A Beginner’s Guide: Creating A Real Estate Investment Business Plan

Achieving success with real estate will not happen overnight, nor will it happen without the right preparation. Putting together a business plan for property investments is an essential step for anyone who wants to get their feet wet in the real estate investment world. The following article will tell you everything you need to know to begin. You’ll find out what to do, what resources you’ll need, and what your expectations should be. A strong plan will serve as a roadmap, providing you with the directions you need to stay on the path of success. By sticking to the plan, you’ll remain focused and build a property investment portfolio. Are you thinking about putting together a property investment business plan of your own? Check out the following list to help get things moving.


When it comes to real estate investments, the very first aspect of a business plan will entail figuring out what you are trying to achieve from this venture. Objectives that you establish must be Specific, Measurable, Achievable, Realistic, and Timely (a.k.a. SMART). For instance, you may want to generate a monthly rental income of $4000, fix-up and flip an investment property each month, or purchase and rent out a couple of investment properties every year. When you have a clear idea of what you want, you’ll be able to make stronger investment choices to achieve that goal.

You must keep in mind that every goal comes with its own timeframe. As a result, it would be worth your while to plan for both long and short-term goals before integrating them into your property investment business plan. Further, you should refrain from setting subjective or abstract goals (like retiring early or getting rich). If the goals that you set for yourself are too vague, then you won’t know if or when you will achieve them.

Creating a Sound Investment Strategy

After establishing why you decided to enter the investment business and determining what you intend to achieve, you’ll then need to put together a strategy to accomplish those goals. To put it another way, you’ll need to ask yourself how to go about turning a real estate investment into income. Will that come about through “buy and hold” properties? Will you make an investment in a short-term property? What about “fix and flip” real estate? Perhaps it is a different investment strategy altogether.

To determine what your options are for real estate investing, read through our older articles in our real estate investing blog.

The answers will be contingent on the following:

  • Market – real estate investors are encouraged to research and assess current market and determine if the location is worth purchasing property in. Figure out what the median price, average rent income, potential ROI, and occupancy rate is in the market you have an interest in. Will your findings help you accomplish your goals? Research a different market if the answer is “no.”
  • Property type – you will need to be very specific here. The real estate industry provides all sorts of investment property types. You can choose from single-family houses, multifamily residences, vacation units, townhomes, and condominiums, among others. Evaluate the potential that comes with each option for the sake of long and short-term goal achievement. When you’re just starting out, concentrate on just one. You would be better suited to do a single thing properly than to do multiple things poorly!

Your Financial Plan

Funding an investment is something that new property investors have major concerns about. To establish a sound financing plan, you’ll need to figure out what your current financial status is. How much are you worth right now? Is there any equity you’re able to tap into? Perhaps it’s possible to purchase your very first real estate investment with cash. Alternatively, you might have to think about another financing option. The property investment business plan you put together must clarify the specific financing model you plan on using.

Understanding how to complete your purchase will prevent you from straying from the original goals and plans you made. Further, when you are setting up your financial plan, be sure to factor in expenses like mortgage payments, insurance, property management, taxes, repairs, and even interest rates (assuming that you are getting a loan). Be as specific as possible about how they will be covered so that the cash flow you generate is positive. Also, your financials should be updated as your company grows.

Your Marketing Plan

Ownership of rental properties is worthwhile, but if potential buyers or tenants cannot find it, then the asset is essentially useless. This portion of your business plan should explain how you will go about marketing the property. For your marketing strategy to be effective, you’ll first have to figure out which audience you want to target. For instance, will you be renting out the unit to baby boomers or millennial tenants?

From there, highlight the best parts about the property in order to set it apart from others. Ensure that the marketing plan is appealing to the audience you have targeted (and capable of reaching them). For example, millennials usually search for rental units on social media. Therefore, you should be using social network marketing tactics on Twitter and Facebook, among other platforms, to reach the greatest amount of targeted tenants.

Establishing a marketing budget will be the final thing to do when creating a business plan. Your budget’s total size should revolve around how big the target market you have chosen is, as well as the media platforms that you plan on advertising on. Stick to the budget, as these expenses are key aspects of your overall rental costs, which influence cash flow.

Note: If you’ve chosen the Wholesaling investment strategy, check our software – Zilculator, as it is the leading Marketing platform for investment properties. Create a fix and flip or rental property report to attract investor-buyers.


Successful real estate investors handle their assets like a business. They put together real estate investment business plans well before doing anything else. Be mindful that your business plan won’t be something etched in stone. Successful real estate investors continuously review their plans and update them accordingly while their investment portfolios grow. When relevant information comes into play, the business plan must be updated accordingly.

Are you interested in purchasing an investment property for the first time? Our property investment analysis tool is capable of helping you in determining which one will be the most profitable! If you are an agent or wholesaler, Zilculator can help you find buyers for your deals in no time!