The Real Estate Investment Funding Proposal is an example of a proposal using Proposal Pack to request funding from a lender for investing in commercial real estate.
This is a good example to follow for any business or individual seeking funding for real estate.
Real estate agents, businesses looking for new space, building developers, property management service companies. Any business dealing with leasing or buying property.
Sample business proposals
are completed proposal examples you can use as a guide when writing your own unique business proposal. Sample business proposals illustrate how a collection of proposal templates from one Proposal Pack
design was assembled together into a framework and the details filled in to complete the proposal. The Wizard proposal software
includes this sample proposal as one of its business situations you can quickly create your own proposal from.
Ian Lauder has been helping businesses write their proposals and contracts for two decades. Ian is the Owner and Founder of Proposal Kit, one of the original sources of business proposal and contract software products started in 1997.
Proposal Kit Produced
By Ian Lauder
Real Estate Investment Funding ProposalMontgomery and Associates Inc. 5291 NE 40th Place Spokane WA PH 841 6623 FX 841 6624 www.MontgomeryDevelopment.com Funding 15 room Hotel in Waterville Washington Prepared for. George Ames Senior Executive Broker Prepared by. Jake Montgomery President & CEO Montgomery and Associates Inc. is seeking funding from the Nolen Group for investing in 15 room hotel in Waterville Washington. Our location analysis funding request and return on investment analysis are included. We are seeking the flexibility guidance experience and funding your group has to offer for the growth of our business. Proposal Number. 593 43 The Objective… To purchase and renovate hotel property at Fifth Street Waterville Washington. Need #1. Initial funding less twenty five percent down payment for purchase. Need #2. Remodeling funds for renovation and construction funds. Need #3. Marketing and advertising facilitation and funding. The Opportunity… To own income and investment property in the historical and increasingly desirable community of Waterville WA. Goal #1. Renovate hotel to four star standards but stay in keeping with the original character and atmosphere of the hotel. Goal #2. Grow and maintain reputation as luxury hotel and year round vacation destination. The Solution… Form investment relationship between Montgomery and Associates and The Nolen Group to obtain funding and investment advice to support goals and outcomes. Request #1. 75% funding of 1.6 million year balloon on initial purchase price. Request #2. $200 000.00 year open credit line for renovations; open balance at year mark to be financed into initial loan. Request #3. Ongoing marketing and advertising campaign through The Nolen Group's innovative investment promotion program paid monthly on cash basis. Montgomery and Associates has performed thorough business location analysis. Following are the results. Primary Location Location. Fifth Street Waterville Washington right off scenic State Highway 2. Waterville is known for its peaceful rolling hills of wheat views of the Cascade Mountains historic farmsteads and the best snowmobiling west of Montana. Waterville was founded in and is designated historic township. The population is 170. Waterville is well known for its District Fair Rodeo and Demolition Derby. Description. three story 15 room brick hotel built on the original route for the stage coach. Building still retains many historic details including claw foot tubs 11 foot ceilings leaded glass tin ceilings in the lobby and bar and original unpainted wood trim. Property has had electrical updating but will again need to be brought up to code. Plumbing needs to be updated and some of the ceilings and walls on the 2nd floor need to be replaced due to water damage. Needs new roof and the original stage coach porch and balcony still exist but need extensive repairs. Wood floors need to be sanded and re stained. Historically accurate renovations need to replace all updates that occurred in the 50s and late 70s. Third floor needs extensive renovations due to water damage. Clientele. Travelers seeking peaceful destination in quaint historical town. In the summer months State Highway is popular road and many people stop at the hotel for an overnight stay. In the winter months snowmobiling enthusiasts travel to Waterville for its ample snow and thousands of acres of snowmobiling access. Access. Visible from Highway with access to the parking lot right off the highway. Competition. There are no other hotels or bed and breakfasts in 30 mile radius. Marketing. The Town of Waterville has been featured in several local travel guides and is becoming more well known as travelers from larger cities seek peaceful weekend away from the stresses of modern life. The hotel needs broader marketing campaign to stay closer to capacity throughout the year. The following summarizes Montgomery and Associates request for funding. Funding is to be used for the following period. years starting with November this year. Funding Requested Montgomery and Associates requests an initial loan of 1.2 million 1.6 million purchase price with $400 000.00 down payment with an open line of credit of $200 000.00 for renovation and construction for the period of May next year through May the following year. Balance of credit line to be assumed into initial mortgage on May the following year. year balloon at no higher than 7% APR. Repayment Plan Specifics to be determined by The Nolen Group. Requesting fixed interest year balloon. Required Funding Purchase Expenses $1 500 Property $1 000 Closing Costs Escrow Taxes Insurance Renovation Expenses Contracting Insurance Total Expenses $1 200 Current Available Funding Funding Requested $1 200 Detailed below is the Return on Investment ROI analysis for the project. The costs for the development operations and ongoing maintenance of the project vs. the benefits are summarized for 5 year period. Description Total Total Costs Mortgage & Taxes Expenses Income 50% capacity Ratio Financial ROI Benefits. Even at 50% capacity the hotel could generate an estimate of 46% return in the first year. Records from the hotel's current owners show that the hotel has averaged 47% capacity for the last years. Their average room rate is $159.00 per night which is the figure used for the first two years in the above chart. The above takes into account previous performance history records of income and expenses from the current owners and bi yearly increases for taxes and expenses. These are low figures with safe estimates. For the sake of illustration if after renovation we charged $179.00 per night and had an average yearly capacity of 60% we would generate income of $573 thus increasing our net to $297 and ROI to 1.07 or 107%. With renovations and marketing capacity should increase but even based on current figures the hotel is sound investment. George Ames Senior Executive Broker The Nolen Group 414 East Rainier Way Spokane WA Dear Mr. Ames I appreciated having the chance to speak with you over the phone this week. am excited to move our investment venture forward and value your expertise and advice as we move forward in the funding process. As you are aware have been in the real estate business for years and have been investing in properties for nine of those years. have been solely responsible for their financing improvement and success. now own eight income producing rental properties. My increasing net worth shows that am adept at finding investment properties and managing the continued investment. To continue the growth of my business Montgomery and Associates Inc. need funding from an investment company like The Nolen Group. Your commitment to the success of small businesses along with your innovative lending program assures me that your company is the right investment firm. The flexibility guidance and experience that your group offers makes me confident that can take my own investments in real estate development in the right direction. I am positive that you will find my proposal for 15 room hotel in Waterville WA to be good investment with high potential returns. would greatly appreciate the chance to meet with your investment team as soon as possible so we can begin negotiation on the property and start the funding and development process. Sincerely Jake Montgomery President & CEO Montgomery and Associates Inc. 841 6623 email@example.com www.montgomerydevelopment.com
How do you write a Return on Investment document? (template originally used to create this sample)
This template is similar to the Cost Benefit Analysis template but this template focuses more on the ROI calculations. Detailed below is the Return on Investment analysis for the project. The costs for the development operations and ongoing maintenance of the project vs. the benefits are summarized for 5 year period. Description Year 1 Year 2 Year 3 Year 4 Year 5 Total Total Costs Benefits Net Ratio ROI Financial ROI Benefits. Describe the positive aspects of the ROI calculations from financial perspective. This is the most traditional definition of ROI. Examples include reductions in cost higher profits etc. Non Financial ROI Benefits. Describe the positive aspects of the ROI calculations from non financial perspective. If the financial benefits are not substantial then the non financial aspects are more important. Examples include customer satisfaction shorter time to market improved data etc. If you have detailed cost benefit analysis data tables graphs graphics output from Cost Benefit or ROI Analysis software etc. include them here. Include the total project cost for time period and the total income expected to be generated and or saved during the period. This can be converted into the expected ROI Return on of the project. You should be able to show that the ROI is high enough to justify the project. If monetary ROI is low then the benefits should be tangible enough to show valid reason for developing the project. The Total Costs amount is the total cost of production operations and ongoing maintenance. The Benefits are the financial benefits to the customer such as income generated cost savings etc. The Net is the Benefits minus the Costs. The Ratio is the net divided by the Costs. The ROI is the Ratio times For example Total Costs for year are $. Benefits for year are $15 000. The Net is $5000. The Ratio is and the ROI is 50%.
How do you write a Location Analysis document? (template originally used to create this sample)
Use the Location Analysis template to outline how the physical location or online meets the needs of the project or business plan. Company name has performed thorough business location analysis. Following are the results. As part of your business plan you should have done location analysis. Location is extremely important for both online and offline businesses. An analysis of physical location for an offline business should include descriptions of access to the target market visibility parking existing competition etc. Location analyses for online businesses should discuss choice of web site address keywords advertising areas copywriting search engine listings existing competition etc. Primary Location Location. Describe the location and how it meets the physical requirements of the business. Discuss the times of day the location will be used and how the area meets those time of use requirements. Security. Describe the security of the area for the physical business facilities and inventory employees and customers. Infrastructure. Describe the infrastructure in the area. Will you have all of the external support services required to start and grow the business.
Demographics. Describe the demographics of the area. Access. Describe access to the location parking availability handicap access ease of entry from traffic etc. Competition. Describe the competition in the area. Where do you stand out and how will you be able to compete with them. Marketing. Describe how you will be able to market in this area. Alternate Location Location. Describe the location and how it meets the physical requirements of the business. Discuss the times of day the location will be used and how the area meets those time of use requirements. Security. Describe the security of the area for the physical business employees and customers. Infrastructure. Describe the infrastructure in the area. Will you have all of the external support services required to start and grow the business.
Demographics. Describe the demographics of the area. Access. Describe access to the location parking availability handicap access ease of entry from traffic etc. Competition. Describe the competition in the area. Where do you stand out and how will you be able to compete with them. Marketing. Describe how you will be able to market in this area. Virtual Location Location. Describe the web site URL and how it meets the virtual requirements of the business. How does the URL relate to the name of the business and the products and services offered. Competition. Describe the competition. Where do you stand out and how will you be able to compete with them. Marketing. Describe how you will be able to market this web site URL. SEO. Describe the search engine optimization techniques which will be used to ensure the web site can be easily found on the Internet.
A Document from Proposal Pack
The complete Real Estate Investment Funding Proposal - with the actual formatting, layout and graphics - is available in the retail Proposal Pack.
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