Posted by Jack on March 27, 2006 at 14:26:13:
What, you need more than that?
Need Business Plan for real estate investing. - Posted by Thurman
Posted by Thurman on March 27, 2006 at 12:38:18:
Any suggestions as where I can find a book, website, or software that offers a business plan for real estate investors?
Thanks!!
Thurman
Re: Need Business Plan for real estate investing. - Posted by John Corey
Posted by John Corey on March 28, 2006 at 06:45:36:
Thurman,
A business plan for a RE investor is a bit odd.
Most deals are evaluated on a deal by deal basis. Hence the plan has no place in the review. A loan application is all the lender starts with and then they work from a credit score, etc.
A plan for your purposes and as a way to get clear what you are doing is a great idea.
Now, when you have grown your investment portfolio you will bump into limits as to the number of loans you have or the need for working capital that is not tied to one specific property. This is when a business plan serves more of a purpose externally (bankers, etc).
You can use the plan to market yourself to investors, to bankers who you are asking for a line of credit and to other partners. The bankers will be on the commercial side of the bank. They will be portfolio lenders and they want to see your operation, your past successes, etc. The business plan is like a portfolio of your prior projects plus a well thought out view of the future. Expect that you should be talking to them about a facility that is agreed before you find the next property. The decision to fund is already approved and based on criteria that future properties will fit.
So, planning is very important at the beginning but you will not have to use the plan to get started. Or you can use the plan with investors if you are trying to partner. Most RE investors starting out do no more than what Jack has suggested as a plan (single statement - buy low, sell high).
The better RE plans will show a focus (rehab, flip, buy & hold, paper deals). You might need to do a few deals before you find your specific focus.
John Corey
Re: Need Business Plan for real estate investing. - Posted by Rich
Posted by Rich on March 27, 2006 at 21:07:52:
Business plan is a good idea. There are so many investing paths out there you could go under just trying out too many. Pick a market segment and approach you think will succeed and follow it through. I used the Business Plan Pro software, which helps make sure you don’t skip anything.
Re: Need Business Plan for real estate investing. - Posted by Pat
Posted by Pat on March 27, 2006 at 16:23:19:
Check out this feedback to a similar question:
http://www.dealmakerscafe.com/forum/index.php?showtopic=11664