I. Executive Summary
You can download our Real Estate Business Plan Template (including a full, customizable financial model) to your computer here.
[Company Name], located at [insert location here] is a new residential real estate brokerage firm specializing in home sales and rentals. The company will operate in a professional setting, conveniently located next to [notable bank] in the center of the shopping district. [Company Name] is headed by [Founder’s Name], an MBA Graduate from XYZ University with 20 years of experience working as an real estate broker.
[Company Name]will focus on superior service for its clients. It has a full-time assistant who, among other things, will manage the company website and listings, advertise listings elsewhere, and answering basic client questions.
The founder, [Founder’s Name], will also focus on answering his clientele’s needs. In addition to keeping in touch with past clients after they have been successfully located or sold their home, [Founder’s Name] will hold webinars on real estate concerns for clients and the community.
[Company’s Name] services include listing rentals for landlords, assisting tenants in finding rentals, selling homes, and assisting buyers to find homes.By serving both renters and homeowners, [Company’s Name] hopes to become a long-term partner with each client rather than part of a one-time transaction.
[Company Name] will primarily serve the buyers, sellers, landlords, and tenants interested in properties within a 5 mile radius of our location. The demographics of residents in this area are as follows:
- 27,827 residents
- Average income of $74,700
- 58.9% married
- 49.6% in Mgt./Professional occupations
- Median age: 38 years
These residents include 20% renters and 80% homeowners. Furthermore, [Company Name] will seek contacts with landlords of rental properties in order to develop long-term relationships.
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a licensed real estate broker for the past 20 years. He has spent much of his career working at Cold well Banker. There he specialized in rentals for 5 years before moving to specialize in real estate sales for the next 10 years.He consistently was named a top broker for Cold well Banker and earned the firm’s platinum seller designation for seven years.
[Company Name] will also employ an experienced assistant to help with various administrative duties around the office. [Assistant’s name] has experience working with C-level executives and has spent significant time as an administrator.
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed local landlords and residents and received extremely positive feedback saying that they would consider making use of our services when launched.
- Our location is in an economically vibrant area where new home sales are on the rise and turnover in homes and rentals occurs often due to the upward mobility of residents.
- The management team has a track record of success in the real estate brokerage business.
- The local area is currently under served and has few independent real estate brokers offering high customer service to renters, sellers and buyers.
[Company Name] is seeking a total funding of $78,000 of debt capital to open its office. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Office design/build: $58,000
- Working capital: $20,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
|Financial Summary||Year 1||Year 2||Year 3||Year 4||Year 5|
|Income Tax Expense||$196,597||$432,401||$620,843||$802,935||$995,392|
|Net Profit Margin||38%||43%||42%||43%||43%|
|Clients Per Quarter||29||56||81||104||128|