Saturday, January 28, 2017

Phoenix Real Estate Investing Plan: The Basics

Phoenix Real Estate Investing Plan
Phoenix Real Estate Investing Plan
Entering into the investing industry can be daunting, and remaining in the industry can be a challenge. That being said, regardless of your investing experience, you may be looking for how a Phoenix real estate investing plan can help reduce stress and increase profits. Planning is important to ensure mistakes are minimized while you are hitting your goals.

Plans are flexible – they should be catered to who will read the plan the most. If you are writing the document as a business plan that will be evaluated for loans, it will look different than if it is your personal compass meant to guide you through your investing endeavors.

Despite who the plan is made for, it should always start with your goal because the rest of your plan derives from that single vision. From there, the next best thing to do is outline the different areas of your plan that need to work together. Common ones are financing, marketing, and separation of roles (especially if you have a partner). Less known, but important, sections can include exit strategy, investing criteria (hurdle rate), and a defined time frame.

Phoenix Real Estate Investing Plan
Phoenix Real Estate Investing Plan
Using the sections above, a Phoenix real estate investing plan could start with an executive summary outlining the important goals, go on to define your strategy (including exit strategy, hurdle rate, marketing, and time frame), followed by how the financing is planned to occur. This basic plan would clearly outline to yourself and others how you will be successful.

If you are approaching to the bank, it is important to be as thorough as possible. The more research and homework you do, the more it will show and the more comfortable the banker will feel risking money on the venture. For your own personal guide, it should be flexible enough for you to change course if circumstances change but specific enough for you to have a defined path to follow.

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