060: Your 2017 Strategic Plan

SHOW NOTES FOR EPISODE 060 –  YOUR 2017 STRATEGIC PLAN

In our last Fun Facts Friday episode we talked about looking back at the past year.  Documenting and recording everything you did relative to your real estate investing.  In this episode, we outline exactly what elements are needed for your 2017 strategic plan how what comprises each element.  The importance of getting the plan done before the new year is pivotal to your success.

Tracking Last Year’s History

In our last Fun Facts Friday episode we talked about looking back at the past year.  Documenting and recording everything you did relative to your real estate investing.  It may have just been:

• I read these books,
• Attended these seminars
• I had meetings with potential lawyers, partners, mentors

It’s just important that you document everything.

Now it’s time to put the pedal to the metal or this is where the rubber meets the road!

The idea here is get this plan written – Even if it is only one paragraph per tab

Here are the 10 elements/sections of the plan:

• Mission
• Vision
• Goals
• Strategy
• Timeframe
• Market
• Investment Criteria
• Team
• Financials
• Exit Strategy

Action Plan

Do this now:

• Get a clear slide in notebook
• Buy 10 tabs
• Start writing/typing
• What’s important is that you get something down – you can revise later
• It’s alright if it’s not perfect first draft. It is a “living” document that will change over-time
• The main thing is to get it in writing and plan to start it the 1^st of the New Year.

“Mediocore Real Estate Investors bounce from one opportunity to the next…”

With little thought given to the end goal.  There are many types of real estate investing:

• Wholesaling
• Student rentals
• Multifamily
• Rent to own
• Vacation rentals
• Fix ‘n flip

Decide what you are going to do and stick to it at least 2 years.

Successful real estate investors (REIs) treat real estate investing like a business and create a Strategic Plan

Successful REIs have clear intentions

Write a Strategic Plan

• Clarify what you want
• And align with your “why”
• Make sure the plan helps you get and stay focused

Create a Simple Plan

• It can be more of a “to do” list than a doctrate thesis
• Outline baby sized steps (better to have bit-sized” goals that you can achieve than large complicated objectives)

To jumpstart your plan, start building now with this simple outline

Mission Statement

• What is your business
• What benefits do you provide
• What is your purpose

I want to achieve _____ so that I will be able to do________

Vision

• Where do you see yourself heading
• Dare to Dream
• Develop a mental picture

5 years from now, my company will _______ by _______

Goals

• What do you plan to achieve investing in real estate
• Be specific with you want to achieve (don’t just say I want to have more money and more time)
• Here is a goal examples
  • To upgrade to a nicer home in the future
  • Have my dream vacation
  • Pay for cash my kids’ education
  • Create steady cashflow for retirement

Strategies

• Wholesaling
• Student rentals
• Multifamily
• Single Family buy ‘n holds
• Rent to own
• Vacation rentals
• Fix ‘n flip
• Strategy suggestion: Pick one and focus for a least a couple of years – be good first before moving to another

Time Frame

• What are your timelines for each goal?
• Will help you “prioritize” your goals

Investment Criteria

• What criteria do you follow looking at deals?
• My Example:
• I am seeking value-add multifamily properties, prefer off-market, that are built after 1970, B/C class property in B area with pitched roofs, individually metered, with value plays such as low rents, poor management, high vacancy and a motivated/flexible seller. I am targeting properties 100 to 400 units and less than $15 million purchase price.
• Net cashflow of at least $100 per door

Market

• Where do you want to invest?
• How will you find deals?
• What neighbprhoods?
• Example: If possible, buy close to home

Team

• Who is on your team
• Who are your business partners
• Who you need to support you to find and make your deals reality?
  • Broker or Agent
  • Lawyer
  • Banker
  • Inspector
  • Insurance Broker

Financials

• What investment capital do you have
• How do you plan to finance your investment property
• Financial Strategies:
  • Borrow equity from home
  • House Hack: buy a duplex, live in one unit for a year and repeat
  • Self-Directed IRA
  • Cash
  • Sell stocks
  • Get business partners

Exit Strategy

• How will you get your money out of the properties
• Possible strategies
  • Hold till as long as you live – pass on to kids
  • Value-Add Rehab – sell or re-fi in 3-5 years with increased equity

“A journey of a thousand miles begins with a single step” – Lao-tzu

Just do it!

You CAN do this plan before year-end!  Don’t delay!

Until our next podcast, keep moving forward and God bless!

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