Crossed Street

Luxury real estate in Victoria, BC, is truly some of the very best on earth. Macleans magazine selected Victoria as the number one city in Canada in which to relocate a family business. Conde Nast Traveler magazine voted Victoria the best over-all city in Canada for its environment and ambiance. In Warren R. Bland’s book Retire in Style, he ranks Victoria, BC, as the #1 retirement destination of the sixty cities he investigated throughout the US and Canada.

What’s so special about luxury real estate in Victoria, BC? Victoria is a waterfront community located on the US/Canada border that was named for Queen Victoria. It is the capital city of British Columbia, as well as Western Canada’s oldest city. It is brimming with distinguished Edwardian architecture, which greatly contributes to the city’s unique charm and character. Furthermore, Victoria is home to 78,000 people, largely dominated by its diverse immigrant and retiree population.

One of the things that differentiates luxury real estate in Victoria, BC, from other places is its ideal climate. Victoria is temperate with both mild winters and summers. It is commonplace to see both palm trees and pine trees in beautiful, lush Victoria. If you are concerned about Victoria’s proximity to rainy Seattle, don’t worry. Victoria gets 1/3 of the precipitation that the Emerald City does. Additionally, the rain shadow effect ensures that Victoria gets more sunshine than surrounding areas. All of this means that golf is year-round in luxurious Victoria, BC.

If your idea of luxury includes culture, art, civic involvement, and some night life, Victoria, BC, delivers yet again. Whether you’re off to watch the Victoria Symphony or the Royal Theatre, you’re in for a treat. You might take a class or watch a sporting event at the acclaimed University of Victoria. You might check out one of the local farmer’s markets, the Ballet Victoria, the Victoria Philharmonic Choir, Filberg Art Show, or Pacific Opera Victoria. Victoria also has a bustling antiques and collectibles market. Additionally, you can visit Beacon Hill Park, the Olympic mountain range, the Victoria Bug Zoo, the Art Gallery of Greater Victoria, or the Royal London Wax Museum.

Whether you are dreaming of a 10-acre waterfront paradise with a tennis court and pool or an urban, high-rise penthouse suite, the luxury real estate opportunities in Victoria, BC, are plentiful. Practically every little piece of land in Victoria has a breath-taking view of mountains, ocean, or both. Private boat docks and even private islands are not out of the question. If you are looking for quiet solitude, countryside, waterfront chic, an easy, breezy condominium, or classy and conservative, it’s on the market in Victoria. Whether you are motivated by making a sound investment, buying your dream house, or both, the luxury real estate in Victoria, BC, can compete with that in any city in any country.

These days, it does help to have an online presence to sell your products or services. The Internet is a low cost multimedia communication tool that enables both the seller and the buyer to have access to information and to even purchase items. The Internet has its military origins as it was designed for a fail safe situation to be used to communicate between bases using indirect links. It was designed for command centers to find a way to communicate to their missile sites in a worse case scenario.

Loft Conversions UK’s leading loft conversion provider specialising in all types of loft conversions and loft extensions.
These days, the Internet is used for educational and commercial purposes and has enabled the world to communicate to each other. It has benefited everyone because of the ease of access to information. Though information can also be distorted, the need for verifying such data can also be done through the internet.

Information is important and is a major factor for making decisions, especially when it comes to real estate. Take for example, Paris apartments that are for sale. With prices of real estate in this city relatively stable, the advantage of a real estate agent that has a portfolio of Paris apartments online is huge. This agent can actually have pictures of the apartment, site maps, floor maps of the place, and even place the asking price of the apartment. Having these information available online is good to his existing clientele or to new ones because at the very least, they do get to see what property is being offered. More serious buyers will definitely contact them and make the trip to see and visit the property.

Here are some tips that may be useful for a real estate broker to place on his or her website on how to optimize the website for potential clients to see:

- Have the information available that is simple and well presented. This information should have the following data: name of property, property size, location, asking price, contact information of real estate broker, feed back form. Such information can be a mix of both pictures and text data. Other useful information can include where the area is next to, which is important to those who are looking for places to reside which is near their place of work, or links to interesting places to visit, school zones, etc.

- Have your website or webpage optimized for search engines. This is a technical issue but can be easily done by yourself if you have the time. But you can have this job outsourced and be detailed in such placements. The use of key word placements is essential in this type of activity as well as listing it in the important search engines like Google, Yahoo, Msn, etc.

If you own real estate or are thinking of buying real estate then you better pay attention, because this could be the most important message you receive this year regarding real estate and your financial future.

The last five years have seen explosive growth in the real estate market and as a result many people believe that real estate is the safest investment you can make. Well, that is no longer true. Rapidly increasing real estate prices have caused the real estate market to be at price levels never before seen in history when adjusted for inflation! The growing number of people concerned about the real estate bubble means there are less available real estate buyers. Fewer buyers mean that prices are coming down.

On May 4, 2006, Federal Reserve Board Governor Susan Blies stated that “Housing has really sort of peaked”. This follows on the heels of the new Fed Chairman Ben Bernanke saying that he was concerned that the “softening” of the real estate market would hurt the economy. And former Fed Chairman Alan Greenspan previously described the real estate market as frothy. All of these top financial experts agree that there is already a viable downturn in the market, so clearly there is a need to know the reasons behind this change.

3 of the top 9 reasons that the real estate bubble will burst include:

1. Interest rates are rising – foreclosures are up 72%!

2. First time homebuyers are priced out of the market – the real estate market is a pyramid and the base is crumbling

3. The psychology of the market has changed so that now people are afraid of the bubble bursting – the mania over real estate is over!

The first reason that the real estate bubble is bursting is rising interest rates. Under Alan Greenspan, interest rates were at historic lows from June 2003 to June 2004. These low interest rates allowed people to buy homes that were more expensive then what they could normally afford but at the same monthly cost, essentially creating “free money”. However, the time of low interest rates has ended as interest rates have been rising and will continue to rise further. Interest rates must rise to combat inflation, partly due to high gasoline and food costs. Higher interest rates make owning a home more expensive, thus driving existing home values down.

Higher interest rates are also affecting people who bought adjustable mortgages (ARMs). Adjustable mortgages have very low interest rates and low monthly payments for the first two to three years but afterwards the low interest rate disappears and the monthly mortgage payment jumps dramatically. As a result of adjustable mortgage rate resets, home foreclosures for the 1st quarter of 2006 are up 72% over the 1st quarter of 2005.

The foreclosure situation will only worsen as interest rates continue to rise and more adjustable mortgage payments are adjusted to a higher interest rate and higher mortgage payment. Moody’s stated that 25% of all outstanding mortgages are coming up for interest rate resets during 2006 and 2007. That is $2 trillion of U.S. mortgage debt! When the payments increase, it will be quite a hit to the pocketbook. A study done by one of the country’s largest title insurers concluded that 1.4 million households will face a payment jump of 50% or more once the introductory payment period is over.

The second reason that the real estate bubble is bursting is that new homebuyers are no longer able to buy homes due to high prices and higher interest rates. The real estate market is basically a pyramid scheme and as long as the number of buyers is growing everything is fine. As homes are bought by first time home buyers at the bottom of the pyramid, the new money for that $100,000.00 home goes all the way up the pyramid to the seller and buyer of a $1,000,000.00 home as people sell one home and buy a more expensive home. This double-edged sword of high real estate prices and higher interest rates has priced many new buyers out of the market, and now we are starting to feel the effects on the overall real estate market. Sales are slowing and inventories of homes available for sale are rising quickly. The latest report on the housing market showed new home sales fell 10.5% for February 2006. This is the largest one-month drop in nine years.

The third reason that the real estate bubble is bursting is that the psychology of the real estate market has changed. For the last five years the real estate market has risen dramatically and if you bought real estate you more than likely made money. This positive return for so many investors fueled the market higher as more people saw this and decided to also invest in real estate before they ‘missed out’.

The psychology of any bubble market, whether we are talking about the stock market or the real estate market is known as ‘herd mentality’, where everyone follows the herd. This herd mentality is at the heart of any bubble and it has happened numerous times in the past including during the US stock market bubble of the late 1990’s, the Japanese real estate bubble of the 1980’s, and even as far back as the US railroad bubble of the 1870’s. The herd mentality had completely taken over the real estate market until recently.

The bubble continues to rise as long as there is a “greater fool” to buy at a higher price. As there are less and less “greater fools” available or willing to buy homes, the mania disappears. When the hysteria passes, the excessive inventory that was built during the boom time causes prices to plummet. This is true for all three of the historical bubbles mentioned above and many other historical examples. Also of importance to note is that when all three of these historical bubbles burst the US was thrown into recession.

With the changing in mindset related to the real estate market, investors and speculators are getting scared that they will be left holding real estate that will lose money. As a result, not only are they buying less real estate, but they are simultaneously selling their investment properties as well. This is producing huge numbers of homes available for sale on the market at the same time that record new home construction floods the market. These two increasing supply forces, the increasing supply of existing homes for sale coupled with the increasing supply of new homes for sale will further exacerbate the problem and drive all real estate values down.

A recent survey showed that 7 out of 10 people think the real estate bubble will burst before April 2007. This change in the market psychology from ‘must own real estate at any cost’ to a healthy concern that real estate is overpriced is causing the end of the real estate market boom.

The aftershock of the bubble bursting will be enormous and it will affect the global economy tremendously. Billionaire investor George Soros has said that in 2007 the US will be in recession and I agree with him. I think we will be in a recession because as the real estate bubble bursts, jobs will be lost, Americans will no longer be able to cash out money from their homes, and the entire economy will slow down dramatically thus leading to recession.

In conclusion, the three reasons the real estate bubble is bursting are higher interest rates; first-time buyers being priced out of the market; and the psychology about the real estate market is changing. The recently published eBook “How To Prosper In The Changing Real Estate Market. Protect Yourself From The Bubble Now!” discusses these items in more detail.

Louis Hill, MBA received his Masters In Business Administration from the Chapman School at Florida International University, specializing in Finance. He was one of the top graduates in his class and was one of the few graduates inducted into the Beta Gamma Business Honor Society.

Mr. Hill received his undergraduate degree from the University of Florida with a double major in Finance and Risk Management.

For the past several years he has been working in a South Florida commercial real estate lender that specializes in financing real estate developers. Mr. Hill has seen firsthand the challenges and pitfalls that real estate developers are experiencing, and how the real estate market has been deteriorating rapidly. He is also a professional consultant to professional real estate developers and investors.

Previously, he was in management consulting. Additionally, he was a professional trader in the stock market and witnessed the stock market bubble bursting in 2001 and now is concerned about the real estate bubble.

Cancun real estate has earned a reputation for a luxury lifestyle – and rightly so! Living near one of the world’s most loved beaches, with soft, white sand, and turquoise blue water, while having easy access to many world-class services, ranging from international dining, to excellent hospitals, to PGA golf courses is a priceless benefit. But what some people may not guess is that you don’t have to be rich to enjoy life in the beautiful location.

The following three Cancun MLS listings, including two homes and a condo, demonstrating that you can enjoy life here for less than $175,000. The properties are in order of price, the most expensive one first.

1. Luxury Home
Location: Colonia Doctores
Price: $172,000

This new home is located in the neighborhood known as Colonia Doctores, one of Cancun’s most exclusive area’s. It is a part of a 8-townhouse complex, with a private pool and very private. This is a “turn key” sale, ready for moving in and living in. Did you ever imagine living in a luxury home in a beachfront city for this price?

2. Beachfront Condo
Location: Hotel Zone
Price: $170,000

This affordable unit is one of the last in Cancun’s Hotel Zone; at this price, whoever buys it will soon be the owner of a condo worth many times more. It is a master suite in Cancun Plaza, located at the south end of the Hotel Zone, which is quieter than the parts further north, and only 15 minutes from the airport. As two separate studios with a connecting door, the unit comes furnished and is ideal for income from vacation rentals, but can also be easily adapted to serve as a vacation property for the owners. There is a pool, a snack bar, a convenience store, laundry and 24 hr security.

3. City Home
Location: City Beachfront
Price: $160,000

This home is one of two side by side homes for sale which currently have a connected yard, and are perfect for two close families to share space, or for a bed and breakfast business; the second, smaller home is being listed for $135,000. They can also be bought separately and the yards can be divided by a wall. The homes are right across from the beachfront, less than 50 feet away. The larger home is 3 bedroom and 3 bathroom, and has mini-split air-conditioners in every room, as well as ceiling fans

Central Florida real estate market continues to heat up in the wake of a recession. There’s no question the economy has taken its toll on all parts of America, including Florida, but projections do not match the current state. Vacation home sales and rentals are up significantly. Central Florida is thriving in the real estate market.

If you are looking for a reason to own real estate in Florida, then the list is endless. Central Florida is a historic place with cultural neighborhoods. It is a rising star in the field of real estate. Apparently there are two most significant reasons for such high demand for properties, its proximity to Disney Empire and its warm climate attracts a huge number of tourists every year. Florida is undoubtedly a great place to call home. There are many ventures established in the city for amusement such as world-class shopping centers, theme parks, eateries, movie theaters, bars.

Some people, who have never been to Florida, envision lovable Mickey Mouse as their neighbor when they consider moving to this part of the state. Central Florida is also acknowledged as the land of theme parks. Walt Disney Land is situated just beside the Lake Buena Vista. Few of the most celebrated theme parks include Thornton Park and College Park. Eventually, these elements offer an animated neighborhood. The real estate market of Florida is ideal for first time buyers as the state of the economy makes it a buyers market.

The growth rate of this place in terms of schools, medical institutions, municipal amendment, and amenities is tremendous. This evidently offers a wide variety of locality around Central Florida and its increasing population is evident to this factor. You can diversify your search for a good deal as the market has much to offer.

Central Florida has things to offer to outdoor lovers also, within the environmental barriers. There are number of world class golf courses and elegant riding paths. You can keep yourself entertained by numerous beach sports like volleyball, water skiing and wind surfing. You can break free under the soothing sunlight on shiny golden sand.

All these factors magnify the interest of many big and small players of tourism industry to initiate their establishments. The main factor for flourishing tourism in this part of the country is provision of making tax free money. Now organizations can relish their hard earned dollar. Apart from this, you will never find an obstruction in selling you property, especially when the economy bounce back and the real estate market is once again vibrant.

Legion of retirees, fun loving families, tourism agencies are interested in the real estate of Central Florida. It is an ideal depot for the people who want to escape from fussy city life. Now, all you need is to find a good and trust worthy real estate agent who can offer you the best for your money so that you can be a part of this magical and animated city recognized as Central Florida.

If you own any sort of property, be it residential or business related, you will need someone to manage it. The question you are probably asking is how professional management can help you?

So, what is property management? It’s the managing, or handling, of real estate property by someone other than the owner. Most often, it is handled by a management firm, that might handle more than one client’s real estate properties. Other styles include hiring someone to live on site and take care of tenants’ requests, as a building superintendent or other building manager – but this style of management has fallen out of favor in recent years.

It goes without saying that quality is a big issue with this service. A good management firm will act as a go-between for the real estate owner and the tenants, handling any questions and complaints that the tenants might have so that the owner is not forced to deal directly with them. This kind of service can include doing many different things, from collecting rent to hiring groundskeepers and repair people. They can keep an eye on repairs that need to be done, and suggest improvements on the property to the real estate owner.

In most states, those offering this service must be certified and licensed, most commonly as real estate brokers. This is especially true if the property managers (or someone in the the management team) is helping to negotiate leases, or collect rent on behalf of the property’s owner. In other states (such as Connecticut), there may be no licenses required for these tasks. Most property managers are still required to register with the state they work in.

Property managers can also be essential in keeping an eye on your property – making sure that no one is vandalizing your real estate, and taking care of problem tenants as well. The actions that manger may have to take can include eviction, as well as involving the authorities, tasks that a real estate investor may not want to have to do. They can also be used as arbitrators between tenants, when disputes arise that are not severe enough to involve the police or other authorities.

When done well, property management is the answer to a lot of issues that real estate investors might face. The management team can do the hands on work while the investors reap the profits.

There are two sides to real estate development feasibility study: The Cost Side & The Income Side.

I am going to concentrate in this article on The Cost Side.

Having told you that a feasibility study is vital when applying for finance, it is however, just another cog in the wheel of the property development process.

To help you come to grips with the term, feasibility study, it might help you if I call it a, Financial Analysis, of all the costs and income revenue that tell you if your development will produce a profit.

Where To Start?

When you are at the very beginning of preparing a feasibility study – I mean when you are just thinking about buying the land on which you propose to develop a building, your initial cost figures are liable to be a bit ‘rubbery.’

They’re general – they are not exact and can’t be exact, because all you know at the beginning is the ‘asking price of the land.’

Hopefully the land cost will be less than the asking price after you complete the buying negotiation. Can you see that there is going to be a difference in just that first item of the feasibility study – land cost?

OK – if you accept that, you’ll also accept that the associated land costs will also vary. Items like conveyance costs, legal charges, stamp duty, adjustment of utility charges and other costs.

That should demonstrate to you that a feasibility study goes through several stages.

The first stage uses figures that are the ‘best’ figures you have available at the time. The last stage is when all your cost figures are firm and final.

But as you are only at the stage of deciding to buy the land or not, you figures are “general and loaded with safety” – in dollar terms.

Let’s be clear about what I mean here. For the land cost you would use the full asking price and all the associated costs, at full calculation for your initial entry in the feasibility study. Then if you negotiated a lower price you are safe.

If you first feasibility study shows a satisfactory profit return for the risk of doing the development, you will proceed and gain legal control of the land.

Well, to gain control, you must have concluded a negotiation on the land sale price – so you have now “firmed up” on one of the cost items. Hopefully it is lower than, or the same as the figure you allowed in the feasibility study.

In the first feasibility study you will allowed a figure for the fees of the design consultants.

People like the architect, the engineer and so on. Well now you have to engage them to create the initial design for you and again this is a negotiation that will either be within your feasibility study allowance or not.

The next major item in your feasibility study will be the constructions cost.

If your development comprises ten town homes, that are aimed at the luxury end of the owner occupier market, your market knowledge may tell you that you should allow $180,000 per to town home or $1.8 million to build all ten.

Your design team will have to design well within those cost parameters and after the initial design is complete in preliminary format, you will need to get a few master builders to give you a price.

If you are well within the $1.8 million, then you may decide to leave the $1.8 million figure in your feasibility study. This would be smart if the buider’s figure was say, $1.7 million.

The extra $100,000 acts as a safety buffer as you are only pricing off non-detailed preliminary design plans.

Now. let’s say it’s your intention to sell all these town homes at a profit, so you have allowed some marketing costs to cover sales commissions, brochure printing etc. in your feasibility study.

At this stage the biggest figure is the sales commission and so you have been out talking to agents and so you have a good idea that your figures are OK.

At this stage we have wrapped up all of the “major” costs except the finance costs or interest on you borrowed development finance.

By now, hopefully you will have bought my e-book, and know how to go about seeking development finance the correct way and not the dumb way.

So you will not only know the best interest rate, but more importantly, have the correct type of loan and on the correct “terms” – you know the small print stuff.

At this stage everyone I teach wants to buy a software program so that they can get all the calculations done “easy like.”

Well I have a problem with that – I know, and believe, that for you to get to know your development intimately, you have to go to the trouble of doing the feasibility study figures manually – it is only adding, subtracting and multiplying some figures.

It is not difficult and the benefit is that you get to “know” the importance and interplay of each figure on the end result, being profitability.

So a simple spread sheet broken up into months on an XL is all you need.

In month one you buy the land for $286,500 and associated costs of say, $21,700 so you enter a figure of $310 ($308,200 rounded up to $310,000 – you have added a bit of safety in this one item)

Note: never use the full figure allways round up and take off the last three zeros – so $310,000 becomes $310l; $3,500 becomed $3.5 and $800 becomes $8. This makes it easier to read and creates less mistakes.

You then spread the design costs across the page to reflect the negotiated deal you did with the designers.

Then the construction costs – marketing costs and so on. You can divide these individual costs up into a many smaller items as you wish.

But the real thing you are doing is setting out your best estimate of the flow of cash that is required from the Lender and also from your own equity funds – the Cost Cash Flow.

Once you have these figures spread across the page you add then vertically for a total monthly figure – and also horizontally for each item total.

Hopefully the big development cost total in the bottom right hand box is equal to the vertical and horizontal totals.

It is – great; go to the top of the class.

Earlier I mentioned that you will have concluded the terms of your development loan.

Well, let’s say that the Lender has agreed to lend you 80% of your costs. This means you have to provide 20% from your own capital resources.

Having got the monthly totals you can now calculate 80% of each figure, because this is the amount on which you will pay interest.

It is these figures that you now calculate interest on each monthly cash flow and arrive at a total cost of the finance for your development.

You now add the total interest figure to the Cost Total and arrive at what we call the Total Capital Cost of your development.

There are a total of about 44 item headings that make up the Cost Side of a Feasibility Study.

Even though we know myths are imaginary, still we believe them to be true. People love to create imaginary stories about different things and different people. A real estate agent might also be one of the victims of myths. Though it is surprising, this is true. These people who handle Nashua property management and Manchester property management and all such real estate related tasks, also have a few myths about them which circulate in the society. Few of them may also seem funny but for an unknown reason, this is how people picture them. Let us take a look:

• The first myth about real agents is that they have long hair. Come to think of it, why would all real estate agents keep up the same style mantra? Anyone and everyone can keep long hair. They are also normal people like us and they have complete freedom as to how they can keep their hair. Besides, this is not a criterion for stepping into this profession!

• Many people believe that agents never make it on time to any appointment. This might not be common to all. Apart from a few, many real estate agents are responsible enough about their work. However, some still might practice the habit of coming late. In that case, you do not need to be ashamed or shy about asking them as to why they got late. Mention clearly that you have been waiting for long, and demand the respect they owe you.

• Another somewhat funny myth about agents is that they drive luxury cars and are always talking on the phone. This might just be a coincidence with all the real estate agents you might have seen. The truth is that they are quite busy people who have to do multiple tasks at once. Besides, what is the harm in driving luxury cars and talking on cell phones?

• Many people also think that agents are only interested in money. Well, you must know that real estate is just another business, so it has to be about money. However, they do not only want your money. They are doing their job and their hard work will be paid off well.

• Real estate agents are thought of as individuals who receive kickbacks from Lenders, Inspectors and Title companies. According to the law, any such act is illegal. Some of them may be interested in taking kickbacks, but most of them will care more about their license, which will be confiscated if they are caught.

• A lot of people may also believe that real estate agents will not like to show you the homes they have put up on sale. This is not true. These agents are individuals who specialize in helping out people, not torture them! Helping people and striving hard to give them their best is their job, and they specialize at it. An agent would therefore happily show you the house you wish to see.

If you’re dreaming of making money in real estate, it’s time to stop dreaming and get to work, because making money in real estate isn’t just a vague pipedream. It can be done, even by a young and inexperienced person, when you learn how to “flip” houses.

A friend of mine, we’ll call her Tai, made a fortune in real estate, beginning at the age of twenty, with no help from anyone else. Here’s how she did it:

Tai began by buying a HUD repo, which allowed her to get into the house for no money down. Then she fixed it up and sold it herself. At closing, she had made enough profit to by a second fixer-upper, but this time, she paid all cash. Tai went right to work fixing her second house, and when she sold that one, she collected profit of $44,000, which allowed her to pay cash for her third house!

By now, Tai was comfortable with her formula, and within a short time, she had flipped her third house, realizing enough profit to pay cash for yet another house, as well as being able to buy the custom pickup of her dreams. And all of this had happened in the span of just nine months!

Tai’s formula was simple. She located houses that needed only cosmetic work, avoiding those that required structural repairs. She did all the painting herself, inside and out, and updated the home’s lighting, plumbing fixtures, and carpeting. Once renovations had been completed, all three houses sold quickly, and at a significant profit.

Flipping houses is the most tried-and-true way to make a fortune in real estate, so don’t listen to anyone who tries to tell you that it can’t be done or that you need to have a great deal of start-up money. That’s not true. You can buy houses with no money down through various loan programs, and sellers will often help you with the closing costs.

I know what I’m talking about. My husband and I bought our 27th house earlier this year, for no money down, and we expect to make a profit of at least $100,000 for just one month of hard work!

But we take the process a step further, making our houses outshine the competition by also using Design Psychology, although our buyers never know that. All they know is that they feel good when they’re in our homes, which makes them want to buy them, even if they’re more expensive than the house next door.

There’s no other business that can make you as much money, with as little start-up cost, in as short a time, as investing in real estate. In fact, more millionaires made their fortunes in real estate than in any other business. And you can do it, too. You just have to stop dreaming and get started.

A great residential real estate investment business plan begins with some points that are not dependent on real estate. First, the plan should be well organized and well presented. The format should be attractive and consistent. In today’s business world with the automation available, the plan should include a well formatted table of contents.

The plan should have non-disclosure and non-circumvent language in the footers. Also, the plan should include the usual disclosures considerations for investors.

The plan should begin with a brief executive summary that in a few pages describes the entire business plan (really good executive summaries are often only a single page) including what the investor is being asked to do or invest, the highlights of the project, the risks, the main operational points, and the planned returns. After the executive summary, the writer should seek to answer key questions every investor has including:

1. Specifically what is the investment and what do they get for the investment?
2. What are the details about the investment?
3. How will the investment be operated?
4. What is the sales and marketing plan?
5. What is the financial plan?
6. What will the returns be for the investment?
7. What will the organizational structure be?
8. How and what will be communicated to the investor and when will this occur?
9. What does the principal get?
10. What will the investors rights be?
11. If there is debt, what terms are anticipated?
12. What is the exit plan?

Next, the business plan should include all items including in the appendix. Normally, when I prepare a business plan the appendices include:

* Financial projections,
* Biographies for the managers,
* Marketing packages from brokers,
* Management agreements,
* Subscription agreements (the operating agreement is normally in the subscription), and
* Other information that may be pertinent to the specific investment

The total document with attachments can be quite large. However, the business plan itself is often reasonably brief consisting of 10 to 20 pages with a 1 to 3 page executive summary.

The idea is to provide a succinct, detailed, attractive document that fully answers the investors questions, lets the investor know what is expected of him or her, and provides everything that they need to go ahead and make the investment. This allows the investor to review everything carefully, share all the information with their own counsel, and then successfully with a minimum of fuss complete the investment.

I should add that what is expected of the investor is more than simply giving their money. The business plan and associated documents should establish the full ground rules of the investment for the investor.