Real Estate Investors - The Business Plan and Assumptions in Your Executive Summary

p>Executive SummarySummary.
The Executive Summary should be probably no moreAssumptions
than one page ever. It's just two or threeThe assumptions section of your real estate
paragraphs, where you kind of take everything weinvestment business plan, we can go through fairly
just talked about and you boil it down to really onequickly. That's basically where you lay out any
or two or three paragraphs. Ultimately, once you'reassumptions -
sitting in front of a private lender, you would have· The projected number of properties you
this Executive Summary internalized in your own braincan be able to buy this year
and you could lay that out to a person in a verbal· Growth rates in terms of rent
format in a relatively comfortable way.· Interest rates on your lending sources, if
Everything kind of boils back down into yourit's a primary bank, or private lender, or even a hard
Executive Summary. It has to be relatively short, tomoney lender.
the point, but you have to provide enoughYou would lay out all of your assumptions as part of
information to be meaningful and to be interesting.that, and a sophisticated lender is going to want to
You would obviously want to include the followingsee the assumptions and to make sure that they're
items -realistic. If your assumptions are overly optimistic
· Your target marketthey're going to smell through that, and that's going
· Your price range, all of those things weto reflect on your financial forecasts, and it's going to
talked aboutreflect on the entire business plan as being not really
· Your philosophy: buy and hold, or flipcredible.
· The types of properties you're going to beYou've got to be careful. Make sure your
buying: commercial or apartments or residential orassumptions are relatively conservative. As you go
whatever you're doing.through your business plan, the template is really
You would synthesize all that down into a coupledesigned to kind of hold your hand through the
paragraphs here. You can also include things like yourprocess. If you've spent some time and you've
bio, your background. You can put that in here. Somedeveloped all of these sections, you would be at a
of that went into the private lending credibility kit wepoint where you've put the guts of your plan
talked about last month, but clearly, you can addtogether, and that kind of brings us back to the
some of those sections right now in the ExecutiveExecutive Summary.