Having a real estate business plan – or a property management business plan is crucial if you want to succeed in the business of real estate.
That’s because real estate is about much more than just buying & selling, leasing & managing.
Here are the top two ways to make your real estate business plan better.
Rainmakers Should Make Rain Not Train
Some real estate brokers are rainmakers. They’re the ones who bring in the majority of the business and are great in dealing with clients.
If that’s the case, bring in a partner or key employee to recruit, train and manage the newly-hired real estate agents.
New agents will be attracted by the broker-rainmaker’s outstanding success stories. But new real estate agents usually lack experience, skill or motivation.
They won’t be able to perform and produce without having a lot of hands-on guidance – at least to begin with. The broker-rainmaker won’t be able to give new agents the attention they deserve because they’re out there making rain and bringing in new business.
A Great Real Estate Business Plan Is Niche Specific
Focusing on a specific asset class for your real estate business is much easier than trying to be all things to all people.
A real estate asset class isn’t just commercial or residential real estate. A asset class is a specific category – or niche – within those sectors.
If you have a residential real estate brokerage, concentrating on specific zip codes or neighborhoods is one example of a niche. Another is focusing on a certain product type such as small multifamily or fix-n-flips.
Commercial real estate brokers could identify high-tech industrial property, medical office buildings, or STEM tenants as their niche. Or they could concentrate on finding replacement property for 1031 tax deferred exchanges.