b'3. Select Your Business ModelLand banking, which involves buying vacant land that appears to be in the path of progress when prices are low and selling it when prices increase. Another path is to entitle it for development, there-by increasing its value, and then sharing profits with investors on resale.Buying and holding performing promissory notes secured by real estate for current cash flow. This business model relies on an even-tual return of the principal loan amount either through periodic principal and interest payments; or through interest-only payments for a period of time with an eventual balloon payment that returns the principal loan amount, usually due to a sale or refinance of the property. Buying non-performing promissory notes secured by real estate at a discount and then modifying the notes with existing borrowers to get them re-performing, and holding them for cash flow or re-sell-ing them at a profit and sharing the profits with investors. Issuing promissory notes to investors in exchange for cash and then using the money to buy real estate or invest in companies owned by others. Issuing promissory notes to borrowers who use it to buy real estate. This model is used by hard money lenders or individuals who are in the private lending business.Any other manner of things that will generate a return on invest-ment.NOTE: If your business idea wont generate cash flow, either from oper-ations or sale within a reasonable period of time, its a non-profit organi-zation. This book does not pertain to fundraising for non-profit organi-zations. Once the business model has been determined, most issuers will devel-op a business plan or investment summary that explains it to investors. If its an existing property or business, financial projections can be shown based on historical operating information obtained from prior opera-tions. If the business model is to develop a new product or service, market and feasibility studies may have to be completed to help determine future value and sales potential. 23'