Homework Question for REIs.

OK, here is the deal.
My business partners and I each have particular strengths in Real Estate Investing.
Me and Another Guy: Putting Multi-unit Development Deals together.
Another Guy: Marketing For and closing pre-foreclosure deals.

Here is the homework problem:
You can find more deals than you have the cash or credit to do. In addition, because you have been doing this for a while, other investors, agents, birddogs, mortgage brokers, etc. bring deals to you.
You create cash flow by buying properties at a substantial discount and can come up with the cash to do them. You have some homeruns from putting development deals together such as condo developments and land subdivision deals.

You have a pool of investors or 1 big investor who has $10M in cash or credit who will be the funding for your deals…if you can convince them with the right business plan.

How do you set up your business plan?

Business Plan…wow.

Ok, each plan is different, but it starts off in a completely different manner than you have stated.

First rule, do not define your business or roles based on the skillsets of people. In other words, what your company looks like, who does what, etc. should not be defined by the skillsets of the people.

Rather, you need to determine what it is your truly want. What is your end goal, what do you want to do.

Then come up with a strategy on how to reach those goals, once you have your strategy, you will need to put into place the People, Processes and have the Tools required to take the Strategy to the Goal.

So, define what you need to do, layout the skills/roles needed to get there, then find people to fill those roles, rather than make roles to fill the people. Start with an Organizational chart that lays out what types of roles you need, give full position descriptions, including responsiblities, job description, etc. Then and only then can you start assigning roles to each individual.

I hope that made sense. The key is that you realize you need a business plan and that you need to do investing as a business. I have taught many people how to invest and each of them I focus creating it as a business. That is how true WEALTH is made. There is a difference between making money and creating wealth.

One little referral is to pick up any of the E-Myth books by Michael Gerber and give it a read. While it doesn’t specifically speak of real estate investing, it does talk about how to make small business last and be systemized.

Hope that wasn’t to confusing. Good luck!