Executive summary: A concise overview of your business, outlining its mission, objectives and strategies. This section should captivate potential investors and provide a snapshot of your company’s potential. How will your business operate? Who is the primary market? What values guide your decision making?
Market analysis: Detailed research on the local real estate market, including current trends, property values, and target demographics. This analysis helps in identifying opportunities and understanding the competitive landscape. Think about strengths, weaknesses, opportunities and risks.
Property use: Detail your intentions. Some properties are strong candidates for rentals, others provide opportunities for house flipping. Disclose whether your plans include personal use, such as occupancy or storage, or a turnkey strategy with minimal investment and commitment.
Investment strategy: A clear outline of criteria for property selection and your acquisition strategy. Use SMART goals (specific, measurable, achievable, relevant and time bound) to unpack how you plan to use the investment and track the various short and long-term milestones for success.
Financial plan: Comprehensive financial projections, including startup costs, operating expenses, marketing budgets and anticipated revenue. Detail your funding requirements and potential sources of capital to show the financial viability of your business.
Organizational structure: Define the roles and responsibilities of each team member, highlighting their qualifications and contributions to the business. This ensures a well-coordinated team and clear accountability.
Risk management: Identify potential risks, such as market fluctuations and legal issues, and outline strategies to mitigate them. A robust risk management plan demonstrates preparedness and foresight. Include how you’ll handle different exit strategies, such as liquidation or wholesaling, so investors know what their options will be in any given scenario.