Who Else Needs a Business Plan?
I my experience, most investors feel about business plans the way many people feel about exercise. They know it’s really good for them, but they just can’t find the time to get around to it. Other things always seem to come up.
Now, you probably know the saying (and the truth) that “if you fail to plan, you plan to fail.” I know I’m preaching to the chior, but let me give you some other reasons why a business plan can boost your success in obtaining large sums of money from private lenders:
1. Having a well-thought out business plan, is a powerful and positive marketing document for sophisticated and wealthy private lenders and angel investors.
2. Your business plan will enormously boost your credibility with private lenders (even friends and family)
Let me explain.
Most most investors get into real estate, strongly motivated to be working for themselves and achieving financial freedom. And my guess is that even if you have a company (and you should), it’s really a one-man (or one woman) show. Sure, you may use an attorney to close, but it’s pretty much you.
That may be great for you, but scares the heck out of private investors. Why? because they are used to evaluating Companies, as investment prospects. A company is an entity that is not dependent on one individual. If the individual gets sick or goes on vacation, the company’s business continues, and doesn’t put the investment at risk. Having a business plan that shows you have or are building a strong organization that knows where it’s going is a major factor in addressing that concern.
In fact, all of the sophisticated and wealthy private investors that I know, expect to see a business plan to evaluate an investment.
As a marketing tool, a business plan will help you create your story that will attract the interest of private lenders. In fact, having a “good story” is absolutely essential if you want to be successful in raising private money.
I know that sitting down to write a business plan is a daunting prospect. Would having a template to follow, and even being able to get a plan written for you be of interest? If so, you are invited to join our inner circle where we have a whole training session on just this topic.
Richard Odessey has been investing in Real Estate since 1999 and have bought, managed and sold over $5MM in assets over that time period. He has created a national network of RE investors that are a source of continual on-the-ground intelligence. Richard has also developed unique and proprietary tools to zero in on only high profit-low risk transactions.
Hello Richard and Michelle,The info I have read from the both of you has given me at least some direction and I am very grateful. I again know you both are very busy and your time is most important. I had a very serious head trauma injury in 2007 and for some sad reason I’ve been left unable to really understand story content, so for me I just don’t seem to be getting it. I appolligize for my inconvience but if there is anyway you might see fit to actually mentor me through a few deals? Let me know because This would allow me the opportunity to support myself and family in a better way. Thank you Joseph Johnson
I started to get in the realestate business all most 3 years ago. Right when I set up a company every loan company quite doing loans for realestate business unless you had been in business all ready with a good track record. Or have 20% down or $20,000-$50,000 in the bank.I’ve been told that their lenders out theirthat will loan according to the deals, and if it was a good deal they would loan 100%, I HAVE NEVER FOUND ONE YET. AND I HAVE LOST OUT ON A LOT OF MONEY. I’am a 30 year underground coal miner that is trying to get out of the mines and do this FULL TIME. EveryONE that I know that has a lot of MONEY. Tells me I’m crazy for trying to get started in this scence their so many FORECLOSURES, That there is know way their going to invest their money in realestate RIGHT NOW. I cannot believe these people with so much money are so stupid.Because you can get the best deals RIGHT NOW. If you can make all cash offers buy a property clean it up do a few touch up’s REFINANCE the property get your money back, PLUS a COUPLE THOUSAND DOLLARS FOR YOUR TIME, AND SELL THE HOME ON A LEASE/OPTION AT FULL MARKET PRICE ON A 2 or 3 year LEASE. You can make a killing. OR do OWNER FINANCING SO MUCH DOWN SO MUCH A MONTH FOR 30 YEARS.And then if you need cash for something in the future all you need to do is sell that NOTE. FOR INSTANCE CASH. I have study hard the last three years and have been to auctions,been out with realtors to show me things. I know if I could find a PRIVATE LENDER that was willing to do LOANS OF $25,000-$90,000 range I could make us a lot of money.
Thanks Donnie
DPC Properties Inc.