Real Estate | How To

How to Write a Real Estate Investment Business Plan (+ Free Template)

Published September 22, 2023

Published Sep 22, 2023

Gina Baker


Jealie Dacanay

WRITTEN BY: Jealie Dacanay

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  • 1 Write Your Mission & Vision Statement
  • 2 Conduct a SWOT Analysis
  • 3 Choose a Real Estate Business Investing Model
  • 4 Set Specific & Measurable Goals
  • 5 Write a Company Summary
  • 6 Determine Your Financial Plan
  • 7 Perform a Rental Market Analysis
  • 8 Create a Marketing Plan
  • 9 Build a Team & Implement Systems
  • 10 Have an Exit Strategy
  • 11 Bottom Line

A real estate investment business plan is a guide with actionable steps for determining how you’ll operate your real estate investing business. It also indicates how you’ll measure your business’ success. The plan outlines your mission and vision statement, lets you conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis, and sets goals in place. It’s similar to a business plan for any business, but the objectives are geared toward how you will manage the business, grow your investment, and secure funding.

We’ve created a free real estate investment business plan template for you to download and use as a guide as you read through the article and learn how to write a business plan for real estate investment:


Free Real Estate Investment Business Plan Template

Preview of Real Estate Investment Business Plan Template.

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1. write your mission & vision statement.

Every real estate investment business plan should begin with a concrete mission statement and vision. A mission statement declares actions and strategies the organization will use—serving as its North Star in achieving its business or investment objectives. A strong mission statement directs a real estate business, keeps teams accountable, inspires customers, and helps you measure success.

Before you compose your mission statement, you need to think about the following questions to do it effectively:

  • What exactly is our business? The answer should encompass the essential functions of your real estate organization.
  • How are we doing it? The response must explain your real estate goals and methods based on your core principles.
  • Who are we doing it for? The response explains who your primary market is.
  • What are our guiding principles? The “why” for your real estate company’s existence.

Oak Tree Capital website mission statement header.

Mission statement example (Source: Oak Tree Capital )

The example above provides the mission statement of Oak Tree Capital. As a real estate investment business, it’s clear what its ultimate business objective is and how it will approach investing with integrity to maximize profit. Essentially, the investment company will drive monetary results—while maintaining its moral principles.

On the other hand, vision statements differ slightly from mission statements. They’re a bit more inspirational and provide some direction for future planning and execution of business investment strategies. Vision statements touch on a company’s desires and purpose beyond day-to-day operational activity. A vision statement outlines what the business desires to be once its mission statement is achieved.

For more mission statement examples, read our 16 Small Business Mission Statement Examples & Why They Inspire article and download our free mission statement template to get started.

If you want to write a vision statement that is truly aspirational and motivating, you should include your significant stakeholders as well as words that describe your products, services, values, initiatives, and goals. It would be best if you also answer the following questions:

  • What is the primary goal of your organization?
  • What are the key strengths of your business?
  • What are the core values of your company?
  • How do you aim to change the world as a business?
  • What kind of global influence do you want your business to have?
  • What needs and wants does your company have?
  • How would the world be different if our organization achieved its goals?

In the example below from Aguila Real Estate, it hopes to be the preferred real estate company in its market.

Example of a real estate vision statement.

Example of a vision statement (Source: Aguila Real Estate )

To make it easier, download our free template and follow our steps to create a vision statement for your small business. Take a look also at our 12 Inspiring Vision Statement Examples for Small Businesses in 2023 article to better understand how to create an impactful vision statement.

2. Conduct a SWOT Analysis

A SWOT analysis section of your real estate investing business plan template helps identify a business’ strengths, weaknesses, opportunities, and threats. This tool enables real estate investors to identify internal areas of improvement within their business through their strengths and weaknesses.

The opportunities and threats can assist with motivating a team to take actions that keep them ahead of an ever-changing real estate landscape. For a real estate business investor, the SWOT analysis is aimed at helping grow and protect investments over time.

Strengths & Weaknesses

Specifically for real estate investing, strengths and weaknesses correlate with the investment properties’ success and touch on items that will drive investment growth. The strengths can be the property’s location, condition, available amenities, and decreased vacancy. All of these items contribute to the success of a property.

On the contrary, the weaknesses include small unit sizes, excessive expenditures (finances to repair, upgrade, properties to acquire), low rents, and low cap rates. These weaknesses indicate less money is being collected and a lower overall return on investment (ROI). They are all factors that limit cash flow into the business and are internal factors that an investor can change.

See below for an example of strengths and weaknesses that could be included in a SWOT analysis:

Opportunities & Threats

Opportunities and threats are external factors that can affect an investment business. You don’t have control over these items, but you can maneuver your business to take advantage of the opportunities or mitigate any long-term effects of external threats. Opportunities relating to investment properties can be receiving certification with a city as a preferred development or having excess equity.

However, threats to an investment property do not need to be particularly connected to the property itself. They can be factors that affect your overall business. For example, interest rates may be high, which cuts your profits if you obtain a mortgage during that time frame.

An example of possible opportunities and threats for an investment business could be:

After creating your SWOT analysis, an investor can use these factors to develop business goals to support your strengths and opportunities while implementing change to combat the weaknesses and threats you anticipate. It also helps investors prioritize what items need to be addressed to succeed. These factors in a SWOT can change as the business grows, so don’t forget to revisit this portion and continuously reevaluate your SWOT.

3. Choose a Real Estate Business Investing Model

The core of real estate investing is to purchase and sell properties for a profit. How to make that profit is a factor in identifying your investment model. Different investing models are beneficial to an investor at different times.

For example, when interest rates are low, you may consider selling your property altogether. When interest rates are high and it is more difficult for people to obtain a mortgage, you may choose to rent out your properties instead. Sometimes, you must try a few models to see what works best for your business, given your area of expertise.

We’ve identified some investment business models to consider:

  • Buy and hold: This strategy mainly involves renting out the property and earning regular rental income. This is also considered the BRRRR method : buy, rehab, rent, refinance, and repeat until you have increased your portfolio.
  • Flipping properties : Flipping a property entails purchasing, adding value, and selling it higher than the investment costs. Many investors have a set profitability number they would like to hit but should consider market fluctuations on what they can realistically receive during the sale.
  • Owner-occupied: Investors can live in the property while renting out extra units to reduce their housing costs and have rental income coming in simultaneously. This model is best if you own multifamily units, especially duplexes, triplexes, or fourplexes . It’s also a great way to understand the complexities of being a landlord. You can transition your unit to another renter when you want to move.
  • Turnkey: Buying a turnkey property is the best option for investors who wish to enter the real estate market without having to deal with renovations or tenant management. It’s a practical way for seasoned investors to diversify their portfolios with fewer time commitments.

Investors don’t have to stick to one model, and they can have a few of these investment models within their portfolio, depending on how much effort they would like to put into each property. Before choosing an investment model, consider which will help you meet your investing goals most efficiently.

Read our Investing in Real Estate: The 14-Tip Guide for Beginners article to learn how real estate investment works and other investing business models. Also, if you’re new to real estate investing and are looking for foundational knowledge to get started or seeking information about the best online courses for real estate investing, look at our The 13 Best Real Estate Investing Courses Online 2023 article.

4. Set Specific & Measurable Goals

The next step to completing a real estate investment business plan for real estate investing is to set SMART goals. SMART is an acronym that stands for specific, measurable, achievable, relevant, and time-bound. Creating goals that contain all of the criteria of SMART goals results in extremely specific goals, provides focus, and sets an investor up for achieving the goals. The process of creating these goals takes some experience and continued practice.

An investor’s goals can consist of small short-term goals and more monumental long-term goals. Whether big or small, ideal goals will propel your business forward. For example, your end goal could be having a specific number of properties in your portfolio or setting a particular return on investment (ROI) you want to achieve annually.

Remember that your SMART goals don’t always have to be property-related just because you’re an investor. They can be goals that help you improve your networking or public speaking skills that can also add to a growing business.

Example of improving goals with SMART in mind:

Begin creating SMART goals with an initial goal. Then, take that initial goal and break it down into the different SMART components. SMART goals leave no room for error or confusion. The specific, measurable, and time-bound criteria identify the exact components for success.

However, the relevant and achievable parts of the goal require a little extra work to identify. The relevancy should align with your company’s mission, and extra research must be performed to ensure the goal is attainable.

Initial goal: Receive a 5% return on investment from the property

Smart goal:

  • Specific: I want to achieve a 5% return on the 99 Park Place property.
  • Measurable: The goal is to sell it for greater than or equal to $499,000.
  • Achievable: The current market value for a two-bedroom in Chicago is selling for $500,000 and growing by 1% yearly.
  • Relevant: I aim to meet my overall portfolio returns by 20% annually.
  • Time-bound: I want to offload this property in the next three years.

5. Write a Company Summary

The company summary section of a business plan for investors is a high-level overview, giving insight into your business, its services, goals, and mission, and how you differentiate yourself from your competition. Other items that can be included in this overview are business legal structure, business location, and business goals. The company summary is beneficial if you want to involve outside investors or partners in your business.

Choueri Real Estate company summary

​​Example company profile from Choueri Real Estate

A company summary is customizable to your target audience. If you’re using this section to recruit high-level executives to your team, center it around business operations and corporate culture. However, if you’re looking to target funding and develop investor relationships for a new project, then you should include investor-specific topics relating to profitability, investment strategy, and company business structure.

Partners and outside investors will want to consider your company’s specific legal business structure to know what types of liabilities are at hand. Legal business structure determines how taxes are charged and paid and what legal entity owns the assets. This information helps determine how the liabilities are separated from personal assets. For example, if a tenant wants to seek legal damages against the landlord and the property is owned by an LLC, personal assets like your personal home will not be at risk.

6. Determine Your Financial Plan

The most essential part of creating a real estate investing business is the financial aspect since much of the business involves purchasing, managing, and selling real estate. To buy real estate initially, you’ll have to determine where funding will come from. Funding can come from your personal assets, a line of credit, or external investors.

A few options are available to real estate investors when obtaining a loan to purchase properties. The lending options available to most real estate investors include the following:

  • Mortgage: This is one of the most common means of obtaining financing. A financial institution will provide money based on a borrower’s credit score and ability to repay the loan.
  • Federal Housing Authority (FHA) loans : This loan is secured by the FHA to assist with getting you a low down payment or lower closing costs, and sometimes easily obtain credit. There are some restrictions to qualify for this loan—but it could be suitable for newer investors who want to begin investing starting with their primary home.
  • Home equity line of credit (HELOC) : If you currently have property, obtain a HELOC by using your current property to secure the line of credit and borrow against the equity in your property. As you repay the loan, your available balance on the line of credit gets replenished.
  • Private lenders : These are lenders who are not financial institutions. These individual lenders typically have fewer restrictions than traditional lenders and will lend money to individuals who can grow their investments.
  • Hard-money loans : This loan requires a hard asset to be leveraged for money. For example, you can put up the home you want to purchase as the asset for cash upfront, and the hard-money loan will be paid back once the home is sold or other funding is secured. This is great for short-term deals due to quick approval and little upfront money.

After funding is obtained to purchase property, financial projections help investors understand their financial standing. These projections can tell you potential income, profits, and when you may need additional funding in the future. Similar to lending options, these calculations are specific to your investing model. If you’re not planning to rent out the property, then calculations like gross rent multiplier are not applicable.

For more information on what is needed to obtain financing, read our articles Investment Property Financing & Requirements and 5 Best Crowdfunding Sites for Investors 2023 .

Additional Investment Calculations

In a rental property business plan, it’s important to use a rental property calculator to determine a property’s potential return on investment. The calculator considers various factors, such as purchase price, operating expenses, monthly income, or vacancy rates, to determine whether a property is a good investment.

Click on the tabs below for the other important calculations all investors should be aware of when purchasing and managing rental properties :

  • Gross Operating Income
  • Gross Rent Multiplier
  • Vacancy Rate

The gross operating income (GOI) calculates the amount of rent and income received from a property minus any vacancy. It doesn’t take into account other expenses. It tells an investor how much income they’ll make after some assumed losses with vacancy.

GOI = Total rent + Other income – Vacancy losses

The capitalization (cap) rate calculates the return on investment (ROI) of a property. This equation is used to compare the return of one building to another. The higher the cap rate, the better since the purchase price is low.

Cap Rate = Net operating income / Purchase price

The gross rent multiplier (GRM) is a factor that helps determine a property’s potential profitability. It can be used to compare perspective buildings to determine which one is the better deal.

GRM = Property price / Gross annual income

The vacancy rate calculates the vacancy percentage of all your investment properties during a specific period. Percentage helps an investor determine how their property performs given current market conditions. If you have a high vacancy rate, you must determine the cause. Perhaps your asking rents are too high for the current housing market.

Vacancy Rate Formula = # of Vacant Units x 100 / Total # of Units

Cash flow is the movement of money in and out of your business, also known as net operating income. In an ideal scenario, investors will bring in more income than expenses, thus showing profit and a positive cash flow. Positive cash flow allows investors to decide how to use that profit. They can invest it in growing their portfolio or increasing their cash reserves for unexpected expenses.

Cash Flow = Gross rental income – Total expenses

Investors can use their current cash flow to forecast future cash flows, which will give you an idea of how much profit you will see over a specific period. Use past cash flow information to determine if there are any trends. For example, during the summer, your water expenses increase, or possibly every few months, you see an increase in property repairs. Consider these trends when estimating future cash flows and compare actual numbers to determine if your forecasting is accurate.

Use the template below to forecast future cash flow for six months and determine how much cash flow reserves you will have:

Cash Flow Template

Cash flow forecast template.

💡 Quick tip:

In addition to the template, investing in property management software like TenantCloud will set you up for success. The free plan from TenantCloud will help you list apartments, collect rent payments, and screen applicants to maximize profits and minimize vacancies.

7. Perform a Rental Market Analysis

While determining what properties to purchase, investors should perform a rental market analysis (RMA) to gauge the investment potential of a rental property. The RMA consists of running comparables against current units on the market and collecting data that may affect your rental rate to understand if the rental property in question is a solid long-term investment. The analysis helps determine the average rental rate and future rent if you want to make any property upgrades.

Fit Small Business rental market analysis template.

Investors can use resources like Zillow to pull comparable property information and gather information on unit layout, building amenities, rental concessions offered, or listing prices. Once the information is gathered, the spreadsheet itemizes the average, median, highest, and lowest rent. When such information is available, it also provides an average price per square foot compared to the subject property. With this information, investors can decide whether the subject property is worth the investment.

Read our 10 Best States to Invest in Real Estate (& 5 Worst) in 2023 article to better understand which states yield a positive cash flow, build equity, and have long-term profitability.

8. Create a Marketing Plan

Once you determine which property to invest in, investors should identify a marketing plan to list the vacant units. Some investors offload the marketing and advertising to real estate agents and brokerages, which will also collect a fee for renting out the property. Refer to some of the best real estate marketing materials to get started, or use our free real estate marketing plan template to lay out your objectives and tactics.

Image of Fit Small Business' free real estate marketing plan template.

A real estate marketing plan should include your goals, budget, target market, competitors, feasible marketing strategies, and unique selling offers. In addition, it’s crucial to balance your strategy and split your potential marketing plans into categories, like print materials, online ads, email, and social media, so that you can be very specific with your goals and metrics.

Here are some of the real estate marketing mediums to include as you set your marketing goals:

  • Real estate website and landing pages
  • Email marketing
  • SMS and text message marketing
  • Real estate ads
  • Social media marketing
  • Print marketing materials
  • Real estate signs

Download our marketing plan template by visiting our article Free Real Estate Marketing Plan Template & Strategy Guide .

9. Build a Team & Implement Systems

As a new investor, you may be unable to hire an entire team of employees to help perform research, run analysis, property management , and accounting duties. It is best to have a list of vendors you can rely on to assist you with purchasing, rehabilitating, and buying or selling your investment properties. Find vendors you trust so you can free yourself from having to micromanage them and know they have your best interest and the interest of your investments in mind.

Here are a few people you want to include on your team:

  • Contractors
  • Electricians
  • Property managers
  • Accountants

You should also utilize real estate investing apps and property intelligence software like Baselane that relieve you of manually performing daily duties to keep your investments profitable.


Automated rent collection feature (Source: Baselane )

Baselane is an all-in-one solution—from banking to rent collection, bookkeeping, reporting, and analytics. This software will help you efficiently manage your portfolio and eliminate the need for manual tasks. Learn more about how Baselane can make you a better property owner.

Visit Baselane

If you’re looking for more tools to help you get started, improve your portfolio management, and streamline your operations, read our 6 Best Real Estate Software for Investors 2023 article. We listed the six best software tools available for real estate investing based on affordability, customer reviews, features, and support to assist you in finding the best software that suits your needs.

10. Have an Exit Strategy

Since an investor’s money is tied up in the properties they own until they choose to sell, deciding when to sell or liquidate to get access to your money is part of an investor’s overall real estate exit strategy. The exit strategy for a real estate investment business is a plan for when an investor would like to remove themself from a deal or the business altogether. It helps weigh the different scenarios to minimize business risks and maximize the total return on investments.

A few exit strategy examples are:

The factors that an investor should consider when devising an exit strategy are minimizing financial loss, recouping as much of their original investment as possible, and avoiding any unseen fees that will cut into profits like tax consequences. An investor’s plan should always be to grow their original investment, but unforeseen circumstances may occur that will require you to plan on when to cut your losses as well.

Bottom Line

Before launching a successful real estate investment business, you must have an efficient business plan, aligning your strategies with your business objectives. Our real estate investment business plan template can help get you started. These plans act as a roadmap so you can focus on the steps required to grow your business. Business plans evolve, so continuously revisit and improve your strategies. There is no right or wrong way to write a real estate investor business plan as long as it is used to achieve your goals.

About the Author

Jealie Dacanay

Find Jealie On LinkedIn

Jealie Dacanay

Jealie is a staff writer expert focusing on real estate education, lead generation, marketing, and investing. She has always seen writing as an opportunity to apply her knowledge and express her ideas. Over the years and through her internship at a real estate developer in the Philippines, Camella, she developed and discovered essential skills for producing high-quality online content.

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How To Write A Real Estate Business Plan

business plan for real estate investment

What is a real estate business plan?

8 must-haves in a business plan

How to write a business plan

Real estate business plan tips

Success in the real estate investing industry won’t happen overnight, and it definitely won’t happen without proper planning or implementation. For entrepreneurs, a  real estate development business plan can serve as a road map to all of your business operations. Simply put, a real estate business plan will serve an essential role in forming your investing career.

Investors will need to strategize several key elements to create a successful business plan. These include future goals, company values, financing strategies, and more. Once complete, a business plan can create the foundation for smooth operations and outline a future with unlimited potential for your investing career. Keep reading to learn how to create a real estate investment business plan today.

What Is A Real Estate Investing Business Plan?

A real estate business plan is a living document that provides the framework for business operations and goals. A business plan will include future goals for the company and organized steps to get there. While business plans can vary from investor to investor, they will typically include planning for one to five years at a time.

Drafting a business plan for real estate investing purposes is, without a doubt, one of the single most important steps a new investor can take. An REI business plan will help you avoid potential obstacles while simultaneously placing you in a position to succeed. It is a blueprint to follow when things are going according to plan and even when they veer off course. If for nothing else, a real estate company’s business plan will ensure that investors know which steps to follow to achieve their goals. In many ways, nothing is more valuable to today’s investors. It is the plan, after all, to follow the most direct path to success.

real estate investing business plan

8 Must-Haves In A Real Estate Business Plan

As a whole, a real estate business plan should address a company’s short and long-term goals. To accurately portray a company’s vision, the right business plan will require more information than a future vision. A strong real estate investing business plan will provide a detailed look at its ins and outs. This can include the organizational structure, financial information, marketing outline, and more.  When done right, it will serve as a comprehensive overview for anyone who interacts with your business, whether internally or externally.

That said, creating an REI business plan will require a persistent attention to detail. For new investors drafting a real estate company business plan may seem like a daunting task, and quite honestly it is. The secret is knowing which ingredients must be added (and when). Below are seven must-haves for a well executed business plan:

Outline the company values and mission statement.

Break down future goals into short and long term.

Strategize the strengths and weaknesses of the company.

Formulate the best investment strategy for each property and your respective goals.

Include potential marketing and branding efforts.

State how the company will be financed (and by whom).

Explain who is working for the business.

Answer any “what ifs” with backup plans and exit strategies.

These components matter the most, and a quality real estate business plan will delve into each category to ensure maximum optimization.

A company vision statement is essentially your mission statement and values. While these may not be the first step in planning your company, a vision will be crucial to the success of your business. Company values will guide you through investment decisions and inspire others to work with your business time and time again. They should align potential employees, lenders, and possible tenants with the motivations behind your company.

Before writing your company vision, think through examples you like both in and out of the real estate industry. Is there a company whose values you identify with? Or, are there mission statements you dislike? Use other companies as a starting point when creating your own set of values. Feel free to reach out to your mentor or other network connections for feedback as you plan. Most importantly, think about the qualities you value and how they can fit into your business plan.

Goals are one of the most important elements in a successful business plan. This is because not only do goals provide an end goal for your company, but they also outline the steps required to get there. It can be helpful to think about goals in two categories: short-term and long-term. Long-term goals will typically outline your plans for the company. These can include ideal investment types, profit numbers, and company size. Short-term goals are the smaller, actionable steps required to get there.

For example, one long-term business goal could be to land four wholesale deals by the end of the year. Short-term goals will make this more achievable by breaking it into smaller steps. A few short-term goals that might help you land those four wholesale deals could be to create a direct mail campaign for your market area, establish a buyers list with 50 contacts, and secure your first property under contract. Breaking down long-term goals is a great way to hold yourself accountable, create deadlines and accomplish what you set out to.

3. SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis involves thinking through each of these areas as you evaluate your company and potential competitors. This framework allows business owners to better understand what is working for the company and identify potential areas for improvement. SWOT analyses are used across industries as a way to create more actionable solutions to potential issues.

To think through a SWOT analysis for your real estate business plan, first, identify your company’s potential strengths and weaknesses. Do you have high-quality tenants? Are you struggling to raise capital? Be honest with yourself as you write out each category. Then, take a step back and look at your market area and competitors to identify threats and opportunities. A potential threat could be whether or not your rental prices are in line with comparable properties. On the other hand, a potential opportunity could boost your property’s amenities to be more competitive in the area.

4. Investment Strategy

Any good real estate investment business plan requires the ability to implement a sound investment strategy. If for nothing else, there are several exit strategies a business may execute to secure profits: rehabbing, wholesaling, and renting — to name a few. Investors will want to analyze their market and determine which strategy will best suit their goals. Those with long-term retirement goals may want to consider leaning heavily into rental properties. However, those without the funds to build a rental portfolio may want to consider getting started by wholesaling. Whatever the case may be, now is the time to figure out what you want to do with each property you come across. It is important to note, however, that this strategy will change from property to property. Therefore, investors need to determine their exit strategy based on the asset and their current goals. This section needs to be added to a real estate investment business plan because it will come in handy once a prospective deal is found.

5. Marketing Plan

While marketing may seem like the cherry on top of a sound business plan, marketing efforts will actually play an integral role in your business’s foundation. A marketing plan should include your business logo, website, social media outlets, and advertising efforts. Together these elements can build a solid brand for your business, which will help you build a strong business reputation and ultimately build trust with investors, clients, and more.

First, to plan your marketing, think about how your brand can illustrate the company values and mission statement you have created. Consider the ways you can incorporate your vision into your logo or website. Remember, in addition to attracting new clients, marketing efforts can also help maintain relationships with existing connections. For a step by step guide to drafting a real estate marketing plan , be sure to read this guide.

6. Financing Plan

Writing the financial portion of a business plan can be tricky, especially if you are starting your business. As a general rule, a financial plan will include the income statement, cash flow, and balance sheet for a business. A financial plan should also include short and long-term goals regarding the profits and losses of a company. Together, this information will help make business decisions, raise capital, and report on business performance.

Perhaps the most important factor when creating a financial plan is accuracy. While many investors want to report on high profits or low losses, manipulating data will not boost your business performance in any way. Come up with a system of organization that works for you and always ensure your financial statements are authentic. As a whole, a financial plan should help you identify what is and isn’t working for your business.

7. Teams & Small Business Systems

No successful business plan is complete without an outline of the operations and management. Think: how your business is being run and by whom. This information will include the organizational structure, office management (if any), and an outline of any ongoing projects or properties. Investors can even include future goals for team growth and operational changes when planning this information.

Even if you are just starting or have yet to launch your business, it is still necessary to plan your business structure. Start by planning what tasks you will be responsible for, and look for areas you will need help with. If you have a business partner, think through your strengths and weaknesses and look for areas you can best complement each other. For additional guidance, set up a meeting with your real estate mentor. They can provide valuable insights into their own business structure, which can serve as a jumping-off point for your planning.

8. Exit Strategies & Back Up Plans

Believe it or not, every successful company out there has a backup plan. Businesses fail every day, but investors can position themselves to survive even the worst-case scenario by creating a backup plan. That’s why it’s crucial to strategize alternative exit strategies and backup plans for your investment business. These will help you create a plan of action if something goes wrong and help you address any potential problems before they happen.

This section of a business plan should answer all of the “what if” questions a potential lender, employee, or client might have. What if a property remains on the market for longer than expected? What if a seller backs out before closing? What if a property has a higher than average vacancy rate? These questions (and many more) are worth thinking through as you create your business plan.

How To Write A Real Estate Investment Business Plan: Template

The impact of a truly great real estate investment business plan can last for the duration of your entire career, whereas a poor plan can get in the way of your future goals. The truth is: a real estate business plan is of the utmost importance, and as a new investor it deserves your undivided attention. Again, writing a business plan for real estate investing is no simple task, but it can be done correctly. Follow our real estate investment business plan template to ensure you get it right the first time around:

Write an executive summary that provides a birds eye view of the company.

Include a description of company goals and how you plan to achieve them.

Demonstrate your expertise with a thorough market analysis.

Specify who is working at your company and their qualifications.

Summarize what products and services your business has to offer.

Outline the intended marketing strategy for each aspect of your business.

1. Executive Summary

The first step is to define your mission and vision. In a nutshell, your executive summary is a snapshot of your business as a whole, and it will generally include a mission statement, company description, growth data, products and services, financial strategy, and future aspirations. This is the “why” of your business plan, and it should be clearly defined.

2. Company Description

The next step is to examine your business and provide a high-level review of the various elements, including goals and how you intend to achieve them. Investors should describe the nature of their business, as well as their targeted marketplace. Explain how services or products will meet said needs, address specific customers, organizations, or businesses the company will serve, and explain the competitive advantage the business offers.

3. Market Analysis

This section will identify and illustrate your knowledge of the industry. It will generally consist of information about your target market, including distinguishing characteristics, size, market shares, and pricing and gross margin targets. A thorough market outline will also include your SWOT analysis.

4. Organization & Management

This is where you explain who does what in your business. This section should include your company’s organizational structure, details of the ownership, profiles on the management team, and qualifications. While this may seem unnecessary as a real estate investor, the people reading your business plan may want to know who’s in charge. Make sure you leave no stone unturned.

5. Services Or Products

What are you selling? How will it benefit your customers? This is the part of your real estate business plan where you provide information on your product or service, including its benefits over competitors. In essence, it will offer a description of your product/service, details on its life cycle, information on intellectual property, as well as research and development activities, which could include future R&D activities and efforts. Since real estate investment is more of a service, beginner investors must identify why their service is better than others in the industry. It could include experience.

6. Marketing Strategy

A marketing strategy will generally encompass how a business owner intends to market or sell their product and service. This includes a market penetration strategy, a plan for future growth, distribution channels, and a comprehensive communication strategy. When creating a marketing strategy for a real estate business plan, investors should think about how they plan to identify and contact new leads. They should then think about the various communication options: social media, direct mail, a company website, etc. Your business plan’s marketing portion should essentially cover the practical steps of operating and growing your business.

real estate investor business plan

Additional Real Estate Business Plan Tips

A successful business plan is no impossible to create; however, it will take time to get it right. Here are a few extra tips to keep in mind as you develop a plan for your real estate investing business:

Tailor Your Executive Summary To Different Audiences: An executive summary will open your business plan and introduce the company. Though the bulk of your business plan will remain consistent, the executive summary should be tailored to the specific audience at hand. A business plan is not only for you but potential investors, lenders, and clients. Keep your intended audience in mind when drafting the executive summary and answer any potential questions they may have.

Articulate What You Want: Too often, investors working on their business plan will hide what they are looking for, whether it be funding or a joint venture. Do not bury the lede when trying to get your point across. Be clear about your goals up front in a business plan, and get your point across early.

Prove You Know The Market: When you write the company description, it is crucial to include information about your market area. This could include average sale prices, median income, vacancy rates, and more. If you intend to acquire rental properties, you may even want to go a step further and answer questions about new developments and housing trends. Show that you have your finger on the pulse of a market, and your business plan will be much more compelling for those who read it.

Do Homework On The Competition: Many real estate business plans fail to fully analyze the competition. This may be partly because it can be difficult to see what your competitors are doing, unlike a business with tangible products. While you won’t get a tour of a competitor’s company, you can play prospect and see what they offer. Subscribe to their newsletter, check out their website, or visit their open house. Getting a first-hand look at what others are doing in your market can greatly help create a business plan.

Be Realistic With Your Operations & Management: It can be easy to overestimate your projections when creating a business plan, specifically when it comes to the organization and management section. Some investors will claim they do everything themselves, while others predict hiring a much larger team than they do. It is important to really think through how your business will operate regularly. When writing your business plan, be realistic about what needs to be done and who will be doing it.

Create Example Deals: At this point, investors will want to find a way to illustrate their plans moving forward. Literally or figuratively, illustrate the steps involved in future deals: purchases, cash flow, appreciation, sales, trades, 1031 exchanges, cash-on-cash return, and more. Doing so should give investors a good idea of what their deals will look like in the future. While it’s not guaranteed to happen, envisioning things has a way of making them easier in the future.

Schedule Business Update Sessions: Your real estate business plan is not an ironclad document that you complete and then never look at again. It’s an evolving outline that should continually be reviewed and tweaked. One good technique is to schedule regular review sessions to go over your business plan. Look for ways to improve and streamline your business plan so it’s as clear and persuasive as you want it to be.

Reevauating Your Real Estate Business Plan

A business plan will serve as a guide for every decision you make in your company, which is exactly why it should be reevaluated regularly. It is recommended to reassess your business plan each year to account for growth and changes. This will allow you to update your business goals, accounting books, and organizational structures. While you want to avoid changing things like your logo or branding too frequently, it can be helpful to update department budgets or business procedures each year.

The size of your business is crucial to keep in mind as you reevaluate annually. Not only in terms of employees and management structures but also in terms of marketing plans and business activities. Always incorporate new expenses and income into your business plan to help ensure you make the most of your resources. This will help your business stay on an upward trajectory over time and allow you to stay focused on your end goals.

Above all else, a  real estate development business plan will be inspiring and informative. It should reveal why your business is more than just a dream and include actionable steps to make your vision a reality. No matter where you are with your investing career, a detailed business plan can guide your future in more ways than one. After all, a thorough plan will anticipate the best path to success. Follow the template above as you plan your real estate business, and make sure it’s a good one.

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Your 10 Step Guide to Building a Real Estate Investing Business Plan

Real estate empires grow from a blueprint, not last-minute hunches. This guide outlines how to create a real estate investing business plan to help you navigate market dynamics, seek funding, and add to your team so that you can successfully grow your business.

business plan for real estate investment

Let’s be honest, the idea of drafting a formal real estate investing business plan probably doesn’t excite you. After all, you got into real estate investing to scout deals and transform properties, not write novels full of financial projections.

But experienced investors know a solid plan spells the difference between profitability and major headaches. It forces clarity on direction and feasibility before you sink hundreds of thousands into property purchases and rehabs.

Think of your business plan as a blueprint for success tailored to your unique investment goals and market conditions. Whether you currently own a few rentals or are launching a full-fledged development firm, a plan guides decisions, aligns partners, and demonstrates viability to secure financing.

So how do you build one effectively without needless complexity? What key strategy areas require your focus? Let’s explore components that set you up for growth while avoiding common first-timer pitfalls. With realistic planning as your foundation, your investing journey can start smooth and stay the course.

What is a real estate investing business plan?

At its core, a real estate investment business plan is simply a strategic guide outlining your intended real estate approach. It defines target markets, preferred project types based on expertise, capital sources, growth strategy, key operational procedures, and other investment specifics tailored to your situation.

View your plan as an evolving document rather than a rigid static rulebook collecting dust. It should provide goalposts and guardrails as markets shift over time and new opportunities appear. You'll be able to refer back to the plan to confirm that these new opportunities align with proven tactics that yield predictable returns.

Detailed upfront planning provides a sound foundation for confident direction. It protects stakeholders by identifying potential pitfalls and mitigation strategies before costly surprises trip up the stability of your real estate business.

So, it's worth it to take the time and develop a customized plan aligned to your niche, resources, and risk tolerance. While initially tedious, the practice of putting together your strategic real estate business plan ultimately provides clarity and confidence moving forward.

Importance of having a business plan

Now that we’ve defined what a business plan is, let’s explore why having one matters — especially if you want to grow a successful real estate investment company.

Have you considered what originally attracted you to investing in properties? Whether it was rehabbing flips, acquiring rentals, or simply a lucrative hobby, your motivations and ideal path can get lost in the daily distractions of life. That’s where an intentional business plan provides clarity and conviction moving forward.

Reasons every real estate investor should prioritize planning are:

  • Goals and vision : You might be wanting to quit your day job and focus on real estate full time, or you might simply want to generate some extra income on the side. Either way, a business plan forces you to define what success looks like for you.
  • Due diligence : Creating a plan forces you to research the real estate markets you want to invest in — analyzing sales, rents, permits, zoning, demographics, and growth projections. This helps you objectively identify high-potential neighborhoods and properties rather than relying on hearsay or intuition.
  • Funding and financing : Lenders and potential investors will want to review your business plan to evaluate the viability and profitability of your real estate investment business before offering any financing . A complete plan builds credibility and confidence with stakeholders.
  • Guide decision-making : It's easy to get distracted by the latest real estate seminar or shiny new construction techniques. But sticking to the parameters and strategies laid out in your plan prevents you from making hasty changes or going down rabbit holes.
  • Identify potential risks : There are always things that can unexpectedly go wrong: what if interest rates spike and make your loans unaffordable, or your best tenants move out and unreliable folks move in? Brainstorming these scenarios in advance allows you to minimize risks and have contingency plans.
  • Systemize operations : As you grow, how will you scale operations? A business plan helps you identify areas that will require attention as your business evolves, like creating maintenance checklists for rentals, standardizing lease agreements , or automating accounting procedures.
  • Build the right team : Your business plan provides guidance on the team you'll need for your business. Know if you require a real estate agent to help you find deals or a property manager to handle tenant complaints at 2 AM.
  • Track progress : Your plan helps you compare things like actual rehab costs, rental occupancy rates, cash flow, etc. to your initial projections and determine whether you're on track.  You can then make adjustments as needed.
  • Maintain strategy : As you scale your operations with new hires or partnerships, you'll want to maintain direction in alignment with your original business plan. For example, if you are considering new verticals like commercial real estate, does evaluation criteria match your proven risk metrics and return hurdles? A real estate business plan keeps everyone focused on the same goals as your business grows.

What to include in a real estate investment business plan

A good real estate investing business plan covers everything from business goals to financing strategy. Here are the ten key elements you should include:

1. Executive summary

The executive summary provides a high-level overview of your real estate investment business plan. It briefly describes your company mission, objectives, competitive advantages, growth strategies, team strengths, and financial outlook.

Think of it as the elevator pitch for your business plan, and write it last after you have completed the full plan. Limit it to 1-2 pages at most.

Make your executive summary compelling and motivate investors or lenders to learn more. Be sure to also summarize your past successes and experiences to build credibility.

2. Company description

The company description section provides background details on your real estate investment company. Keep this section brief, but use it to legitimize your business and team.

  • Business model : Explain your core business model and investment strategies. Will you primarily flip properties, buy and hold rentals, conduct wholesale deals, or use another approach?
  • Company history and achievements : Provide a brief timeline of your company's history, including its formation, past projects, key milestones, and achievements.
  • Legal business structure : Identify your corporate structure, such as LLC , S-Corp , C-Corp, or sole proprietorship.
  • Office location : Provide your company's office address, which lends you credibility. If you are initially working from home, consider establishing a local PO Box or virtual address.
  • Founders and key team members : Introduce your founders and key team members. Highlight relevant real estate, finance, management expertise, and credentials.
  • Past projects : Provide an overview of any successful prior real estate projects your company or founders have executed.
  • Competitive advantages : Explain unique resources, systems, or other strengths that give your company an edge over competitors. These could be proprietary analytic models, contractor relationships, deal access, or specialized expertise.
  • Technologies and tools : Discuss technologies, software programs, or tools your company uses to streamline processes and optimize operations.

3. Market analysis

The market analysis section validates whether your real estate investment strategy makes sense in a given area.

Conduct detailed research from multiple sources to create realistic real estate investment market projections and identify potentially profitable opportunities.

Outline why certain neighborhoods, property types, or price points pique your interest more than others.

Your market analysis should dig deep into factors like:

  • Local sales and rental price trends : Analyze pricing history and current trends for both sales and rents. Look at different property types, sizes, and neighborhoods.
  • Housing inventory and demand analysis : Research the balance of supply and demand and how that impacts prices. Is the market undersupplied or oversupplied?
  • Market growth projections : Review forecasts from real estate analysts on expected market growth or decline in coming years. Incorporate these projections into your analysis.
  • Competitor analysis : Identify other real estate investors actively acquiring or managing properties in your target areas. Look at their business models and strategies.
  • Target neighborhood and property analysis : Provide an in-depth analysis of your chosen neighborhoods and target property types. Outline positive attributes, risks, and opportunities.
  • Demographic analysis : Analyze the demographics of potential tenants or homebuyers for your target properties. Factors like income, age, and family size impact demand.
  • Local construction and renovation costs : Research materials and labor costs for accurate budgets and understand the permitting process and timelines.
  • Regional economic outlook : Factor in projections for job growth, new employers, infrastructure projects, and how they may impact the real estate market.

4. SWOT analysis

SWOT stands for strengths, weaknesses, opportunities and threats. Conducting a SWOT analysis means stepping back from day-to-day business to assess your broader position and path from a strategic lens.

Internal strengths for your real estate investment business may include an experienced team skilled in major rehab projects, strong contractor relationships, or access to private lending capital. Weaknesses might be limited staff for handling tenant maintenance issues across a growing rental portfolio or only having a small number of referral partners for deal flow.

External opportunities can come from accelerating population growth and development in your target market, new zoning favorable to multifamily housing, or record-low mortgage interest rates. Threats could be rising material prices that hurt your flip margins, laws imposing restrictions on non-primary residence owners, or an oversupply of new luxury rentals, allowing tenants to be choosy.

The SWOT analysis highlights strengths to double down on and risks to mitigate in the real estate market.

5. Financial projections

The financial plan helps for both internal preparation and attracting investors. For real estate companies, the financial plan section should cover:

  • Startup costs : Include the expected startup costs involved to start your investment project, such as getting licenses and permits or paying for legal fees.
  • Profit and loss forecasts : Create projected profit and loss statements that outline what you think your revenues and expenses will be over the next 3-5 years.
  • Cash flow projections : Put together projected cash flow statements that show expected cash flow for each month.
  • Return on investment projections : Project your company's expected ROI over time under the different investment scenarios.
  • Funding requirements : Based on your forecasts, detail exactly how much capital you will need to start and operate your business until it is profitable. Specify whether you plan to use debt or equity financing.

6. Investment strategy

The investment strategy outlines your niche — will you focus on flipping, buying rentals, commercial properties, or a blend? Define any geographic targets like certain cities or zip codes backed by your research on growth potential.

Specify your criteria for ideal investment properties based on your goals. Decide which factors — age, size, layout, condition, or price point — matter most to you.

You can also use this section to explain how you plan to find deals, whether that's by scouting listed properties, attending foreclosure auctions, or networking to create off-market opportunities.

Clearly conveying your approach allows lenders and potential private investors to grasp your niche, planned pursuits, and process for finding deals. Having a strong strategy that summarizes how you locate, evaluate and capture deals matching your investing thesis can increase lender and private investor confidence in your ability to execute.

7. Marketing plan

Real estate marketing can’t just be an afterthought; it helps attract profitable deals, financing, and tenants to your business, making it a necessary component of your business plan to prioritize.

Components of your marketing plan can include:

  • Networking: Actively networking at local real estate meetups puts you directly in front of promising off-market opportunities and partnerships with motivated sellers, lenders and contractors in your community.
  • Social media: Consistently nurturing your social media presence can also pay off to help you find opportunities or potential investors.
  • Direct marketing: Never underestimate old school direct marketing — sending postcards to addresses with outdated “We Buy Houses” signs or calling the For Sale by Owners numbers from public listings can help you reach motivated sellers.
  • Listings management: Note that marketing does not end once you own property. To keep rental vacancies filled, leverage listing sites that can publish your units to a wide audience of prospective tenants.

8. Operations plan

Without systems, real estate investors struggle through renovations plagued by cost overruns, shoddy contractors who never call back, and frustrating tenants who always pay late . The operations component of your plan should consider aspects like:

  • Renovations: Ever lined up a contractor who juggles too many clients and leaves your projects languishing? Create standardized processes for accurate scoping, vetting subs, enforcing deadlines contractually, and maintaining contingency funds.
  • Business technologies: As your portfolio grows, tasks like tracking income, expenses , assets, and communicating with tenants can quickly overwhelm. Identify technologies early on that help centralize details to avoid getting swamped. Look into property management platforms that automate listings, tenant screening , digitized lease agreements, maintenance work order flows, and communications.
  • Insurance: Tenants or contractors can sometimes damage assets. Discuss landlord insurance policies to protect you against lawsuits, natural disasters, and major property repairs as you scale up.

9. Team structure

If you plan to grow your team beyond just yourself or a few partners, your business plan should outline your organization's key roles and responsibilities. This helps you consider what positions you may need to fill as your company scales.

  • Partners or co-founders: These are the main decision-makers and equity holders. Outline their background, skills, and the value they bring.
  • Property manager: This person handles day-to-day management of properties, tenants and maintenance issues.
  • Bookkeeper: You may need daily help managing bank accounts, invoices, taxes, and financial reporting.
  • Contractors and project managers : You'll need trusted renovations, repairs, and landscaping contractors. Dedicated project managers help oversee large jobs.
  • Leasing agents : As you grow and add more properties, leasing agents handle showings, applications, and signing new tenants.
  • Real estate attorneys : Real estate investing requires proper legal filings and compliance. Attorneys can help you manage this risk.

10. Exit strategies

Every wise investor plans their exit strategy upfront before acquiring a property. Will you aim to flip the asset quickly or retain it as a rental long-term? What factors determine ideal timing and the right profit margin for you to walk away?

Build flexibility into your strategy, as markets move in unpredictable ways. Especially with flips, have contingency plans if your listing gets lowballs or no offers. Be willing to rent short-term, refinance and hold if possible, convert to condos, or just patiently wait until the market changes. Having reserves and backup options allows you to avoid a distress sale.

Also include plans for strategies after a property sale, like a 1031 exchange to defer capital gains taxes and reinvest in another property. You may want to use sale proceeds to reduce or clear outstanding debts, enhancing cash flow and financial standing.

Tips for your real estate business plan 

Now that you know what to include, consider the following four tips to help your real estate investment business plan stand out.

1. Be detailed and specific

Resist the urge to gloss over details as you put together your plan. Drill down on the specifics for parameters like:

  • Target purchase and rehab costs.
  • Timelines for completing projects.
  • Minimum profit margins.
  • Maximum allowable vacancy rates .
  • Minimum cash reserves.

2. Refine and update regularly

Markets change, so don't create your business plan and file it away. Review your plan regularly to see how market conditions and your actual results compare to projections.

Make adjustments as needed. Tweak your approach if your rehabs are going over budget or your properties aren't selling as quickly as expected.

Aim to update your full plan annually at a minimum. Even if your overall strategy remains consistent, refresh the details around market factors, financials, tactics, risks, and projections.

3. Seek expert feedback

Before implementing your new real estate investment business plan, seek feedback from advisors who can identify potential issues or weaknesses.

Ask experienced real estate investors in your area to review your plan and provide constructive input. It's also a good idea to share your plan and numbers with your CPA and legal counsel as well.

4. Keep it simple

While specificity is good, don't over complicate your business plan to the point where it becomes difficult to follow. You want to inform readers without confusing them.

The goal is for stakeholders, such as co-investors, lenders, and partners, to easily digest your plan and understand it after a quick skim. Make it easy for readers to grasp your reasons behind focusing on a given area or project type based on market conditions and opportunity.

A property investment business plan fit to your goals

After finally finishing your business plan, you’re probably eager to dive into tangible investments rather than tweaking spreadsheets. But in the real estate industry, even experienced investors periodically step back and update strategies.

Approach your business plan as a living document that evolves as the market shifts, as you create new partnerships, or when you need to make changes in strategy. Set reminders to revisit quarterly and confirm your activities of today still align with the vision from day one.

Solid planning is proven to improve outcomes in dynamic industries like real estate investing. Though preparation isn’t glamorous, it pays dividends. Thoughtfully constructing your playbook puts the odds of executing successfully in your favor.

With a solid blueprint backed by your research, you’re now ready to capture the best real estate investment opportunities.

Business plan real estate investor FAQs

How do i stay flexible and adapt my business plan to changes in the market.

To stay flexible, review your real estate investing business plan regularly and update it based on changes in market conditions, trends, and opportunities. If things change in the market, find ways to adapt your strategy. This can include your goals, target market, financing, and even your exit plans.

How do I know if my real estate investing business plan is effective?

You'll know your business plan is effective if you're meeting the key objectives and metrics you outlined. Let's say your plan called for you to purchase a certain number of properties and achieve a specific cash flow or rate of return. If you're falling short, you can use the plan to course-correct.

Are there any specific software or tools for creating a real estate investing business plan?

Azibo is a helpful software tool for creating real estate investing business plans. This comprehensive platform has templates and tools to build out key sections of your plan. Its robust accounting and financial capabilities help construct accurate statements and projections.

Incorporating Azibo's online rent collection allows you to model cash flows. By centralizing lease documents , accounting, and portfolio management, Azibo streamlines the process of putting together a strategically sound real estate business plan.

Author Photo

Nichole co-founded Gateway Private Equity Group, with a history of investments in single-family and multi-family properties, and now a specialization in hotel real estate investments. She is also the creator of, a blog dedicated to real estate investing.

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Real Estate Investment Business Plan

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Real estate has been one of the fastest-growing industries in recent times. So, if considering starting a real estate investment business—this is the right time.

Whether you’re a seasoned investor to get into real estate or a rookie aiming to set your foot in this rapidly growing market, you need a solid business plan to make your real estate investing business a runaway success.

Need assistance writing your business plan? Worry not.

We have prepared a real estate investment business plan template to help you get started.

Let’s cut to the chase: download this template, follow step-by-step instructions, and finish the first draft of your plan.

recognize opportunities and deal with challenges in an effective way. It’ll also help you devise an investment strategy that brings you maximum returns.

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Things to Consider Before Writing a Real Estate Investment Business Plan

Select the right property location.

Selecting the right location to invest in is one of the primary requirements for a real estate business’s success. You should select the location based on what is the potential of infrastructural development in the area. Is it a preferable location for commercialization and urbanization or not? You should always keep these things in mind to ensure the maximum possible returns on your investment.

Know the purpose of your investment

Do your research, know all of your options, how can a real estate investment business plan help you.

You may want to start investing as soon as possible, after all, investments take time to grow, right? But just like a stitch in time saves nine, a real estate investment business plan can help your investment business prosper in the future even if it seems time-consuming at the moment.

It can help you design a proper business model and formulate a great business growth strategy. Moreover, it can also help you track your progress along the way.

All in all, it can make your investments way smoother than going about without a business plan.

Chalking out Your Business Plan

The real estate sector is one of the most profitable sectors to invest in. Many investors swear by it as a bankable source of secondary income.

Not just that, the real estate investment market increased from 9.6 trillion dollars in 2019 to 10.5 trillion dollars in 2020. Although it may take time, investment in the housing market can help your money grow.

And though the above information invests in the real estate sector as a rosy prospect, it can go horribly wrong without a proper business plan and investment strategy.

Read on to find out what a business plan can do for your investment business.

Real estate investment business plan outline

This is the standard real estate investment business plan outline which will cover all important sections that you should include in your business plan.

  • Purpose of the Plan
  • Introduction
  • The Problem
  • The Solution
  • A fundamental change in the US housing market
  • All three legs of the apartment investment stool are in place
  • Weak Housing Market
  • Competitive Advantage
  • Business Model
  • Growth Opportunity
  • Corporate Structure Overview
  • Source and Use of Funds
  • Return on Investment
  • Mission Statement
  • Business Objectives
  • Legal Structure
  • Company Ownership
  • Location and Premises
  • Intellectual Property
  • CREI Business Model
  • Revenue Projections
  • The Amount of Investment Funds Requested
  • Business Benefits
  • Investment Repayments
  • Good Investment Trends in Apartment Rentals
  • Rent Spikes Coming For a Good Investment in Apartment Buildings
  • Apartments Continue as Good Investment Through 2012 and Beyond
  • Apartment Buildings Going From Good Investment to Great
  • Filling Basic Needs Makes for a Good Investment
  • More Americans renting by choice
  • The Apartment Building Investment Triple Opportunity Is Right Now
  • Internet Growth Allows Renters to Locate Good Apartments
  • Industry Participants
  • Competitive Advantages
  • Strategic Initiatives?
  • Brand Strategy
  • Provide Individuals, Families, and Businesses with Quality Rental Properties at an Affordable Price.
  • Positioning Statement
  • Pricing Strategy
  • Sales Strategy
  • Sales Forecast
  • Sales Programs
  • Strategic Alliances
  • Social networking websites
  • Email campaigns
  • SEO (Search Engine Optimization) PPC
  • Banner advertisements
  • Search Engine Optimization
  • Organizational Structure
  • SWOT Analysis
  • Key Assumptions
  • Key Financial Indicators
  • Explanation of Break-even Analysis
  • Business Ratios
  • Long-term Plan and Financial Highlights
  • Projected Income Statement
  • Projected Cash Flow
  • Projected Balance Sheet

How to Write a Real Estate Investment Business Plan?

A real estate investment business plan consists of several key areas that must be included in it and add things that would be unique to you and your business.

Also, there are several ways in which you can write a business plan including online business plan software and pre-designed templates. You can choose the method that works best for your individual needs.

What to Include in a Real Estate Investment Business Plan?

Although a business plan should be customized as per the needs of an individual and market situation, there are certain areas that every real estate investment business plan must include. They are as follows:

1. Executive Summary

The executive summary section is the first and foremost section of your business plan. It consists of what your entire business stands for. It focuses on everything ranging from opportunities and threats, competitive advantages your business has, the structure of the current market as well as the financial needs of the business.

Most importantly for a real estate investment business plan, it would also consist of the prospective return of investment one can expect from the business as well as the expected duration of time for that growth to happen.

2. Business Concept and Revenue Model

This section would include the type of investment concept and revenue model you plan on following with your business. So, before writing this section it is a good practice to analyze the current trends in the market as well as your own finances, to find the concept that fits the best for you in the current market situation.

In this section, you can also include methods of tracking the progress of your investments.

3. Market Analysis

Whenever one starts a new business it is mandatory to carry out market analysis to flourish in it. It not only helps you in understanding the market, but it also helps you in choosing the right strategy for your own business.

For example, in the US rent spikes and increasing demand for rental accommodations make the rent department an extremely profitable segment in the real estate market. A thorough analysis of the market can thus help you choose the most favorable market segment as well as the best locality to invest in.

4. Growth Strategy

In this section, you should include the milestones you plan on having for your investment business. It helps you set well-defined tasks to achieve those milestones and keeps you motivated while doing the same. Also, with the help of milestones, you can always pinpoint when and where you are going wrong and need a shift in direction.

5. Web Plan

Having a web presence can be immensely helpful in building your network and reaching out to potential partners and organizations that can help you grow.

For building an online presence you can use various tools like social media, email marketing, optimized web pages, etc.

6. Management Summary

This segment includes information regarding the roles and responsibilities of the people in your business. The people in your business are a major aspect that decides its success or downfall, therefore a thorough detail of their work and progress is an essential part of your business plan.

7. SWOT Analysis

Carrying out a SWOT analysis before writing your business plan can make the process faster, easier, and way more well-defined. Hence, including it in your business plan is always a good idea.

8. Financial analysis

Even though financial analysis is crucial for any business, it is especially important for investment businesses. In this section, you can include the time required to reach the break-even point, the projected growth of your business, long-term finances as well and strategies to deal with potential changes in the market.

Download a sample real estate investment business plan

Need help writing your business plan from scratch? Here you go; download our free real estate investment business plan pdf to start.

It’s a modern business plan template specifically designed for your real estate investment. Use the example business plan as a guide for writing your own.

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Frequently asked questions, do you need a business plan for real estate investing.

Indeed. Whether you plan to start a real estate investing, development, or mortgage broker business—you need a solid business plan to make your real estate business a runaway success. You can use Upmetrics’ real estate & rental business plan templates to get started writing your plan.

What's the importance of a marketing strategy in a real estate investment business plan?

Marketing strategy is a key component of your real estate investment business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

  • It provides your business an edge over your competitors.
  • It helps investors better understand your business and growth potential.
  • It helps you develop products with the best profit potential.
  • It helps you set accurate pricing for your products or services.

What is the easiest way to write your real estate investment business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any real estate investment business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business planning tool .

How do I write a good market analysis in a real estate investment business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry.

We can categorize the process of writing a good market analysis section into the following steps:

  • Stating the objective of your market analysis—e.g., investor funding.
  • Industry study—market size, growth potential, market trends, etc.
  • Identifying target market—based on user behavior and demographics.
  • Analyzing direct and indirect competitors.
  • Calculating market share—understanding TAM, SAM, and SOM.
  • Knowing regulations and restrictions
  • Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

About the Author

business plan for real estate investment

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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How to Create a Real Estate Investment Business Plan for Residential Rental Properties (Free Template)

business plan for real estate investment

Ready to unlock the potential of real estate investment and build your financial future? Whether you’re an experienced investor or just starting out , crafting a well-thought-out business plan is critical if you're to succeed in the world of residential rental properties. 

This article will guide you through the essential steps, considerations, and components of creating a real estate investment business plan. Plus, we've got a valuable free template to make your journey even more manageable.

Why You Need a Business Plan for Real Estate Investment

Crafting an effective real estate investment business plan is about more than paperwork; it's about turning your aspirations into achievements.

Creating a formalized business plan for your real estate investment venture is tantamount to success. It forces you—the investor—to organize your thoughts, feelings, goals, and ideas moving forward in the business in a single, powerful document. 

Remember, this is a living document meant to be flexible as your business grows or changes tactics over the years. It keeps you on target, helps expand your business, and keeps your financial goals on track. 

It’s also a helpful document for potential investors, creditors, and partners to peruse before pursuing a business venture with you. 

And speaking of collaborators, finding sample real estate investment business plans or a template to download to get you started is a good idea. But before diving into that, let's look at a few general considerations that will shape your plan.

General Considerations for a Real Estate Investment Business Plan

Before you start actually writing your business plan, there are a few general considerations to keep in mind:

  • The Why. When you start any new venture, it’s good to know you’ve got the strength to realize your goals, even when things get tricky. Defining why you’re embarking upon this real estate investment journey is necessary if you want  to reach your destination. Why do you want to invest in real estate? To create financial independence? To serve the community? To provide for your family? Everyone’s “why” is unique to them. As such, your underlying motivation should be the starting point of creating a business plan. Everything follows from this origin.
  • Financial Goals. Next, it’s wise to consider your financial goals. What are you hoping to accomplish financially? This is a business, and having defined financial goals will help keep your real estate investments trending in the right direction. 
  • Timeline. When do you want to achieve all this? Are you taking this business from now until retirement or looking to flip a few houses before the decade closes? Having a general timeline in mind when planning means you’ll be realistic about what goals you can accomplish. 
  • Real Estate Investment Strategy. There are countless ways to jumpstart your real estate investments. Doing a bit of research to discover which real estate investment strategies best suit your financial goals and desired timeline will ensure your business plan is realistic moving forward.

These considerations form the foundation of your real estate investment business plan. But how do you piece it together and create a comprehensive, winning document? 

Spoiler alert: Property managers can be your secret weapon in crafting an airtight plan and guiding you through your investment journey. 

But first, let's explore the essential components of your business plan and how a property manager can make the process smoother.

Essential Components of a Business Plan for Real Estate Investment 

A well-thought-out business plan for real estate investment should help you secure the financing and partnerships needed to bring your dream to fruition. 

To do this, it must include the following components:

  • Executive Summary: a bird’s eye view. The first section of a business plan is like an abstract for a research paper. Here, you’ll introduce the plan and give an overview of what comes later in the document. 
  • Define your team. Who are you bringing on this journey? What are their qualifications? This section can attract new investors and partners by touting the team's accomplishments. 
  • Outline marketing strategy. A business plan won’t succeed without a marketing strategy to connect with potential clients, in this case, future tenants. Your real estate business plan must include understanding the need for top-quality marketing and a method to market your business successfully. Will you run social media ads? Rent local billboard space? 
  • Demonstrate initiative and a willingness to learn. Include a section to show that you know this industry, have researched the competition, and are aware of local real estate market trends and areas for growth. This will communicate to potential investors you’re willing to put in the elbow grease it takes to succeed long-term in this business. 
  • Describe the “What”. What services will you offer? What type of properties will you invest in? What are the next steps to your plan moving forward? 

As you dive deeper into your real estate investment journey, remember that the strength of every property manager relationship reflects the property owner's dedication. 

How to Create a Residential Real Estate Business Plan Quickly 

If you're looking to create a residential real estate business plan quickly, here are a few must-have tips to get you started:

  • Define: Mission. Vision. Values. A business is only as strong as its “big three” pillars: the mission, vision, and values. Begin your business plan by defining what the purpose of your business is (its mission), your plan to bring this mission to life (vision), and the values that will guide your actions when the going gets tough. Careful consideration of these will give you clarity when finding team members to build your business later on. You need people who click with what your business stands for. 
  • Identify short and long-term goals. A real estate business is only as successful as it prepares to be. Remember the adage: if you fail to plan, you plan to fail. Spending time identifying short (3-12 months out) and long (1-5 years in the future) term goals gives you and your team ways to mark the journey to success with well-defined milestones. 
  • Figure out the finances. How will you fund your business? There are many ways to find capital to bring your real estate business plan to life, but you may have to get creative. And you’ll need to stay organized and on task to bring your financial goals to fruition. 
  • Find the perfect property manager. The quickest way to accomplish this magnificent business plan you’re creating? Hire a property manager to help you skip the grunt work. But while finding the right manager for your business isn’t easy—you’ll need to research and interview several property managers before you get a feel for what’s best for you—the road will be much less bumpy with a solid business plan in hand. 

How a Property Manager Can Help You Create a Real Estate Investment Business Plan

A property manager can help you create a real estate investment business plan in five important  ways. 

  • Provide you with insights into the local real estate market.
  • Help you identify and evaluate potential investment properties.
  • Help you develop a marketing strategy to attract tenants.
  • Help you manage your finances and keep track of your expenses.
  • Provide you with guidance and support throughout the investment process.

When you enter property manager interviews armed with a robust business plan, you demonstrate your commitment and pave the way for a successful partnership. 

Ultimately, creating the ideal business plan for real estate investment begins with you. Every property manager relationship is only as strong as the drive of the property owner. 

Download APM’s free sample real estate investment business plan template to get started.

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Justin Dossey

Justin Dossey

How to write your real estate investing business plan: the ultimate guide.

  • February 8, 2023
  • , Business Advice , How to , Real Estate Investing Tips

Want to create a real estate investing business plan?

Well, you could just launch your business.

You could go door-knocking for the next week, maybe even find a property to buy, buy it, and then try to flip it or rent it out. Then you could do that over and over again.

Heck — maybe you’d even build a healthy business out of it.

Buuuuut, maybe not.

If you’re anything like me, then you favor planning over mindless execution (sorry Gary Vee). You don’t want to just launch a business that may or may not succeed, you want a real estate investing business plan . You want to give your business the best possible chance of success.

For that, you need to spend a little time thinking about the details of how your business will function.

Let me prove it to you…

Why do you need a real estate investing business plan?

I could talk your ear off about why people who make a plan for their real estate investing business will succeed. Or I could tell you about the people I’ve personally  seen set out without a plan and fail. Or I could tell you a story about one person who had the best of intentions for his new real estate investing business, but lost money his first month because he didn’t have a clearly defined budget.

But I won’t…

I’ll  show you.

Research from 2,877 business owners revealed that people with a plan are more likely to grow their business, secure investment capital, and/or secure a loan.

those with a REI business plan succeed

( Image Source )

Here’s how the authors of the study put it:

“Except in a small number of cases, business planning appeared to be positively correlated with business success as measured by our variables. While our analysis cannot say that completing a business plan will lead to success, it does indicate that the type of entrepreneur who completes a business plan is also more likely to run a successful business.”

So whether you want to give your business a better chance at succeeding down the road, or simply  become the kind of person who will likely grow a successful business, drafting a plan is in your best interest.

And it doesn’t have to be remarkably complicated.

12 Steps To Create Your Real Estate Investing Business Plan

Here are 12 steps to get you moving.

Step 1. Create your vision and mission

It might seem like a silly first step to creating your real estate investing business plan.

Because let’s be honest: you’re setting out to make money, achieve financial freedom, and live on your own terms. You’re not setting out to save the world from some big injustice (probably — props if you  are ) or change other people’s lives for the better.

You want to build a business that will benefit  you .

Still, a mission and vision statement can help define  how you’re going to build that business, why you’re building it, and who your business is going to serve. Because even though you’re building a business to benefit you in the end, the only way to build a successful business is by helping  others .

As Bob Burg wrote, “Your income is determined by how many people you serve and how well you serve them.”

Here’s an example of a mission and vision statement.

real estate investing mission and vision statement

Just like you personally have a “why?” to your existence, your business needs a “why?” to its existence. Your mission and vision statement will help you determine what that “why?” is and how your business is going to make you money by helping others.

Step 2. Determine your end goal

You also must connect your own personal goals to the goals of your business — you’re the one who’ll be building it, after all. Your business will live or die based on your own daily motivation, ambition, and energy levels.

For that reason, you should ask yourself this dead-simple question: “Why am I building this business? What is my end goal?”

Do you want to be a millionaire? Do you want to live on the beach in Tahiti and sip gin for the rest of your life while this business makes you money on autopilot? Do you want to be the CEO of a large corporation? Do you want to make $200k per year and work 10 hours per week?

What you want out of your business will determine the kind of business you build. And the more attractive your end goal is, the more determined you will be to keep going when things get tough. I love the way that Tim Ferriss puts it: “The question you should be asking yourself isn’t, ‘What do I want?’ or ‘What are my goals?’ but ‘What would excite me?'” Because the more excited you are, the more determined you’ll be.

Step 3. Do market research using a SWOT analysis

SWOT stands for Strengths, Weaknesses, Opportunity, and Threats.

And determining those four things for your own business  before you launch is vital. Ask yourself…

  • Strengths: What are competitors already doing well in my market that I likely won’t be able to compete with?
  • Weaknesses: What are competitors in my market  not doing well?
  • Opportunity: What opportunity in my market are most competitors not leveraging and might I be able to exploit that?
  • Threats: What will be the big threats to my business and how can I prepare for these?

Here’s a more thorough graphical breakdown of SWOT to help you perform your market analysis.

SWOT analysis

Step 4. Choose a real estate investing business model

After you’ve performed your SWOT analysis, you should be ready to determine the  type  of real estate investing that will be most lucrative for your market. Try not to let funding make the decision for you (i.e. I don’t have much capital, so I guess I’m going to wholesale), because the reality is that there’s  always a way to get money to build your business — the important thing is that you’ve chosen a type of real estate investing which is likely to succeed given current market conditions.

Here are the most common real estate investing business models:

  • Wholesaling   — This is when you find good deals and flip those deals to cash buyers for an assignment fee. You can usually make $5,000 to $25,000 per deal and it doesn’t require any money down.
  • Wholetailing   — Wholetailing is similar to wholesaling except that you purchase a home for a good deal, do very little work to it, and then sell it on the MLS. This can be a very profitable business model, but it’ll require access to more funds than wholesaling .
  • Flipping  — House flipping is when you purchase a distressed home, fix it up, and sell for a profit on the MLS. This is a high-risk, high-return strategy.
  • Buy-and-hold  — Buy-and-hold investing is when you purchase properties and rent them out to create passive income. The goal is usually to do this with a lot of properties to increase net worth and build long-term wealth.

Step 5. Determine where funding will come from

If you’ve determined that the most profitable type of real estate investing for your market will take some serious capital, don’t worry: there are  tons of different ways to find money for building your business. Lots of people with big money just want their money to work for them and provide a healthy ROI.

Ryan Dossey (my brother) has this great video about raising private money for your business and how he raised his first $100k.

Step 6. Choose your marketing strategies

In many ways, this is where the rubber hits the road for your business: how will you find deals in your market? How will you find motivated sellers ? How will you convince those sellers to work with you? How will you find buyers to purchase those properties or tenants to live in them? How will you fix up properties if you’re planning to fix and flip ?

These are all questions you need to answer on your real estate investing business plan.

And if you’re at a loss for answering them, sitting down with another real estate investor in your market and asking them questions can go a long way.

However you do it, write down your marketing plan of attack — how you plan to find and close deals — what you’ll need to make per deal to remain profitable, and how much you should expect each deal will cost you.

Here are a few common marketing strategies that you might consider.

  • Direct mail (check out Ballpoint Marketing if you want to send hand-written mailers en masse).
  • Bandit signs
  • Door knocking
  • Facebook ads
  • Search engine optimization
  • Cold calling

Here are some more specific suggestions to consider…

1. Send personalized mailers every single week

There is a rhythm to the flow of potential deals in any market.

A market might have a lot of deals during a particular season, and fewer deals just a couple of months down the road. These fluctuations are normal. And where there’s inconsistency in the market, the investor must remain steadfast.

This is as true in the stock market as it is in the real estate market.

Don’t gamble all of your marketing budgets on a single season. Instead, get in the habit of sending the same amount of mailers every single week — whatever is a reasonable number for your business. Send those mailers to different lists and recycle lists every few months or so.

To get the best performance possible, we recommend using mailers from our sister company,  Ballpoint Marketing , where you can get hand-written letters at an affordable cost.

2. Run effective Facebook Ads & do some SEO

Facebook ads and SEO (Search Engine Optimization) are two of the best ways to market your real estate investing business.

The first can provide you with leads quickly and the second can create longevity for your business.

To create effective Facebook ads, just go look at what your top competitors are doing. Go to their Facebook Page, click on “Page Transparency”, and you can see all of the ads that they’re running.

business plan for real estate investment

Examine a few of your competitor’s ads and take notes on what their sales copy and images are like. Then contemplate how you might try to do something similar.

Don’t copy them verbatim, of course, but why not try something similar to what they’re doing?

If it’s working for them, it’ll probably work for you as well!

As for SEO, get in the habit of publishing blog posts on your website that target specific keyword phrases. You can use  Ubersuggest  to find high-value keyword phrases. And here’s a  helpful article  that shows you how to optimize your pages to rank in Google.

3. Hire someone to answer the phone for you

If you follow our previous advice of sending personalized mailers every week, running effective Facebook ads, and spending a little time on SEO , the good news is that you’re going to start generating quite a few leads…  predictably .

The bad news is that your phone is going to start ringing like crazy.

The more mailers you send and Facebook ads you run, the more the phone is going to ring.

And while all of those leads are exciting, they can quickly distract you from working on important business-growth tasks like polishing processes, creating systems, and hiring employees.

That’s why more than 100 U.S. investors use our expert-trained reps to answer the phone for them. We answer the phone  when it rings , we know how to talk to motivated sellers , we’ll ask the right questions, and we’ll even schedule a follow-up appointment with you or your Acquisitions Manager.

Sound cool?

Then get a free, no-obligation demo by clicking here!

Step 7. Create a plan for consistently networking with other professionals

When you’re just starting out, no business-building strategy is quite as effective as networking with other real estate professionals within your market. There’s something about those face-to-face connections which can benefit your business for a lifetime.

You might learn a thing or two from other friendly professionals in your market. Or maybe you’ll end up partnering up with them. Or maybe you’ll learn how better to  compete with them.

Whatever the case, networking can help build your business. And you should map out a game plan for consistently networking with other professionals — even if it’s something as simple as going to a monthly meetup or working from different coffee shops every day.

Step 8. Create a plan for delegating down the road

quote about delegating

You’re building a business,  not a prison cell. This means that you’ll need to make a plan for delegating tasks to other people down the road.

In the beginning, you’ll likely be the horse, driver,  and carriage — that is, you’ll be doing pretty much everything.

But don’t make that time-intensive phase of business last longer than it needs to. You’ll be surprised at how much faster your business will grow (with less work) when you hire A-players, treat them well, and trust them to do their job.

You won’t have to work as many hours, your business will grow more quickly, and you’ll make more money. So make a plan for which tasks you’d like to delegate when the time comes and which ones you’d like to keep (the ones that you enjoy the most, ideally).

And if you imagine that answering the phone every time it rings is a task you’ll want to delegate, Call Porter can help. We’ve built the only call center designed for real estate investors. Our reps are trained specifically to talk with motivated sellers, convert them, and then schedule a follow-up call with you or your acquisitions manager. You can try us out for yourself over here . 🙂

Step 9. Find your exit strategy

Every good real estate investing business plan includes a thorough plan of attack…  and an exit strategy if things go terribly wrong.

Since you have a business plan, your chances of things going horribly wrong decrease quite significantly. Still, it’s good to have a plan B or a way out if things go sideways. Maybe wait to quit your day job, for instance, until your business starts providing for itself. Choose your investors and/or tenants carefully. And consider including a clause in your contracts that gives you a way out (at least in the beginning).

Step 10. Create your growth plan

Have you ever heard the 80/20 rule?

It’s my fav 🙂

Essentially, it states that 20% of the work produces 80% of the results (and vice versa).

While it’s easy to feel that you must do everything right as an entrepreneur in order to succeed… that’s simply not true. You only have to do some key things right .

In terms of real estate investing, you have to acquire properties, you have to make profitable decisions with those properties, and you have to do that consistently.

That’s it — that’s the formula.

In terms of actual to-dos, here are three things that — if you do them consistently — will virtually guarantee that your business keeps growing.

1. Send mail & run paid ads

business plan for real estate investment

To generate leads and close deals, you have to market your business.

That means sending mail and running paid ads  every single month .

Keep in mind: all marketing strategies (especially direct mail ) experience a sort of lag-time. You might send 500 mailers this month and not get very many phone calls, assuming that your mailers were ineffective.

Then you stop and try something else.

Suddenly, you start getting phone calls because of those mailers that you sent a month ago.

This lag-time isn’t bad… but you need to  expect it and  prepare for it … which basically means marketing your business consistently, even when your efforts seem to be less effective than usual.

Pro-Tip:  Want to stand out with your direct mailers? Check out our sister company, Ballpoint Marketing , which produces hand-written mailers (with real ink ) that add a personal touch your competitors won’t be able to match!

2. Answer the phone & follow-up

Speed to Lead Statistics - 19 Surprising Facts About Lead Response Times - Chili Piper

Yes, Call Porter is an answering service built specifically for real estate investors.

Yes, there’s going to be a pitch at the end of this section.

And yet, it’s still difficult to overstate the importance of answering the phone  when it rings .

Research shows that your chance of having a meaningful conversation with a prospect decreases with every passing moment after a phone call goes unanswered.

Problem is, if your business is thriving and you do manage to answer the phone every time it rings… then you’re probably limiting your business’ full potential (because you’re not spending that time on mission-critical, “quadrant 2” activities).

You want the phone to ring off the hook… but you don’t want to be the one responsible for answering it. 

The solution?

(Pitch incoming)

At Call Porter, we’ve trained all of our U.S.-based reps to speak with motivated sellers. They know what questions to ask, how to stay level-headed, and they’ll schedule a follow-up call with you or your acquisitions manager.

Check out the call below to see for yourself (this lead resulted in a $36,000 profit for the investor!).

The phone needs to get answered… but certainly not by the founder of your business (YOU) 😉

Oh — and don’t forget to follow up! 90% of deals happen during a rigorous follow-up regimen, not during the initial call .

(We recommend following up  at least 15 times).

Get a FREE Call Porter Demo Today!!

3. build processes & reinvest into your business.

If you do the first two things, you’re going to generate leads and get the phone ringing like crazy.

You’re also going to start closing quite a few deals.

But there’s still one problem left to solve:  you will quickly become a bottleneck.

Having Call Porter answer the phone is certainly a step in the right direction… but the more you want to grow, the more you’ll have to delegate and automate the daily operations of your business.

This means hiring someone to answer emails, create marketing campaigns, speak with sellers, collect buyer information, and even acquire profitable properties.

Step 11. Create a memorable brand

Good business is built on trust.

Without the trust of your prospects and your clients, positive word-of-mouth won’t spread and people will hesitate to work with you.

But in the same way that that hesitation creates an obstacle for your business, building knee-jerk trust in your market creates a doorway.

The question is… how do you build a memorable reputation in your market so that past clients know you’re the real deal, prospects trust you to treat them right, and people who’ve never worked with you respect your business?

Well, the primary answer is consistency — day-in and day-out, treating your customers right, sharing case studies, engaging in charity, and whatever else will enhance your brand image.

In fact, here are three things to consider doing more consistently in order to build memorable trust in your market.

1. Choose a charity

Small Businesses Giving Back Makes a Big Impact on Local Communities | SCORE

Donating to charity doesn’t just help you forge a more meaningful mission for your business, it can  also help you market your business.

For example, you can celebrate your donations publicly and host events to raise money for local charities. These efforts build brand awareness  and trust at the same time.

There’s just something about a highly philanthropic business that feels trustworthy.

(That’s probably why customers are 85% more likely to buy products from a company that is associate with a charity).

Choose a charity that’s in line with your business’s mission, and then get in the habit of donating. Over time, you’ll build trust with people in your market and prove that you care about more than just making money.

2. Care about your clients

70+ Inspirating Marketing Quotes | SurveySparrow

This might seem like an obvious piece of advice, but I know how hard it can be to authentically care for your clients when you’re  doing the same thing every day .

It’s easy to become callused.

Still, showing your prospects (even the tire-kickers) and your clients (even the ones who don’t accept your offer) that you genuinely care about them is one of the best ways to increase how many referrals you get and how much word-of-mouth you generate.

This is a simple trick, but perhaps the most difficult.

Be kind to everyone. Care about the people you work with. And be generous in how you serve others.

Do that for long enough and people won’t be able to ignore your business’ impact on the community.

Just think of the businesses that you most admire… how do they treat people? What are their values? And how can your business emulate their attitude toward leads, prospects, and clients?

3. Collect case studies

business plan for real estate investment

People might love you and respect you, but how do they know that your business   works ? That is, how do they know it can actually benefit them?

To some degree, trusting you is different than believing in the helpfulness or effectiveness of your service.

The best way to prove to your community that your business is the “real deal” — that what you’re doing can actually help people who are trying to sell their home — is by sharing testimonials and case studies from past clients.

This includes publishing case study content on your website, sharing reviews on your social media profiles, and telling stories of people who you’ve helped in the past.

Don’t undervalue the impact of telling stories to build your business’ reputation.

It’s  extremely powerful .

Step 12. Build your timeline

The final step is to determine when you want everything to happen. When do you want/expect to hit your real estate goals ? When do you expect to start hiring people? When do you expect your business will be able to fully support you and your family?

These timelines need not be written in stone, though — no one can accurately predict how long it’ll take you to build a successful business (the most important thing is consistent progress ). But having a timeline that you can reference and which keeps you heading in the right direction is wildly valuable, especially if you post it on your wall, where you can see it every day.

Final Thoughts

So you know you need a real estate investing business plan. You know that having a plan will give your business a better chance of success and turn you into the kind of forward-thinking entrepreneur that succeeds.

But you don’t only know that you need it, you also now know how to create it.

With the above 12 steps, you can draft a real estate investing business plan which increases your statistical chance of success.

And while you  could just launch your business without a plan, why would you? It’s a far better idea to spend some time thinking about the details of how your business will succeed  in order to succeed than it is to launch quickly and fail quicker.

So get to it — and don’t press the big red button until you’ve drafted a business plan which you’re confident will succeed.

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How to Start a Real Estate Investment Company

how to start a real estate investment company

Starting a real estate investment company can be very profitable. With proper planning, execution, and hard work, you can enjoy great success. Below you will learn the keys to launching a successful real estate investment company.

Importantly, a critical step in starting a real estate investment company is to complete your business plan. To help you out, you should download Growthink’s Ultimate Real Estate Investment Business Plan Template here .

Download our Ultimate Real Estate Investment Business Plan Template here

14 Steps to Start a Real Estate Investment Company:

  • Choose the Name for Your Real Estate Investment Company
  • Develop Your Real Estate Investment Business Plan
  • Choose the Legal Structure for Your Real Estate Investment Company
  • Secure Startup Funding for Your Real Estate Investment Company
  • Find an Ideal Location for Your Real Estate Investment Company
  • Register Your Real Estate Investment Company with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Real Estate Investment Company
  • Buy or Lease the Right Real Estate Investment Company Equipment
  • Develop Your Real Estate Investment Company Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Real Estate Investment Company
  • Open for Business

1. Choose the Name for Your Real Estate Investment Company

When choosing a name for your real estate investment company, it is important to find a name that reflects the type of business you are running. If your real estate investment company is focused on flipping houses, then a good name might be “House Flipping” or “House Hunting.” You will also want to make sure that the name you choose for your real estate investment company is unique.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally, you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your real estate investment company:

  • Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also, check to see if a suitable domain name is available.
  • Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
  • Think about marketing. Come up with a name that reflects the desired brand and/or focus of your real estate investment company.

2. Develop Your Real Estate Investment Business Plan

One of the most important steps in starting a real estate investment company is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your real estate investment business plan should include the following sections:

  • Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your real estate investment company.
  • Company Overview – this section tells the reader about the history of your real estate investment company and what type of real estate investment company you operate. For example, are you a real estate investment company that buys homes, flips them for quick profits, or leases them?
  • Industry Analysis – here you will document key information about the real estate investment company industry. Conduct market research and document how big the industry is and what trends are affecting it.
  • Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important in services like the ones you will offer?
  • Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build a competitive advantage.
  • Product: Determine and document what products/services you will offer
  • Prices: Document the prices of your products/services
  • Place: Where will your business be located and how will that location help you increase sales?
  • Promotions: What promotional methods will you use to attract customers to your real estate investment company? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization, and/or social media marketing.
  • Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
  • Management Team – this section details the background of your company’s management team.
  • What startup costs will you incur?
  • How will your real estate investment company make money?
  • What are your projected sales and expenses for the next five years?
  • Do you need to raise funding to launch your business?

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3. choose the legal structure for your real estate investment company.

Next, you need to choose a legal business structure for your real estate investment company and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a company entity in which the owner and the company are legally the same person. The owner of a sole proprietorship is responsible for all business debts and responsibilities. A sole proprietorship does not require any formalities to set up or run, and it is simple to do so. One of its major advantages is that it is the easiest company entity to create and maintain.

2) Partnerships

A business partnership is a legal entity utilized by small enterprises. It’s the agreement between two or more people who want to start a company. The business partners split any profits and losses from the company equally.

The advantages of forming a partnership are that it is simple to start and the business partners share in the profits and losses of the firm. The disadvantages of real estate investment partnerships are that the partners are jointly responsible for the company’s debts, and partner conflict resolution may be difficult.

3) Limited Liability Company (LLC)

An LLC, often known as a “limited liability company,” is a sort of business entity that protects its owners from responsibility. This implies that the proprietors of an LLC are not personally liable for the firm’s debts and liabilities. The flexibility of an LLC includes management freedom, pass-through taxation (which avoids double taxation), and limited personal liability.

4) C Corporation

A C Corporation is a business entity that is independent of its owners. It has its own tax identification number and can have shareholders. The major benefit of a C Corporation is that it provides limited responsibility to its shareholders. This implies that the company’s owners are not held accountable for the firm’s debts and liabilities. The disadvantage is that C Corporations are taxed separately from their owners, which means they also pay taxes at the corporate tax rate.

5) S Corporation

An S Corporation is a type of business organization that offers its owners limited liability protection and allows them to transfer earnings from their company to their personal tax returns, avoiding double taxation. There are several restrictions placed on S Corporations, including the number of shareholders they can have, among others.

Once you register your business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your real estate investment firm.

4. Secure Startup Funding for Your Real Estate Investment Company

In developing your real estate investment business plan , you might have determined that you need to raise funding to launch your business.

Other common sources of funding for a real estate investment firm to consider are personal savings, family and friends, bank loans, crowdfunding, and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a real estate investment company that they believe has a high potential for growth.

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5. Find an Ideal Location for Your Real Estate Investment Company

When choosing a location for your real estate investment firm, you should consider factors such as your budget, customer demographics, and the demographics of the real estate market.

If you have a limited budget, you might want to choose a location where rent is inexpensive. If you’re operating in more rural areas with low population densities, it will be easier for you to find discounted real estate investment properties. However, if your target market is composed of customers who are located in the surrounding area, you will need to offer them easy access to your business. When choosing a location, you should also consider factors that could affect foot traffic such as where do customers live, work and play.

The real estate market also plays a role in deciding on a location for your business. For instance, some markets will be better for multifamily real estate, while some markets might be more suitable for commercial real estate.

You should also consider the demographics and the income and employment levels of potential customers in your target market. This is key to helping you determine location and customer traffic.

Places with high concentrations of upscale homes or luxury retail stores are examples of good markets.

6. Register Your Real Estate Investment Company with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your real estate investment company’s name. This process is fairly simple and involves the following steps:

  • Identify and contact the bank you want to use
  • Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
  • Complete the bank’s application form and provide all relevant information
  • Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your real estate investment company to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

The licenses and permits required to start a real estate investment firm include the following:

  • Sales Tax License (if required in your state)
  • Business License (if required by the city, county, or state where you plan to operate)
  • Occupational Permit (often required for your business category)

10. Get Business Insurance for Your Real Estate Investment Company

Below are the main types of insurance to consider for your business:

  • General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
  • Auto insurance : This can cover a single vehicle or a fleet of vehicles. If you have employees, it’s especially important to get auto insurance because your employees drive business vehicles.
  • Workers’ compensation insurance : If you have employees, it works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
  • Professional liability insurance : This protects your business against claims of professional negligence.
  • Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
  • Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Real Estate Investment Company Equipment

The equipment required to start a real estate investment firm include the following:

  • Computer with Internet access for research
  • Laptop or tablet with Internet access for on-the-go research
  • Scanner Printer Fax machine
  • Photocopier
  • Legal and accounting books and software

Depending on the laws of your state, you may be required to have a physical office in order to run your business.

12. Develop Your Real Estate Investment Company Marketing Materials

Marketing materials will be required to attract and retain customers to your real estate investment company.

The key marketing materials you will need are as follows:

  • Logo : Spend some time developing a good logo for your real estate investment firm. Your logo will be printed on company stationery, business cards, marketing materials, and so forth. The right logo can increase customer trust and awareness of your brand.
  • Website : Likewise, a professional real estate investment company website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
  • Social Media Accounts : establish social media accounts in your companies name. Accounts on Facebook, Twitter, LinkedIn, and/or other social media networks will help customers and others find and interact with your real estate investment business.

13. Purchase and Setup the Software Needed to Run Your Real Estate Investment Company

The software needed to start a real estate investment company may include the following:

  • Accounting software
  • Email marketing software
  • Office suite (includes word processing, spreadsheet, and presentation tools)

Real estate investment business-specific software is also available to help you track sales leads, manage projects, etc.

14. Open for Business

You are now ready to open your real estate investment firm. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Real Estate Investment Company FAQs

Where can i download a real estate investment business plan pdf.

You can download our  real estate investment business plan PDF  template here. This is a business plan template you can use in PDF format.

Is it hard to start a real estate investment company?

No. If you have experience in real estate, the right knowledge and training, good support from mentors, and some seed money to get started, then starting a real estate investment business should be relatively easy.

How can I start a real estate investment company with no experience?

You can be successful without having prior knowledge or experience if you have good mentors to offer guidance. Additionally, consider taking real estate courses by attending seminars and finding mentors who are already successfully owned and managed real estate investment companies.

Is a real estate investment company a good idea and/or a good investment?

Yes. However, running a real estate investment business can also be risky and challenging. As with any business, you should research the pros and cons of starting your own before deciding to start one.

What type of real estate investment company is most profitable?

The most profitable real estate investment business is one that understands what type of real estate to specialize in and how to manage it. For example, a passive real estate business invests in high-profit real estate investments such as apartment complexes, shopping centers, and other well-established projects.

How much does it cost to start a real estate investment company?

The cost to start a real estate business varies depending on the nature of your business. For example, opening a real estate company that invests in foreclosed investment properties requires less seed money than opening one that invests in rental properties for profit.

What are the ongoing expenses for a real estate investment company?

Ongoing expenses for a real estate investment company include licensing, payroll (employees and/or contractors), and marketing. Additionally, you should also budget for startup costs like rental and/or investment property and equipment.

How does a real estate investment company make money?

A real estate investment business can make money in a number of ways such as through receiving rent from tenants, collecting loan interest and/or principal repayment, selling portions of the property or project, and consulting services.

How much can you make owning a real estate investment company?

You can make a good amount of money owning your own real estate investment company. However, the amount you will make depends on the type of business you run and how successful it is. For example, a passive real estate investor typically does not work directly on their projects and tend to make more than active real estate investors.

Is owning a real estate investment company profitable?

Yes, a real estate investment company can be profitable for those who understand the market and take the time to learn about all aspects involved in running a successful business.

Why do real estate investment companies fail?

Real estate investment businesses fail for many reasons. Some of the common causes are poor cash flow management, lack of experience/expertise, and an unprofitable business model.

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide For Small Businesses

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The Impact Investor | ESG Investing Blog

The Impact Investor | ESG Investing Blog

Investing for financial return is only part of the equation.

12 Best Real Estate Investing Business Plan Templates

Updated on September 26, 2023

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Investing in real estate can be lucrative, regardless of whether you make it your primary business or a side hustle. It can be a great source of ongoing income and profits from appreciation. Investing in real estate is also an excellent way to build wealth. These are some real estate investing business plan templates to help you get started.

Table of Contents

Key Components of a Real Estate Investment Business Plan

Executive summary, company description, industry analysis, investment strategy, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan, best real estate investing business plan templates, 1. growthink, 2. fit small business, 3. upmetrics, 4. fortunebuilders, 5., 6. planbuildr, 7. real estate, 10. wiki download, 12. property geek, frequently asked questions, do i need a business plan if i want to buy a couple of houses and flip them, must i hire a consultant to help me develop a business plan for my real estate business.

However, real estate investing requires a business plan, as with all business ventures. A business plan is necessary to guide your decision-making and growth and help you finance your real estate and business operations.

A real estate investing business plan includes several components.

The executive summary introduces your business and provides an overview of your business and the contents of your business plan. It describes how you plan to succeed at your business. It also includes your mission and vision statement.

Your mission and vision statement articulates the values and direction of your real estate business. It is the guiding star that you use for developing your strategy. The mission statement should inspire customers and your team.

You’ll develop your mission and vision statement first, and your strategy will fit your vision. To create your mission and vision statement, consider companies that you admire. (They can be from any industry.) Then, find their mission and vision statements and use them to develop your own.

Your executive summary is the first part of your plan. However, you wait to write the executive summary after you’ve written the rest of the plan.

Your business plan should contain a brief overview of your company, your management team, and your expertise. It describes your legal structure, such as whether you are an S-Corp., LLC, or corporation.

It also describes the type of real estate investing business you will operate; for example, do you plan to make long-term investments in rental properties or embrace a short-term investment strategy where you buy a fixer-upper, renovate it and sell it quickly at a profit?

You’ll provide further details on your company in the rest of the business plan.

This section includes a market analysis, including any market trends that may affect your business. Writing this section requires that you research the business, which educates you. It also should prove to potential funding sources that you are knowledgeable.

The industry analysis section should include answers to several questions, such as

  • How big is the market?
  • Is it increasing or decreasing?
  • What trends are affecting the industry?
  • Who are your key competitors?

See Related: Predictive Analytics in Banking: Enhancing Financial Decision-making

Although you briefly mention your strategy for your investment properties in the company description, you’ll deal with it in depth. You’ll also discuss how your strategy will help you meet your business and personal goals.

For example, you may purchase real estate and want to focus on long-term investments that produce income while also appreciating. However, until you can build up sufficient capital, you may engage in wholesaling, where you put a contract on a home and then find an investor to buy it.

Your strategy should also include the types of properties you will invest in, for example, single-family homes, apartment buildings, or commercial properties. If your investments are within a specific geography, you’ll also list that geography in this section.

The customer analysis section briefly overviews your target customers, for example, renters or home buyers. A well-researched customer analysis will break their target market into demographic and psychographic groups.

The competitive analysis section overviews your competitors, their target market, products and services, and marketing share. Many real estate business plans also analyze their strengths, weaknesses, opportunities, and threats (SWOT), especially concerning their competitors. A SWOT analysis is an excellent way to find solutions to potential challenges.

The SWOT analysis starts with strengths and weaknesses. You might consider questions such as

  • Are you successful at finding high-quality tenants?
  • What is your track record in identifying good properties to renovate and sell?
  • What is your competitive advantage, i.e., what do you do better than your competitors?
  • How successful are you at raising capital?

The SWOT analysis also looks at opportunities and threats. A potential opportunity could be a new subway stop opening near a property you own that could boost its desirability or an opportunity to increase amenities at one of your apartment complexes. A threat could be a competitor renting similar properties at a lower price.

The marketing plan is a critical component of any business plan. The marketing plan should include

  • Your business logo. Your logo should reflect your mission statement in some way.
  • The value proposition of your real estate investing business. The value proposition is what the business offers customers that is unique.
  • Promotions strategy, including how you’ll gain referrals, use the Internet and social media, advertise in publications, and undertake other promotions.
  • Your plan to develop, maintain, and grow relationships with potential customers.
  • The type of products or services you will offer are property management services, renovated homes, or brokerage services.
  • Your pricing strategy and how that compares with competitors.

The Operations Plan describes how you operate from day to day. It includes information on how you:

  • Find properties to acquire
  • Oversee renovations
  • Market properties when you wish to sell them
  • Determine when to sell

It also should include information on how your company’s organizational structure is organized, the status of specific projects, milestones you expect to reach and when, and the steps you’ll take to reach them.

See Related: Free Financial Advisors to Start Financial Planning

You’ll have briefly discussed the expertise of your management team as a whole. You want to provide details in your real estate investment business plan. Highlight the experience of each key team member, emphasizing how each member will help you reach your business goals.

If you feel your team lacks experience, consider assembling an advisory board of experienced real estate professionals and noting the board’s existence in this section.

Also, note if you plan to hire additional managers as your real estate investment business reaches certain milestones. List what experience and skills you’ll seek in your new hires.

Financial information is a significant component of a real estate investment business plan. Begin this section by specifying the source of your revenue as well as what drives your costs. If the purpose of your business plan is to receive funding, state the amount of funding you need and what you’ll use it for.

Then, include financial projections for your real estate investment property and business for the next five years. You’ll include several types of financial statements in your financial plan. In each statement, you’ll also include the assumptions you used to arrive at the projects.

Income Statement

The income statement (or profit and loss statement) shows the revenues minus the costs to show the amount of profit. To derive your revenue projections, you’ll need to assume a certain level of sales or number of rental units at a specific price.

Your costs would include maintenance, repair, or renovation costs, salaries and commissions, office rent (if any), marketing costs, and the cost of utilities and software. Do market research to base your assumptions on reality as much as possible.

Balance Sheet

The balance sheet is a snapshot of the assets and liabilities of your real estate investing business at a specific time. You’ll project assets, such as cash, real estate, and accounts receivables, for each of the five years. You’ll also project liabilities, such as debt and accounts payable. You’ll also launch the amount of equity for each of the five years.

Cash Flow Statements

The cash flow situation of a real estate investment business can significantly affect its success. Some businesses turn a profit but end up in bankruptcy because their cash flow is insufficient to pay bills when they are due.

For example, suppose a new commercial tenant requests a significant build-out. You’ll have to front the money to make the improvements and may not recoup it until the tenant has paid six months or more of rent. You may also have other expenses during that time.

If you have no other source of income, you could run out of money before you recoup your investment. Remember to list the assumptions that led you to project the cash flow as you did.

If potential funding sources will be scrutinizing your plan, add an appendix. The appendix might include all the documents related to your financial plans, such as leases and a potential exit strategy, as needed.

See Related: Best Green Companies to Invest in 2023

Writing a business plan requires considerable research and strategy skills. It also requires a significant time commitment. Templates help reduce the time you need to write your business plan.

Many types of organizations offer business plan templates that you can download for free, although you may have to leave your email. Here are free business plan templates for the real estate investor.

Growthink Homepage

Growthink  is a consulting firm that helps companies develop business plans and raise capital. Its co-founders, Dave Lavinsky and Jay Turo, graduated from the Anderson School of Management at UCLA and started Growthink to help entrepreneurs grow their businesses. The company’s values are “Integrity,” “Courage,” and “Positivity.”

Lavinsky  has designed  a real estate investing business plan template that includes most of the key elements above. Lavinsky also provides advice on how to complete each section.

Fit Small Business Homepage

Fit Small Business  is an online publication to answer questions from small business owners across all industries. It has industry-specific experts and a management team that supports the experts. The company, founded in 2013, claims 80,000 readers.

The publication provides tips on how to write your vision and mission statement, complete your SWOT analysis, and choose an investing model. It also provides tips on measuring business success, writing a company summary, and developing a financial plan. Its business plan template is free and  downloadable.

Upmetrics Homepage

Upmetrics  is a data analysis and data management software company. Its software is designed to help startups plan. Based in India, its software is used worldwide.

The company aims to help spark business growth, promote job creation, and help foster personal wealth. In addition to software, the company’s website offers several small business guides and resources.

The company provides 200 sample business plans across several industries, including  one  for a real estate investing business. It also explains the various sections of the plan and tips on completing the sections.

See Related: Best Real Estate Investment Websites

FortuneBuilders Homepage

FortuneBuilders  teaches people how to invest in real estate through courses, coaching, books, and podcasts. Its four founders have considerable experience in the real estate investment market, having invested more than $1 billion in residential and commercial properties.

They still manage real estate projects, generally 25 to 40 at a time. They also provide additional information through their blogs.

FortuneBuilders  bases its  real estate investing business plan template around eight “must-haves,” including a mission statement, goals, strengths and weakness analysis, investment strategy for each property, marketing plan, management team bios, explanation of financing, and answers to “what if” questions. The introduction to its full business planning template also has excellent information to help you determine whether you are likely to succeed in the real estate investment business. Homepage  has over 250 customizable business plans for small businesses across many industries. Dave Lavinsky, also a co-founder of Growthink, founded more than 20 years ago, and is a subsidiary of Growthink.

The company claims to be a leading resource for business plan templates. In addition to templates, it includes advice on writing a business plan.

The company  template  for a real estate investment business is highly detailed, with more than a page on how to write each of the nine sections. It is also updated for 2023.

PlanBuildr Homepage

PlanBuildr  is another Growthink company founded by Dave Lavinsky, who serves as its president. The company’s management team has deep entrepreneurial experience. Lavinsky, a managing partner in several other entrepreneurial ventures, previously worked as a marketing consultant.

Jay Turo is the CEO. Turo works with Lavinsky in many of his other ventures. He has an MBA and a bachelor’s degree in international business.

The PlanBuildr real estate investment business plan template includes  sections  on the investment company’s success factors and most of the standard business plan sections. The customizable plan is also downloadable.

Real Estate Homepage

Real Estate  aims to help families “replace their income with passive income.” The company claims to have more than 25,000 investors.

It has articles and stories to help real estate investors succeed. Its values include having an abundance mindset and always empowering others.

Founder Eric Bowlin is an experienced real estate investor who has managed a portfolio of 450 properties. Real Estate’s business plan template provides extensive advice on successfully projecting financials.

It also provides some information on other sections of the  plan.  Although you can download a plan for free, the plan’s information includes a link to a business plan software solution that you purchase.

IncFile Homepage

IncFile  helps small businesses manage the paperwork for forming or dissolving a new business or obtaining a trademark. The company also helps businesses develop an annual report and provides a free tax consultation.

It features a lot of information on business entity types. It claims to have more than 1 million customers.

IncFile’s blog contains several guides for startups, including a guide and template for a business plan for a real estate investment business. In addition to the more common sections of the business plan, it also  includes a section  on a backup business plan writing too. It links with a  template.

Carrot Homepage

Carrot  is an online lead generation hub for real estate agents and investors. The company says its members convert leads at a rate of seven times that of nonmembers and earn a profit that is $14,000 greater on each lead.

Carrot also provides SEO and other tools to help real estate business owners market and run their businesses. CEO Trevor Mauch is an experienced real estate investor with expertise in inbound marketing.

Carrot also includes advice on how a real estate investment business can develop a business plan. Its  free template  includes an executive summary, business description, competitive analysis, building credibility section, and marketing strategy.

See Related: Ways to Start Investing in Apartment Buildings

More than 19,000 people have downloaded the Wiki Download real estate investment business template. Available in a PDF or Microsoft Word format, the 12-page document outlines the business plan and uses questions to take you through developing a simple real estate investment plan yourself.

Sections include the executive summary, market analysis, implementation plan (operations plan), marketing efforts, sales strategy, financial forecasts, and assumptions.

Truic Homepage

Truic  provides business services such as business organization, accounting, and business banking. It provides many of these services through partners and receives a referral commission.

It also provides classes on setting up a small business. The company is mainly focused on helping LLCs.

Truic offers many guides for small business owners; the real estate investment business template is one of those guides. Truic’s real estate business plan guide primarily aims at those who invest in and sell residential properties. Its  template  also differs slightly from others because it starts from the owner’s financial goals.

The owner decides how much they wish to earn, then defines the amount of revenue required, and then the number of houses that must be purchased. It also offers advice on tailoring your business plan to potential readers, including lenders and investors.

Property Geek Homepage

Property Geek’s  business plan template is aimed at property investment businesses. Rob Dix, a writer, founded Property Geek in 2012, and property soon became his life. He later launched Property Hub, which offers free courses and a YouTube channel, and created an investment app called Portfolio.

He also has written books and podcasts on property investment issues. He aims to make property investment fun. His website offers investment strategy, financing, property management software, and tax advice.

Property Geek’s real estate investment business plan development starts by determining goals. Then, you build a strategy to get from where you are now to the goal you hope to achieve.

Much of the strategy is developed around compensating for a lack of cash. The site offers a  free downloadable  business plan worksheet.

A business plan will help you succeed at any real estate investment endeavor, no matter the scale or time frame. Startups with plans are likelier to launch and grow than those without.

No, many companies in the real estate industry offer free worksheets and templates for real estate investment businesses. They also provide advice on writing the plan. Most real estate investors can complete the business plan with these resources. If you need additional advice, you can generally obtain it through the SBA or another nonprofit.

Related Resources

  • Proven Ways to Start Investing in Apartment Complexes
  • Ways to Start Investing in Small Business
  • What is the Impact of Foreigners Investing In US Real Estate?

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Kyle Kroeger, esteemed Purdue University alum and accomplished finance professional, brings a decade of invaluable experience from diverse finance roles in both small and large firms. An astute investor himself, Kyle adeptly navigates the spheres of corporate and client-side finance, always guiding with a principal investor’s sharp acumen.

Hailing from a lineage of industrious Midwestern entrepreneurs and creatives, his business instincts are deeply ingrained. This background fuels his entrepreneurial spirit and underpins his commitment to responsible investment. As the Founder and Owner of The Impact Investor, Kyle fervently advocates for increased awareness of ethically invested funds, empowering individuals to make judicious investment decisions.

Striving to marry financial prudence with positive societal impact, Kyle imparts practical strategies for saving and investing, underlined by a robust ethos of conscientious capitalism. His ambition transcends personal gain, aiming instead to spark transformative global change through the power of responsible investment.

When not immersed in the world of finance, he’s continually captivated by the cultural richness of new cities, relishing the opportunity to learn from diverse societies. This passion for travel is eloquently documented on his site,, where you can delve into his unique experiences via his author profile.


Real Estate Investing Business Plan

Ready to dive into the world of real estate investing? Embarking on this journey can be exciting and profitable, but it’s essential to be well-prepared and have a solid business plan in place. This comprehensive guide will walk you through the crucial steps of crafting your real estate investing business plan, from defining your investment goals to assembling a skilled team. Set yourself up for success and turn your real estate dreams into reality.

real estate business plan

Key Takeaways

  • Real estate investing requires a comprehensive business plan to optimize decision-making and utilize resources.
  • SMART goals, market research, financial planning & projections are essential for successful real estate investments.
  • Building a team of professionals and implementing efficient systems can help investors prepare for potential risks & challenges.

The Importance of a Real Estate Investing Business Plan

A well-crafted real estate investing business plan includes the following elements:

  • Mission and vision statement
  • SWOT analysis
  • Clearly defined short-term and long-term goals
  • Tailored investment strategy
  • Comprehensive market research
  • Robust marketing plan
  • Detailed financial plan
  • Experienced real estate team

This estate investment business plan, complete with an executive summary, serves as a roadmap to guide decision-making, track progress, and attract potential investors in the real estate market.

A business plan greatly enhances your chances of success in real estate investing, setting you apart as a proactive entrepreneur within the realm of property investment. A well-prepared plan allows you to anticipate potential opportunities and threats and make informed decisions, which is crucial in the ever-changing real estate investment market. In this context, having multiple business plans can be beneficial for diversifying your investment portfolio.

Essentially, a robust real estate investing business plan offers a strategic blueprint for maneuvering through the property market. It ensures:

  • The efficient use of resources
  • Optimal decision-making
  • The ability to adapt to market trends
  • Ultimately leading to a thriving real estate investment business.

Defining Your Real Estate Investment Goals

Establishing clear, measurable, and achievable goals in your real estate investing business plan offers direction and sets you on the path to attaining those goals in the real estate investment market. Utilizing the SMART acronym—specific, measurable, achievable, relevant, and time-bound—ensures that your goals provide clear guidance and are attainable within a reasonable timeframe.

Examples of short-term and long-term goals for a real estate investment business could include having a predetermined number of properties in your portfolio or setting a desired return on investment (ROI) to be achieved on an annual basis. Aligning your personal objectives with your business objectives is vital, as the success of your real estate investment business relies on your dedication, enthusiasm, and drive, as well as your ability to adapt to market trends in the real estate industry.

Establishing your investment goals lays the groundwork for a prosperous real estate venture. This clarity helps you stay focused and motivated, ensuring that you consistently make strategic and informed decisions that drive your business forward.

Selecting Your Real Estate Investment Niche

The fundamental principle of real estate investing is to acquire and dispose of properties for financial gain in the real estate industry. Selecting a specific real estate investment niche, such as residential, commercial, or industrial properties, is crucial for maximizing profits. The location of your real estate business plays a significant role in guaranteeing the highest possible returns on investment. Real estate investment businesses should carefully consider these factors to ensure success.

Long-term real estate investments can also consider options such as real estate investment trust, real estate investment company stocks, and other alternatives. Potential issues, like a lack of low-income housing, inefficient management, elevated eviction rates, or a surplus/deficit of a particular type of real estate, can create investment opportunities in the industry.

Selecting a distinct investment niche combined with rigorous research, allows for the identification of profitable opportunities and risk mitigation. This targeted approach allows you to focus on a specialized market segment and develop a deep understanding of the trends and dynamics at play, ultimately leading to better investment decisions.

Crafting Your Real Estate Investment Strategy

Constructing a bespoke investment strategy based on your goals, niche, and market analysis guarantees a successful and lucrative real estate venture. Real estate investment strategies may include:

  • A low-risk, slow-roll strategy of maintaining long-term investments
  • House flipping for potential quick profits
  • Investing in multi-family apartment buildings

Formulating a customized investment strategy based on your objectives, specialization, and market analysis also ensures a prosperous and lucrative real estate venture. Your investment strategy should include exit strategies such as rehabbing, wholesaling, and renting, which can help secure profits and protect your investments. Establishing metrics for measuring success in your real estate investing business plan is essential in monitoring progress and making judicious investments.

An astutely designed investment strategy offers a transparent route to tread, enabling the making of strategic decisions that coincide with your broader business objectives. This approach helps minimize risks and maximize returns, setting your real estate investment business on the path to success.

Conducting Comprehensive Market Research

Conducting market research in real estate investing is essential for staying informed and foreseeing changes due to external influences. A comprehensive market analysis, including a SWOT analysis, is crucial in understanding the strengths, weaknesses, opportunities, and threats before launching your business.

A comprehensive market analysis can assist in selecting the most advantageous market segment and the optimal locality for investment. A thorough market analysis is essential in a real estate investing business plan to identify trends, opportunities, and potential challenges in the target market, thus providing the necessary information to make informed investment decisions.

Comprehensive market research equips you to:

  • Recognize trends, opportunities, and potential hurdles in your target market
  • Make well-informed investment decisions
  • Stay ahead of the curve and seize lucrative opportunities
  • Ensure the growth and success of your real estate investment business.

Developing a Robust Marketing Plan

Developing a marketing strategy for your real estate investment business can help establish a strong brand, foster trust with investors and clients, and promote your services. A marketing plan should encompass the strategy for identifying and concluding transactions, essentials for sustaining profitability per transaction, and expenditure for each transaction. The marketing strategy in a real estate investing business plan demonstrates the methods and locations utilized for marketing and acquiring new customers.

Various marketing strategies are available for real estate investing businesses, such as Facebook advertisements and search engine optimization. The specific area of real estate you focus on significantly influences the emphasis placed on marketing and the strategies you choose.

real estate aerial shot

A solid marketing plan is indispensable for drawing in leads, enhancing brand visibility, and cementing a powerful presence within the property market. By implementing effective marketing strategies, you can reach your target audience, generate interest in your business, and ultimately, drive growth and success.

Financial Planning and Projections

Developing a detailed financial plan for your real estate investment business is essential for financial stability and growth. Your financial plan should include:

  • Income statement
  • Cash flow statement
  • Balance sheet
  • Short-term and long-term goals regarding profits and losses

By creating a comprehensive financial plan, including projections for income, expenses, and cash flow, you can ensure the success of your real estate investment business.

Accuracy in crafting a financial plan is crucial, as it allows you to identify areas that are and are not performing well for your business. Investing in real estate requires careful consideration of many costs, including:

  • Closing fees
  • Property management
  • Repairs and maintenance

All of these must be taken into account to ensure a successful investment.

An all-inclusive financial plan aids in tracking your business’s performance, pinpointing possible issues, and making well-informed decisions to secure its longevity. By keeping a close eye on your income, expenses, and cash flow, you can maintain financial stability and support the continued growth of your real estate investment business.

Building Your Real Estate Team

Having a real estate team can optimize productivity and bolster your business. Essential roles for a successful real estate investment team include:

  • Acquisition manager
  • Real estate lawyer
  • Money lender
  • Project manager
  • Civil engineer
  • Property manager

Expert-trained representatives can answer incoming calls, converse with motivated sellers, ask pertinent questions, and arrange subsequent appointments with the investor or their Acquisitions Manager.

Real estate investors should have vendors on their team to assist with purchasing, rehabilitating, and buying or selling investment properties. A strong real estate team not only supports your business operations but also contributes to the overall success of your real estate investment ventures.

Real Estate Investing Mentors

BPM REIA is a comprehensive real estate investing mentorship program that offers educational resources and mentorship on real estate investing strategies. Collaborating with BPM REIA offers advantageous insights, direction, and assistance in constructing a prosperous investment venture.

BPM REIA offers:

  • Educational and mentoring resources on real estate investing strategies
  • Assistance in streamlining the investment process and attaining financial freedom
  • Guidance and support in establishing a strong and dependable power team to ensure the success of your real estate investment business.

Partnering with real estate investing mentors, such as BPM REIA, can provide you with valuable insights, guidance, and support to build a successful investment business. Their expertise and experience can help you navigate the complexities of the industry and make informed decisions, ultimately leading to greater success and financial freedom.

Implementing Efficient Systems and Processes

Instituting effective systems and processes in real estate investment is crucial for streamlining daily operations, enhancing productivity, and expanding your real estate investment business. Best practices for implementing efficient systems and processes include:

  • Constructing systems and policies for scaling and growth
  • Instituting property search, evaluation, marketing, and lead generation systems
  • Instituting follow-up systems

Examples of efficient systems and processes in the real estate investment industry include lead generation systems, follow-up systems, marketing systems, bookkeeping systems, and real estate appraisals and field inspection automation. Reinvesting into your business is essential for delegating and automating daily operations, such as responding to emails, developing marketing strategies, communicating with sellers, gathering buyer data, and purchasing profitable properties.

Implementing efficient systems and processes allows for the optimization of daily operations, enhancement of productivity, and expansion of your real estate venture. This approach allows you to:

  • Focus on strategic decision-making
  • Focus on growth
  • Ensure that your business remains competitive and successful in the ever-changing real estate industry.

Preparing for Challenges and Risks

Having a contingency plan or escape route in the event of an unfavorable outcome, anticipating potential issues before they arise, and taking precautionary measures to safeguard investments and guarantee long-term success are all crucial elements of real estate investing. Real estate investment requires an exit strategy. This plan outlines how an investor will dissociate themselves from a deal or the business..

When formulating an exit strategy, consider reducing financial losses, recovering as much of your original investment as possible, and avoiding any unanticipated fees that could reduce profits, such as tax implications. Potential lenders, employees, and clients may inquire about scenarios such as extended market times, seller cancellations prior to closing, and higher than average vacancy rates. These should all be accounted for in your exit strategies and backup plans.

Preparing for possible obstacles and risks helps safeguard your investments and guarantees the longevity of your property investment venture. Developing contingency plans and exit strategies allows you to navigate unforeseen obstacles and make strategic adjustments as needed, ensuring that your business remains resilient and adaptable in a dynamic industry.

Frequently Asked Questions

To write a real estate investor business plan, establish your vision, outline short-term and long-term goals, take inventory of your current finances, conduct market research, develop an investment strategy, and create a marketing plan.

Yes, a business plan is necessary for real estate investing as it can help you to navigate potential obstacles and set yourself up for success.

LLCs are the recommended option for real estate investments, as they offer limited liability protection. However, it is still ultimately a personal decision as to whether an LLC is the right choice for your particular investment.

Real estate investing can be a highly profitable opportunity offering both income and appreciation potential. It also provides diversification benefits, making it an attractive investment for those seeking portfolio balance.

In conclusion, crafting a comprehensive real estate investing business plan is vital for success in the industry. By defining your investment goals, selecting a niche, developing a tailored investment strategy, conducting market research, creating a robust marketing plan, and assembling a skilled team, you set the foundation for a thriving real estate investment business. By preparing for challenges and risks and implementing efficient systems and processes, you can navigate the complexities of the industry and build a successful, profitable business that stands the test of time.

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Real Estate Investment Business Plan Template

Written by Dave Lavinsky

Real Estate Investment Business Plan

You’ve come to the right place to create your Real Estate Investment business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Real Estate Investment businesses.

Below is a template to help you create each section of your Real Estate Investment business plan.

Executive Summary

Business overview.

Lone Star Real Estate Investments is a new real estate investment company located in the heart of Dallas, Texas. We have a proactive interest in this wonderful city and aim to invest in properties and neighborhoods that have great potential. Our mission is to ensure that our investments benefit the city as a whole and make Dallas a wonderful place to live.

Lone Star Real Estate Investments is founded and run by Gabriel Pattinson, an experienced real estate broker. He has spent his entire career working in the Dallas area, so he has extensive knowledge of the local market. His experience and expertise in the industry will ensure we find ideal properties to invest in and flip.

Product Offering

Lone Star Real Estate Investments will purchase commercial properties in the Dallas area and then flip them for a profit. We will invest in all the design, construction, and renovations that are necessary to upgrade these properties.

Customer Focus

Lone Star Real Estate Investments will target property owners who are interested in selling their land or commercial real estate. We will also target and sell to business owners looking for a commercial space to set up their business. We will only invest in commercial properties located in the Dallas area.

Management Team

Lone Star Real Estate Investments’ most valuable asset is the expertise and experience of its founder, Gabriel Pattinson. He has been a licensed commercial real estate broker for the past 20 years and has extensive knowledge of the local market. After selling properties to the residents and business owners of Dallas for several years, he is ready to make the switch to real estate investment, where he has more of a hand in improving and updating the properties that he sells.

Success Factors

Lone Star Real Estate Investments will be able to achieve success by offering the following competitive advantages:

  • Gabriel is popular in the industry and knows an extensive list of architects, construction companies, and contractors.
  • The company is committed to investing in local properties in order to improve the value of the local community.
  • Gabriel has extensive experience in the local real estate industry. As such, he knows how to find commercial properties that are worth investing in.

Financial Highlights

Lone Star Real Estate Investments is seeking $5,000,000 in debt financing to launch the business. The funding will be dedicated towards securing an office space, purchasing office equipment, funding marketing expenses, and purchasing initial properties. The breakout of the funding is below:

  • Office lease up-front cost and build out: $50,000
  • Office equipment and supplies: $25,000
  • Capital for property purchases: $4,500,000
  • Six months of overhead costs (rent, utilities, salaries): $250,000
  • Marketing expenses: $100,000
  • Working capital: $75,000

The following graph outlines the pro forma financial projections for Lone Star Real Estate Investments:

Lone Star Real Estate Investments Pro Forma Financial Projections

Company Overview

Who is lone star real estate investments.

  To find the best commercial properties for our portfolio, we do a thorough market analysis to see which available properties have the best potential. After choosing ideal properties, we negotiate a selling price with the owner. After the purchase, we fix up the property and add upgrades that we believe will add value to the investment. Once the renovations are completed, we sell the property at a competitive price to ensure we make a profit.

Gabriel began researching what it would take to create his own real estate investment company and did a thorough analysis on the costs, market, demographics, and competition. Gabriel has now compiled enough information to develop his business plan in order to approach investors.

Lone Star Real Estate Investments’ History

Once his market analysis was complete, Gabriel Pattinson began surveying the local vacant office space and located an ideal location for his firm’s headquarters. Gabriel incorporated Lone Star Real Estate Investments as an LLC on May 1st, 2023.

Since incorporation, Lone Star Real Estate Investments has achieved the following milestones:

  • Found office space and signed a letter of intent to lease it
  • Developed the company’s name, logo and website
  • Determined equipment and fixture requirements
  • Began recruiting key employees

Lone Star Real Estate Investments’ Services

Industry analysis.

Investing in real estate is a common way for individuals to earn wealth and passive income. Real estate is something that everyone needs, whether they need a property as a home or the location for their business. Therefore, the real estate industry is bound to continue to grow and can weather the storm of volatile market trends.

The real estate industry is currently booming in the aftermath of the pandemic. Both commercial and residential property prices are rising, making it a great time to invest in property. Buyers are more than eager to pay high prices for premium commercial and residential properties. By using caution and thoroughly researching markets before making investments, real estate investment companies can choose good investments and make enormous profits on their properties.

According to Allied Market Research, the Real Estate Investment industry was valued at $11,444.7 billion in 2021 and is projected to grow at a CAGR of 10.7% from now until 2031. With such a promising projection paired with increasing prices of commercial real estate in the local area, Lone Star Real Estate Investments is sure to become highly profitable.

Customer Analysis

Demographic profile of target market.

Lone Star Real Estate Investments will target property owners who are interested in selling their land or commercial real estate in the Dallas area. We will also target and sell to business owners looking for a commercial space to set up their business.

Customer Segmentation

Lone Star Real Estate Investments will primarily target the following customer profiles:

  • Landowners wanting to sell their land in prime commercial districts
  • Business owners looking to sell their commercial properties
  • Business owners looking for move in ready properties for their businesses

Competitive Analysis

Direct and indirect competitors.

Lone Star Real Estate Investments will face competition from other real estate investment companies with similar business profiles. A description of each competitor realtor is below.

Dallas Property Investments

Dallas Property Investments is the largest real estate investment company in the Dallas area. They purchase and flip properties throughout the entire Dallas area, including both residential and commercial properties. They have already managed a large portfolio of properties near our office location and continue to be a major presence in the local real estate industry. We expect Dallas Property Investments to be our largest competitor.

Premium Home Investments

Premium Home Investments is a real estate investment company that focuses on investing in and flipping residential properties throughout the Dallas metro area. They acquire average looking homes and flip them in the luxurious and premium residences. Though Premium Home Investments will continue to thrive, they will only be a minor competitor since they invest primarily in residential properties.

Property Investment Solutions

Property Investment Solutions is a real estate investment company that purchases multi-family complexes to operate and sell. They already own dozens of complexes, some of which they manage and others that they are improving to sell. Though Property Investment Solutions is a major investment firm in the Dallas area, we don’t expect much competition from them since they primarily purchase and sell multi-family residential properties.

Competitive Advantage

Lone Star Real Estate Investments will be able to offer the following advantages over their competition:

  • Location : Lone Star Real Estate Investments’ location is near the center of town. The office is visible from the street with many working professionals walking to and from work on a daily basis, giving passersby a direct look at the firm.
  • Management : Gabriel Pattinson has been extremely successful working in the real estate industry. His unique qualifications will serve clients in a much more sophisticated manner than Lone Star Real Estate Investments’ competitors.
  • Relationships : Having lived in the community for 25 years, Gabriel knows many of the local leaders, newspapers, and other influences. Furthermore, he will be able to draw from his ties to the community in order to build up an initial portfolio of properties to invest in.
  • Commitment to the community : Lone Star Real Estate Investments is committed to investing in and improving local commercial properties in order to improve the value and appeal of the local community.

Marketing Plan

Brand & value proposition.

Lone Star Real Estate Investments will offer the unique value proposition to its clientele:

  • Client-focused real estate investment services, where the company’s interests are aligned with the clients’ interests
  • Service built on long-term relationships
  • Big-firm expertise in a small-firm environment

Promotions Strategy

The promotions strategy for Lone Star Real Estate Investments is as follows:


Lone Star Real Estate Investments will invest heavily in developing a professional website that displays all of the features and benefits of the company. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Social Media

Lone Star Real Estate Investments will invest heavily in a social media advertising campaign. The brand manager will create the company’s social media accounts and invest in ads on all social media accounts. It will use targeted marketing to appeal to the target demographics.


Gabriel will be attending all networking industry events and actively networking at non-industry events. He will also be a member of local professional associations where professionals in the real estate industry are a part of.

Print Advertising/Billboard

Lone Star Real Estate Investments will invest in professionally designed print ads to display in programs or flyers at industry networking events. He will also invest in two billboards to display in highly trafficked areas of town.

Lone Star Real Estate Investments will purchase properties for a competitive price. We will also sell our properties for a moderate price that is determined by the local real estate market and the upgrades added to each property.

Operations Plan

The following will be the operations plan for Lone Star Real Estate Investments. Operation Functions:

  • Gabriel will be the CEO of Lone Star Real Estate Investments. He will oversee the general operations of the company and identify which properties the company will purchase and flip.
  • Gabriel will hire an Administrative Assistant to help with the basic administrative functions of the company.
  • Gabriel will also hire an Accountant and Social Media Manager.
  • Gabriel will hire architects, contractors, and interior designers to help flip and upgrade each property.


Lone Star Real Estate Investments will have the following milestones complete in the next six months.

  • 6/1/202X – Finalize contract to lease office space
  • 7/1/202X – Finish buildout of office space
  • 8/1/202X – Hire key staff
  • 9/1/202X – Purchase first properties
  • 10/1/202X – Begin fixing up properties
  • 11/1/202X – Start selling properties and reach break even

Lone Star Real Estate Investments’ most valuable asset is the expertise and experience of its founder, Gabriel Pattinson. He has been a licensed commercial real estate broker for the past 20 years and as such has extensive knowledge of the local market. After selling properties to the residents and business owners of Dallas, he is ready to upgrade the commercial properties of the area and make a bigger profit.

Though Gabriel has never run a business of his own, he has worked in the real estate industry long enough to gain an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry. He will also hire several professionals to help him run other aspects of the business he is unfamiliar with.

Financial Plan

Key revenue & costs.

The key revenues for Lone Star Real Estate Investments will come from selling the properties we invest in after fixing them up.

The major cost drivers will include the cost of the properties we purchase, renovation/construction costs, the lease, salaries, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Initial Number of Transactions Per Month: 1
  • Annual Office Space Lease: $50,000

Financial Projections

Income statement, balance sheet, cash flow statement, real estate investment business plan faqs, what is a real estate investment business plan.

A real estate investment business plan is a plan to start and/or grow your real estate investment business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Real Estate Investment business plan using our Real Estate Investment Business Plan Template here .

What are the Main Types of Real Estate Investment Businesses? 

There are a number of different kinds of real estate investment businesses , some examples include: Real estate investment, and real estate trading.

How Do You Get Funding for Your Real Estate Investment Business Plan?

Real Estate Investment businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Real Estate Investment Business?

Starting a real estate investment business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Real Estate Investment Business Plan - The first step in starting a business is to create a detailed real estate investment business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your real estate investment business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your real estate investment business is in compliance with local laws.

3. Register Your Real Estate Investment Business - Once you have chosen a legal structure, the next step is to register your real estate investment business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your real estate investment business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Real Estate Investment Equipment & Supplies - In order to start your real estate investment business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your real estate investment business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful real estate investment business:

  • How to Start a Real Estate Investment Company

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Real Estate Investment Business Plan

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Zenith Real Estate Investments

Executive summary.

Zenith Real Estate Investments specializes in acquiring undervalued properties to renovate, rent, or resell for profit. Our mission is to create value through strategic investments in the residential and commercial real estate markets, offering lucrative opportunities for our investors and enhancing community value.

Company Purpose / Mission Statement

To identify and capitalize on real estate investment opportunities that provide superior returns for our investors while contributing to the revitalization and growth of communities.

Problem We Solve

The real estate market often presents undervalued properties due to various factors, including distressed sales, poor management, or deferred maintenance. These situations create opportunities for investment and improvement but require expertise, capital, and strategic vision to unlock their potential value.

Our Solution

Zenith Real Estate Investments leverages market insights, extensive due diligence, and a network of industry professionals to identify promising investment opportunities. We specialize in refurbishing properties to enhance their market value, optimizing rental income, or preparing them for profitable resale.

Target Market

Our target market includes individual and institutional investors seeking to diversify their portfolios with real estate assets, as well as communities in need of revitalization through property improvements and investments.

Financial Summary

Zenith Real Estate Investments aims for robust growth with projected returns of 15-20% on investment annually. Our model focuses on strategic acquisitions, efficient capital deployment, and maximizing value creation for sustainable profitability.

Funding Needed

We seek $5 million in initial capital to fund property acquisitions, renovations, and operational expenses, with a structured investment plan offering competitive returns to our investors.

Products & Services

Problem worth solving.

The challenge of accessing and transforming undervalued properties into profitable investments requires specialized knowledge, experience, and capital, which many investors lack.

We provide a turnkey real estate investment solution, managing all aspects from acquisition to renovation and either rental or sale, delivering value to both investors and communities.

Market Size & Segments

Our focus is on emerging and stable markets with potential for growth, targeting both residential and commercial properties that offer significant upside potential through strategic investments.


Current alternatives.

  • Other real estate investment firms
  • Real estate investment trusts (REITs)
  • Individual investors

Our Advantages

Our competitive edge lies in our local market expertise, agile investment strategy, and commitment to ethical investments that contribute to community development.

Marketing & Sales

Market positioning.

Zenith Real Estate Investments positions itself as a strategic partner for investors looking for opportunities in real estate with a balance of risk and reward, prioritizing long-term value over short-term gains.

Unique Value Proposition

Our unique value proposition is our ability to uncover and transform undervalued real estate assets into high-yielding investments through meticulous market analysis, renovation, and property management.

Location & Facilities

Our operations are based in a central office that serves as the hub for our investment, renovation, and property management activities, equipped with the latest technology for market analysis and project management.

We utilize advanced real estate analytics and project management software to identify investment opportunities, track renovation progress, and manage properties efficiently.

  • Acquisition of first property portfolio by Q2 2024
  • Completion of initial renovation projects and rental/sale by Q4 2024
  • Expansion into new markets by 2025

Company Overview and Team

Organizational structure.

Our organizational structure is designed to support a seamless investment process, with dedicated teams for market analysis, acquisitions, renovations, property management, and investor relations.

Led by a seasoned real estate professional with a track record of successful investments, our team includes experts in market analysis, property management, renovation, and finance, ensuring comprehensive expertise in every aspect of the investment process.

Financial Plan and Forecast

Projected profit and loss.

Our financial strategy projects escalating profits as we scale our portfolio, with a focus on reinvesting in new opportunities to compound returns for our investors.

Use of Funds

The raised capital will be allocated towards property acquisitions, renovation costs, and operational expenses, with a clear strategy for maximizing investment returns.

Additional materials, including detailed case studies of past projects, market analysis reports, and investment prospectuses, are available to provide further insight into our approach and track record in real estate investment.

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business plan for real estate investment

  • Real Estate Investing

How to Create a Property Investment Business Plan

Last Updated: February 16, 2024, 1:20 pm by TRUiC Team

A property investment business plan is a multi-purpose document that acts as a comprehensive investment guide. It allows lenders to learn about your property rental business and its financial health.

As you begin your real estate investing journey, creating a rental property business plan can help you determine what your goals are. Read on to learn how you can achieve them through your rental property.

Recommended: Be sure to read our guide on How to Start a Real Estate Investing Business .

business plan for real estate investment

Creating a Property Investment Business Plan

Your property investment business plan contains all of your operational details, marketing strategies, and financial projections. In turn, you can refer to your document in the future as a reference.

Equally as important, you may easily make adjustments to your real estate business plan and keep moving forward if anything changes.

Writing a business plan requires plenty of hard work and research. Moreover, you should dedicate a sizable amount of time to drafting your investment plan.

After you establish your goals, identify potential investors, and get into the right mindset, you can start creating your real estate business plan. 

Make sure you're working with mortgage lenders who want to help you achieve your goals. Read our Best Mortgage Lenders for LLC Owners review to learn more.

1. Determine How Much You Need

Before you invest in property, identify the amount of money that you're looking to make. In turn, this will allow you to define how much revenue you need to raise, the number of homes to purchase, and a desirable interest rate. 

After that, use these objectives as a framework when you draft your real estate investment business plan.

Your financial goals will enable you to create a detailed timeline. In turn, you can determine when you could expect to reach your desired income level in rental revenues. 

This is especially important if you plan on initially investing a limited amount and, as your buy and rent business grows, acquiring more properties in the future. Above all else, working towards a goal and regularly measuring your progress will keep you motivated.

Where to Start

First of all, add up the expenses that you want your real estate income to cover. Many people invest in property so that they can pay off their debts.

Coming up with an estimate will help you create a timeline for when you expect to achieve your goals. Moreover, it lets you know how many properties you need to buy in order to attain your objectives.

To clarify, here are the steps that you should take:

  • Calculate your total debts, including your current home/residence's mortgage , auto leases, student loans, and/or credit card balances.
  • Determine how much in rent revenues you expect to earn from your investment.
  • Add up your buy and hold business expenses per property, including the loan, taxes, insurance, maintenance, and others.
  • When you deduct your business expenses from the rental revenue, you will get your net income.
  • Next, figure out how much of your debt you can pay off through your rental's net income.
  • Based on the previous step, determine how many properties you need to buy in order to cover all of your debts.

Keep in mind that you can set any financial goals that you prefer, such as raising money for retirement, a child's college education, or an annual vacation. Many investors prefer to pay off their debts before pursuing other objectives.

Doing so allows them to lower their personal monthly expenses (once the debts are fully covered) and, as a result, enjoy an even larger net income in the future.

2. Think About the Reader

The way that you write and structure your business plan depends on who will read it. Your initial (and most detailed) version should be for internal use (i.e., by you and your business partners).

After that, you can simply adjust and modify the document based on who you will present it to.

Above all else, your real estate investment business plan should highlight to readers how they can achieve their own goals by funding your buy and rent endeavor.

Here are the two main people and/or entities that will be interested in reading your business plan, alongside the aspects that each of them prioritizes:

  • Investors: A potential investor will mostly evaluate your business model, profit margins (revenues vs. expenses), and understanding of the real estate market. They may also ask for your resume and other information about your qualifications. At the end of the day, your real estate business plan should underline the market opportunities that you see and show potential investors how much money they can expect to make if they participate.
  • Lenders: When you apply for a loan, banks and financial firms will certainly want to view your business plan. This is even more likely if your buy and hold investment is new and doesn't have profit and loss statements. Lenders will mainly examine your assets, cash-on-hand or savings, expected profits, alongside your and your business partners' sources of income (such as a full-time job). In short, when lenders read your business plan, they are most interested in knowing that you'll be able to pay them back if they give you a loan.

Your Reader-Oriented Real Estate Business Plan

If you are approaching a family member or a friend, show them how they can reach their personal goals when they invest in property.

For example, if your friend recently had a child, ask them about their aspirations for their newborn. Moreover, find out if your friend has any concerns regarding childcare costs, tuition expenses, or even their existing debts.

After that, determine how much money your friend should invest in order for them to reach their financial goals.

When You Are the Reader

Keep in mind that you are the main reader of your own real estate investment business plan. When you start drafting it, do so in a way that makes it easy for you to track your progress and remember the technical details.

Highlighting certain parts, for instance, is one method. To give another example, try to use spreadsheets and formulas when you make financial calculations. This will certainly make future revisions simple and quick.

3. Research the Real Estate Market

When you study local and national trends, you can identify the best time and price to buy property. In turn, your monthly loan payments will go down, which increases your net income. The same concept applies to future interest rate projections and rental prices. Your research will tell you if closing a property is more profitable in the immediate future or whether it's financially wiser to wait until prices go down. When you research data about home prices, here are the main details that your property investment business plan should include:

Seasonal Trends

This is important because it tells you when home prices are at their annual peaks and lows. In most cases, values go up during the summer because demand is higher. During the winter, on the other hand, housing prices decline. If this is true in your area, find out how much you would save in monthly loan payments when you buy in the winter vs. the summer. Looking at historical data can help you come up with an estimate.

Past Values

Over the last few years, have property values gone up or down? How much have they changed? Average price changes might indicate how your buy and rent property value might increase or decrease in the future.

Future Projections

Study what national and local analysts are saying about the housing market. More specifically, research the main factors that are driving the changes in property prices. Do real estate experts expect them to continue in the future? What about other trends? Based on your findings, determine how these factors may impact your investment and future profits.

Rental Prices and Trends

Investors should also research rental price trends.

  • Firstly, look at historical changes and whether rents have been going up or down in your property's area.
  • Secondly, study the demand for rent and if it's expected to increase in the future. For example, find out if more people are moving into your area from another city or state. Similarly, examine additional factors that may impact the demand for rental properties.
  • Thirdly, calculate how those changes might impact your future profits. If rental prices are increasing, your revenue will also go up. Keep in mind that you may be able to raise your rent (and, therefore, your net income) from one year to the next.

Your property investment plan and future calculations should account for these potential changes.

Interest Rates

Lastly, but certainly not least, you should account for interest rate fluctuations. Several aspects will impact your interest payments. This includes the policies of the Federal Reserve, who set the interest rates that banks across the United States abide by. Look at their current rate and study what Federal Reserve officials are saying about potential future increases and decreases. Similarly, examine local factors that may impact the interest that lenders charge. Sitting down with a loan officer is a good place to start.

Learn more about the different types of home loans available to LLC owners. Read our guide to Types of Mortgages for Business Owners .

4. Identify Potential Renters and Connect With Them

When you understand who your renters are and where to find them, you will save plenty of time and money on marketing. In fact, you could even rent out the property (and start earning revenues) sooner than expected.

The following techniques can help you identify who your potential renters are:

  • Drive around your rental property's neighborhood and look at the houses. If the buildings are new and modern, it means that the renters in the area are willing to pay a relatively higher rent.
  • Keep an eye for items that may indicate household and family sizes. For example, if you see pools in the yard or “kids at play” road signs, your renters are most likely to be new families with young children.
  • Find out if there are malls, restaurants, and other attractions in the area. Those are great places to hang brochures and flyers to advertise your rental property.

5. Determine How You Will Operate

Your property investment business plan should outline how you will handle day-to-day operations. Doing so at an early stage will minimize delays, ensure that you and your business partners cooperate smoothly, and, above all else, it keeps your renters happy.

Here is how you can create an effective operational plan:

Assign Roles

If you are working with other investors, determine who will be in charge of collecting rent, handling maintenance requests, and marketing. Consider if your budget allows you to hire a management company.

Similarly, you should also assign shifts based on your and your business partners' schedules. This is especially useful if you have a full-time job and/or other time commitments.

Figure Out the Details

Your property investment business plan should outline the type of payment methods that you will accept, how renters can communicate with you, and other technical details.

When you get started and rent out the property, you should revisit your real estate business plan. After that, ensure that all of the important technicalities (such as payment processing apps) are taken care of.

If you forget anything, your document should serve as a reminder and an overall guide.

Choose a Business Structure

There are different types of business structures that you could opt for. The main ones are sole proprietorships, general partnerships, LLCs, and more complex corporate structures.

In general, we recommend creating an LLC. This is because an LLC minimizes your liability and gives you access to certain tax advantages.

An LLC is also ideal because it is simple to create, regardless of whether you are working alone or with other investors. In fact, if you are starting out as the only investor in the property, LLCs make it easy to add new co-owners in the future.

To find out more, read our article on the main benefits of forming an LLC and how you can create one .

Baselane offers a banking platform designed with real estate investors in mind to easily collect revenue, maintain books and file taxes so you can focus on running your real estate investment business.

6. Put Together the Financials

Now that you researched market trends, studied your audience, and figured out the operational details, you can put together the relevant financial documents.

The financial section of your property investment business plan should include the following:

Projected Revenues

How much will you charge for rent? Ideally, you want your numbers to be based on rental pricing trends and the preferences/income of your potential audience.

For example, if your property will be in a high-earning neighborhood, your rental rate can exceed your city's average prices. Just as importantly, after you look at historical trends, price-in potential rent increases during the upcoming years.

To clarify, you should calculate your potential revenues for each of the next 5-10 years, depending on how you expect rent prices to change. In turn, you can get an idea of what your long-term income will be, even if you have to make some adjustments over time.

Here are the main expenses that your property investment business plan would include:

  • Monthly and annual loan payments
  • Interest expenses
  • Marketing costs
  • Property and income taxes
  • Maintenance

At times, you may incur more or fewer expenses. For instance, your state's property taxes might change over the next few years. Moreover, some states may charge a sales tax. Others, meanwhile, will only levy an income tax on your earnings.

Check your state's applicable laws and tax rules. Doing so will make your financial projections even more accurate.

After you define your rent revenues, deduct your business expenses to figure out what your expected net income will be.

For instance, if your monthly rent revenues are $1,500 and your total expenses add up to $1,000, your net income is $500.

To take a step further, compare this figure to your original goal. As an example, if your total monthly debts are $1,500, you need to invest in 3 properties to fully cover this personal expense.

Break-Even Analysis

When you first get started, you will incur one-time costs. The most prominent example is the downpayment. If you plan on renovating the property, include the related expenses as part of your overhead costs.

Your break-even analysis defines when you will make that money back.

To illustrate, let's assume the following:

  • An investor paid a $3,000 down payment and another $2,000 for renovation. Their total overhead costs are $5,000.
  • The investor also expects to make $1,500 per month in rental revenues. Their monthly expenses, meanwhile, are $1,000. The investor's net income is $500.
  • Therefore, it would take them about ten months to make back the $5,000 that they originally spent on the downpayment and renovation.

Follow the same steps above to determine when you will break-even. After that, include this information in your property investment business plan.

7. Create an Executive Summary

While this should be the first section of your property investment business plan, you only need to work on it after you complete the previous steps.

Your executive summary will give the reader a brief overview of what the document entails, alongside your business plan outline.

More specifically, include the following information in your executive summary:

  • Overview: A shortened description of what the document entails and where the reader can find specific pieces of information. This should be drafted based on who you will present your property investment business plan to.
  • Mission: In a few words, describe what your overall objectives are. For example, some investors are passionate about providing housing opportunities to underserved markets.
  • What You Need: Specify why you are asking the reader to view your real estate business plan. If you are applying for a loan, determine the amount that you need and how you plan on using the funds. The same logic applies when you approach potential investors.

8. Review and Repeat

Once your property investment business plan is complete, refer to it in the future as an overall guide.

In other words, your document contains all the relevant details that you need to remember as time goes by. This includes market trends, future revenue projections, and operational details.

Equally as important, you should always modify your property investment business plan, especially when you expand and acquire new rental homes.

It is also important to adjust your predictions (such as those related to rental rates and property appreciation) in the future.

Moving Forward

Now that you know how to write a rental property business plan, it's time to begin moving forward on finding properties to rent. We recommend you begin by forming an LLC for your property rental business.

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Will this couple run out of money because they retired early? Plus: What’s the bigger risk to your retirement – cuts to the CPP or declines in stocks and real estate?

business plan for real estate investment

Malcolm and Laura's target retirement cash flow is $90,000 a year after tax, including a $15,000-a-year travel budget. Ashley Fraser/The Globe and Mail

Content from The Globe’s weekly Retirement newsletter. Sign up here

Malcolm and Laura retired relatively young – he was 57 and she was 54 – and they’re wondering if they made the right decision.

Nearly three years have passed since Malcolm left a successful career in sales. He is now 60 and just starting to take early Canada Pension Plan (CPP) benefits. Laura is now 57. They want to help their daughter, who is 25 and living at home, with a down payment on a first home. They have a mortgage-free house in small-town Ontario and substantial savings and investments, including Malcolm’s locked-in retirement account, or LIRA, a type of employer pension plan.

Their target retirement cash flow is $90,000 a year after tax, including a $15,000-a-year travel budget.

“Will we have enough to live comfortably for the rest of our lives?” Malcolm asks in an e-mail.

In this Financial Facelift , Warren MacKenzie, a certified financial planner and chartered accountant, looks at Malcolm and Laura’s situation.

Want a free financial facelift? E-mail [email protected] .

Here’s what you should do with $1,000, $10,000 or $1-million

We’ve all thought about it: How would landing a bit of unexpected cash change our lives? Could $1-million buy an early retirement and the car you always wanted? Could $10,000 allow you to buy a house now instead of a year down the road? Should you put $100 in a savings account or toward a fancy dinner? In this article, Report on Business reporter Salmaan Farooqui posed these questions to financial experts.

It may seem like a thought experiment to imagine what you’d do with an unexpected lump sum, but the thing is, it does happen – whether it’s a surprise inheritance from a distant relative or a five-figure work bonus you didn’t see coming.

Given current demographic trends, planning for lump sums isn’t always a hypothetical exercise. One projection from CPA Canada estimates that $1-trillion of wealth transfers will pass from baby boomers to Gen Xers and millennials from 2023 to 2026 – in what would be the largest generational transfer in Canadian history.

So Farooqui decided to do a bit of daydreaming and asked Clay Gillespie, managing director of RGF Integrated Wealth Management, and Evan Parubets, head of the advisory services team at Steadyhand Investments, to come up with the best uses of unexpected cash from $100 to $1-million. For the purpose of this exercise, it is assumed that each cash amount would be tax-free and that it couldn’t be used toward debt.

Read the full article here .

Why men (probably) shouldn’t take their CPP early

If you are trying to decide when to start taking your CPP, a major factor is figuring out which age makes you better off financially, says Frederick Vetesse in this Charting Retirement article. Vetesse, former chief actuary of Morneau Shepell and author of the PERC retirement calculator ( ), assesses the merits of one starting age versus another here .

In case you missed it

What’s the bigger risk to your retirement – cuts to the cpp or declines in stocks and real estate.

An opportunity to relieve a bit of your financial stress has presented itself, says personal finance columnist Rob Carrick in this Globe and Mail Opinion article.

A recent report from the National Institute on Ageing, he adds, reveals the top worries of people aged 50 and up are inflation, running out of money and a reduction in payments from the Canada Pension Plan or other government benefits.

Please stop worrying about the CPP, it’s solid, says Carrick. If you don’t believe him, check out the roster of financial planners and advisers who backed the CPP in a LinkedIn discussion Carrick started a little while ago. Or, try the fact-based, emotion-free thread that portfolio manager Benjamin Felix produced on the CPP recently on the social media platform X.

The institute report is called Perspectives on Growing Older in Canada and its findings are based on a survey of 5,875 people aged 50-plus. These participants were presented with a list of nine financial issues and asked to pick the ones of concern to them. Inflation came up in 70 per cent of the responses, which sounds about right because rising living costs are a stunner for a lot of people.

Running out of money came up in 46 per cent of responses, which is likewise easy to understand. If you’re financially stretched today, it’s normal to worry about having enough money over the long term.

Cuts to the CPP and other government benefits were mentioned in 37 per cent of responses. Cuts to some government programs will be needed to eliminate the federal deficit, and Old Age Security costs will have to be looked at in the years ahead. But concerns about the CPP, adds Carrick, are mislaid.

Be aware of the key changes that could affect your 2023 tax filings

People that cheat on their taxes should be ashamed, says Tim Cestnick, in this Tax Matters column. There’s no excuse for lying on a tax return – but it’s common today. Granted, some of the inaccuracies on a tax return can be the result of not knowing the rules or understanding what’s changed, he adds.

Since tax season is drawing near, Cestnick looks at what’s new for taxpayers as we all prepare to file our 2023 tax returns here .

Retirement Q&A

As part of the Globe’s series, Planning for the CPP , in which Globe Advisor explores the decisions behind the timing of when to take CPP retirement benefits and reviews different aspects of the plan, we have invited readers to ask questions and find experts to answer them. This week, we are featuring a Q&A from the series.

Q: Does it make sense to consider CPP and OAS benefits jointly, or are they separate conversations? Does delaying OAS impact health benefits?

We asked Chris Warner, wealth advisor at Nicola Wealth Management Ltd. in Victoria, to tackle this one.

This is an insightful question as CPP and OAS benefits often are lumped into one conversation. While they certainly share similarities and can even complement one another, I’d recommend we first consider them individually and then assess how they interact with one another afterward.

Let’s first summarize the two programs for clarity:

  • The CPP operates as a true pension in that workers pay into the program during their working years and are entitled to benefit payments – proportionate to their contributions – in retirement.
  • OAS is a federal benefit designed more as a basic income supplement. It pays automatically to retirees who meet Canadian residency requirements. OAS is also income-tested and reduced for higher-income retirees. It’s known as an OAS clawback and applies above taxable income of $90,997. At $142,609 or above of annual income, OAS is $0.
  • The standard age to take both CPP and OAS benefits is 65. With both programs, you can defer the income to 70 (or 72 for Quebec Pension Plan recipients as of 2024). Every month you defer your CPP benefits after 65, your payment increases by 0.7 per cent, to a maximum of 42 per cent if you wait until 70. OAS benefits increase by 0.6 per cent every month they’re deferred, up to 36 per cent at 70. CPP benefits are reduced by 0.6 per cent every month they’re taken before 65, up to a maximum reduction of 36 per cent. You can’t take the OAS until you are 65, so there’s no reduction.
  • For lower-income earnings, the OAS has a supplementary benefit called the Guaranteed Income Supplement (GIS). A single individual earning less than $21,624 annually will receive up to $12,786 in GIS a year.
  • OAS doesn’t have any health benefits. However, it is taxable income, so for any income-tested health programs, such as low-income provincial drug plans, it could impact eligibility.

What does this all mean on a practical basis? Generally, the CPP is flexible whereas the OAS tends to be most useful for those with lower taxable incomes.

I recommend the CPP be matched to a person’s anticipated life expectancy. If financially possible, and if a person’s health history is good, deferral benefits are strong at 8.4 per cent a year, plus inflation indexing. This also protects against longevity risk. If the health history is weaker or the income is much needed, taking the CPP earlier than 70 is fine.

The OAS should match lifetimes also, but with caveats. The $90,997 clawback limit can work for many retirees, but high-net-worth individuals can often find this limiting. In such a case, the $8,560 benefit isn’t usually worth restricting one’s retirement.

For couples, this is a key opportunity for planning. If a couple can split their taxable incomes efficiently, that gives them a household budget of $181,994 before clawback. That’s typically more manageable.

If you have any CPP questions, story suggestions or feedback on this series, please e-mail us at [email protected] . We can’t respond to every e-mail or question, but we’ll do our best. The answers will appear on Tuesdays. Find more articles in the series here . For more from Globe Advisor, visit our homepage .

Have a question about money or lifestyle topics for seniors? E-mail us at [email protected] and we will find experts and answer your questions in future newsletters. Interested in more stories about retirement? Sixty Five aims to inspire Canadians to live their best lives, confidently and securely. Sign up for our weekly Retirement Newsletter.

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Qualified Business Income Deduction

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Many owners of sole proprietorships, partnerships, S corporations and some trusts and estates may be eligible for a qualified business income (QBI) deduction – also called the Section 199A deduction – for tax years beginning after December 31, 2017. The deduction allows eligible taxpayers to deduct up to 20 percent of their QBI, plus 20 percent of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. Income earned through a C corporation or by providing services as an employee is not eligible for the deduction. For more information on what qualifies as a trade or business, see Determining your qualified trades or businesses in the Instructions for Form 8995-A or Form 8995 .

The deduction is available regardless of whether taxpayers itemize deductions on Schedule A or take the standard deduction. Eligible taxpayers can claim the deduction for tax years beginning after December 31, 2017, and ending on or before December 31, 2025.

The deduction has two components.

  • QBI Component. This component of the deduction equals 20 percent of QBI from a domestic business operated as a sole proprietorship or through a partnership, S corporation, trust, or estate. The QBI Component is subject to limitations, depending on the taxpayer's taxable income which may include the type of trade or business, the amount of W-2 wages paid by the qualified trade or business, and the unadjusted basis immediately after acquisition (UBIA) of qualified property held by the trade or business. It may also be reduced by the patron reduction if the taxpayer is a patron of an agricultural or horticultural cooperative.
  • REIT/PTP Component. This component of the deduction equals 20 percent of qualified REIT dividends and qualified PTP income. This component is not limited by W-2 wages or the UBIA of qualified property. Depending on the taxpayer's taxable income, the amount of PTP income that qualifies may be limited depending on the type of the PTP's trade or business.

The deduction is limited to the lesser of the QBI component plus the REIT/PTP component or 20 percent of the taxpayer's taxable income minus net capital gain.

QBI is the net amount of qualified items of income, gain, deduction, and loss from any qualified trade or business, including income from partnerships, S corporations, sole proprietorships, and certain trusts. Generally, this includes, but is not limited to, the deductible part of self-employment tax, self-employed health insurance, and deductions for contributions to qualified retirement plans (e.g., SEP, SIMPLE and qualified plan deductions).

QBI does not include items such as:

  • Items that are not properly includable in taxable income
  • Investment items such as capital gains or losses
  • Interest income not properly allocable to a trade or business
  • Wage income
  • Income that is not effectively connected with the conduct of business within the United States
  • Commodities transactions or foreign currency gains or losses
  • Certain dividends and payments in lieu of dividends
  • Income, loss, or deductions from notional principal contracts
  • Annuities, unless received in connection with the trade or business
  • Amounts received as reasonable compensation from an S corporation
  • Amounts received as guaranteed payments from a partnership
  • Payments received by a partner for services other than in a capacity as a partner
  • Qualified REIT dividends

Solely for the purposes of section 199A, a safe harbor is available to individuals and owners of passthrough entities who seek to claim the deduction under section 199A with respect to a rental real estate enterprise. Under the safe harbor a rental real estate enterprise will be treated as a trade or business for purposes of the QBI deduction if certain criteria are met. For more information on the safe harbor, see  News Release IR-2019-158

An interest in rental real estate that does not meet the requirements of the safe harbor may still be treated as a trade or business for purposes of the QBI deduction if it otherwise is a section 162 trade or business.

In addition, the rental or licensing of tangible or intangible property that does not rise to the level of a section 162 trade or business is nevertheless treated as a qualified trade or business for purposes of section 199A if the rental or licensing of property is to a commonly controlled trade or business operated by the individual or a passthrough entity as provided in Treas. Reg. § 1.199A-1(b)(14).

More information:

  • Final Regulations PDF
  • Notice 2018-64
  • Instructions to Form 1040 PDF
  • Instructions to Form 8995-A PDF
  • Instructions to Form 8995 PDF
  • Publication 535 PDF
  • Tax Reform Basics for the Qualified Business Income Deduction (199A)

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  7. Real Estate Investment Business Plan: Guide & Template (2024)

    Download Template Create a Business Plan Real estate has been one of the fastest-growing industries in recent times. So, if considering starting a real estate investment business—this is the right time.

  8. 7 Critical Parts of Every Real Estate Investment Business Plan

    1 Buying your first investment property is an incredible thrill, but whether you want to fix and flip or buy and hold, you need to have a solid real estate investment business plan. In this article, we'll discuss the common requirements of any business plan, such as budget and financial projections, as well as required capital.

  9. How to Write a Real Estate Business Plan + Example Templates

    Whether you're looking to start a home buying and selling business, a commercial real estate investment firm, a property management company or real estate investment trust, you need a well-thought-out business plan that not only outlines the steps to create a comprehensive and effective business structure, but also accounts for real estate's uni...

  10. 7 Steps to Writing a Real Estate Business Plan (+ Worksheet)

    1. Tell Your Story: Identify Who You Are as a Real Estate Agent The first step to successful real estate business planning is always self-evaluation. Who are you, why are you in the real estate business—and maybe most importantly—what do you do? We call this section "Who You Are," and ask you to develop your:

  11. Starting Your Real Estate Investment Business

    Once you have found a real estate investment partner to go in on a property with you, come up with a plan by doing research on market trends, making projections for profits and losses, as well as ...

  12. How to Create a Real Estate Investment Business Plan

    on Sun Oct 22 2023 | 2 min. read Home Blog How to Create a Real Estate Investment Business Plan for Residential Rental Properties (Free Template) Ready to unlock the potential of real estate investment and build your financial future?

  13. How To Write Your Real Estate Investing Business Plan

    Step 1. Create your vision and mission It might seem like a silly first step to creating your real estate investing business plan. Because let's be honest: you're setting out to make money, achieve financial freedom, and live on your own terms.

  14. How to Start a Real Estate Investment Company

    Think about marketing. Come up with a name that reflects the desired brand and/or focus of your real estate investment company. If you'd like to quickly and easily complete your business plan, download Growthink's Ultimate Real Estate Investment Business Plan Template and complete your business plan and financial model in hours.

  15. Real Estate Investment Business Plan

    Goals And Timelines. A business plan should clearly state a real estate investor's goals for their company. One way to show this is to make a 1-year, 3-year or 5-year plan. Detail your plans for the business over a variety of different timelines. You'll also want to include some strategies and details for how you plan on meeting them.

  16. 12 Best Real Estate Investing Business Plan Templates

    However, real estate investing requires a business plan, as with all business ventures. A business plan is necessary to guide your decision-making and growth and help you finance your real estate and business operations. A real estate investing business plan includes several components. Executive Summary

  17. Real Estate Investing Business Plan (Everything you need to know

    Real estate investing requires a comprehensive business plan to optimize decision-making and utilize resources. SMART goals, market research, financial planning & projections are essential for successful real estate investments.

  18. Real Estate Investment Business Plan Template

    1. Develop A Real Estate Investment Business Plan - The first step in starting a business is to create a detailed real estate investment business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial ...

  19. Real Estate Investing Business Plan How-To

    The first section of a good business plan for a real estate investor is simply explaining what you hope to accomplish from this business. The goals that you set should be SMART (Specific, Measurable, Achievable, Realistic, and Timely). For example, to earn $3,000 a month in rental income, or to fix-and-flip one investment property a month, or ...

  20. Free Real Estate Investment Business Plan Sample

    Our Solution Zenith Real Estate Investments leverages market insights, extensive due diligence, and a network of industry professionals to identify promising investment opportunities. We specialize in refurbishing properties to enhance their market value, optimizing rental income, or preparing them for profitable resale. Target Market

  21. Investment Property Business Plan

    A property investment business plan is a multi-purpose document that acts as a comprehensive investment guide.It allows lenders to learn about your property rental business and its financial health.. As you begin your real estate investing journey, creating a rental property business plan can help you determine what your goals are.Read on to learn how you can achieve them through your rental ...

  22. PDF Real Estate Investing Sample Business Plan

    A business plan with thorough financial forecasting is a required component for the venture's funding efforts—loan officers and savvy investors require detailed financial plans. Simply, it's the only way to know if the owners and investors will see a net profit.

  23. How To Invest In Real Estate

    With $5,000, you can start investing in certain forms of real estate. This amount is enough to buy shares in individual REITs or a REIT ETF. In the realm of online real estate platforms, $5,000 ...

  24. Will this couple run out of money because they retired early? Plus

    They have a mortgage-free house in small-town Ontario and substantial savings and investments, including Malcolm's locked-in retirement account, or LIRA, a type of employer pension plan.

  25. Dubai Real Estate Predictions 2024

    Moreover, the gross domestic product (GDP) for the first half of 2023 exhibited a growth of 3.2%, totaling AED 223.8 billion. Among industries, the transport and storage sector notably outperformed others, experiencing a 10.5% expansion during this period. Dubai Real Estate Predictions 2024. Download or view the pdf.

  26. Qualified Business Income Deduction

    The deduction allows eligible taxpayers to deduct up to 20 percent of their QBI, plus 20 percent of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. Income earned through a C corporation or by providing services as an employee is not eligible for the deduction.

  27. Arizona leaders take advantage of federal tax credits for

    Arizona leaders take advantage of Inflation Reduction Act tax credits for sustainability projects. Phoenix Mayor Kate Gallego stands in front of Cartwright Elementary School District's new ...

  28. Barry Van Patten II

    12 likes, 1 comments - barryvanpatten2 on July 27, 2023: "When engaging in real estate investment, it's essential to not only consider the purchase and man..." Barry Van Patten II • Arizona Realtor on Instagram: "When engaging in real estate investment, it's essential to not only consider the purchase and management of properties but also ...