Real Estate Investors - The 6 Key Elements to Develop a Business Plan For Attracting Private Lenders
The 6 key sections of your Real Estate Investing Business Plan should include the following sections: executive summary, market analysis, implementation plan, sales strategy, financial forecasts and assumptions. Executive Summary: Write the rest of the plan first, then come back and summarize everything, including your goals, objectives and assumptions. Even though this plan is for your real estate investment business, write the summary as if you were analyzing and reporting on the finished plan in an objective way for a third party. Market Analysis: Give a brief description of the market and the niche that you intend to work in, and your buy/sell strategy. For instance, state that you intend to concentrate on four-plexes, or concentrate on a particular area of town or a particular price range. Also be sure to talk about your exist strategy. Implementation Plan: This section outlines your purchasing process, renovation strategies, vacancy allowances and rental policies. Sales Strategy: This section outlines your disposition strategies. Most investors do not flip homes, they buy and hold until they are positioned to either leverage their property or move up (usually in the form of tax deferred (i.e. 1031) exchanges.) Financial Forecasts: Include cash flow projections, purchases, income from rentals, repairs and maintenance, ongoing expenses like property taxes and gains and losses from sales. Assumptions: Outline your major assumptions as you create your plan, including interest rate forecasts, market appreciation and depreciation and other economic conditions (such as the effect of home prices and interest rates on gross rents and vacancies.) I invite you to learn more about Private Mortgage Lending and get FREE instant access to a 60 minute audio titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://realestatewealthtoday.com/FREE-eBook.html. Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Kit. Download your FREE eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders" and learn how to fund your real estate deals with Private Lenders!
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