Property Development Business Plan

Business Plan Articles

If you are creating a business plan to form a property development company, or for a specific property, it is likely that you will need a business plan. Pro Business Plans has worked with many property developers to create professionals plans for investment and strategy. This article provides information on what is typically included in a property development business plan and how it should be structured.

property development business plan

Property Development Business Plan

When creating a plan for this industry, there are several things that will need to be considered. For instance, the location of the property and strategy of the development. Investors will want to understand that the overall strategy of the property development will be profitable and the management team responsible for its implementation is qualified. Other important factors are how properties will be acquired and the specifications of each property selected for development. These combine to form the financial projections at the property and aggregate business level.

Business Model

The general business model of property development companies is very similar, which is precisely why you will need to communicate to investors why you are different. Either you should be more effective at identifying properties, or faster at purchasing opportunistic investments that other companies. The management team will also play a very important role, as investors will want to work with someone that has extensive experience in real estate development and understands the entire supply chain. The business model will also include the target strategy, if any, of the development company.

Property Portfolio

If your development company has an existing portfolio of deals that it has worked on, or the management team has accrued a portfolio of previous properties, these should be communicated. Investors will want to know not only the holistic experience of the team, but the tangible results that they have made to properties to increase their value. This may include a general overview of the property type, location, and realized investment of each property.

Financial Projections

The financial projections for a property development company will be structured based on the number of deals that you anticipate to process per year and the average return expected from each property. If you have worked on projects in the past, the historical performance of these investments may be used to form the arguments for future profitability. However, If the company has little experience, applying the profitability of similar property classifications in the area is generally acceptable. In addition to the revenue projections and general expense forecasts, investors may also want to see you factor in the cost of capital. If you are raising debt , this means amortizing the amount requested over the term period.

What is Included in Our Custom Property Development 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 Advisor

Pro Business Plans is a team of professional researchers, writers, designers, and financial
analysts. Speak with an advisor today.

Speak with Sales (646) 956-1199