Initial Bank Loan

Opportunity

A real estate development company had put down a deposit on some lots in a choice residential project in an attractive neighborhood.  They needed bank financing to complete the purchases by the due date.  The bank relationship would also help them offer referral programs to residential buyers  This developer had an excellent reputation building individual homes.  This project represented the next step up for them in their growth.

They had approached a local bank who was very interested, but pointed out to them that a business plan was needed.  While the president of the real estate company was very good at real estate, he had not done a business plan like this before. 

Action

We put together the business plan for them, while minimizing their time involved so the president could focus on running the business.  We were able to use much of their content for the narrative section and added in other sections.  While developing the corresponding financial model, we also gave the president ideas that he was able to incorporate into the business.

Result

The client was able to secure the bank loan very quickly and continue work on their real estate development.  The loan allowed them to complete the purchase of lots in a choice real estate development.  They were able to make first sales shortly thereafter and get the first homes going.  This project should represent significant growth for them over the next two years.