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A Business Plan Means Planned Growth in Real Estate

A real estate business plan serves as a road map or a guidance scheme for real estate agents; it outlines their personal and commercial financial development aspects while solely holding them responsible for their growth instead of involving or relying on someone else. Having your development in the business continuously recorded ensures that you are aware of your ups and downs and you can quickly identify your drawbacks so that when you encounter obstructions in the future, you do not lose all hope and have something to look back at for the motivation to keep going.

How to Write a Real Estate Business Plan

Briefly Outline Your Success Theory

Your success theory should be able to identify and highlight yours prospects of achieving substantial outcomes through maximum utilisation of your skills. Your success theory would prove to be the answer to a question asked by any of your acquaintances, ‘What is your plan to run a successful business?’ This theory should roughly revolve around:

  • Operational areas that suit you (Including neighbourhoods and investment range)
  • Focal clientele
  • Advertising scheme layout (Social media strategy, door-to-door message)
  • How do you contribute with your skills? (Including sales targets, business growth, etc.)

Analyse and evaluate your Target Market

Target market in the real estate terminology is understood as your ‘Farm Area’. The reason behind this is pretty valid and relatable. Contributing your efforts towards marketing for lead generation is basically you sowing seeds for the harvest, whereas the conversion of these leads into loyal customers is your ultimate reward which in the farming sense indicates the harvesting of your crops. Some necessary knowledge that you should possess about your farm area includes:

  • Average sales
  • Property rental price range
  • The average tenure for house trading
  • The average tenure for current homes in the area to be sold out (divide the current number of homes on the market by the average number of homes sold in the area)
  • The local demographics to analyse the most prevalent group of people to target
  • Your competitor individual real estate agents or companies
real estate business plan template

Lead Generation Process

The best practice to start out is by extending your business across your known acquaintances which includes your family, friends, colleagues, apprentices, business relations, etc. There is not much that you need to strategise here because the primary need is to spread knowledge about your work by word of mouth or through social media that you work as a real estate agent and you are willing to offer your services; it is very simple. Lead generation also requires you to approach distinct demographics in different ways so that the young, tech-savvy leads in your farm area are reached through Facebook or Instagram, while the senior citizens in the same area are approached through newspapers. It doesn’t matter if you are a start-up or a well-established real estate agent, acquiring a substantial CRM is a fundamental factor to let your success theory succeed in reality.

Financial Strategy

Your business plan will serve you no good if you do not outline the expenses that you need to cover through the assets you intend to generate through your business. Here’s how you can have a brief overview of the expenses you should be covering but these could sometimes vary from agent to agent:

Personal Expenses
  • Basic day-to-day overheads
  • Cost of living
  • Savings (For a better house, education, car, etc.)
  • Down payments or instalments (For possessions that you desire to purchase or have already purchased)
Business Expenses
  • Marketing (Including cellular, web, software, service usage expenses, etc.)
  • Commissions for the middle-man
  • Contract set-up payments
  • Printer costs
  • Tax duties
  • License payment
  • Multiple Listing Service (MLS) charges
  • Business card expenditure
  • Expenses to secure clients (Outdoor or indoor meetings)
  • Vehicle fuel and maintenance
real estate development business plan

Buildium - A Good Helper for Real Estate Plans Making

Buildium allows real estate agents to keep a record of all their commercial financial expenses under one place so that they can track even the slightest amount of money spent for any purpose including rent, bills, legal documentation, client engagement, etc., and all these details are considerably simple to enter into the software. You can remain updated about the payments that you need to make to various vendors and banks along with updates about collecting payments from clients too. One of the Buildium features allows you to customise communication methods with different proprietors wanting to sell their properties, non-owner residents and other prospective clientele in the farm area. By providing them with financial reports and statements about your business, you can secure their trust and build an online community right here on Buildium without any hassle to operate from door to door. As an agent, your focus is to take advantage to expand your business exposure and so generate leads; Buildium precisely offers you the edge.

Try Buildium for Free >>> real estate business plan sample
Home > Real Estate > How to Write a Real Estate Business Plan
Wondershare Editor

Posted by to Real Estate
Published: Sep 04,2018 16:33 pm / Updated: Sep 11,2018 20:17 pm

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