In Real Estate There Is Business Beyond The Business Plan

By
Services for Real Estate Pros with RE/MAX Executive Realty 104763
https://activerain.com/droplet/5k48

Not everyone has or needs a business plan. I always had one when I was in my first few years of real estate. After that, I realized that the painstaking business plan that required time and much thought was useless, when the market changed.

The market continually changes. Niche areas of focus continually change. The bottom line for me was there were too many changes to have any goals that were based on any one specific area that was prevalent at the time of creating the plan.

The market changes in many ways. One might create a niche of “single family homes.” However, when the tax laws changed, the rush in real estate was to secure as many multi-family homes or other investment properties as possible. What do you do with that original business plan?

Another change in the market might be condo conversion. I can remember when that occurred, and I jumped all over that new real estate niche. I made it a niche of mine for many years. It was never on a business plan. However, I bought, converted and flipped many multi-family apartments that were sold as condos. I also contacted every multifamily homeowner; met with each of them; gave them a market analysis after converting to condos and most of them converted. They made a bundle flipping condos rather than selling the home as a multi-family. I had a steady flow of converted condo listings, and they all sold.

New construction came into vogue, and there I was with a phase of real estate that I knew nothing about. I made sure I knew the details of land and construction as quickly as possible via college courses from a local college. Next was the MA Builders License, unrestricted. Yes, I was qualified to build residential AND commercial buildings. I built nothing but ran with that education and used it to list a total of 40 subdivisions.

I could go on “ad nauseam,” but I’ll spare all of us. The bottom line, in my opinion, is we don’t need a yearly plan. Within a short period of time, the market could change leaving you in the dust.

Having an “awareness of the existing market conditions” for a variety of real estate phases is the precursor to making the proper decisions on which direction would be the strongest. That decision would result in obtaining education in that field, in order to perform intelligently and feel confident in your ability to secure business.

There is life beyond the Annual Business Plan. Mine was always filed in my mind, and when I recognized positive signs, my focus and discipline were like a laser beam on that phase.

It always worked well for me, and decades of real estate seems more like a flash from the past. There was nothing in the residential real estate market that I did not have as a niche, when that particular market was “top dog.”

Just a thought for the moment….

Posted by

       

Barbara Todaro

Marketing Agent for The Todaro Team

308 W. Central St...suite E

Franklin, MA 02038

508-918-9148

Exclusive Marketing Agent for The Todaro Team

 

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Anonymous
Denise LeBreux

Barbara Todaro, thank you, the weight of having to have a business plan has been lifted off my shoulders :) I've been relying on my commercial photography background- trust the process. Now please tell me- where did you take the classes to learn new construction?

Jul 19, 2019 06:39 AM #27
Rainmaker
457,174
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Good to know I am in good company regarding doing an annual business plan.

Jul 19, 2019 09:45 AM #28
Rainer
7,763
Clay Greathouse
Tombstone Real Estate - Tombstone, AZ
Off-Grid, Alternative,Rural, Solar,Cochise Arizona

Thanks- this sort of lifted a weight off my shoulders. One of my associates, who has been a great help to me with Paperwork especially, asked me what my Business plan was, where do I want to be in a year, 5 years etc.  I felt bad because all I could think of was how to get these stinking files done so I could show more property tomorrow.  Being a newbie I feel rather blessed because I have been making sales and listing stuff.  I haven't put much thought into it, just doing what ends up in my lap.  I have some plans to work more on my Off-Grid Niche, plans for a blog etc, but frankly at this point, I am just trying to keep caught up.  But that is how I have been most of my life, just roll with the punch's as they say, and it works for me, and now I do not have to feel guilty about it!

Jul 19, 2019 10:03 AM #29
Rainmaker
4,948,827
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Diana Dahlberg you're always in good company here....

Clay Greathouse get out of the office and close business....you're not a secretary.... the market will change soon enough and you'll have plenty of time to play with plans for the future.... work in the present and grab some commissions.... you MUST be updated with each transaction to the degree of having complete paperwork and dated conversations (and email trail is good) to satisfy any litigious client who hauls your butt into court.... cover your butt.... my rule was the degree of thoroughness that enabled any agent to step in where you left off..... that's the degree of detail I always required....never needed to use it but it was there....

Jul 19, 2019 11:08 AM #30
Rainmaker
577,868
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

There was one line among others that stood out to me. We have to be AWARE of what's happening in the marketplace and adapt to the market. Rolling with the changes is how I see it.

Jul 19, 2019 11:42 AM #31
Rainmaker
4,948,827
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Pat Starnes-Front Gate Realty yes... rolling with the changes..... your marketing should be basically carved in stone, unless you're still testing.... and that's for both buyers and listings.... two different methods of marketing.... not to mention the level market....

Jul 19, 2019 11:58 AM #32
Ambassador
3,836,870
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

                                      

Jul 20, 2019 09:43 PM #33
Rainmaker
4,948,827
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

thank you, Kathy Streib for including me in your featured post today.....

Jul 21, 2019 02:44 AM #34
Rainmaker
164,374
John Henry
John Henry Masterworks Design International, Inc. - Orlando, FL
Residential Architect, Luxury Custom Home Design

Whew, thank goodness!!  I spend two months a year preparing my Annual Business Plan! NOT.  Good points here Barbara.  I have NEVER had a business plan.  It starts with bottom line: GET THE WORK.  Then, KEEP GETTING THE WORK.  Then, HOW TO KEEP GETTING WORK.  You keep the market in mind, see how it changes, see how technology changes, adapt, try, if you fail, try again.  Sometimes it takes too long to see 'out of the box', or to know that you have built one around you!!  A great Twilight Zone story is about a group of people stuck in a round enclosure, very high.  They hear noises outside and bells especially.  They try to escape.  Finally, one makes it over the edge and falls down in the snow.  The characters in the story are all children's toys!  Their box was a Salvation Army pail.  The bells were the chimes of the person ringing the bell outside their box.  Something is happening outside all of our boxes!!  HEY: this is a good topic for a blog!!  Thanks Barbara!!

Jul 21, 2019 05:05 AM #35
Rainmaker
3,104,345
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Great post! I can see why Kathy chose to highlight it this week!

Jul 21, 2019 06:45 AM #36
Rainmaker
1,895,355
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Barbara -  one take away you have given here is that if you see a plan as rigid then you will not adapt.  I always tell people about constantly reviewing and also to be looking for change.  I have changed my focus several times since being in business.

Jul 21, 2019 06:56 AM #37
Rainmaker
4,948,827
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Grant Schneider nothing is carved in stone in the real estate business except change.... 

Kristin Johnston - REALTOR® thanks so much... 

John Henry and you know I always look forward to reading your thoughts....

 

Jul 21, 2019 07:07 AM #38
Ambassador
1,836,373
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

We do have a business plan, but it's pretty much an outline of marketing. It helps us decide what works, and what doesn't and it's a plan to remind us to stay in touch.  You're right the market is constantly shifting, it's hard to notice if your so caught up in following a plan that you fail to notice. D 

Jul 21, 2019 07:45 AM #39
Rainmaker
4,948,827
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

The most important factor of any business is the marketing....and one needs to have plenty of slack in that line item.... change is frequent.... Debb Janes EcoBroker and Bernie Stea JD 

 

Jul 21, 2019 08:15 AM #40
Rainmaker
1,426,733
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

It's important to know what the market is doing, and where our opportunities are, and then to stay flexible enough to adapt. That doesn't need to be written down.

I liked reading about the different paths you've gone down. Thank you for sharing.

Jul 22, 2019 03:04 AM #41
Rainmaker
4,948,827
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Kat Palmiotti I've changed directions more times than you could shake a compass at.... and it kept me in the game for decades without one day to think about "burnout".... I detest that word.

Jul 22, 2019 03:49 AM #42
Ambassador
1,921,884
Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Barbara Todaro  You are such an inspiration. When I read your posts I feel I can do anything all I need to do is apply myself 

Jul 22, 2019 07:18 PM #43
Rainer
475,289
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

While I disagree with your opinion, it works for you and perhaps others because of your expertise, however, most business owners simply fail because they fail to plan for success.

A business plan should be comprehensive and while it requires time to generate, it should include among other elements besides adequate capital,  the target market, the market forecast and trend lines and the demographics that are important to succeed.

Everything evolves, so adapting to change because of or due to the government, economy, technology or other factors could be anticipated as your business grows and evolves by adding or eliminating elements in your plan. The bottom line is how will you deliver what the consumer wants better than your competitors. 

Jul 26, 2019 02:07 PM #44
Rainmaker
4,948,827
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Hannah Williams well, my posts didn't cause that....you have that feeling because it's in your DNA..... you should have just asked me.... I would have quickly told you.... that's just how you are.... appreciate that DNA!! 

Jul 26, 2019 02:30 PM #45
Rainmaker
4,948,827
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Hi Kimo Jarrett yes, the bottom line is to ourperform the competition.... if one is more secure with a plan, so be it.... I was never a plan person.... I know what I need to do and I do it.... if conditions change, I change with them.... when a sellers market becomes a buyers market, we change with that too.... 

Jul 26, 2019 02:32 PM #46
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