Getting ready to launch my business: Question

12 Replies

Hello all, I wanted to revise my subject title. I didn't like the way it came across.

I am getting ready to launch my REI business, and I want to put together a professional looking packet to get investors on board. I want to include my business plan (finished), what my company is about and wants to achieve, how the company could benefit the investor, and ROI's and other projections. I have some colleagues and acquaintances that I would like to approach with this, and really want to take the time to make these packets as informative and professional as I can. I do not have a track record yet and I know this is crucial to seeking out investors, but I feel since I know a few of these people, and if I do it right, this could be successful.

So, my question is...Does anybody have any advice, links to blogs, articles help me better prepare for this project?

Thank You

@Jason Cotner In all due respect, I would highly suggest to focus more on just finding a property and finding a deal, rather than the details of setting-up the business. Reality is, anyone can spit out projected numbers, but your record needs to speak for itself, and not a packet. How do you expect to tell investors what their ROI is going to be, if you haven't had a return yourself? Sure, you can present a hypothetical scenario, and you may get a few investors that way, but if you can find a true deal, the money will find you.

However, if you are set on setting up a packet first, check out the BP blog section and I've seen a few Youtube videos that give the basics of putting business plans together.

Best of luck,


@George Makakaufaki  Thanks for your advice, and I hear what you're saying. I do however want to build a business and structure it from the ground up, in hopes of it being successful. I'm not a real big fan of the saying "find a great deal and the money will find you". I would rather have a plan and  my finances in order so I can really focus on finding those great deals, without having to feel desperate or stressed.

Thank you for your recommendations I will certainly look into them.

Jason Cotner

@Jason Cotner  hello..your friendly graphic designer here:) Alrighty how to look like a professional in 3 simple steps or maybe 10, let see how this goes. 

I am assuming you have Microsoft Word, if not then Google Drive has a "word" document option. 

Step 1:

Set up your cover page. Your cover page needs to consist of Logo, Business Name, and year established with the little "©" after. Please note, use a simple font like Helvetica for titles and for the copy within use times roman or a simple easy to read font. Use a dark blue color for titles and cover page, because people read that as conservative and money. Green means nature, black means contemporary, red means hot and so on. So navy blue is probably your best choice.

For example:

Step 2:

Page two should be your table of contents listed in bullet form:

• Company History
• Why my Company
• Business Plan(which would include projections and strategy)
• Conclusion

Step 3:

Once all of this is done, re-read, have someone else double check and then re-read again, do spell check. Make everything as simple and easy reading as you can. Then go to Kinkos or someplace similar and have them print and bind using a clear plastic cover with a black back page. Also have business cards ready to go as well. 

Hope this helps! Good luck and if you have any other questions, let me know!

It's very common for newbies to get caught up (too much so) on "building a business".  Like someone said earlier, focus on finding great deals.

@Bryan L. you still have to have a plan. Because if you don't, then what? Maybe he needs to build capital to follow through with his REI business and as you know you just can't go up to someone and go "hey, I want to be a Real Estate Investor and I need money, can you help me?" Having a strategy and plan in place will show people he is serious and they will take him more seriously.

I mean I get it, many seasoned investors want to see proof in the puddin'. Can you REALLY do this, where are these numbers coming from? I don't think the business plan has to be expansive, just something simple. Simple goals. 

Just going for it doesn't always work and sometimes will cause "newbie" investors to make major mistakes and put them in a bad place financially.

So big question here is @Jason Cotner  have you started anything, are you in the middle of your first flip? Do you have rentals? What is your experience so far?

Jason do what I did and start marketing for motivated sellers, and talking to them on the phone to get your business off the ground.  Don't waste your money on logos, or websites, or business plans, until you have some deals under your belt.  

Can you believe I still don't have business cards?  I better get on that!

@Nicole thanks for the great instructions and for understanding What I'm trying to accomplish that's exactly what I needed (an answer to my question)! Thanks to everyone else for their input. Im at work now so I will get into this with a little more depth this evening or in the morning. 

Thanks again

@Nicole Pettis  If either of you came to me and wanted to partner with me, or borrow from me, or wholesale to me - I really wouldn't care about your "plan".  Show me the deal.  That's what I want to see.  And I can tell you this for sure - potential sellers really don't care about a "plan".

Now, I might want to know what your exit plan is for that deal.  But don't wast time on pretty pictures and logos and computer graphics and stuff.  If you can't speak your "plan" to me in words in less than 2 or 3 minutes, then I don't want to hear it.

Y'all go "build a business" all that you want to.  While you're off doing that, I'm going to be making offers.  But, to each his own.

Real estate investing is hard. If you want to invest in something that doesn't involve a little desperation and stress, try mutual funds or bonds. I know that sounds harsh, but you absolutely take yourself out of the game before you ever get in if you need everything to be perfect.

You MUST have goals. You should have a long-term goal and short-term goals that support the LT goal. Spend time thinking about these and documenting them.

After that, if you want to have a 2-page packet to leave with prospective investors that's fine. Nicole has some good tips. My only addition to that is don't spend more than a few hours on it. If you know the people and have no track record, they are investing in you, not in your packet.

@ BrianL I'm not asking you for your money nor do I want it. if you can get off your high horse for a second and be helpfull i'd Appreciate it. If not please go somewhere else

@Bryan L.  you're right. If he approaches another RE investor you get it. You know what a great deal looks like, you understand the numbers, you know how it works. There is no need for the dog and pony show. When I speak with other investors I tell them what I am doing, what I have done and where I am going and they get it. I don't need to show them my business plan.

To whereas when you speak to NON RE investors, they don't get it. Trust me I know. So that is where this quick, simple, business plan can come into play. To show them the numbers, returns and such. And you're right, nothing speaks louder than doing. Taking action. But its that question of putting the cart before the horse.

When I started and had my properties pulled Real Estate Agents wouldn't even talk to me before I was pre-approved. So without that pretty pre-approval letter it made it very difficult to look at properties to get numbers to make sure it was a good deal and it was impossible to take action if I did not have said money in hand.

Chris's question was to have a business plan to show non REI people to help him with his business and its more than pretty pictures its a professional way to communicate. So that is what I gave him, but I also said to keep it simple and quick to read.

Don't over plan. Some people love to plan, but often it is wasted effort.

BTW, Bryan is smart and experienced, I wouldn't brush off his advice. He's giving you what you asked for, advice on attracting investors.

How about a story, my first multi purchase.... Young guy, lots of ambition and willingness to work hard, no money. I found a sweet heart property for sale. 4 plex a few blocks from my house, across the street from the local college. Building was vacant, landlord worn out, looking to unload. Perfect! However, I had no money and the building went under contract. Bummer. A couple weeks later I was having lunch with a friend/mentor. I mentioned my sweet property that I missed out on. He said, "Well, go find another one and I'll back you."

Awesome. Driving by my 4 plex that evening I see the sign out in the yard again. The deal fell through! 3 days later I had it under contract and we made good money on that building.

Bottom line is that I had an actual property to talk about. Hypotheticals are pretty useless in the REI world. I found a deal and the money found me.

My advice would be to go find some properties for sale and see if you can make the numbers work. If they do, then take them to potential investors. If not, then keep looking.

Good luck.

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