How to Write a Real Estate Business Plan

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Success in the real estate investing industry won’t happen overnight, and it definitely won’t happen without proper planning or implementation. For entrepreneurs, a real estate investing business plan can serve as a road map to all of your business operations. Simply put, a real estate business plan will serve an essential role in the formation of your investing career.

Investors will need to strategize several key elements to create a successful business plan. These include future goals, company values, financing strategies and more. Once complete, a business plan can create the foundation for smooth operations and outline a future with unlimited potential for your investing career. Keep reading to learn how to create a real estate investment business plan today.

What Is A Real Estate Investing Business Plan?

A real estate business plan is a living document that provides the framework for business operations and goals. A business plan will include future goals for the company and organized steps to get there. While business plans can vary from investor to investor, they will typically include planning for one to five years at a time.

Drafting a business plan for real estate investing purposes is, without a doubt, one of the single most important steps a new investor can take. An REI business plan will help you avoid potential obstacles while simultaneously placing you in a position to succeed. It is a blueprint to follow when things are going according to plan, and even when they veer off course. If for nothing else, a real estate company business plan will see to it that investors know which steps to follow to achieve their goals. In many ways nothing is more valuable to today’s investors. It is the plan, after all, to follow the most direct path to success.

8 Must-Haves in A Real Estate Business Plan

As a whole, a real estate business plan should address a company’s short and long-term goals. Though in order to accurately portray a company’s vision, the right business plan will require more information than a future vision. A strong real estate business plan will provide a detailed look at the ins and outs of a company. This can include the organizational structure, financial information, marketing outline and more.  When done right it will serve as a comprehensive overview anyone who interacts with your business, whether internally or externally.

That said, creating an REI business plan will require a persistent attention to detail. For new investors drafting a real estate company business plan may seem like a daunting task, and quite honestly it is. The secret is knowing which ingredients must be added (and when). Below are seven must-haves for a well-executed business plan:

Outline the company values and mission statement.

Break down future goals into short and long term.

Strategize the strengths and weaknesses of the company.

Formulate the best investment strategy for each property and your respective goals.

Include potential marketing and branding efforts.

State how the company will be financed (and by whom).

Explain who is working for the business.

Answer any “what ifs” with backup plans and exit strategies.

These components are what matter the most, and a quality real estate business plan will delve into each category to ensure maximum optimization.

Vision

A company vision statement is essentially your mission statement and values. While these may not be the first step in planning your company, a vision will be crucial to the success of your business. Company values will not only guide you through investment decisions, but will also inspire others to work with your business time and time again. They should align potential employees, lenders and possible tenants with the motivations behind your company.

Before writing your company vision, think through examples you like both in and out of the real estate industry. Is there a company whose values you identify with? Or, are there mission statements you dislike? Use other companies as a starting point when creating your own set of values. Feel free to reach out to your mentor or other network connections for feedback as you plan. Most importantly, think about the qualities you personally value and how those can fit into your business plan.

Goals

Goals are one of the most important elements in a successful business plan. This is because not only do goals provide an end goal for your company, but they also outline the steps required to get there. It can be helpful to think about goals in two categories: short term and long term. Long term goals will typically outline your future plans for the company. These can include ideal investment types, profit numbers and company size. Short term goals are the smaller, actionable steps required to get there.

For example, one long term business goal could be to land four wholesale deals by the end of the year. Short term goals will make this more achievable by breaking it into smaller steps. A few short-term goals that might help you land those four wholesale deals could be to create a direct mail campaign for your market area, establish a buyers list with 50 contacts, and secure your first property under contract. Breaking down long term goals is a great way to hold yourself accountable, create deadlines and accomplish what you set out to.

SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis involves thinking through each of these areas as you evaluate your company and potential competitors. This framework allows business owners to better understand what is working for the company and identify potential areas for improvement. SWOT analyses are used across industries as a way to create more actionable solutions to potential issues.

To think through a SWOT analysis for your real estate business plan, first identify your company’s potential strengths and weaknesses. Do you have high quality tenants? Are you struggling to raise capital? Be honest with yourself as you write out each category. Then, take a step back and look at your market area and any competitors to identify threats and opportunities. A potential threat could be whether or not your rental prices are in line with comparable properties. On the other hand, a potential opportunity could be to boost the amenities offered at your property to be more competitive in the area.

Investment Strategy

Any good real estate investment business plan requires the ability to implement a sound investment strategy. If for nothing else, there are several exit strategies a business may execute to secure profits: rehabbing, wholesaling and renting — just to name a few. This is where investors will want to analyze their market and determine which strategy will best suit their goals. Those with long-term retirement goals may want to consider leaning heavily into rental properties. However, those without the funds to build a rental portfolio may want to consider getting started by wholesaling. Whatever the case may be, now is the time to figure out what you want to do with each property you come across. It is important to note, however, that this strategy will change from property to property. Therefore, investors need to be able to determine their exit strategy based on the asset and their current goals. The reason this section needs to be added to a real estate investment business plan is because it will come in handy once a prospective deal is found.

Marketing Plan

While marketing may seem like the cherry on top of a sound business plan, marketing efforts will actually play an integral role in the foundation of your business. A marketing plan should include your business logo, website, social media outlets and any advertising efforts. Together these elements can build a solid brand for your business, which will help you build a strong business reputation and ultimately build trust with investors, clients and more.

To plan your marketing, first think about the ways your brand can illustrate the company values and mission statement you have created. Consider the ways you can incorporate your vision into your logo or website. Remember, in addition to attracting new clients, marketing efforts can also help maintain relationships with existing connections. For a step by step guide to drafting a real estate marketing plan, be sure to read this guide.

Financing Plan

Writing the financial portion of a business plan can be tricky, especially if you are just starting your business. As a general rule, a financial plan will include the income statement, cash flow, and balance sheet for a business. A financial plan should also include short- and long-term goals regarding the profits and losses of a company. Together, this information will help when making business decisions, raising capital and reporting on business performance.

Perhaps the most important factor when creating a financial plan is accuracy. While many investors want to report on high profits or low losses, manipulating data will not boost your business performance in any way. Come up with a system of organization that works for you and always ensure your financial statements are authentic. As a whole, a financial plan should help you identify what is and isn’t working for your business.

Teams & Small Business Systems

No successful business plan is complete without an outline of the operations and management. Think: how your business is being run and by whom. This information will include the organizational structure, office management (if any), and an outline of any ongoing projects or properties. Investors can even include future goals for team growth and operational changes when planning this information.

Even if you are just starting out, or have yet to launch your business, it is still necessary to plan your business structure. Start by planning what tasks you will be responsible for, and look for areas you will need help with. If you have a business partner, think through each of your strengths and weaknesses and look for areas you can best complement each other. For additional guidance, set up a meeting with your real estate mentor. They can provide valuable insights to their own business structure, which can serve as a jumping off point for your planning.

Exit Strategies & Back Up Plans

Believe it or not, every successful company out there has a backup plan. Businesses fail every day, but by creating a backup plan investor can position themselves to survive even the worst-case scenario. That’s why it’s crucial to strategize alternative exit strategies and back up plans for your investment business. These will not only help you create a plan of action if something does go wrong, but will also help you address any potential problems before they happen.

This section of a business plan should answer all of the “what if” questions a potential lender, employee, or client might have. What is a property remains on the market for longer than expected? What if a seller backs out before closing? What if a property has a higher than average vacancy rate? These questions (and many more) are worth thinking through as you create your business plan.

The impact of a truly great real estate business plan can last for the duration of your entire career, whereas a poor plan can get in the way of your future goals. The truth is: a real estate business plan is of the utmost importance, and as a new investor it deserves your undivided attention. Again, writing a business plan for real estate investing is no simple task, but it can be done correctly. Follow our real estate investment business plan template to ensure you get it right the first time around:

Write an executive summary that provides a bird’s eye view of the company.

Include a description of company goals and how you plan to achieve them.

Demonstrate your expertise with a thorough market analysis.

Specify who is working at your company and their qualifications.

Summarize what products and services your business has to offer.

Outline the intended marketing strategy for each aspect of your business.

Executive Summary

The first step is to define your mission and vision. In a nutshell, your executive summary is a snapshot of your business as a whole, and it will generally include a mission statement, company description, growth data, products and services, financial strategy, and future aspirations. This is the “why” of your business plan, and it should be clearly defined.

Company Description

The next step is to examine your business and provide a high-level review on the various elements, including goals and how you intend to achieve them. Investors should describe the nature of their business, as well as their targeted marketplace. Explain how services or products will meet said needs, address specific customers, organizations or businesses the company will serve, and explain the competitive advantage the business offers.

Market Analysis

This section will identify and illustrate your knowledge of the industry. It will generally consist of information about your target market, including distinguishing characteristics, size, market shares, and pricing and gross margin targets. A thorough market outline will also include your SWOT analysis.

Organization & Management

This is where you explain who does what in your business. This section should include your company’s organizational structure, with details the ownership, profiles on the management team and their qualifications. While this may seem unnecessary as a real estate investor, the people reading your business plan may want to know who’s in charge. Make sure you leave no stone unturned.

Services or Products

What are you selling? How will it benefit your customers? This is the part of your real estate business plan where you provide information on your product or service, including benefits it has over competitors. In essence, it will offer a description of your product/service, details on its life cycle, information on intellectual property, as well as research and development activities, which could include future R&D activities and efforts. Since real estate investment is more of a service, it’s critical for beginner investors to identify why their service is better than others in the industry. It could include experience.

Marketing Strategy

Generally speaking, a marketing strategy will encompass how a business owner intends to market or sell their product and service. This includes a market penetration strategy, plan for future growth, channels of distribution, and a comprehensive communication strategy. When creating a marketing strategy for a real estate business plan, investors should think about how they plan to identify and contact new leads. They should then think about the various options for communication: social media, direct mail, a company website, etc. The marketing portion of your business plan should essentially cover the practical steps operating and growing your business.

Winston Rowe and Associates is a national consulting firm you can review them on line at www.winstonrowe.com

Strategies for Managing the Commercial Loan Post-Closing Process

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After a commercial loan transaction closes, it’s easy to feel that all the important work has been completed, but the truth is there are many post-closing matters that still require the lender’s attention.

Often, the tasks that must be performed after a loan closing involve perfecting the lender’s collateral liens, and in many situations, lenders need the borrower’s cooperation in order to satisfy post-closing requirements.

However, borrowers are often eager to focus on managing their businesses, creating difficulty for the lender to redirect their attention back to the loan closing. Taking an opportunity during the closing process to define and communicate the responsibilities of each party, including post-closing expectations, can help simplify the cumbersome post-closing process for lenders.

A crucial step in an efficient post-closing process is letting borrowers know that their cooperation may still be required after a loan closes, which is why we recommend using a Post-Closing Agreement with all loan transactions.

These agreements outline specific requirements that need to be satisfied post-closing, and they provide an opportunity to manage the borrower’s expectations while informing them that they still have a responsibility to communicate and work with their lender after their loan closes. It is advisable that all post-closing requirements have specified deadlines listed in the agreement.

Another document we recommend lenders use is an Errors and Omissions Agreement. This document requires borrowers to provide additional information and execute additional documentation, as may be required by the lender after a loan closing.

The closing process presents several opportunities for mistakes to be made, including omitting certain documents from the closing document package, incorrect signatures on documents, and execution of outdated versions of documents.

The Errors and Omissions Agreement is a good way for all parties to agree to resolve these potential issues after closing.

An additional tool that lenders can use to help manage post-closing issues is the Loan Agreement. A good Loan Agreement clearly outlines each party’s ongoing responsibilities, and in doing so, helps manage the borrower’s expectations. Loan Agreements are particularly useful in more complicated transactions because the agreements can be tailored to fit various scenarios and include additional terms a lender may require.

The Loan Agreement may include events of default should the borrower fail to satisfy any post-closing requirements prior to the applicable deadlines.

Depending on the type of collateral involved in a transaction, there can be many different potential post-closing issues for a lender to track and resolve.

Real estate is a good example of a potentially complicated type of collateral to deal with post-closing because it involves ensuring mortgages get recorded properly, tracking receipt of recorded documents and final title policies, confirming the adequacy of title policies, and working with title companies to resolve any issues or unexpected exceptions that may appear on a final policy.

Automobile liens can also be especially tricky, and not only require the correct documentation from the borrower, but also may require substantial interaction with the DMV in the state where the vehicle is titled.

Additional post-closing responsibilities include review of executed loan documents, filing UCC financing statements, obtaining confirmation of UCC terminations, tracking financial reporting covenants, ensuring proper documentation is received in connection with draw requests, and following-up on collateral insurance expirations.

As complicated as the post-closing process can be, lenders can help ease the burden by utilizing Post-Closing Agreements,

Errors and Omissions Agreements, and Loan Agreements, all of which clarify the responsibilities of each party and help manage post-closing expectations with borrowers.

 

States Are Forcing Business Owners Into Technical Commercial Loan Default

States that are not allowing businesses to open are causing commercial mortgages and business loans to go into technical default even though they are not missing payments.

Most commercial and business loan documentation contains one or more financial covenants that will cause you to become in technical default including cash flow covenants, such as a debt service coverage ratio, a fixed charge coverage ratio, or an interest coverage ratio, leverage ratios comparing total debt to cash flow and liquidity covenants.

With continued shut downs of state and local economies many businesses will not survive.

What is technical default of a commercial mortgage?

A technical default will result in payment of the commercial mortgage or business loan to be made in full. If the business owner can not pay in full, the business and its assets are liquidated.

Some examples of commercial mortgage technical default.

Property Value
Lack of Cash Flow
Changing Type of Business
A Second Position Mortgage with Out A Subordination Agreement
Local Economic Factors
Force Majeure
Rise in Crime
Environmental Factors
Not Raising Rents or Rents Below Market Rates
The Business Not Being Properly Capitalized

Since business and life in general is about managing risk the economy should be opened sooner rather than later.

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Free Business And Real Estate Investing eBooks

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Welcome to Winston Rowe and Associates knowledge blog, scroll down to the right for posts about commercial real estate.

This is a list of free books about real estate investing, commercial real estate financing and business strategy.

We’re always on the lookout for great free books so bookmark this blog and check back for monthly updates.

These links are not affiliate marketing links, just publications that we feel may add value to people and businesses.

Commercial Real Estate Finance

The eBook Commercial Real Estate Finance, by Winston Rowe & Associates discusses the fundamentals of the different types of commercial property, the various options that are included with properties and the capabilities that you will have as a commercial property investor.

Real Estate Investing Articles

This is a link to 1226 real estate investing articles written by industry veteran’s.

25 Productivity Tips for Successful Business Owners

Productivity is critical to your success at work. Business owners, managers and executives all want to get the most from their employees. If you’re not performing as efficiently or effectively as others, your long-term job prospects could be in trouble.

Real Estate Investing: How to Find Cash Buyers and Motivated Sellers

“Real Estate Investing: How to Find Cash Buyers and Motivated Sellers” teaches real estate investors and those interested in learning to invest in real estate how to define and target ideal cash buyers and motivated sellers. The book covers absentee owners, rehab investors, Section 8 landlords, and other buyer types. Some of the marketing topics include mailing lists, postcards, both online and offline marketing strategies along with examples. Anyone who wants to wholesale a house or is curious about flipping houses should pick this book to get educated on cash buyers and motivated sellers for their real estate investing.

Real Estate – Breaking Bad How to Flip Decaying Real Estate Properties for Profit

Tired of working 9 to 5? You should think of making money with real estate! Yes, the effort is well worth it! You just have to ditch the misconceptions and embark with all the passion you have in store for this amazing trip of rehabbing old houses and giving them a new look and a new owner.  Your reward? A nice profit!

Real Estate Forms Portfolio

A FREE and ready-for-download eBook consisting of a comprehensive collection of real estate-related forms for real estate investors.

Real Estate Secrets Exposed

This FREE e-Book sheds some light on the often mysterious and sometimes daunting world of real estate.

Use 1031 Real Estate Exchanges to Create Multiple Streams of Income

Discover how to use 1031 tax-free exchanges, tenants in common interests, and zero cash flow properties to create new sources of income. Learn how to offer bundled services and attract new clients. This FREE, ready for download eBook is perfect for anyone involved in real estate, taxes, mortgages, insurance, or law.  Download it now!

Make Money Through Real Estate Renovations

Download this FREE eBook and learn how a successful investor makes thousands of dollars from real estate renovations. Download it now!

Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders

Download this FREE e-Book, and discover the new secrets of funding real estate deals in the post-bubble real estate market, where traditional lending sources are getting very difficult to obtain. Download it today!

Real Estate Investing Strategy for Rehabs

This eBook is about residential rehabbing and the multiple strategies that can be used to maximize profits in this current economic climate. My goal has always been to share knowledge with folks that are truly interested in rehabbing and view it as not only for monetary gain but also see is as an “art and science” like I do. Happy Rehabbing!!

How to Be A Super Property Investor

A FREE, step-by-step guide that will help you become a super real estate property investor. Learn all the basic and some advanced investing techniques that have generated millions for property investors. Ready for download now!

Financial Terms Dictionary – 100 Most Popular Financial Terms Explained

This practical financial dictionary helps you understand and comprehend more than 100 common financial terms. It was written with an emphasis to quickly grasp the context without using jargon. Every terms is explained in detail with 600 words or more and includes also examples. It is based on common usage as practiced by financial professionals.

The Prince by Niccolò Machiavelli

Niccolò di Bernardo dei Machiavelli was an Italian diplomat, politician, historian, philosopher, writer, playwright and poet of the Renaissance period. He has often been called the father of modern political philosophy and political science.

The Science of Getting Rich by W. D. Wattles

This book is pragmatical, not philosophical; a practical manual, not a treatise upon theories. It is intended for the men and women whose most pressing need is for money; who wish to get rich first, and philosophize afterward. It is for those who have, so far, found neither the time, the means, nor the opportunity to go deeply into the study of metaphysics, but who want results and who are willing to take the conclusions of science as a basis for action, without going into all the processes by which those conclusions were reached.

Sun Tzu Art of War

Written in the fifth century B.C., Suntzu and Wutzu still remain the most celebrated works on war in the literature of China. While the chariot has gone, and weapons have changed, these ancient masters have held their own, since they deal chiefly with the fundamental principles of war, with the influence of politics and human nature on military operations; and they show in a most striking way how unchanging these principles are.

Make Extra Money Flipping Houses While On Vacation by Jason Medley

Reveals his simple and proven systems to automate, delegate and outsource nearly every function of his business except cashing his checks. He shows the exact steps that has allowed him to go on multiple vacations with his family throughout the year while having his system continue to flip houses for him.

Achieving Wealth Through Real Estate: A Definitive Guide To Controlling Your Own Financial Destiny Through a Successful Real Estate Business

Have you ever thought about making money with real estate? In Achieving Wealth Through Real Estate: A Definitive Guide to Controlling Your Own Financial Destiny Through a Successful Real Estate Business, author and entrepreneur Kirill Bensonoff takes you through the process of starting your own real estate business step-by-step, featuring his expert tips and tricks.

Business Loans Uncovered

Knowing if you qualify is one of the most important things to know when applying  for a loan of any type. Blindly applying for a loan and being declined increases the chances of you being declined again and again because you not only lower your credit score each time you apply, multiple inquires also serves a red flag to other lenders and as a result lenders put you in a high risk category and charge higher interest rates in the event of an approval Includes: ​Traditional Lenders, Government Sources, The 7(a) loan guarantee program, SBA Low Doc loan program, SBA Express loan program, Factoring, Venture Capitalists, Angel Investors.

50 Simple Secrets To Be A Happy Real Estate Investor

Discover the secrets used by successful real estate investors to create happiness in their lives and businesses. Naturally create more happiness for yourself by implementing time-tested secrets to happiness used by other real estate professional and investors just like you. Start to experience more productivity, satisfaction, and success immediately.

Real Estate Finance and Investment

This course is an introduction to the most fundamental concepts, principles, analytical methods and tools useful for making investment and finance decisions regarding commercial real estate assets. As the first of a two-course sequence, this course will focus on the basic building blocks and the “micro” level, which pertains to individual properties and deals.

Introduction to the Law of Property, Estate Planning and Insurance

Introduction to the Law of Property, Estate Planning and Insurance is an up-to-date textbook that covers legal issues that students must understand relating to real estate (an especially important business asset), as well as estate planning and insurance.

The text is organized to permit instructors to tailor the materials to their particular approach. The authors take special care to engage students by relating law to everyday events with their clear, concise and readable style.

Defensive Real Estate Investing: 10 Principles for Succeeding Whether Your Market is Up or Down

As the real estate market changes after years of aggressive growth, investors everywhere are faced with uncertainty, wanting to know how to prepare for a potential real estate bust and make sure they don’t lose money.   In his authoritative new work, Defensive Real Estate Investing, bestselling author and real estate expert William Bronchick provides guiding principles to safe investments for beginning to intermediate real estate investors.

Private Real Estate Investment: Data Analysis and Decision Making

Fiduciary responsibilities and related court-imposed liabilities have forced investors to assess market conditions beyond gut level, resulting in the development of sophisticated decision-making tools. Roger Brown’s use of historical real estate data enables him to develop tools for gauging the impact of circumstances on relative risk. His application of higher level statistical modeling to various aspects of real estate makes this book an essential partner in real estate research. Offering tools to enhance decision-making for consumers and researchers in market economies of any country interested in land use and real estate investment, his book will improve real estate market efficiency. With property the world’s biggest asset class, timely data on housing prices just got easier to find and use

Construction Funding: The Process of Real Estate Development, Appraisal, and Finance

Construction firms operate on narrow profit margins and the success of construction projects is hinged upon proper financing. Construction Funding is the only single volume, concise text on the financial aspects of building and developing.

The book acquaints the reader with a set of procedures specifically designed to solve the unique financial challenges facing the construction industry. It guides the reader step-by-step through each phase of financing a development project, from simple one-family residences to large multi-unit complexes. Construction Funding also addresses raising capital, selecting markets, rating sites, insurance, joint ventures, loan options, and cash flow management. Separate sections are devoted to the conduct of profitability studies and to finding after-tax rates of return. Construction Funding, Fourth Edition, has been updated to provide current costs and funding methods and additional learning features such as key terms, review questions, and learning objectives.

How to Make Money With Real Estate Options: Low-Cost, Low-Risk, High-Profit Strategies for Controlling Undervalued Property….Without the Burdens of Ownership!

I have dabbled with real estate for years usually making good money and sometimes being hammered (like with the last crash in the RE market). But overall RE has been good to me. Be that as it may, I have lost enough to know that I wanted to minimize my risk while still having plenty of upside potential. Real estate options are a vehicle to accomplish this goal. Thus, I started educating myself on the subject and found this most excellent book. Mr. Lucier is thorough and detailed and relates the reality of what it takes to profit (not like some of these dream weaver real estate gurus who like to sell you on how “easy” it is).

50 Simple Secrets To Be A Happy Real Estate Investor

Discover the secrets used by successful real estate investors to create happiness in their lives and businesses. Naturally create more happiness for yourself by implementing time-tested secrets to happiness used by other real estate professional and investors just like you. Start to experience more productivity, satisfaction, and success immediately.

Marketing Strategies for Real Estate Photography

One of the biggest problems that real estate photographers have once they have set up their business as a legal entity, obtained all the right equipment and perfected their technique is obtaining new clients.

Clients and customers are the lifeblood of any business, but how do you obtain new clients after starting your business?

By developing and executing a strategic marketing plan tailored to your business.

This short guide has been written to help real estate photographers develop their marketing plan and assist with winning new business.

It includes a series of digital and direct marketing strategies along with useful tips and lessons the author has learned from his own experiences that can save you time and money when growing your business.

A marketing action plan template has been included to help photographers execute the strategies learned in this guide book.

Books by Dr William Edward Deming

William Edwards Deming (October 14, 1900 – December 20, 1993) was an American engineer, statistician, professor, author, lecturer, and management consultant.

Educated initially as an electrical engineer and later specializing in mathematical physics, he helped develop the sampling techniques still used by the U.S. Department of the Census and the Bureau of Labor Statistics.

In his book The New Economics for Industry, Government, and Education Deming championed the work of Walter Shewhart, including statistical process control, operational definitions, and what Deming called the “Shewhart Cycle, which had evolved into Plan-Do-Study-Act (PDSA). That was in response to the growing popularity of PDCA, which Deming viewed as tampering with the meaning of Shewhart’s original work.

Deming is best known for his work in Japan after WWII, particularly his work with the leaders of Japanese industry. That work began in July and August 1950, in Tokyo and at the Hakone Convention Center, when Deming delivered speeches on what he called “Statistical Product Quality Administration”.

Many in Japan credit Deming as one of the inspirations for what has become known as the Japanese post-war economic miracle of 1950 to 1960, when Japan rose from the ashes of war on the road to becoming the second-largest economy in the world through processes partially influenced by the ideas Deming taught

 

10 Fundamentals Beginning Real Estate Investors Should Know

  1. The Cup Is Always Half Full

New real estate investors are very nervous on the first deal and start to panic at every obstacle. These emotions are natural considering most are spending their life savings on an investment property. Never let your emotions get too high or too low because both can cost you time and money.

  1. The Value Is in The Experience

Your first flip isn’t all about the profits. Many first-time investors won’t make a killing off of their first property, so it’s key to keep in mind that there’s also value in the time spent managing the acquisition and renovations, learning from mistakes and seeing the project through to completion.

  1. Setting Aside Working Capital Is Key

Many new investors fail when they are hit with unexpected and major expenses or income loss such as significant repairs or a major tenant vacating. To avoid this, make sure to set aside enough working capital in reserves to account for these problems so that you can carry the property through the tough times.

  1. Discipline Will Help You Stay on Budget

First-time investors are sometimes so eager to get started; they will abandon their set numbers. This may lead to overspending on the acquisition or on the improvements. My most disciplined clients won’t go over their set budget. What seems like a negligible amount can impact returns.

  1. Return Calculations Can Be Misleading

In commercial real estate, it is very common to advertise cash on cash returns, capitalization rates, and internal rate of return for investment properties. I wish more early investors understood how easily manipulated those figures can be and that you could provide 10 seasoned industry professions the same data and come up with a wide range of IRR estimates

  1. Lying Will Ruin Your Reputation

Reality TV shows are pure entertainment and do not accurately reflect investing, so don’t rely on them at all for your education. Get involved with people who actively invest in your local area.

  1. You Won’t Get Far Without Mentors and Partners

There are successful investors out there, right now, with decades of experience, who would be happy to help you on your journey. Find a way to add value for them, and in return ask if they can help you in your real estate investing business.

  1. Having the Right Team Is Priceless

Working with a well-seasoned professional team is key. Often, real estate investors are looking to rent out the property, but the first-timers don’t work with a team of professionals to think through cost estimates, financing options, profitability and different aspects of being a landlord or occupancy rates.

  1. The Details Are in The Contracts

I can’t tell you how many people I have known, including myself early on, that just trusted the personality running the deal, and never understood what they were investing in.

  1. Plans Are Useless, But Planning Is Indispensable

We see a lot of first-time investors purchasing investment properties. While there is a multitude of impactful factors, the end reason the project is being done is to make money. To keep everything on track and in perspective, create a Pro-forma (projected) profit and loss statement to determine the impact and timing of decisions and investments.

 

Commercial Financing In 30 Days No Advance Fees Winston Rowe & Associates

Real Estate Investing

Winston Rowe & Associates provides expert bridge funding with no upfront fees for commercial loans, office, hotel, industrial or retail properties.

They have service oriented professionals that give clients the due diligence and underwriting expertise required by today’s tougher lending standards.

Winston Rowe & Associates manages every step of the bridge financing process from document collection to commitment negotiation and closing.

Their best business practices process ensures that their clients receive lighting fast funding with the most aggressive rates and terms available.

Prospective clients can speak directly to a principle at Winston Rowe & Associates at 248-246-2243 or email them at processing@winstonrowe.com  or check them out online at http://www.winstonrowe.com

Commercial Bridge Loan Financing Solutions:

• Never an upfront or advance fee

• All commercial property types considered

• Funding in two weeks (with complete submission)

• All 50 states

• Loan amounts start at $500,000 with no upper limit

• Financing available for purchase, refinance and cash out

• The maximum loan to value is 65%

• The most competitive interest rates in the industry

Winston Rowe & Associates takes pride in being one of the few bridge loan investments banking platforms in the nation offering access to billions of dollars worth of capital specifically meant for commercial real estate financing.

Winston Rowe & Associates provides no upfront or advance fee commercial bridge loans in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming

Commercial Bridge Loans and Hard Money Financing No Upfront Fees

COMMERCIAL HARD MONEY LENDERS

 

Winston Rowe & Associates, a no upfront fee commercial bridge loan and hard money specialist offers borrowers an immediate financing alternative for short-term needs. Gap/Bridge financing, discounted mortgage buybacks, unpaid tax remittances, foreclosure workouts, bankruptcy resolutions (DIP) and short fuse opportunity financing.

Bridge Loan Financing Guidelines:

Never an upfront or advance fee
Financing available nationwide
Loan amounts range from $500,000 to $25,000,000.
Interest rates start at 10% interest only
Hard money loans can fund in two weeks with a complete loan file
Borrower must have a clearly defined take out (exit) in place
All commercial property types considered

At Winston Rowe & Associates, they offer their clients access to the most aggressive commercial real estate bridge (hard money) loans in the industry. Whether you are in need of short term financing, such as a bridge loan or hard money loan, or your needs are more long term such as construction or permanent financing, they will work with clients to structure a transaction that will meet or exceed your expectations.

Winston Rowe & Associates provides no upfront fee commercial bridge financing in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming

Commercial Business Loans

Commercial Business Loans

If you are looking for a Commercial Business Loan for Commercial Real Estate, Winston Rowe & Associates can help you.

Commercial Real Estate investors seeking financing can contact Winston Rowe & Associates directly at 248-246-2243

Commercial Property Types Considered:

Motels
Hotels
Apartments
Mixed Use
Resorts
Nursing Homes
Senior Apartments
Assisted Living Facilities
Hospitals
Shopping Centers
Truck Stops
Office Buildings
Automobile Dealerships
Day Care Centers
Golf Courses
C-Stores
Manufacturing Facilities

Their unparalleled service to its clients and is one of the fastest growing consulting firms in the commercial construction financing market. Their concise delivery is often imitated, but never duplicated.

Hotel Loans No Upfront Fees

Hotel Loans No Upfront Fees

Savvy Investors seeking Hotel financing are turning to Winston Rowe & Associates for their needs. They are a no upfront fee national commercial finance specialist with the experience clients need for fast funding of hotels for purchase or refinance.

They have an easy and straight forward streamlined underwriting process that enables their clients to finalize their transactions within 30 days or less.

Winston Rowe & Associates success is measured by their clients’ success, with their mission is to be clients source for the most appropriate – and advantageous – hotel financing that helps them achieve their goals.

Whether you are a seasoned investor or new to the market, Winston Rowe & Associates is there to help you explore your best options for hotel and hospitality financing.

Commercial Real Estate Loan Programs No Upfront Fees

Commercial Real Estate Loan Programs No Upfront Fees

Winston Rowe & Associates is a boutique commercial real estate mortgage consultant. They provide professional mortgage banking services with a core focus on commercial mortgage loans over $2 million, with a diverse product mix, an innovative commercial lending platform, without upfront fees.

They have commercial real estate loan programs for bank discount note financing (cram downs), hard money bridge loans and conventional purchase and refinance programs. Savvy commercial real estate investors turn to Winston Rowe & Associates when they are in time sensitive situations and need to fund their transactions fast.

Commercial Property Types Considered

Motels, Hotels, Resorts, Apartments, Senior Housing, Mixed Use, Nursing Homes, Assisted Living, Facilities, Hospitals, Medical Buildings, CCRC, Nursing Homes, Shopping Centers, Strip Malls, Truck Stops,  Office Buildings, and Industrial Parks.

They always welcome prospective clients with credit issues.

Refinancing Apartments, Offices, Shopping Centers No Upfront Fees

Refinancing Apartments, Offices, Shopping Centers No Upfront Fees

Winston Rowe & Associates is a boutique commercial mortgage consultant that utilizes a private banking approach for commercial property financing, without upfront fees nationwide.

They have a core focus on commercial mortgage loans over $2 million, with a diverse product mix, an innovative commercial lending platform, and a staff of seasoned, experienced professionals, that can have clients transactions funded within 30 days.

They can provide most client loan approval in 24 hours or less. They always welcome borrowers with income or credit issues.

Winston Rowe & Associates has a streamlined process for evaluating commercial real estate transactions that enables them to offer fast financing solutions to for the following situations:

Acquisition
Investment Purchase
Time Sensitive Close
Rehabilitation
Un-stabilized property
Unfinished construction
Bad Credit
Un-bankable property type
Foreclosure prevention
Chapter 11 / Debtor in Possession Exit Financing
Cash out (Case by case basis)
Bridge Finance
Hard Money Loans
Private Money Mortgages

Commercial Real Estate Mortgage, Loans, No Upfront or Advance Fees

Commercial Real Estate Mortgage, Loans, No Upfront or Advance Fees

Winston Rowe & Associates commercial lending programs provide an alternative to traditional bank financing, without the upfront fees that is ideal for borrowers seeking commercial real estate loans ranging from $2 to $100 Million.

Winston Rowe & Associates has been one of the most trusted and respected private capital firms in the commercial real estate mortgage business.

As a Nationwide commercial mortgage finance firm Winston Rowe & Associates has programs for up to 80% LTV financing to qualified investors/borrowers for all commercial real estate e types.

Winston Rowe & Associates custom programs are best suited for borrowers who want or require maximum leverage on commercial real estate loans for purchases, refinances or bank cram downs. Their innovative program features include; 48 hour pre-approvals, long terms and amortizations, quick 30 – 45 day closings, multiple pricing options, and zero upfront fees to their clients.

Winston Rowe & Associates Commercial Real Estate Mortgage Advantages Include

No upfront or advance fees
Loan to value 80%
Loan amounts from $1,000,000 to $50 million
Purchase
Bank cram down financing
Refinancing (with limited cash out)
Close in 30 days with a complete submission
Remodeling/Conversions
Nationwide

Winston Rowe & Associates success is measured by our clients’ success, and their mission is to be your source for the most appropriate – and advantageous – commercial financing solution that helps you achieve your goals.

Winston Rowe & Associates Loan Programs

Winston Rowe & Associates Loan Programs

A typical Winston Rowe & Associates client that would be accepted has financing needs from $2 million to $50 million and revenues ranging from $1 million to $250 million with a proven track record of success.

Winston Rowe & Associates considers most commercial real estate types and businesses, because the commercial financial markets are changing daily. We review transactions and accept clients on a case by case basis.

Debt, Equity & Mezzanine Financing

Mezzanine or sub debt is often desirable for companies who do not wish to disturb existing senior debt facilities or for those seeking additional liquidity.

Winston Rowe & Associates has solutions for debt and equity financing and refinancing, first-time financing, leveraged buyouts, management buyouts, divestiture financing, financing for rapidly growing companies, and assisting in acquisitions and mergers.

Bridge Loans

A short-term loan that is used until a company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to three years) with relatively high interest rates and are always backed by some form of collateral such as real estate or inventory. The maximum loan to value is generally 50%.

Debtor In Possession (DIP) Exit Financing

Companies facing corporate restructuring, bankruptcy, Chapter 11, and financial restructuring, can turn to Winston Rowe for their exit financing. Clients must have a clearly defined and proven exit strategy based on current asset value and cash flow to qualify.

Bank Discount Note Financing & Refinancing

Sometimes known as a Bank Cram Down, in today’s banking climate many businesses have been approached by their current lender to discount their current commercial real estate mortgage. Winston Rowe has both short and long term financing solutions. The maximum loan to value is generally 75%