What is Your 2022 Real Estate Investment Plan?
At this point in the year, we are all looking forward to 2022. If you are a real estate investor—or thinking about becoming one—it’s important to start defining and/or refining your real estate investment plan for next year. The more you can improve your business plan, the better. You’ll want to have budgets in mind and target income goals.
We’re talking about having your overall 2022 real estate investment plan mapped out before the year even starts. This will allow you to hit the ground running and start making moves when you need to make them. This is a general business and investment plan you want to develop. As you start searching for properties to buy, you will want to plan property analytics, budgets, renovation plans and other project-specific tasks.
For your overall 2022 real estate investment plan, here are a few things to consider according to PropertyLark:
Is your financing plan in order? Where is the money coming from for the properties you are purchases and any renovations you may need to undertake? There are many different ways of financing real estate investments—mortgage loans, private lenders, investment groups, personal loans and straight cash. How will you be financing your investments and is everything solid heading into 2022?
You should go into the year with a general budget in mind. How much are you planning to spend on investment property purchases and renovations? What about ongoing ownership costs like property management fees, upkeep/repairs, utilities, property taxes and property insurance? Your budget may change throughout the year as you take on new projects, but it helps to start somewhere.
You know how much you are willing and able to spend on real estate investments, but what are your earning goals? What kind of income or profits are you hoping to generate to consider 2022 a successful year? What is your overall target ROI (return on investment) or target cap rate? Knowing your income goals will help you better define your business plan and be more critical when it comes to project-specific analytics and planning.
There are different ways of investing in real estate. At PropertyLark, we work mostly with buy and hold investors (rental income properties) and fix and flip investors (house flipping). Are you specializing in one real estate investment approach or another? What do you intend to do with any properties you purchase in 2022?
You’ll want to make sure your service network is strong heading into next year. Do you have trustworthy contractors, real estate agents, legal advisors, accountants and other people lined up to help you be as successful as possible in your real estate investment endeavors? If not, you want to build up your network and have the right people in your corner.
How do you intend to find investment properties and analyze their investment potential? What other resources do you have in place to maximize your real estate opportunities? Consider applying to join the PropertyLark home buying network. We bring real estate investors together and offer excellent resources to help you be more success when buying, renting and selling houses for financial gain. From advanced property search and analytics software to off-market home listings that come from our aggressive seller marketing campaigns, we’ll help you get more out of your real estate investment career.
To learn more about the PropertyLark home buying network and to see if you qualify, visit our buyer’s portal.