If you are thinking of starting to invest in apartment properties, one of your first steps will be to complete a solid business plan. This is also true for professional investors, as it is something that will keep you coming back and turning year after year to update and adjust things as your investment business grows and matures. It is 100% correct that the plan to fail is the plan to fail.
How do you start writing a business plan for your apartment investment? What should be included? How long should your business plan be – how many pages?
I have great news for you – especially if this job sounds a bit scary. I have a 5-step process to help you write your business plan in one night – even the last time you wrote something was in ninth grade English class.
Your business plan doesn’t need hundreds of pages, charts, and graphs, etc. It will work better for you with a laser-targeted business plan that has tracks to make sure you come back again and again in the future.
Here’s a brief overview of how to start your own business plan for apartment investment:
1. Mental rigor and commercial investment real estate
This is arguably the most important part of your business plan because it all starts with your mindset and what you want to achieve. What do you want to achieve as a result of owning and profiting from commercial investment real estate? What benefits do you want as a result? Start your Commercial Real Estate Journal today by entering what you actually want from Commercial Investment Real Estate and what you actually want to get out of it. This is something you have to do every day!
2. Three features according to the rules of each week
If you are really serious about success in the world of apartments and commercial real estate, then the best way to get started is to use my 3 properties per week as a rule. Basically, it is: if you look at 3 properties per week, you will see more than 150 properties in a one-year period. This, in turn, will sharpen and improve your asset analysis skills over time. Commitment to this rule will put you far above your competition because I can guarantee they won’t.
3. Commercial Investment Property Market Analysis
The next step is to analyze the apartment property market in your target area. You need to know all the necessary components of the market. What is the average CAP rate of the area for class A, B, and C properties? What is the average number of days in an apartment project market? What is the average rent for class A, B, and C properties?
4. Investor personal analysis and team building
Identify the members who will be a part of your “Dream Investment Team”. Specify which assessors, attorneys, accountants, accountants, brokers, and property managers you will work with within your market. Ask any successful apartment investor and they will tell you that their “dream team” is the key to their success.
5. Investment property analysis
Eventually, you will discover the actual property analysis itself. Identify features you are targeting, including CAP rate, number of units, average rent, and vacancy rate. More importantly, what is the property opportunities? Can you raise rents and lower costs, which will increase the value of the property over the next 12 months? This is where you will find Night-Critic details and for some, it will be one of the most exciting parts of your business plan.
This is the key to incorporating apartment investment into your business plan. As you can see, you don’t need hundreds of pages in your business plan – and it can usually be done in one evening without interruption. I suggest you find a secluded place where you can work, seamlessly in your business plan. Unplug the phone, turn off email, Facebook, and Twitter updates. Lock the door and go to work, because it is the key to your success as an apartment investor. For your commercial cleaning needs look no further than Minneapolis Commercial Cleaners based out Minneapolis, MN.