Do you want to write a sample real estate business plan template, here is an example to use.
Have you been having the thought to start a real estate business? According to Forbes, most of the recognized richest persons in the world are real estate investors. The likes of Donald Trump, Mike Adenuga, Grant Cardone and a host of others have stakes in the real estate business.
This points to one thing and that is the fact that the real estate industry is a money making venture where anyone with the right real estate business plan could make a lot of money for himself.
However, starting a real estate business is not a child’s play as it takes a lot of dedication, hard work, marketing and perseverance. Planning and execution are also very crucial for success in this field.
For beginners who tend to start a real estate business, here are some things that need to be known:
- YOU NEED TO GET LICENSED AS A REALTOR
Before you can start a real estate business, you will need to get licensed by the appropriate bodies. There are a lot of petty real estate business around but to distinguish yourself and create a class, you need to get licensed by filling the requisite licensing papers with the appropriate bodies in your state or country.
- GET REGISTERED
If you plan to go big with your real estate business, then, you will need to register it. Registering your business is quite different from getting licensed. Although they may be similar. You need to register a business name and other necessary information with the appropriate Ministry.
For instance, in Nigeria the registration is done by the Corporate Affairs Commission (CAC). This also will go a long way in showing the genuineness of your business and will get more people to patronize you.
When you want to start a real estate business, you don’t just rush into it, the real work in real estate starts from researching. You need to research which area you intend to venture into. In real estate business, there are various area you can venture. Some of these areas are leasing, land flipping, property development, office and house rent, general property sale among others.
- Land Flipping
This involves buying land at cheaper rates and reselling them at a higher price to make profit. Depending on the choice of area, this aspect doesn’t require millions to begin. All that is needed here is capital and knowledge of land transaction.
This also is a very lucrative avenue. What it entails is you buying a property and leasing it out for a fixable amount. The amount you can fixed here is discretionary. It is so lucrative in big cities.
- Property Development
This is another area that is a bit similar to Land Flipping. However, as against outright sale of land in land flipping, the land here is developed into luxury and then sold out at a very exorbitant price. There is no limit to the price the property could be sold.
- Office and House Rent
This is similar to leasing too. Here, you don’t necessarily need to procure the property, you can act as agent to the owners to get people to occupy the available space and you get paid a certain agreeable percentage.
- General Property Sale
This incorporates almost all the areas. Here, you can decide to sell properties for their owners and get a fixed percentage of the purchase price or buy a property and resell it at high price.
- GET AN OFFICE
To start a real estate business, you definitely need an office where prospective property buyers would meet you. This is because only a very few people can give their money to someone they’ve never met or have an idea of where his office is. Therefore, you really need an office no matter how big or small it may be. Just go get one.
- HIRE MORE HANDS
If you really want to be serious with the business, you will need to hire real estate professionals who are good at what they do. Looking at the business plan, it is not something only you can run around doing. You need to hire more hands depending on your financial capability. You shouldn’t hire 10 people when in the real sense you can only take care of 5 of them.
This aspect cannot be over emphasized. It is very important and crucial. It is only when you market yourself that people will know you and patronize. People won’t find you if you do not push yourself out. Real estate marketing however may take different forms. Some of which are;
- Social Media Marketing
As it sounds, it has to do with marketing your real estate business on social networks. According to research, more than 2Billion of the world’s population use the internet and more than 1 billion are registered on Facebook.
Twitter, Instagram, Pinterest, among others collectively share around that amount too. All you need to do is take advantage of that population and market your business on Social media.
- Other Media
This has to do with marketing your brand in form of jingles and the like on television, radio, and newspapers. You can also get an official website for your brand.
In conclusion, the bottom line is that making a headway in the real estate business will not come so easy. It requires dedication, hard work, diligence, determination among other things. In the end, the success will be worth the struggles.
REAL ESTATE COMPANY BUSINESS PLAN PDF
For any type of business you intend to run, a business plan is a basic requirement you should not overlook. This document charts the course of the business as it enables you to have a clear plan of what to do at every point of the business. A successful business is never run by guesswork. By eliminating all forms of ambiguity, the chances for success are greatly increased.
For persons interested in venturing into the real estate business, this article provides you with a general idea of what is needed. Let’s get to business, shall we?
Noble Realtors LLC is a young and growing real estate company that seeks to provide top-notch services to our clients by bringing expertise and experience to bear on the job. Our workforce is made up of people with proven track record of excellence in the real estate industry with a combined experience of over 90 years in the business. We seek to offer real estate services that include residential and commercial/office buildings to our target market within the Austin Area of Texas. We will offer a full range of real estate and mortgage services to our esteemed clients.
Our mission at Noble Realtors LLC is to provide exceptional and competitive real estate and mortgage services to our clients within the Austin area. This is driven by a desire to take part in the resurgent real estate industry that offers huge opportunities for investments with a promising return on investment.
Being a new company, we are not deterred from our goal of providing quality real estate services to our clients. With competent hands on board, we will bring the experience of our workforce to bear towards achieving our desired goals.
With an operational headquarters located at Bee Cave in Austin, Noble Realtors LLC will be a Limited Liability Company registered in the state of Texas and established for the sole aim of providing quality and affordable real estate services to clients within the Austin Area. Founded by J. Clarkston a structural engineer with over 20 years experience in the real estate industry, Noble Realtors is poised to compete favorably with other more established real estate businesses.
The best hands for the job will be hired. Highly experienced hands (at least 10 years experience) are targeted to fill each position as we seek to provide innovative services. Our target market consists of young families who are the most active real estate/mortgage participants.
Funding for this business will come from two main sources. These include a savings of $500,000.00 kept aside for this purpose by Mr. J. Clarkston as well as a debt financing agreement entered into with Wells Fargo who will be providing the sum of $2,500,000.00. The debt is to be repaid within a 10 year period and would include an interest rate of 2.5%.
As mentioned earlier, we are targeting young families as they are considered the most active segment of the real estate market. They present an opportunity which we seek to exploit. Hence our services will include purchasing and selling real estate to residents within the Austin area. This segment of the market is considered to be responsible for the growth of the industry within the last decade.
The real estate industry is one where there is intense competition. This consists of major players as well as the smaller player group to which we belong. However, we do not intend to sit on the sidelines and watch. We will leverage on our many years of experience in the industry to provide exceptional services to our clients. A strategy we will adopt is to study the weaknesses of our clients and improve on them while also maintaining our areas of strength.
While studying the buying patterns of our clients, we will also try to understand or know their main attractions as well as their preferences. These are all directed towards gaining an edge in the marketplace.
Our Range of Services
Our clients will be provided with a variety of services such as title transfer services, quotes, planning, moving consultation services, getting a comparative market analysis, property preparation and several others. All of these services will be provided in addition to our core services. Within the first 2 years of our operations, we plan on becoming a hub for every real estate related matter. Also, our services will be moderately priced. This strategy is meant to make our pricing competitive, thereby attracting more clients.
Our Keys to Success
To ensure continued relevance, we seek to develop adopt several strategies that will enable us to attain our goals within a specific time. Hence, residential real estate listing services provide a great avenue for partnership. Also, we do not see the relationship with our clients as short-lived. By giving them the best offer, we will encourage them to spread the word about our services to friends and acquaintances. They may also require moving in future, therefore our relationship with these clients is mutual as we can also be of help should they need assistance.
We have conducted a research on the market and arrived at a healthy conclusion that the future looks bright for our business. This has resulted in a 3-year growth projection that shows impressive results from the time of commencement of business operations. This is summarized in the table below;
- First Year $3,000,000
- Second Year $3,900,000
- Third Year $4,500,000
This real estate investment business plan sample has unveiled the basic requirements for writing your own business plan.
Using these as a guide, you can supply information unique to your business for best results. However certain areas of your business may require legal advice. Therefore seek the services of a legal expert for guidance.