Congratulations - you have decided to get into the business of investing in pre-foreclosure and foreclosure properties! And guess what? It IS a business.
And just like any other business you should think carefully about your business model, devise a business plan, and get all the resources you need to operate it.
First things first - what is your business model? You're already clear that you'll be in the business of acquiring and monetizing pre-foreclosure and foreclosure properties, but what will be your main focus - pre-foreclosures or foreclosures? Or will you focus equally on both, keeping in mind that they differ in a number of important respects.
Also, what monetization or exit strategy will you choose to specialize in? Will you look for properties you can rehab and sell? Or are you planning to buy short-sale pre-foreclosures? And don't forget that although you may focus on one particular monetization strategy, you will benefit from having the expertise and flexibility to apply different, but more appropriate monetization strategies in given circumstances.
Secondly, what about your business plan? A business plan sets out the objectives for your business and how you plan to achieve those objectives.
Often, the process of planning is more valuable than the actual plan itself, since conditions can change, thereby impacting your plan.
So too, just because you prepare a business plan, that doesn't mean it's set in stone.
Ideally, you should modify your business plan as your needs, objectives and circumstances change.
When it comes to resourcing your business, think about what you'll need in terms of financing, people and practical tools, like your office set-up.
Financing is the "biggie" when it comes to pre-foreclosure and foreclosure investing, but contrary to popular opinion, succeeding in this business does not rely on you having a huge amount of capital upfront.
In fact, by being creative and using "other peoples money" (OPM) you can end up securing even more profitable deals than if you used your own cash.
Meanwhile, you'll also want people.
This may mean hiring an assistant and/or bookkeeper, or even just building a network of professionals to help you when it comes to locating properties and putting together deals.
You'll also need an office - a desk, telephone and a computer with Internet access, among other things.
Oh, and don't forget, you'll be travelling around a bit, so make sure you have a reliable car.
These are the basics of treating pre-foreclosure and foreclosure investing as a business.
And just like any other business you should think carefully about your business model, devise a business plan, and get all the resources you need to operate it.
First things first - what is your business model? You're already clear that you'll be in the business of acquiring and monetizing pre-foreclosure and foreclosure properties, but what will be your main focus - pre-foreclosures or foreclosures? Or will you focus equally on both, keeping in mind that they differ in a number of important respects.
Also, what monetization or exit strategy will you choose to specialize in? Will you look for properties you can rehab and sell? Or are you planning to buy short-sale pre-foreclosures? And don't forget that although you may focus on one particular monetization strategy, you will benefit from having the expertise and flexibility to apply different, but more appropriate monetization strategies in given circumstances.
Secondly, what about your business plan? A business plan sets out the objectives for your business and how you plan to achieve those objectives.
Often, the process of planning is more valuable than the actual plan itself, since conditions can change, thereby impacting your plan.
So too, just because you prepare a business plan, that doesn't mean it's set in stone.
Ideally, you should modify your business plan as your needs, objectives and circumstances change.
When it comes to resourcing your business, think about what you'll need in terms of financing, people and practical tools, like your office set-up.
Financing is the "biggie" when it comes to pre-foreclosure and foreclosure investing, but contrary to popular opinion, succeeding in this business does not rely on you having a huge amount of capital upfront.
In fact, by being creative and using "other peoples money" (OPM) you can end up securing even more profitable deals than if you used your own cash.
Meanwhile, you'll also want people.
This may mean hiring an assistant and/or bookkeeper, or even just building a network of professionals to help you when it comes to locating properties and putting together deals.
You'll also need an office - a desk, telephone and a computer with Internet access, among other things.
Oh, and don't forget, you'll be travelling around a bit, so make sure you have a reliable car.
These are the basics of treating pre-foreclosure and foreclosure investing as a business.
SHARE
