Is it normal to write a real estate investment business plan? Do loan officers want this? The reason I ask is because I bought a business plan writer from playwrite and it is the biggest POS I have ever seen. Am I wasting my time here?
Can anyone share some resources for writing business plans?
Yes, it is normal (if not essential) to have a business plan for REI. Having a business plan shows that you are serious about running a business as opposed to just being a mom and pop type REI wannabe. Bankers will want to see a business plan for commercial loans and having one will set you apart from the wannabes. More importantly, having a written business plan will give your business a path to follow and will help you evaluate how your progress.
You don’t need a software program to write a business plan. Simply put down on paper what you’re business is about. My business plan is only 4 pages long and contains the following topics: Introduction, Objectives, Method (my plan for meeting the objectives), Market Niche, Marketing, Growth, Management Philosophy, Building a Team, Organizational Structure, Diversification, Continuing Education, and Summary.
So, start typing!
Mike
Howdy Gmtmaster:
I remember those. I wrote one in 1977 to get my Diploma from UNC. LOL
I have never been asked for a business plan, but, hey, it’s Louisiana (the part that’s NOT underwater!)…
I have been asked for a pro forma for a vacant property, though.
I think that it’s a pretty good idea to have a business plan to help keep you focused and running in the right track.
Keith
I cannot attest to how important they are needed as far as getting business loans, but they do get you to seriously think about what it is you plan to do. I’ve heard that many lenders want to see your financial profile more than anything else. You can get one here.
the act of writing a biz plan is more important than the output. By writing things down, it forces you to figure things out and look into many issues. About 1 min after you print the “final version” it will be outdated since something alays comes up that introduces a new twist to things.