Re: newbie at a crossroad, advice needed - Posted by M
Posted by M on August 14, 2002 at 14:47:58:
One thing that is helping me as I go along is the realization that the completion of “THE FIRST DEAL” should be my main goal. This keeps things simple (once i reach this plateau, I’ll set new goals). “What do I need to do to get my first deal” should be your thinking.
Start a business plan. This may sound a little intimidating if you’ve never done one, but it’s really quite simple. Just start summarizing on paper what it is you plan to do. Once you start, you won’t stop. Every time after this, write down every to-do that comes to mind (ie order bandit signs, don’t know when exactly i need to do this right now, but i know eventually i will need to, so right it down, can organize later).
You’re goal should be to eventually have something that your grandma can read and totally understand what it is you do, why and how you’ll accomplish it (as Einstein once said, “if you can’t explain it simply, you don’t understand it well enough”).
You want your business plan to have all the necessary components, even if you don’t know things yet, put in placeholders so you at least know you need to address that issue.
Some sections of my plan are as follows:
- Executive Summary - purpose of my biz
- Key objectives - complete first deal by ?
- Organizational overview - will form LLC as holding company and acquire and dispose of properties using a combo Land Trust/new LLC as beneficiary
- Description of techniques used - quick one page summary of L/O, Sub 2, Short sale, k for Deed, etc. (incl overview, ideal scenario, forms needed, etc.)
- Marketing plan - the most important…be as detailed as possible
- Management - summarize strengths of self and your team (these will become selling points when discussing w/ people…even if you’re a complete newbie, if you join your local RE club and you get to know experienced pro’s there, you can count their experience as your consultants)
- General rules of thumb (ie always get the other side to commit to price first in negotiating, ask more ?'s and listen rather than blab on, etc.)
All throughout, I list specific names and numbers of people I will call at that point. For example, I know when I get to the final stage of deal and i need my docs notarized i know the exact traveling notary i’m calling (you get these contacts at your local RE club).
Your biz plan certainly won’t start off pretty. but it will help you organize your thoughts and see what it is you still need to take care of.
Hope this helps.