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Tips for How to Use this Template

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  1. Consider the key assumptions that need to be made in order for your business to succeed
  2. Evaluate their likelihood of your assumptions to be correct
  3. Consider how critical the assumption is to your business success
  4. Chart these characteristics using the template on the next page
  5. Identify the items that are unlikely to be true but are critical to success
  6. Dig deeper into these items to prove or disprove your assumptions

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Rent-to-Buy Homes Business: “What You Have to Believe”

= Likely untrue / critical to success

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Likelihood of �Being True

Criticality to Business Success

Individuals are unhappy with the home buying process today and don’t like the hassle of closing on a home

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A large portion (>75%) of the individuals who enter into the rental agreement will purchase the home in the end

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We can finance this business model and float the initial upfront cost for the first 2-5 years

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There is a large untapped market of individuals who’d prefer to buy rather than rent but either cannot afford the down payment or are unwilling to go through the traditional process today

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The housing market may slow but will not crash significantly in the next ~10 years

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NewCo will be able to quickly establish trust in the real estate markets they choose to enter

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= Likely to be true / critical to success

= May be true / critical to success