A Simple Plan for Starting a Business of Real Estate Investing

Starting a business of real estate investing - whether you work out of an office or a ‘home based business’ you run out of a corner of your bedroom, you can drastically change your life, and your income in as little as 10 hours per week - all through a very simple plan of real estate investing.

It is possible to become successful in real estate investing in a short time and, even when starting a business of real estate investing, you can find the time without crimping your current lifestyle!

Starting a business of real estate investing with a simple plan.

1. Groundwork of your simple plan is crucial when starting a business of real estate investing.

I know, it is easy to say - and the truth is, it is easy to do! Most people get stopped when starting a business of real estate investing because they simply FAIL to plan. That’s right, it isn’t because their plan didn’t work, it was because they did not implement even a very simple plan!

To be successful in real estate investing, first find someone else that is successful in real estate investing, watch them, interview them, find out everything you can about what they did when starting a business - and write up a simple plan of what they have done to be successful in their real estate investing - something that you can follow each day.

In order to have what they have, you need to do what they do, so find out what percentage of their day is spent on the telephone, for instance.

Find out how much of that time is spent on making calls, receiving calls and the type of calls they are (Customer Service, making deals, etc.)

That gives you a good idea of what your total time should look like, when you are starting a business of real estate investing of your own.

2. The next step in developing your simple plan as you are starting a business of real estate investing is to divide your total time (10 hours per week is a great start) just like your successful mentor does.

Even if they put in a hundred hours per week, they still divide their time, just like you will, once you begin working your simple plan.

The ’secret to success’ isn’t in the hours - it is how you spend them!

Follow the simple plan outlined here to make the most of your hours and get the most out of everything as you are starting a business of real estate investing with a plan of success.

If your mentor spends 1/10th of their time making outgoing phone calls to find new business, then you need to spend 1/10th of the time you dedicate to your real estate investing business doing the same thing, a pretty simple plan, huh?

3. Set your Goals.

A clear destination is something you always do when starting out on vacation, isn’t it?

Then have the same thing in mind when you are starting a business of real estate investing.

Every successful person says to have a goal in mind so you know where you are going, and our simple plan gives you the steps to get there!

A goal is crucial in anything, and certainly when starting a business of real estate investing.

Without a destination (a specific income amount, a personal item like a car or boat, or simply an amount set aside in savings), how will you know if you ever arrived?

4. Track your progress.

You have your goal in mind, and a simple plan to begin. It is time to get into your 10 hours per week program and ‘backtrack’ to create a clear and simple plan to follow.

Take your goal (a clear date of completion and ‘destination’), divide it out and chart the required progress each day, week, month and/or year to quickly know what is required to reach your destination.

Follow your progress each day to know quickly if you are sticking to your original goal destination, or if you are ahead or behind schedule.

As you are starting a business of real estate investing, you will likely come across some detours, that’s OK (and where many people get lost… Do not!)

When driving, if you find a road that is blocked or a path that seems impassible, you simply find another way around, right?

The same is true when starting a business of real estate investing, just find another way.

Include in your simple plan a few hours here/there just for such ‘emergencies’.

If you have no emergencies, do something else that will get you closer to your destination, or just relax and enjoy where you are.

5. Spend time ON your business, not only IN your business.

In your simple plan for starting a business of real estate investing, you must set aside part of your working time to plan, set goals, promote and advertise your business, not simply work along in your business, doing the things you do.

In today’s world, when starting a business of real estate investing, you will most likely have a website. You need to spend a certain portion of your time (even 10 hours per week total) on getting more visitors to that website. The more people that see what you have to offer, the quicker your business will grow.

You could spend time driving from house to house, telling everyone about your website (not a very simple plan for your time!), or you can maximize your time by writing articles about your business and post them online where many people will see them (many online services promote articles).

This is often overlooked by people as they are starting a business of real estate investing, and one of the reasons they fail to make their simple plan.

As your business grows over time, you will do less of this (but never stop!) and begin to work your simple plan toward the ‘IN your business’ phase.

6. Give excellent Customer Service.

It never pays to make your customers angry. An upset customer will kill more business than you can imagine. Find a way to work with them, or simply give them their money back.

Losing customers is something you cannot afford when you are starting a business of real estate investing!

Many people simply don’t make the time to provide quality service to their customers. Do not let that happen to you!

A little up front planning and goal setting, then follow-through each week, then simply repeat the process.

You will change your business from flat to cash in a short amount of time!

Follow the steps above and it can be done in as much or as little time as you have.

When starting a business of real estate investing, if you follow the simple plan I have outlined here, you are already a success!

Steve Majors - The Lazy Investor Profit from Real Estate Investment articles, real estate investing information and news from one of the most creative investors on the planet ~FREE MEMBERSHIP & real estate training course~ http://SteveMajors.com

About the Author

Before his wild success in Real Estate investing, Steve Majors fixed stereos, was a radio DJ and owned several successful businesses. Completing 40 deals his first year in real estate investing, he now teaches others the secrets of Real Estate investing with his very own LAZY methods (minimum effort = maximum results). Profit from articles, news and information from one of the most creative investors on the planet! http://SteveMajors.com

Private Money for Real Estate Investing - Step One

If you want to create a pathway to an unlimited supply of private money for real estate investing, you need to build a foundation of trust with your prospective lenders. One of the very best ways to impress them, and show them you know where you?re going, is if you really DO know where you?re going.

As a lender, before I loan one penny of my hard earned private money for real estate investing, I ask to see one very important document? the investor’s business plan. If they have one, that?s a good sign; if I can read it, that?s a better sign; and if it clearly shows they know where they?re going, well? that?s a great sign.

What am I looking for? Well I?m NOT looking for flash or glitz. In fact, a business plan doesn?t need to be fancy, or even long for that matter. It does have to be clear, concise and simple enough for an eighth grader to read. Yes, I read at a higher level than an eighth grader, but some people looking to loan private money for real estate investing may not, so keep it simple.

How should you write your business plan? First, think about the kind of investing you have already been successful with. Ask yourself how you achieved the success, and what steps you took that are repeatable. List the steps, and create an outline. Do that and you have the perfect outline for your private money for real estate investing business plan.

There?s lots of material on the internet for creating winning business plans. I don?t need to repeat that here. The purpose of this article is to get you thinking about how you can and should create a business plan that appeals to potential lenders of private money for real estate investing.

That kind of business plan reveals in plain, simple language how you propose to make money with your investing, the kinds and sizes of the loans you will need, and most especially, how the LENDER will benefit? in other words, how much will they make, how will it be repaid, and how will their investment be secured?

That?s the kind of business plan that will appeal to those who might lend you private money for real estate investing. When you write that kind of business plan, it shows you have thought it through, and you know where you?re going and how to get there. It also show you know how to take your lender along for the ride.

That?s what a potential lender will be asking themselves as they read through your plan? ?What?s in it for me?? Remember that as you write, and write with them in mind, stressing benefits, benefits, benefits. Create a feeling of confidence in your prospective lenders as they read, so they feel confident loaning you private money for real estate investing.

Step one in your quest for private money for real estate investing? Develop a business plan.

Real Estate Investing : Graduated Lease

New business start-ups need at least a few months to stabilize and it could take a few months before a break-even point occurs. To help such businesses as well as to counter he slack in rentals, commercial, industrial property owners have designed a lease called the graduated lease to entice new tenants. In a graduated lease, the lease amount is low for the initial couple of years and gradually increased proportionally the next three years in a typical five-year contract. This strategy worked so well that people have applied graduated lease to residential property too.

Graduated Lease: How does it Work? Let us say there is a person x who leases a commercial space using a graduated lease for a period of five years. The lease includes the maintenance, taxes, insurance, utilities and janitorial services charges. His office space is 2,000 squares in a 30,000 square building. He pays $20 for each square foot so his yearly base rent will be $40,000 and for fiver years $200,000. In a graduated lease he can pay $2,500 each month for the first year {$30,000}, $3000 each month for the second year {36,000} and $ 3,500 each month for the third year {42,000} and $ 3,833.3 each month for the next two years {$91,999.9}. The low monthly rental for the first three years gives X the chance to utilize the money to develop his business and stabilize financially, hence a graduated lease will work to the advantage of the lessee.

Lessees who lease commercial and industrial properties therefore prefer this kind of lease. Usually, graduated leases are offered at a flat rate for the first two years, and gradually increased as per the lease term typically five years. Lessees can negotiate to get as low an escalation cap as possible for each additional year. The lessee should make sure he understands the terms of the contract properly and that he is not paying rent for space he does not use such as a foyer or lobby to which he has no access as it is on another floor. The landlord has to ascertain that the lessee has no deceitful intent and has no record of fraud or history of delinquent rental payment. The lessee should not cause damage and or repair to the property and abscond without a trace, leaving the landlord in a lurch. It is therefore necessary for both parties to hire an experienced attorney and see to it that they are not being cheated, by carefully verifying the due-diligence and all documents presented.

Graduated leases are helpful for new entrepreneurs who can use the money saved on the first few years of the lease to build and establish their business.

There are firms that offer services and products to help new entrepreneurs run a successful business.

Real Estate Investing: Selecting A Leasing Agent

Lack of time and the increasing pace of life, has been ruling the modern times. Shortcuts seem much more appropriate and longer paths though much safer and more reliable do not solve the purpose. Slow and steady now lags behind the speedier. The same principle has been governing the real estate investing business, which is now controlled by faster intermediaries. These intermediaries referred to as leasing agents act as a bridge between the owner and the tenant. Leasing agents backed by adequate market knowledge and continual up gradation with the latest trends, enable much faster deals than otherwise possible. The concerned parties owing to the less strenuous research and faster turn around time are in a much convenient slot and therefore are accustomed to the easy requirements.

However, an important concern to be addressed in such real estate investment decisions is identifying the right leasing agent who can be your perfect representative. When operating through an agent, the bargain relies heavily on the agent?s knowledge and trust. Make sure that you agent is not the other party?s agent is disguise. Selecting and employing the right agent can curb all investment concerns however a wrong selection in this regards can tie you up with not only a bad bargain but a problematic location, which would adversely affect in the long run.

Hiring a Leasing Agent: Things to Consider There are various aspects to be considered while recruiting a leasing agent. Few important tips and caution statements before hiring one are outlined below:

Define The Role: Before hiring a leasing agent, be clear with what are your expectations with the agent. Do you expect him to drive you to all the locations of interest or show you the ones listed with him. Who handles the paperwork? What stage do you intend to meet up with client directly? Make sure to answer these questions before taking the decision. Check Out Before Hiring: Make sure that you know an agent?s reputation before hiring him. Check out his past to get a taste of the deals done before. It is advised to seek for reference or hire through referrals. Other landlords could serve as a database in these regards. A more experienced agent can certainly get you a better deal.

Pricing Concerns: Before hiring, make sure to be into clear understanding regarding the payment terms and modes to avoid any such issue sat a later stage. Establish An Understanding: To get the best it is essential to ensure that your agent understands your requirements. Make sure that the two of you are on a clear footing and share a common platform while making any real estate investment decision. Legal Requirements: Check out for adequate licenses and requisite education qualifications.

A leasing agent can act as a magical wand in striking the right deal, however it is better to undertake the initial search in hiring an apt leasing agent rather than cribbing later.

Private Money for Real Estate Investing - Step One

If you want to create a pathway to an unlimited supply of private money for real estate investing, you need to build a foundation of trust with your prospective lenders. One of the very best ways to impress them, and show them you know where you?re going, is if you really DO know where you?re going.

As a lender, before I loan one penny of my hard earned private money for real estate investing, I ask to see one very important document? the investor’s business plan. If they have one, that?s a good sign; if I can read it, that?s a better sign; and if it clearly shows they know where they?re going, well? that?s a great sign.

What am I looking for? Well I?m NOT looking for flash or glitz. In fact, a business plan doesn?t need to be fancy, or even long for that matter. It does have to be clear, concise and simple enough for an eighth grader to read. Yes, I read at a higher level than an eighth grader, but some people looking to loan private money for real estate investing may not, so keep it simple.

How should you write your business plan? First, think about the kind of investing you have already been successful with. Ask yourself how you achieved the success, and what steps you took that are repeatable. List the steps, and create an outline. Do that and you have the perfect outline for your private money for real estate investing business plan.

There?s lots of material on the internet for creating winning business plans. I don?t need to repeat that here. The purpose of this article is to get you thinking about how you can and should create a business plan that appeals to potential lenders of private money for real estate investing.

That kind of business plan reveals in plain, simple language how you propose to make money with your investing, the kinds and sizes of the loans you will need, and most especially, how the LENDER will benefit? in other words, how much will they make, how will it be repaid, and how will their investment be secured?

That?s the kind of business plan that will appeal to those who might lend you private money for real estate investing. When you write that kind of business plan, it shows you have thought it through, and you know where you?re going and how to get there. It also show you know how to take your lender along for the ride.

That?s what a potential lender will be asking themselves as they read through your plan? ?What?s in it for me?? Remember that as you write, and write with them in mind, stressing benefits, benefits, benefits. Create a feeling of confidence in your prospective lenders as they read, so they feel confident loaning you private money for real estate investing.

Step one in your quest for private money for real estate investing? Develop a business plan.

Taking a Real Estate Investing Program Versus Educating Yourself

Are you looking to make a living as a real estate investor? If you are, it is advised that you first take the time to familiarize yourself with real estate investing in general. To be a successful real estate investor, you must know the ins and outs of the real estate market, particularly how to work it so that you can make a profit. When it comes to doing this, you have a number of different options. Two of those options involve taking a real estate investing program or educating yourself. If you are wondering which approach would be best for you, you are definitely not alone.

When it comes to determining whether or not you should take a real estate investing program or educate yourself on real estate investing, there are a number of important points that should be taken into consideration. One of those points is your intend success. As a real estate investor, you likely want to make as much money as you possibly can; right? In any business, including the real estate investing business, this is best done when you are educated. The more knowledge you have, the more successful you are likely to be. That is why it is often advised that those who are serious about making a career as a real estate investor seriously consider taking a real estate investing course.

What you may not realize about real estate investing courses is that they come in a number of different formats. For instance, there are real estate investing programs that are designed for beginners, as well as advanced investors. There are also real estate investing programs that are offered in classroom-like settings, as well as those that are offered online. No matter what the setting, you will likely find that most programs are being run by those who have had a successful run as a real estate investor. That is one of the many reasons why you may want to take a real estate investing program. Many professional teachers have already tired out the approaches being outlined as successful or not successful. With taking a real estate investment program, you can learn to avoid many common mistakes.

Although a real estate investing program can provide you with knowledge that can help bring you money, you may be concerned with the cost of taking one. While many real estate investing programs are reasonably priced, you may find some that are priced quite high. When examining the cost of a real estate investing program, you will want to take the time to examine the materials that will be taught. After a close examination, you may find even a high costing real estate investment program worth the costs.

If, by chance, you are unable to afford the cost of a real estate investment program or if you would prefer not to take one, you can educate yourself on real estate investing on your own. You can do this with the internet, resource guides, and real estate investing magazines or brochures. Whichever approach you take, it is advised that you do the proper amount of research before giving real estate investing a try.

Chicago Real Estate Investing

Donald Trump and countless other moguls built their empires on real estate, and, lately, a lot of people have realized the wisdom behind real estate investments. Chicago real estate investing is a formidable, yet very feasible, business. Chicago is a booming city that is economically sound with prime real estate everywhere. Owning a piece of land at the right location is like owning a gold mine: In just a few years, its value may jump to double the amount you started with in the first place.

But as with any business venture, jumping on the real estate investing bandwagon should be more than just a split-second decision. You must be well prepared before you commit to this daunting task.

First, you have to study Chicago real estate investing. Ask significant questions:

Where is the ideal location?

How is the market doing?

How much start-up capital should I have?

What are the different aspects of real estate investing should I be familiar with?

What type of property do I want to deal in?

When you have the answers to all these questions, then you can start thinking of Chicago real estate investment as a possibility.

When you start your business make sure you cover the important facets of promoting your Chicago real estate investment. Know the importance of advertising and how beneficial it can be for your business. You need to constantly let people know what is out there by advertising your property. There’s no such thing as too much advertising-it’s the lack of it that can hurt you.

You must also have reliable real estate agents handling your Chicago real estate investing business. If you surround yourself with hardworking and smart people, chances are you’ll be in it for the long haul.

Sitting at the negotiation table can be intimidating, but you must realize that you’re in this to win. Start your bargains at the lowest possible price: not too low, as this could be insulting for the seller, but low enough so that you’ll have a lot of room for haggling.

Be pro-active. Be on the watch for the smallest movements in the market and make sure you are ready to pounce when prime real estate is suddenly brought to the market.

Chicago real estate investing can be a lot of hard work but it can also be very rewarding in the end.

Chicago Real Estate Investing

Donald Trump and countless other moguls built their empires on real estate, and, lately, a lot of people have realized the wisdom behind real estate investments. Chicago real estate investing is a formidable, yet very feasible, business. Chicago is a booming city that is economically sound with prime real estate everywhere. Owning a piece of land at the right location is like owning a gold mine: In just a few years, its value may jump to double the amount you started with in the first place.

But as with any business venture, jumping on the real estate investing bandwagon should be more than just a split-second decision. You must be well prepared before you commit to this daunting task.

First, you have to study Chicago real estate investing. Ask significant questions:

Where is the ideal location?

How is the market doing?

How much start-up capital should I have?

What are the different aspects of real estate investing should I be familiar with?

What type of property do I want to deal in?

When you have the answers to all these questions, then you can start thinking of Chicago real estate investment as a possibility.

When you start your business make sure you cover the important facets of promoting your Chicago real estate investment. Know the importance of advertising and how beneficial it can be for your business. You need to constantly let people know what is out there by advertising your property. There’s no such thing as too much advertising-it’s the lack of it that can hurt you.

You must also have reliable real estate agents handling your Chicago real estate investing business. If you surround yourself with hardworking and smart people, chances are you’ll be in it for the long haul.

Sitting at the negotiation table can be intimidating, but you must realize that you’re in this to win. Start your bargains at the lowest possible price: not too low, as this could be insulting for the seller, but low enough so that you’ll have a lot of room for haggling.

Be pro-active. Be on the watch for the smallest movements in the market and make sure you are ready to pounce when prime real estate is suddenly brought to the market.

Chicago real estate investing can be a lot of hard work but it can also be very rewarding in the end.

Selecting an Answering Service for Your Real Estate Investing Business

Here’s how I have my real estate investing business call system set up and what I look for in an answering service.

First, I have all different types of my marketing out to find motivated sellers. I use things like classified ads that have my toll free 24 hour recorded information line telephone number on it. I use different extensions for each type of marketing. So, my classified ad in the weekly free newspaper has a different extension than my post it notes that I have delivered door to door in my farm neighborhoods.

When a motivated seller sees my advertisement and wants additional information they can NOT call me directly. They must go through my 24 hour recorded information line to listen to a pre-recorded message that is about 5 minutes long and explains to them in my best presentation voice, the benefits of them working with me and having me buy their house.

Once they have listened to the message, I give usually give them two options: go to my website and submit a form or call me directly.

If they decide to go to my website, they fill out a web based property information form which is directly loaded into my Real Estate Investor Database contact and business management account for me to deal with when I am ready to talk to motivated sellers.

If they decide to call my office directly, they actually do not call me. They call my 24 hour answering service. Here are some things I look for in an answering service.

First, I must be able to forward my phone number to them. I have my system set up so that the 24 hour recorded information line actually forwards the call to the answering service instead of having the seller hang up and call into a separate number. I prefer this and it requires that the answering service give you a local number (not a toll free number) because, as I understand it, you can not forward one toll free number to another toll free number.

Second, they must be willing to input the leads into my Real Estate Investor Database for me directly. Imagine getting over 100 leads in a few days and having to manually add each one to your contact management system. It is a real pain, so the service must be willing to add the new leads directly into my contact management system (which is web based).

Third, they must be reasonably priced. What is reasonably priced? I think less than 50 cents per call is reasonable. If they are going to charge a monthly fee it should be a monthly minimum against calls and not a monthly fee in addition to a per call fee.

Fourth, they must have reasonably good response time. You do not want your motivated sellers on hold for 10 minutes waiting to get through. You want them to wait no more than 2 minutes and most times they should be able to get through immediately.

Those are the qualifications I look for in a live answering service for my buying system.

Private Money for Real Estate Investing - Step One

If you want to create a pathway to an unlimited supply of private money for real estate investing, you need to build a foundation of trust with your prospective lenders. One of the very best ways to impress them, and show them you know where you?re going, is if you really DO know where you?re going.

As a lender, before I loan one penny of my hard earned private money for real estate investing, I ask to see one very important document? the investor’s business plan. If they have one, that?s a good sign; if I can read it, that?s a better sign; and if it clearly shows they know where they?re going, well? that?s a great sign.

What am I looking for? Well I?m NOT looking for flash or glitz. In fact, a business plan doesn?t need to be fancy, or even long for that matter. It does have to be clear, concise and simple enough for an eighth grader to read. Yes, I read at a higher level than an eighth grader, but some people looking to loan private money for real estate investing may not, so keep it simple.

How should you write your business plan? First, think about the kind of investing you have already been successful with. Ask yourself how you achieved the success, and what steps you took that are repeatable. List the steps, and create an outline. Do that and you have the perfect outline for your private money for real estate investing business plan.

There?s lots of material on the internet for creating winning business plans. I don?t need to repeat that here. The purpose of this article is to get you thinking about how you can and should create a business plan that appeals to potential lenders of private money for real estate investing.

That kind of business plan reveals in plain, simple language how you propose to make money with your investing, the kinds and sizes of the loans you will need, and most especially, how the LENDER will benefit? in other words, how much will they make, how will it be repaid, and how will their investment be secured?

That?s the kind of business plan that will appeal to those who might lend you private money for real estate investing. When you write that kind of business plan, it shows you have thought it through, and you know where you?re going and how to get there. It also show you know how to take your lender along for the ride.

That?s what a potential lender will be asking themselves as they read through your plan? ?What?s in it for me?? Remember that as you write, and write with them in mind, stressing benefits, benefits, benefits. Create a feeling of confidence in your prospective lenders as they read, so they feel confident loaning you private money for real estate investing.

Step one in your quest for private money for real estate investing? Develop a business plan.

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