How Brokers Can Help Clients Create a Business Plan for Apartment Investing

To be successful in the apartment business requires meticulous planning, research, and teamwork. As a broker or private lenders, it is crucial that you grasp the most important aspects of a real estate investment business plan. Why? A solidly constructed business plan not only gets your clients' financing but also puts you in front of them as a trusted expert who can navigate multifamily investing nuances.

Whether you are working with residential or commercial mortgage brokers, referral partners, or private lenders, having a good grasp of apartment investing basics will provide you with a stronger tool to close more transactions and build long-term relationships. The following is what you need to do when counseling clients on creating a business plan real estate investment professionals can rely on.

Why a Business Plan Matters in Apartment Investing

A solid business plan isn't just on paper—it's a blueprint for success. It helps investors determine their goals, identify potential issues, and most importantly, raise cash from lenders (your job).

The majority of investors, especially those diversifying, will need to access alternative finance sources other than bank loans. Whether they need a bridge loan or a DSCR loan, how you match them with the best possible funding options will depend on how prepared they are. A sound business plan gives them a better chance of raising capital and going forward with confidence significantly.

Also, most lenders ask for a business plan when investors are purchasing several properties, bringing in investors, or refinancing holdings. Your job as a wholesale lender is to present an investor's plan that meets lender standards—making the transactions easy and successful for all.

Key Components of a Business Plan for Real Estate Investment

Each apartment business investment is unique, but a strong business plan for real estate investment should include the following essential elements.

1. Mission Statement & Investment Strategy

Encourage your clients to start with a clear mission statement. This should outline:

• The types of properties they want to invest in (small multifamily, large apartment complexes, etc.)
• Their overall investment strategy (buy-and-hold, value-add, short-term flips, etc.)
• Their financing approach (cash, traditional loans, private lending, etc.)

For example, an investor might define their plan as follows:

"Our strategy is to acquire Class B and Class C multifamily properties in high-growth markets, apply value-add renovations, and increase rents over a five-year hold period before refinancing or selling."

A well-established investment plan helps lenders and brokers identify risk, pair financing products, and channel customers to effective implementation.

2. Identifying the Right Market

Not all markets are created equal. Helping clients research the right investment destinations is key to a successful business plan. Below are questions to ask:

• What cities and submarkets offer strong rental demand?
• What are the median rents and vacancy rates in those areas?
• How are job growth and population trends affecting rental demand?

Ask investors to specialize in specific markets or types of property. For instance, they can specialize in small apartment buildings in high-growth suburban markets. By providing a specific market focus, investors can be easily matched with appropriate sources of funds and lenders.

3. Property Management Strategy

The management of property is an integral part of a profitable apartment investment. Investors are either self-managed, although some utilize third-party management companies.

As a broker or lender, you should guide your clients in defining their management approach, which may include:

• In-house management vs. third-party management
• Expected property management costs (typically 8–12% of rent revenue)
• Tenant screening and lease-up strategies
• Maintenance and capital expenditure planning

A strong property management plan reassures lenders that the investment is structured for long-term success.

4. Property Financing & Capital Structure

One of the biggest challenges that investors face is obtaining the right financing. As a mortgage broker or lender, you are an active player in the financing solution creation process that is fitting for your customer.

A financing section should outline:

• Equity sources (cash, joint ventures, syndications)
• Debt options (bridge loans, DSCR loans, hard money, traditional financing)
• Loan-to-value (LTV) expectations
• Interest rates and loan terms

Many investors need alternative financing solutions beyond conventional loans, such as:

• Bridge loans for short-term capital
• DSCR loans for long-term rental property financing
• Private lending for quick acquisitions

By helping clients create their financing plan, you help make them more financeable—leading to more successful transactions for your company.

Additional Considerations for Brokers & Wholesale Lenders

Beyond the core business plan elements, here are additional factors that third-party originators and wholesale lenders should consider when advising clients.

The Competitive Advantage of Private Lending

Many apartment investors turn to private lenders when traditional banks fail to meet their needs. According to a recent study, private lenders now account for nearly 10% of all real estate investment loans—a number that continues to rise as investors seek faster, more flexible financing solutions.

By becoming an experienced broker or wholesale lender, you can match investors with financing that best fits their requirements, whether a short-term bridge loan for an off-market deal or long-term capital for rental investments.

Scaling & Portfolio Growth Strategies

Most investors aren't looking for a single property but for scaling. As a lender or broker, your contribution to educating them about scaling opportunities (e.g., portfolio loans, refinancing, and alternative financing structures) will differentiate you.

Direct investors to pursue a long-term growth model in their business strategy. How many units are they going to buy? What will the structure of the funds be so they can grow? What is their refinance and leveraging equity strategy?

By thinking ahead, investors—and their financing partners—are better positioned for sustained success.

The Importance of Flexibility

The real estate market is dynamic. Interest rates change, loan conditions fluctuate, and market conditions also change. Investors who can modify their strategy are best placed to thrive in the long run.

As a wholesale lender, you can help by offering financing solutions that accommodate market shifts, such as:

• Alternative loan options when rates increase 
• Bridge-to-perm strategies for flexibility
• Structured loan terms for risk management

Invites investors to incorporate flexibility into business strategies to allow for the accommodation of evolving market conditions.

How RCN Capital Supports Brokers & Wholesale Lenders

At RCN Capital, we specialize in providing financing solutions tailored for real estate investors. Whether your clients are looking for short-term bridge loans, DSCR rental loans, or private financing options, we offer competitive programs that support apartment investing strategies.

As a trusted partner for mortgage brokers, private lenders, and referral partners, we make it easy for you to secure financing for your clients and grow your business. Our wholesale lending programs allow brokers to:

• Offer flexible loan products to real estate investors
• Close deals faster with streamlined underwriting
• Earn competitive commissions and build long-term client relationships

Ready to take your brokerage to the next level? Connect with us today to discuss our real estate financing solutions and how we can help you grow your business.