1. Investment Strategy:

• Define Investment Goals: This establishes the overall purpose of your investments, such as generating passive income, capital appreciation, or a combination of both.
• Risk Tolerance Assessment: Evaluate your comfort level with risk associated with different property types, market fluctuations, and potential vacancies.
• Target Market Selection: Identify the type of property (residential, commercial, industrial) and target location based on your goals, budget, and risk profile.
• Investment Approach: Choose your investment approach (direct property ownership, REITs, real estate crowdfunding) based on your desired level of involvement and control.

2. Acquisition Process:

• Property Search: Utilize various methods to find suitable properties, such as online listings, real estate agents, and networking.
• Due Diligence: Conduct thorough research on potential properties, including market analysis, property condition assessments, legal and financial reviews.
• Offer and Negotiation: Submit offers and negotiate purchase price and terms with sellers based on due diligence findings.
• Financing: Secure financing for the purchase, either through traditional mortgages, private lenders, or hard money loans (depending on your approach).

3. Property Management:

• Management Strategy: Choose between self-managing the property or hiring a property management company to handle tenant relations, maintenance, rent collection, and property upkeep.
• Tenant Screening: Develop a process for screening potential tenants to minimize risks associated with defaults or property damage.
• Maintenance and Repairs: Establish a system for addressing maintenance requests, repairs, and ensuring the property remains in good condition.
• Financial Management: Track income and expenses related to the property, including rent payments, mortgage payments, property taxes, insurance, and maintenance costs.

4. Exit Strategy:

• Long-Term Hold: Maintain ownership of the property for long-term income generation and potential capital appreciation.
• Rehabilitation and Resale: Consider renovating the property to increase its value and sell it for a profit.
• 1031 Exchange: Potentially defer capital gains taxes by reinvesting the proceeds from the sale of the property into another qualifying property within a specific timeframe.

5. Record Keeping and Analysis:

• Maintain Documentation: Organize and store important documents related to the property purchase, financing, management, and any renovations.
• Performance Tracking: Monitor key metrics like occupancy rate, rental income, property value, and operating expenses to understand the investment’s performance.
• Regular Reviews: Periodically evaluate your investment strategy and adjust as needed based on market conditions, your evolving goals, and lessons learned.