How Do I Create A Business Plan For My Real Estate Investing Business?

Hey, it’s Joe. I’ve got another one here.
This one is from Brian. He says, “I’d really like to get started with your
group. How do I put together a cost effective business plan that provides for minimal investment
and provides cash flow for growth?” Well, a business plan is if you’re going to
go out and raise money. We don’t raise money. A business plan – a lot of people think, ‘I
went to business school and business school says before you start a business you need
to have a business plan because you’re going to invest a certain amount of money and you
need to see how long it’s going to take before you get that money back.’
I understand that. I understand having a plan for going forward and doing things, but what
you could do is you could emulate a plan that we know works. I’ve got a plan, the “For Rent
Method” that works very well, and we have other things that we do as well, but the “For
Rent Method” is a great one to get started with. It’s very easy, it doesn’t require cash
and it doesn’t require any credit so the first time you make money on it, you get an instant
return on your business and you can start living on that almost immediately.
It does cost you some money to learn how to do it and go through that process, although
I give away so much free information on this blog that you can probably get all of this
information for free. Or, you can buy my book on Amazon, “Automated Real Estate Investing”
for $2.99 – just type in Joe Crump and you’ll see a couple of books. One of them is a green
cover, ones a red cover – buy the one with the red cover because that’s about automated
real estate investing, so it’s very cheap to get going and it is a business plan in
itself. It shows you what you need to do, step one, step two, step three, etc. – it
teaches you step by step what needs to be done.
I had a fellow come to me and say, ‘Joe, I need to create a business plan so that I can
give this to my dad so that he’ll give me enough money to afford your business program.’
And I told him the same thing. I said, ‘We don’t really create business plans. It’s not
really necessary. You don’t know where your business is going, so whatever you write down
in your business plan’ – and I’ve talked to so many startup people, whether they’re in
software, whether they’re in real estate, whatever business that they’ve got going that’s
not a franchise because franchises already have a step by step in place and don’t require
business plans, but if you don’t have anything in place to start with, what you do is start
taking action on things that seem reasonable to make money or you use a system like mine
which is similar to a franchise where you already know what you need to do, and then
you can grow from there. If you want to go off and do wholesaling deals,
you can do that. If you want to do rehab deals, you can do that. I do all of those things
as well. I’ve got some students that do short sales, real estate agents especially, and
they do some short sales I find to be a pain in the butt, but I can see how they can be
valuable. There’s times when I’ve built and I’ve done
new construction that made sense. Most of the time, right now, I don’t see that as making
a lot of sense – the loan market is very tight, so I try to do things that don’t require any
loans or any conventional lending or any hard money or any private investors, and if you
can set up deals that do that, it’s going to be a lot easier for you to build a business
and if you use a step by step plan that somebody else has already created, that’s also going
to make it a lot easier. If you want to create a Subway store, go buy
a Subway franchise. They’ve already gotten it broken down exactly what you’re supposed
to do, i.e. the type of advertising, the menu – everything is all laid out – they’ve got
a proven system. Now, you have to work 80 hours a week and you make $60,000 a year doing
it and it sucks – everybody that I’ve talked to that has a Subway thinks it suck unless
maybe they’re in downtown Manhattan or something. But if you want to take a business where you
can work 3, 5 or 10 hours a week and have an income that makes you as much as a Subway
sandwich company does, you can do that; I work less than that and I make more than that.
So you have to decide what kind of business you want and start by emulating something
that already exists. Alright, I hope that helps.

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One thought on “How Do I Create A Business Plan For My Real Estate Investing Business?

  1. Mr Joe Crump I enjoy your videos and info on your real-estate my question is when selling a property or wholesale do you have to show the property in person if they want to see the property ?

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