To add to what Stacy posted, I’ve been rejected for an SBA loan in regards to REI. I forget what the exact language was, but it was something to the effect of the “SBA does not make loans for that type industry”. And that was after much back and forth of documents and talking to the SBA rep, much more so than a traditional loan. Since we were being led along for months, I think it actually came down to the fact that the SBA just doesn’t understand this biz.
As far as financing the first few deals, that all depends on how you define “deal” and what type transaction it will be. Is it a keeper? Is it a fix and flip? Is it a wholesale deal? Etc., etc.
Other questions stand out…
Why do you want to do REI?
What’s the end-goal?
Do you have prior experience?
You’ve touched on many broad topics without providing any details.
I don’t think you necessarily have to have all this written out per a biz plan, but I do agree it’s smart to have a general plan. The reason I say this is that my intended strategy changed many times during the first 12 months.
I agree with Stacy and will take it even further. Ignore concerns about biz plans, entities, obtaining financing, etc. and plunge yourself into the education and action aspects of REI. There’s a right balance of each for all of us and it’s up to you to figure that out. Even if you’re flipping, this is a long-term venture and you’ll have time for the details.