Posted by kim on August 18, 2006 at 17:58:14:
Can anyone help me with an outline or book/template to writing a biz plan? I am forming an LLC with a family member, to invest in real estate (single family homes and 2-4 plex units). I am working on a biz plan and can’t find a lot of good research regarding financials, charts etc? Any suggestions?!?
THANKS!
Kim
Writing a Business Plan - Posted by Joseph
Posted by Joseph on November 23, 2005 at 23:15:45:
Has anyone written a business plan geared towards Pre-forclosures - Foreclsures whereby you as the investor, help save the credit of the person/s in the property through any of a various means of financing?
I know that I am being vague and there will be questions for me on this. I just wanted to see if there is anyone willing to share thier BP with me so that I know if I am on the correct track.
My main goal in REI is to be able to help others in an otherwise precurious situation with thier homes. I really like the idea of being able to help save someones credit and in return get a property for a little more than pennies on the dollar. Being able to re-fi and cash-out equity (tax FREE) and put that in my pocket.
I do not pretend to be a professional investor or even savvy investor, just someone who is learning the ropes from REIonline and through seminars (Jim Shead), books ((Beginners Guide to Real Estate Investing; Eldred) Making Big Money Investing in Foreclosures; Conti & Finkel)and courses (Millionaire Apprenticeship Program; Jim Shead).
I know what my target market is and I know pretty much how to approach these people. It is at this point though that I would like to consider writing a BP for becoming an LLC and as a basic guide line to follow with set goals and such. I know that is can be re-written once the original goals are met, thus setting new goals and moving forward.
Thank you for all your support and advice well in advance.
Joseph
Re: Writing a Business Plan - Posted by Mike-OH
Posted by Mike-OH on November 24, 2005 at 08:52:07:
Joseph,
Writing a business plan should be an individual exercise. There truly is no “wrong” way to write a business plan. A business plan can be anything from a few points written on the back of a napkin to hundreds of pages placed in a customized leather binder.
There are really two reasons to write a business plan: 1) for your personal use, and 2) to present your business to others (bankers, partners, etc).
Personally, I have a 4 page business plan. The topics include Introduction, Objectives, Method (of achieving objectives), Concept and Market Niche, Marketing, Growth, Management Philosophy, Building a Team, Organizational Structure, Diversification, Continuing Education, and Summary.
Before you start your business plan, I think that you should re-examine your goal. You said “My main goal in REI is to be able to help others in an otherwise precurious situation with thier homes.” This would make a good goal for a non-profit charity, but is not an acceptable goal for a BUSINESS. Don’t be misled by guru speak, the purpose of your business is to make money, not help those with credit problems. In my opinion, this “helping people” talk is nonsense that is spread by gurus to help newbies feel better about themselves when they take someone’s home for pennies on the dollar. In reality, when you do these types of deals, you are doing so to make money and you run the very real risk that the very people who you’ve “helped” will sue you later when they decide that they were a victim and that you didn’t help but rather stole their equity. Of course this is ridiculous, but that doesn’t matter in our court system. Just remember that in business, NO GOOD DEED GOES UNPUNISHED. Also, when dealing in preforeclosures, it is absolutely critical that you get the paperwork right INCLUDING DISCLOSURES AND ACKNOWLEDGEMENTS. Otherwise, you may end up being the one that needs help (legal help, that is).
Anyway, my point was that you should be honest with yourself. In the preforeclosure game, you are winning (getting the equity) while someone else is losing (their house). Contrary to popular seminar nonsense, once the owner is well behind on their payment - their credit is already ruined and you can’t fix it!
Good Luck,
Mike
Motor Scooters - Posted by Motor Scooters
Posted by Motor Scooters on June 19, 2007 at 24:58:41:
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Re: Writing a Business Plan - Posted by Joseph
Posted by Joseph on November 26, 2005 at 24:20:05:
As I mentioned in my original post, I was being vague. My intentions are to help the people keep thier homes through my buying the house just above what they owe in back-payments so that they can pay some of thier bills off, staffing off any further credit disrepair.
If it was me in that situation, I would not like having a BK and/or Foreclosure on my credit report where it is harder to recover from vs. having some late payments that can hurt your credit but can be more easliy remedied.
When someone is obviously in this situation, no one is going to be willing to help get a re-fi for them. This is where I would step in and buy thier property and using some of but NOT ALL of thier Equity to pay the back payments and some bills off, the client then fills that together we have accomplished something that otherwise could not have been done in any other way.
At this point, I can either offer them a Lease-Option while thier credit is being repaired or, I can lease-option it to someone else.
While they (whom-ever is in the property at this time) are in the house, I would re-fi with an interest-only payment plan. (ie. $550 per month but the tenant pays $950 per month) This gives me a $400 per month +CF.
The whole situation is a win-win-win situation becuase the Banks don’t have to foreclose on them, the client does not get any worse credit and get to use soem of thier equity to pay off bills and stop and Foreclosure proceeding or BK proceedings, and I when becuase I get a house for the back payments and there is already equity in the home.
I know that there is more to it than that but that is the general direction in which I am headed.
Mike, one of the things I really like about this web site is there are people like you that keep us newbies on the straight and narrow, and you help to keep our eyes and minds open to other possibilities.
Thank you for that.
Joseph
Re: Writing a Business Plan - Posted by Sailor
Posted by Sailor on November 24, 2005 at 17:12:32:
Your post reminded me to update my Biz Plan, though mine is much simpler. I try to review weekly, but don’t always do it that often. The thing I like about frequent review is that I keep increasing my goals. I use both dollars & percentages in all my calculations, because sometimes I think one figure is enough until I calculate it the other way & realize I needd to raise it higher.
Thanks for the memory job!
Tye