Business plans it is said allow real estate investors to set realistic goals and determine how those goals will be attained. A number of people who invest in real estate normally wade straight in hoping they'll make money just like "everyone else." What do you guys think? Should all who are interested in real estate put together a business plan first?
It is important to have a business plan to determine how the property is going to produce money for the investor before even indulging in buying it. Some people can make the mistake of just buying a property without having a clear plan on what it can offer. Can it be sold as it is, does it have to be developed first, is it better to build on it and have it rented? Questions such as these should be included in the investors mind and he should plan well on what to do with the property.
Before entering into any business it's always better to have a plan and a course of action your going to follow. Then, even if things aren't working out you'll have an idea and a strategy in place so you'll know what you need to do to get back on track. You can't run a business just getting by day to day, you have to have a plan put in place for the future. An aim and a target you want to achieve if your going to be successfull.
I would say that if you don't have a business plan for any business that you are involved with, then you are a fool.
The business plan is the tool a business owner uses (among many things) to secure loans. It communicates, in great detail, how the business is going generate revenues. If one cannot clearly communicate a rational plan for earning revenues then they have no business going into a business.
Pretty much, to own and run a business successfully we need a plan and means to execute it, it's not something that just happens. We need to account for staff, suppliers, market and so on and on.
When you are buying real estate for business, I guess you should have a business plan for that. But for personal use like residential houses, it is not required since you can decide right there and there. When we first talked to the owner of this house we are living in, the owner wanted 2 million pesos since this is quite a big property with a 3-bedroom house sitting on 280 square meters. But since we cannot afford, I offered 1.5 million. She counter offered 1.6M and that's the deal, we got this for 1.6M pesos or roughly $42,000.
