Congratulations! You are now in business! Before you commit a single dollar or a minute of your time any further in your new real estate business, you should step back and have a good think about what it is that you want to achieve. And that all starts with a business plan.

When developing your business plan, consider the following questions:

• Do you know what kind of properties you want to buy?

• Do you know how you are going to fund the properties?

• Do you have an exit strategy?

These three questions are vital to beginning your business plan. Let's move on to your actual plan.

1. First things first, you have to write your plan down. It doesn't have to be long, in fact, your plan can be as short as one page. But it must be written down.

2. Now, move on to the kinds of property you want to buy. Houses? What kind? In what areas? Price?

3. You're ready for the funding now. Are you going to use private lenders, lines of credit, or maybe a combination?

4. Don't forget your exit strategy. Especially in a soft market, you have to know up front what you're willing to take for the property. Are you going to sell right away? Or are you going to buy and hold? Decide on your exit strategy now.

5. Determine your ultimate purpose. Why do you want to invest in the first place? Knowing why you want to invest will help you decide what types of property to buy.

And that's all there is to it! These are the parts to a simple, yet valuable, business plan. A business plan is sure to help you have more hassle-free transactions. Once you have your plan down, it's time to move to your action plan.