Real Estate Investment Business Plan | Template | PDF | Word
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A Real Estate Investment Business Plan is developed in order to give the owners and employees set goals to reach for. This also acts as a blueprint or roadmap for how to reach these goals. The Real Estate market is a very competitive one and thus, having a set plan is a sure way of having an edge over a competitor who does not have one. In addition, due to the fluctuations of the real estate market, it is logical to assume that at one point in a firm’s history a loan will have to be sought. A solid Real Estate Investment Business plan is precisely what one would present to a lending institution.
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How To Write A Real Estate Investment Business Plan
There are no set formulas for a business plan. They are so widely used that the format and presentation depend largely on the type of business and the tone the developer wants to set. While some sections are expected to be seen others may not be necessary. For instance including a Management Summary for a single agent company would be unnecessary or even redundant if one has included a Mission Statement and Company Overview as the first sections. While all three sections may be considered essential to a large Real Estate Investment firm this is certainly not the case in a one or two man operation. Any Real Estate Investment Business Plan will take time, organization, and hard fact with solid numbers to develop. In order to present this properly several topics are wise to include; Executive Summary, Mission Statement, Company Objective, Products, Market Analysis, Marketing Plan, Organization and Management, and Financial Plan.
The first three sections will act as a foundation for the rest of the plan. The Executive Summary will introduce key concepts contained in the Real Estate Investment Business Plan, the developers of the plan and briefly discuss how this relates to the company. It is often suggested to write this section last in order to fully deliver a great first impression. The Mission Statement section acts as a guiding philosophy to the employees and is part of the first impression when presenting the firm to interested parties. The importance of this section cannot be understated. The next section, Company Description, carries this introduction forward to conclusion by giving the company history, its legal standing, structure and its location or facilities. These three sections must remain separate and must be very well written. Typically each of these sections are concise enough to fit on one page.
The next section is the Products/Services Section. This draws the spotlight to what the firm actually offers. For instance, secondary sources of income or defining if there will be aggressive approach or a passive approach to the services provided may be covered. This section is meant to extend the introduction of the previous sections.
The next section will give a description of the market environment the firm operates in. This is the Market Analysis. It should answer the questions of where the properties this firm deals with are located, the statistics of this location, an analysis of the industry itself, the market size, growth, positioning and competitors. This section needs to be thoroughly researched as it must contain very specific information and very solid numbers. It may be included in the next section, however, this may become unwieldy in the case of a plans written for particularly large and far reaching Real Estate Investment Firms
The Marketing Plan section must also cover a very broad range of topics with very specific information. It is typical to have topics such as the SWOT analysis, Competitors Analysis, positioning, pricing strategy, sales strategy and forecast, and the promotion and advertising strategy. It would also be wise to include topics such as milestones, and exiting strategies.
The Management Summary section will define the organizational structure, management team, personnel plans, and information regarding the Board of Directors.
The final section is usually the Financial Plan section. This will include costs, profit and loss, cash flow, balance sheets, and financial ratios. This section is meant to be looked at with scrutiny and must include the present and projected numbers for its topics.
A good Real Estate Investment Business Plan will look polished and professional, be accurate and concise, and function perfectly as both an internal guide and a method for gaining interest from external parties. In light of this, it would also be wise to include a Table of Contents, Non-disclosure Agreement, and appendices.
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