Creating a business plan - Posted by breeves

Posted by breeves on March 28, 1999 at 11:19:45:

I could use some input on formulating a workable business plan. I have access to private investor money. I don’t want to do flips or rehab. I’m trying to put together a plan to buy SFH’s in need of no more than cosmetics and sell on L/P to tenant/buyer. I will buy at approx. 88% FMV and sell at 102%FMV. Question - how do I structure the deal to the investor. We can’t cash out until tenant buys. I thinking of giving the investor a return of 9% until I sell and a part of the profit (88% vs 102%). I am actively looking for lease options where I don’t take ownership, the way most of us do them. But I feel I can significantly increase my volume if I can offer cash to the seller at a reasonable price (88%FMV). I will be looking for a buyer with a very good chance of qualifying within a year. My concern is tying up the investors money longer than they would be comfortable. Any suggestions would be appreciated.