Sample Executive Summary??

[Kacey W]

Does anyone have an example of an executive summary that they have used to secure hard money loans for commercial RE? Looking for a well executed sample, and would like to know what investors like to see, not see, etc., in the summary.

Thanks

[Bill Gulley]

Hi, some sources foir the information you may need for your Exc. Summary or Business Plan, are pretty simple to list when you know where to find the information.
For most investors, identifying the market and needs analysis can be covered in a couple sentences. You'll find the market outlook for your local area in the last appraisal you have. It's the same outlook that the banks sees everyday.

Market rents, a phone call to the housing authority, again, the bank already has the MSA data. You can include some of the metropolitan statistical data in your market analysis. What you want to do here is make statements of fact, not blow smoke up the tail pipe.

For real estate, you'll need to address exit startegies, leasing but when vacancy becomes X% for a period of Y consecutive periods, the property shall be listed or the property rents will be reduced by R%, explain your exit. Assuming that you follow your own plan, and a lender seeing that you actual thought of it, will let the lender know that you are on top of getting them their money before trouble is upon you!

Your pro forma statements, estimated income and expense statements should be in good accounting form if it's very detailed, but you can keep this simple.
What they need to see is the effects of your business plan based on anticipated changes. For RE, it's ususally rents, maintenance and vacancies that effect you the most. Assume the worst in your projections for a period, like a quarter, if nothing more than to illustrate that you know what the worst case might be. They know what it is, you need to admit it and not try to blow smoke telling a lender that yoiur business will be so well run that you won't have problems! Present the dark side and bring it back to a profitable level. This will get you thinking too about what expenses and belt tightening you can do to balance out a few tenants, skippoing out in one month and being hit with a major maintenance issue in the same period.
Could go on and on, but you get the idea. As for management, a simple resume of your wrok history will do, just amke your experience as a teacher applicable to the duties of the property manager. Don't go into great detail of past achievements like you might for a job interview. Keep it simple. Good luck, Bill