Second, I don’t see that structure working. Not to mention your lender would probably want to know where their money is going. What i have seen done is two people investing as a partnership, where one guy brings the deal to the table and the other guy brings the money, then when the deal pays off, they have a pre-arranged split. That happens much more often.

Third, i’ve always found that simpler is better, especially with family. They’re apt to trust you so i don’t complicate them if i can. With outside investors, the deals can get much more complicated. For example, i’ve proposed plans and pitched to groups where professional sports players have been in the mix. They always have a cpa or lawyer who want to vet the numbers for them. IN those cases, i had to make sure my plans were signed off on by CPA’s and tax attorneys to show them the numbers are rock solid. At least, as rock solid as a guess can be.

I’ve also been involved in a much larger deal where we had to use a securities attorney. At that point, you’re just filling in the numbers and they’re preparing the proposal, which takes on a much more legally verbose document.

As far as software goes, again, everything is done on word. THere’s no automation for this kind of thing. Each deal is different and the proposal will be populated with your research and forward looking numbers.

IF you need help arranging one or deciding if one is worth investing in contact me offline and i’d be happy to help you look one through.

Good luck.
.-= Craig Grella´s last blog ..Seattle makes forbes best states for doing business list =-.

First, in my case, if I were able to secure OPM there are several different ways I could think of to use it, depending on a person’s time horizon, tolerance for risk etc, as well as depending on the amount of money involved (what I might try to do with $30k is different than what I might try with $100k), and also depending how any particular deal went (eg. if flipping doesn’t work, might still try a hold and lease option if it looks like a good deal). All this leads to my inability to articulate a simple and clear message of my intentions, because “it depends” is what it sounds like, which weakens the message. Any advice for that?

Second, what about the case where I might have an opportunity to partner with person A as an equity partner – e.g. put in my cash, there’s risk and also reward. Does it work to try to borrow money from person C as a private lender to facilitate that? It would seem that the ability for me to make money for myself (and for my lender) depends on the the extra knowledge or contacts I have, and I would need to preserve that mystique so the lender isn’t tempted to go to the other partner himself. However, at the same time I think that if I’m borrowing other people’s money that I would want to be as transparent as possible. Any advice for that?

Third, thanks a lot for providing that great sample of the business plan that you’re providing. Does this also work when proposing an arrangement short of creating an entirely new entity? Can you recommend any other samples of a good RE business plan, or software that helps with this?

Thanks in advance!
Eric
.-= Eric Schwager´s last blog ..Cupertino and Mountain View among California cities with highest median home prices =-.