Posted by Ed Garcia on July 24, 2011 at 22:42:09:
LL,
I think the time has come for you to learn how to get the money to do your deals.
You?ve decided that you could get the better deals at the Auction so now you need to learn how to find the money in order to do those deals?
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Investors. This source can be solicited by running News Paper ads, personal friends, relatives or associates. The most obvious are other investors in the business. I assure you that there are people you haven?t even thought of yet. You have to do a business plan or have an outline
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Banks or Institutional lenders. LL, this is where you?ve got your work cut out for yourself. You could start with me by calling me at 909- 9440199. After talking to you I will see if I think if you?re a candidate for a small local bank or a financial institution that would be compatible to you.
The first thing I feel would be a useful working tool for you is a Business Plan.
(1) For you the Investor, it allows you the investor an opportunity to lay out a game plan from beginning to end. In that game plan you can evaluate yourself and your plan. If you done your job right, you can put all the pieces of how you operate together like a puzzle. Such as choosing your title company, appraiser, contractor, tell how you plan to invest in real-estate, your experience level, how you plan to buy, market place, how you plan to market or sell them, What your plans are if they don?t sell, etc.
(2) For you to obtain other Backers (Investors), now you can show them a solid buyable plan, rather than give them some verbal mambo jumbo with holes in it. The Backer will feel more confident in you and your venture, because you have mapped it out for them.
(3) For a Working Credit Line from a Bank. This line is just like having an Investor. It?s designed to allow you to buy property making cash offers to get a better price, cheaper cost for the money, faster closes, get more deals, can season your deal, etc.
LL these are just a few reasons for a Business Plan. Yes if your intentions are to just do a deal here or there, you don?t need one. If you plan to be a real-estate investor or entrepreneur, it?s PARAMOUNT, for growth and getting the real money from banks as well as romancing Investors (Backers). A good Business Plan adds CREDIBILITY to you and your real-estate venture.
Food for thought,
Ed Garcia