Creating a Portfolio: Step 4 – Business Goals and Structure
Your business goals and structure are second most important part of your portfolio, as it gives investors and lenders an idea of the “rules” you live by that shape your every decision. Because so much money is at stake in the real estate industry, your goals and mission statement needs to be unique, infallible and trustworthy. That said, the rules for devising a real estate investment goals and mission statement are more or less the same as the those that guide other industry professionals.
Determine Your Why
Simon Sinek once said that customers buy whya company does something and not what. This has proven to be true on countless occasions, but the most successful example is, of course, Apple. In the world of real estate, however, there are several companies that have flourished under their why. One of those companies is Keller Williams, whose mission statement is “To build careers worth having, businesses worth owning, and lives worth living.”Come up with a powerful why and people will be drawn to you.
Don’t Negate the Practicalities
Again, for lenders, it all comes down to the money. Money is a practical matter, and as such, you need to prove that you have a practical mindset, and not just a whimsical one. Some questions lenders will want answered before funding you regard the following:
- Your business structure
- Your business location
- Your business goals (How many homes do you plan on flipping with the loan?)
- Your business partners (if applicable)
- Your past projects
Help us help you answer these questions. Send over information regarding at least six of your most recent projects, including all the information mentioned in steps one through four for each.
Contact Us Today
Now that you know what you need to do to build a professional real estate portfolio, contact us to get started. Call us at 303-539-3000.