Real Estate Business Plan

Business Plan Articles

If you are creating a company in the real estate industry, it is likely that you will require a business plan. The experts at Pro Business Plans have worked with many real estate companies to acquire investment and loans with a professional business plan. This article provides information about what is typically included in a real estate business plan and how it is structured.

Real Estate Business Plan

There are many things to consider that will impact the success of a business plan for real estate. Among these factors include the scope of the business model within the real estate industry. For instance, the business plan for a real estate agent will be entirely different than one for a commercial development project. The overall business plan should focus around the specific scope of your investment or services provided in order to provide a clear and concise investment proposal. There are three separate factors that will combine to create the business plan including the business model, marketing strategy, and financial projections.

Business Model

The business model of a real estate company will range depending on the unique structure of your company. In most cases, the real estate business plan is soliciting a specific property . In this case, the business model section covers the detail of the property including the construction plan, surrounding area, break-down of amenities, and market positioning. For instance, the positioning of a low budget hotel in a rural area versus a luxury hotel within a dense urban area of beachfront location. In addition to the business model, investors may also want to see information about the marketing of the investment, particularly for commercial projects that generate revenue from consumers rather than property sales.

Marketing Plan

The construction plan for the commercial development project outlines a breakdown of hard and soft costs as estimated internally or provided by a construction firm. A detailed breakdown of the costs is also provided such that the company may phase-in investment at various tranches aligned with the construction schedule. The construction plan will also help to provide insight for when the project will be completed and form the basis for the financial projections. Many commercial real estate projects will complete portions of the project so that it may generate cash flows from segments of the development process as it is completed.

Financial Projections

If your real estate company is seeking outbound investment, it is highly likely that three to five-year financial projections will be requested. These may be prepared based on the prior operating history of your real estate company, or if it is new, the performance of similar real estate companies. The financial projections typically include an income statement, cash flow forecasts, balance sheet, and custom risk modeling. Such modeling as a break-even analysis or sensitivity analysis will aid investors when determining the risk and profitability potential of your proposal.

What is Included in Our Custom Real Estate Business Plan?

  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

Speak With An Expert advisor about your plan at (877) 810 - 4172