Although a business plan itself is not enough to attract investors it does go a long way to indicate what the expectations are and the means of getting to the goals. This is why all successful real estate dabblers whether they are investors, buyers, sellers, consultants, advisors, brokers, etc, should have some sort of business plan to discuss with potential investors. If he does not get a reasonably high percentage of hits on the head of the nail while discussing what an investor is looking for in a particular deal, then that guy is unlikely to be very successful in this line of work.

Similarly, different investors have different agendas - among private investors you have the venture capitalists at the high end of the amounts that they are able to invest, angel investors come in the middle and family and friends make up the lower end. In the case of property deals it is more the angel investors and family as well as friends who are willing to participate in the financing aspects. Coming back to the business plan - it should highlight whether a property is being targeted for purchase because it may be available at a big discount on its market valuation due to a number of reasons - the possibility of foreclosure or bankruptcy brought about by a failing business, breakdown of a marriage leading to divorce and alimony payments, etc. Cash flow scenarios should also be discussed in a comprehensive business plan so that the investor is clear in what he or she is getting into.