Business Plan To Get Financing

[Corey Reyment]

We are about to purchase our first BRRRR property and we are extremely excited! We have the private funding lined up and spoke to a bank who has financed others we know after a few months of owning it to do the refinance. The lender sent me a list of things he will need to determine if he will give us the financing for the refi. One of this items he needs is a brief business plan/synoposis of what we are looking to do.

Our big goal is to BRRRR enough properties to replace our household monthly income and do it full time. From a lenders perspective, what type of business plan are they looking for or what things should I write up for him that will be appealing to the bank to relay this goal in a bank friendly way?

[George Despotopoulos]

Hi @Corey Reyment, that's great! Very exciting, best of luck. 

Currently, we do not require a formal business plan from our borrower. We do love to chat with whomever we're working with and get a better understanding of their transactions, their near- and long-term goals. 

But if we did ask for a busines plan/synopsis, anything you could provide to evince experience / know-how would go a long way. Especially in the fix & flip / buy/rehab space, where terms are shorter, we want someone who can show us that they have thought of everything and will be able to execute and meet deadlines. Examples of past experience/success of any sort would be ideal.

Creating a detail oriented and specific game-plan, strategy, with a decent amount of market analysis would be also attractive on our end. The more invested you come off, the less of a risk you are in a lender's eyes. 

To the extent not confidential or sensitive in nature, if you'd like for me to take a look at whatever you've drafted I would be happy to 'lend' some feedback.