business plan question

i am planning to start an LLC shortly and by a second rental property. My question is does anyone know of a good book that may summarize the order in which I need to do things?

i know i need a business plan to show lenders, but i haven’t found examples of real estate investing plans.
i know i have to find a good accountant, and lawyer.

i guess i’m looking for a checklist and order of how to specifically do things to start the business, and a checklist for things a lender would want to see. do they need to see a classical business plan, just a cost analysis, or some combination of both?
please help

I have included a format I used to create a business plan for retirement home. The format is exhaustive and you may not need all of the items I’ve included. If you DO include all the items, your lender will be shocked and impressed by your thoroughness. The lender I went to with this plan was amazed and said that NO ONE EVER comes in as prepared and knowledgeable as what I did.

As for what order you do things for ‘setting up shop’ this is what I would suggest.

1 - Set up your LLC. This can be done electronically in many states over their department of commerce website, however, you may want to seek the guidance of an attorney which I actually strongly recommend. The order you need to follow to set up your LLC is probably similar to the following: 1) Register your business name with the state, 2) Contact the IRS to acquire a Federal Employer Identification Number (FEIN), 3)Regitser your business with the city(ies) in which you do business.

2 - Set up a bank account for your LLC without it you can’t write or cash checks.

3 - Find a CPA who specializes in real estate.

4 - Find houses!!!

Here’s the Business Plan Outline:
I. Executive Summary
A. The Company
B. The Service
C. Marketing
D. Management
E. Financial
II. Business Description
A. General Description
B. Industry
III. Marketing
A. Research and Analysis

  1. Target Market
  2. Market Size and Trends
  3. Competition
  4. Market Share
    B. Marketing Plan
  5. Marketing Strategy
  6. Pricing
  7. Advertising and Promotion
    IV. Location
    A. Residential Facility
    B. Layout
    C. Zoning
    D. Proximity
    V. Management Segment
    A. Résumés
    B. Business Structure
    C. Compensation
    VI. Financials
    A. Pro Forma Financial statements
    1.1-3 year projected balance sheet
  8. Break-Even Analysis
  9. Cash flow analysis
  10. Monthly, quarterly, and yearly income statements
    B. Payroll
    C. Mortgage
    VII. Critical Risks
    A. Potential Problems
  11. External Risks
  12. Internal Risks
    VIII. Harvest Strategy Segment
    A. Transfer of Ownership
    B. Expansion
    IX. Milestone Schedule
    X. Appendix

thanks!!! that’s extemely helpful!!!

one question, when you set up a company, did you use a lawyer to help decide what kind of company to set up or also to do the paperwork?

If you don’t know exactly what type of entity to use I would suggest using an attorney. Try to speak with a CPA before you decide what entity to choose. They may be able to give you some tax reasons as to why you would choose an LLC, S-corp, or C-corp, etc. Laws are different in every state and an attorney and CPA together can tell you what the best etity would be to use. I am actually using two entities for real estate; an s-corp. and a LLC.

Also, the paperwork is simple if you are the only member of the LLC, but if there are multiple members, it starts getting sticky.

Shop prices. Ask what it costs to set up a LLC, S-corp, C-corp etc. and choose one of the cheapest. I have noticed that the paperwork is all pretty much the same. Really, there will probably be NO difference between what one attorney will do for you and what another may do, but there could be a large discrepancy in price.

DefaultDoctor,
was this used to obtain a line of credit for an existing company or was it a start up?

start up

did you have start-up capital? I am trying to do this for my RE Investing Company, and I am trying to Learn more about the process of going to the bank with a well drawn out biz plan to obtain start-up capital or lines of credit. any other info you can give would be appreciated! Thanks

Johnny