There are many would-be investors who have the drive to enter the business, but lack the direction to do so. However, one of the things that makes real estate investing so great is that you can do it anyway you like. Therefore, the direction you take your business is entirely dependent on your comfort level. You don’t need to follow anyone that has come before you. You can very easily make your own mark in the business by doing things your own way. In most cases, all you may need is a little push to help you get started. If you are struggling with how to get your business off the ground, here are four steps to help get you going:
1. Draft A Business Plan: Everything starts with a plan. Before you can dive head first in the business, you need to know where you want your business to go. Do you want to invest full time, or only on a part time basis? How do you plan on financing your deals? Are you looking more for quick rehabs or long-term buy and holds? There are literally dozens of questions that you should answer before you write up your first offer. It is critical that you take the time and do this before you do anything else. Things will always change in business, but having a plan gives you a blueprint for where you want things to go. When things get tough and you are on the fence about a property, you will revert back to your business plan for guidance. Instead of going from deal to deal without any direction, your plan will help you follow deals you actually want. Whether you plan on closing a deal a week or a deal a year, you are running a business. A good plan will help you get the most out of it.
2. Focus On The Specifics: A solid business plan is a good first step for figuring out where you want to go. From there, you still need to trim around the edges and focus on specifics. Saying that you want to look for rehab properties is rather broad. You need to pick the specific property type, location and price range. From there, you need to determine how you plan on finding your deals. You don’t need to empty your reserves on marketing, but you do need to do something. Research the best marketing options and pick one or two to go with. It is always tempting to dabble in every new option you hear. Having multiple marketing streams is great once you are established, but you should pick just one or two and stick with them in the beginning. To that end, focusing on a few projects, as opposed to stretching yourself too thin, will have better results.
3. Take Action: Planning is important, but nothing happens without action. Most new investors are scared to take action for a variety of reasons. They are either afraid to make mistakes or think they will get involved in a deal that loses money. Not taking action is the worst thing you can do. This doesn’t mean getting involved in reckless deals. It means taking advantage of an opportunity, only after you have done your homework. There is never a guarantee that everything will work out as you planned, but there is only one way to find out. Instead of waiting for the perfect deal to come along, you need to take action. Reach out to a local Realtor that you may have met months ago. Buy the bandit signs that you keep saying you are going to. In any given market, there really isn’t much that separates you from your competition. In most cases, it is simply the willingness to take action and commitment to do so.
4. Execute With Precision: Every action you take should come complete with your full attention. It is not enough to make an offer on a property. You need to make sure that every line is signed and every page dated. Oversight on these seemingly minor items will cause your offer to be rejected. This is the case with everything you do in your business. Don’t just blindly send out emails to local contacts. Make sure that everything is spelled correctly, and that your message is conveyed properly. Action is great, but without execution you won’t get the results you want. Don’t do things just to do them. If you are like most new investors, you are working with a budget. It is critical that you stretch it to the fullest extent. This means checking and double checking that you are doing everything right. All it takes is a few errors and omissions to leave your business at square one. Whatever you are doing, focus on executing it to the best of your abilities.