Interesting Housing Bubble Article From MSN

Comments(14)

• 
  joel8th December, 2004

  Please submit this in our Articles area so everybody can view it.

• 
  regal8th December, 2004

  This was in the L.A. Times this morning.....
  http://story.news.yahoo.com/fc?cid=34&tmpl=fc&in=Business&cat=Real_Estate_and_Housing

• 
  cygnus19th November, 2004

  Put together a Business Plan!
  
  For $15 you can buy a book that will walk you through the process. You and your partner should start here to define things like:
  - How will you purchase houses?
  - Who will you target? What areas?
  - Which of you will be responsible for what?
  - Who's money will be used? How will each of you be compenssated? 50-50?
  - Who will be responsible for the different aspects of the business? (marketing/advertising, dealing with contractors, lawyers, title companies, etc.)
  
  Walking through these questions and thinking about the different stages involved in doing a deal will help you guys set an expectation between you that will help aviod conflict when the business is up and running.
  
  Believe me...there is a reason this is one of the first things any successful business person mentions. This goes hand-in-hand with defining your goals.

• 
  trinijah122nd November, 2004

  cygnus.......thanks for the info.......could you provide the name of the business plan book.......

• 
  cygnus22nd November, 2004

  I really wasn't talking about any book in particular. I would give you the specifics about a book that I bought but I have lent it to my sister and can't remember the specifics.
  
  Take a quick trip to the business section of your local bookstore. Also, a search on Amazon for 'business plan' will return a few good hits. In any case, the $15 will be money well spent.

• 
  mojojojo_128th November, 2004

  there are also a lot of internet resources to do business plans. State founded site will help you trough it and even give cookie cutter ways to develop one

• 
  mark136930th November, 2004

  I would recommend Bizplanbuilder you can get it for less than $200.00. It comes with directions and it is THE best, step-by-step program to writing a business plan.
  
  Their Website is www.jian.com
  
  
  
  
  Quote:
  On 2004-11-22 09:30, trinijah1 wrote:
  cygnus.......thanks for the info.......could you provide the name of the business plan book.......

• 
  trinijah16th December, 2004

  Thanks Mark1369, will look into the site......

• 
  ceinvests6th December, 2004

  That site is worth the click just for the music!

• 
  grneydgy7th December, 2004

  Roger,
  
  Before going out and purchasing a book on business plans, I have found that my local library has more then adequate resources on putting together a business plan. At least it's a good cheap place to start if you need to watch your costs.
  
  Good luck,
  
  Aaron H
  Coeur d'Alene, Idaho

• 
  bodiby7th December, 2004

  Check out the Small Business Administration's website. It is a federally funded place to assist small business. In NY we also have Small Business Development Centers which will give you guidance. They do this for FREE!
  
  I used them (SBDC) on a previous business venture and they offer experienced people to help.
  
  Mike

• 
  roger10rod8th December, 2004

  Thank for the replies.
  
  I actually have books and a package software which i bought 6 months ago ( cost me $200) for business plans. That aspect of the business i think i can handle without a problem.
  
  I guess i should reword my request. Here is my plan to put all this to work... i just need some feedback if this is realistic and if i'm in the right path.
  
  phase 1: Setup a Business plan
  phase 2: : Open a LLC company
  phase 3: : Search for rehab homes. Get the loans under the LLC company (but with my partner's credentials / credit) this will work right?
  phase 4: Put up our own money to rehab the property
  phase 5: Have the property ready to go and sell under 6 months of purchase date.
  
  Question: PHASE 3 (getting the loan under the llc). This IS possible right? I know the llc wont have any credit since it's a new company, but if i have my partner PG the loan ( personally guarantee ), i'm in good shape?
  
  someone told me that this would work as long as i find a bank that allows an executive of the LLC "PG" the loan, and after or during the closing have the deed transferred from the executive ( partner ) to the LLC.
  
  Sorry for the many questions. But that's why you guys are the reason i'm on this website 24/7

• 
  grneydgy8th December, 2004

  I'm no expert at any of this but I can tell you that my mortgage broker was an awesome resource for me. He introduced me to "hard money" lenders, and advised me on which loans to take that would best suit for my needs. I posed similar questions to him and he basically opened a whole new world to me by showing me all the different possibilities for getting funding from all the different sources. And it should also be possible to finance the rehab cost of the properties as well... you just have to finagle the appraiser a little. I've read that appraisers can be swayed as much as 20% either way.
  
  Be careful though, because if you don't know your broker he could be pushing you into something for his own commissions. Make sure you do your homework and "interview" your advisors thoroughly.
  
  I hope I'm helping and not just rambling. Anyway, don't take my word for anything yet. And a valuable lesson I learned early was to always get 2nd and 3rd opinions until you can find a network of people that best suit your needs.
  
  Happy hunting,
  
  Aaron H
  Coeur d'Alene, Idaho

• 
  alvarolazo8th December, 2004

  Check Washington Mutual, I know they wiil lend the money to an LLC