Real Estate Investment Business Plan

Business Plan Articles

If you are targeting real estate investors, it is likely that they will want your proposal to be accompanied by a business plan that communicates the profitability of the location. Pro Business Plans has extensive experience working with real estate investors to create a custom plans to present the investment by analyzing such factors as the location, revenue forecast, and overall market projections. This article covers some of the most important factors to include in a real estate investment business plan.

Real Estate Business Plan

Real Estate Investment Business Plan

There are many factors to consider when analyzing a prospective real estate property. A custom business plan is designed to reflect why investment should be placed in the property presented rather than alternative ones. This includes an explanation of the property type (E.g. mult-family residential, retail space, warehouse), the location, and the company’s intentions for the site.

Some real estate investors are seeking short-term hard money financing in order to quickly fix and flip the property. In other cases, the property is designed to increase in value given surges of value in the surrounding areas.

Investment Strategy

The investment strategy of a real estate investment plan is designed to communicate the structure of the property. Some real estate may be undeveloped land to be structured for a large-scale commercial development project. In simpler cases, a small multi-family home may be purchased at a discount to be sold several years later or held for increasing rent revenue. The specific investment strategy of the property is likely to classify the types of investors that are attracted to the property. Clearly outlining your intentions to profit from the location and sending it to a targeted investment class will result in higher receptivity and interest than sending a generic investment strategy.




Geographic Analysis

The geographic analysis includes pricing the historical and growing values of properties in the surrounding area. This will help investors to determine whether or not the property is selling at a discount or premium relative to the local market average. In cases of commercial real estate development, it will help investors to determine if the site location is appropriate for the proposed property. A large scale residential complex added to a suburban city for instance, may analyze the population growth rate projections of the surrounding area and regional vacancy levels.




Financial Projections

The financial projections of the property will help to clearly outline when the payback period is, demonstrate the proposed financing structure, and what the return on investment is. The geographic analysis performed is combined with assumptions from the investment strategy as key drivers to forecast the financial performance of the company. For a real estate investment business plan, the full set of financial statements are created, in addition to financial ratios that will help investors to better predict their risk and return levels.




What is Included in Our Custom 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

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