Learn Business Planning

Learn Business Planning

Learn Business Planning

Five Steps to a Real Estate Investing Business Plan

A real estate investing business plan isn’t a document you write once and forget. It’s the operating system for your business — the framework that tells you what to buy, how to buy it, who helps you, and how you find deals.

Brian Gibbons teaches a five-step approach that keeps your plan simple, actionable, and focused on what actually produces results. The plan divides your business into three core areas, then builds out the systems and team you need to execute.


Step 1: Divide Your Business Plan Into Three Areas

The first step is to divide your business plan into three distinct areas:

Area Focus
Buying / Acquisition Side How you find and acquire properties
Selling / Disposition Side How you exit or profit from properties
Funding Sources & Techniques How you pay for deals

Every decision in your business falls into one of these three buckets. When you’re evaluating a new strategy, tool, or team member, ask: Which area does this serve?


Step 2: Match Your Acquisition Side to Your Market

Your acquisition strategy must fit the market you’re working in. The best way to get a quick start is to keep it simple.

Target the Right Properties

  • Good neighborhoods — areas with stable or improving values
  • Simple three or four bedroom houses — the most in-demand property type
  • Good school districts — attracts quality tenants and retail buyers

Use the Easiest Techniques

  • Lease purchase — control property without ownership; profit from three spreads
  • Subject-to — take over existing financing without bank qualification

These two techniques are the easiest to start with because they require the least capital and the least technical knowledge. They also work in almost any market condition.


Step 3: Build Your Team

No investor succeeds alone. Your business plan should document the key professionals you need — and the specific qualities to look for in each.

Team Member What to Look For
CPA One who loves real estate and understands creative transactions
Real Estate Attorney Likes creative financing: lease options, subject-to, land trusts, private lending, landlord-tenant law
Selling Agent Can sell fast, price the property right, use staging
Title Company Understands your contracts and creative deal structures

Why this matters: A CPA who doesn’t understand real estate will miss deductions and misclassify your activities. An attorney who only does traditional closings won’t know how to structure a land trust or a subject-to deal. Your team must speak your language.


Step 4: Market to Motivated Sellers

Marketing is the lifeblood of your business. What has worked well for Brian Gibbons and other investors:

  • Postcards to motivated sellers — gets them to call you (inbound deal flow)
  • Expired listings — sellers whose listings didn’t sell are often ready for a different approach

The goal is to create inbound deal flow — where motivated sellers come to you, rather than you chasing leads. Consistency and repetition matter more than any single campaign.

For a deeper dive into marketing methods, see our page on Creating Inbound Deal Flow.


Step 5: Learn to Negotiate with Motivated Sellers

The final step in your business plan is learning how to negotiate. This means:

  • Learn NLP (Neuro-Linguistic Programming) — understand how language shapes decisions
  • Have a list of questions — guide the conversation without sounding like you’re reading from a script
  • Ask questions through natural conversation — not as an interrogation

Not every question applies to every seller. You’ll skip some based on the answers you receive and your investing objectives.


📋 Motivated Seller Questionnaire Checklist

The following is a list of sample questions you should ask a seller. When talking to a seller, try to ask the questions through the course of a conversation and try not to sound like you are reading from a list.

Note: You will not ask all of these questions depending on the answers the seller gives and your investing objectives.

Asking About the Seller and Their Property

  • Can you tell me a little bit about your home? (# of bedrooms, baths, size, etc.)
  • What do you like most about the home?
  • What do you like the least?
  • Are there any repairs needed?
  • What is your sales price and how did you arrive at it?
  • What do you think your house would appraise for in excellent condition?
  • What do you think your property could rent for?
  • Is your property listed with a real estate agent?
  • If you don’t mind me asking, why are you selling?

Asking About the Existing Financing

  • Do you own the house free and clear?
  • Do you know if your mortgage loan is assumable?
  • Would you sell the house for what you owe?
  • If not, how much are you looking to get above what you owe? (Subtract that from sales price to get loan balance.)
  • How much are the monthly payments on the mortgage?
  • Are the payments current?

What Kind of Deal Can You Get

  • If I paid you all cash and closed quickly, what is the least you could take? (Follow up by asking if that is truly the least they would take.)
  • Will you consider leasing the property to me with an option to buy if I guarantee the mortgage payments and maintenance?
  • Do you have a problem with someone living in the property until I get it sold?
  • Would you consider optioning the property to me, if there is absolutely no risk or cost to you?

Key Takeaways

  • Divide your plan into three areas: acquisition, disposition, and funding
  • Match your acquisition side to your market: good neighborhoods, 3-4 bedroom houses, good school districts, lease purchase and subject-to
  • Build your team: CPA who loves real estate, creative-financing attorney, fast-selling agent, title company that understands your contracts
  • Market consistently: postcards to motivated sellers and expired listings create inbound deal flow
  • Master negotiation: learn NLP, have a question list, and ask questions through natural conversation
  • Use the questionnaire as a guide — not a script — and adapt based on seller responses

Ready to Build Your Business Plan?

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Disclaimer: This page is for educational and informational purposes only. It does not constitute legal, financial, or tax advice. Real estate investing involves significant risk. Always consult a licensed attorney, CPA, and financial advisor before entering into any real estate transaction.