Business Plan to Show Private Lenders

[Robert Vieira]

Hello everyone. I'm happy to be a part of BP; and excited to further educate myself on investing techniques/strategies.

My first post/question is in regards to obtaining Private Lending:

I am in the process of constructing my business plan, which I will convert into a Power Point to show my potential lender.

Besides the spreadsheet and crime/employment rate, what information about the property/surrounding area is crucial for the potential lender to know, in order for the deal to become more appealing?

Thank you in advance for the help!

[Brian Burke]

First, welcome to BP @Robert Vieira !

Second, congrats on thinking ahead and making a business plan. Whether or not this impresses your lender doesn't matter, just going through the exercise of creating it forces you to think about your deal and get organized.

Finally, I'd encourage you not to create a PowerPoint deck for your potential lender. Anyone with a large amount of funds to invest has seen hundreds of boring PowerPoint presentations that, more often than not, don't address what is really important.

A lender wants to know that you know what you are doing and that the property's value supports their loan. Rather than showing them a slide deck, know your facts and plan inside and out, forwards and backwards and have a conversation where your skill and facts show. Notice that I said "conversation", not "presentation". Don't BS, and be yourself.

As far as having something on paper, prepare a list of comparable nearby sales, your rehab budget, and your real estate investing resume so that you can show them this data at a relevant point in the conversation, and leave them with something to take home after your meeting. Good luck!