants.
For example, if you’re renting out single-family homes, the property’s amenities and location near schools and supermarkets will be more important to tenants. Whereas tenants renting a vacation home are more concerned with the view and being in the vicinity of activities.
What Is Your Strategic and Financial Plan?
Your strategic plan should outline how you plan to market your property and how you’ll manage it. This will include cleaning and photographing property, posting a listing, managing amenities, outlining policies, and explaining how your company will achieve its goals.
A financial plan will include how you plan to cover expenses, generate income, and how you’ll cover any other property-related fees such as maintenance repair, home improvements, and mortgage payments. Your financial plan should also include how much income you expect to make and how much profit you plan on taking away.
A rent analysis report will help you understand how much you should be charging if you’re having trouble starting your financial plan.
These tips for writing an investment property business plan will help get you started on your first draft. Of course, as things progress, certain goals and markers may shift, as is completely normal.
If you’re in the area and looking for quality real estate investment properties in Atlanta, Excalibur Homes can help you jumpstart that process. Reach out today to get a quote and make your business dreams come true!