REAL ESTATE INVESTING
BUSINESS PLAN APPENDIX
This real estate investing business plan example will inspire you and keep you from getting stuck.
Golden Valley Real Estate LLC
Appendix
Sales Forecast |
|
|
Month 1 |
Month 2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Month 7 |
Month 8 |
Month 9 |
Month 10 |
Month 11 |
Month 12 |
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Agent Sales - 25% To Company |
0% |
$0 |
$2,375 |
$8,125 |
$11,250 |
$4,500 |
$4,500 |
$4,500 |
$3,375 |
$3,375 |
$12,375 |
$14,625 |
$14,625 |
Broker Sales - 100% To Company |
0% |
$3,389 |
$3,731 |
$6,750 |
$0 |
$3,375 |
$3,375 |
$3,375 |
$0 |
$0 |
$4,500 |
$7,875 |
$7,875 |
Photo Service - 100% To Company |
0% |
$0 |
$480 |
$480 |
$480 |
$480 |
$480 |
$480 |
$480 |
$480 |
$480 |
$480 |
$480 |
Referrals - 25% Agent/25% Company |
0% |
$187 |
$187 |
$187 |
$187 |
$187 |
$187 |
$187 |
$187 |
$187 |
$187 |
$187 |
$187 |
Total Sales |
|
$3,576 |
$6,773 |
$15,542 |
$11,917 |
$8,542 |
$8,542 |
$8,542 |
$4,042 |
$4,042 |
$17,542 |
$23,167 |
$23,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Cost of Sales |
|
Month 1 |
Month 2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Month 7 |
Month 8 |
Month 9 |
Month 10 |
Month 11 |
Month 12 |
Agent Sales - 25% To Company |
|
$0 |
$238 |
$813 |
$1,125 |
$450 |
$450 |
$450 |
$338 |
$338 |
$1,238 |
$1,463 |
$1,463 |
Broker Sales - 100% To Company |
|
$339 |
$373 |
$675 |
$1,350 |
$675 |
$1,350 |
$675 |
$1,350 |
$1,350 |
$1,350 |
$675 |
$675 |
Photo Service - 100% To Company |
|
$0 |
$40 |
$40 |
$40 |
$40 |
$40 |
$40 |
$40 |
$40 |
$40 |
$40 |
$40 |
Referrals - 25% Agent/25% Company |
|
$0 |
$30 |
$30 |
$30 |
$30 |
$30 |
$30 |
$30 |
$30 |
$30 |
$30 |
$30 |
Subtotal Direct Cost of Sales |
|
$339 |
$681 |
$1,558 |
$2,545 |
$1,195 |
$1,870 |
$1,195 |
$1,758 |
$1,758 |
$2,658 |
$2,208 |
$2,208 |
Personnel Plan |
|
|
Month 1 |
Month 2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Month 7 |
Month 8 |
Month 9 |
Month 10 |
Month 11 |
Month 12 |
Wagner |
0% |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
Other |
0% |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Total People |
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Payroll |
|
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
General Assumptions |
|
|
Month 1 |
Month 2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Month 7 |
Month 8 |
Month 9 |
Month 10 |
Month 11 |
Month 12 |
Plan Month |
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
Current Interest Rate |
|
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
Long-term Interest Rate |
|
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
Tax Rate |
|
30.00% |
25.00% |
25.00% |
25.00% |
25.00% |
25.00% |
25.00% |
25.00% |
25.00% |
25.00% |
25.00% |
25.00% |
Other |
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Pro Forma Profit and Loss |
|
|
Month 1 |
Month 2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Month 7 |
Month 8 |
Month 9 |
Month 10 |
Month 11 |
Month 12 |
Sales |
|
$3,576 |
$6,773 |
$15,542 |
$11,917 |
$8,542 |
$8,542 |
$8,542 |
$4,042 |
$4,042 |
$17,542 |
$23,167 |
$23,167 |
Direct Cost of Sales |
|
$339 |
$681 |
$1,558 |
$2,545 |
$1,195 |
$1,870 |
$1,195 |
$1,758 |
$1,758 |
$2,658 |
$2,208 |
$2,208 |
Other |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Total Cost of Sales |
|
$339 |
$681 |
$1,558 |
$2,545 |
$1,195 |
$1,870 |
$1,195 |
$1,758 |
$1,758 |
$2,658 |
$2,208 |
$2,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin |
|
$3,237 |
$6,093 |
$13,985 |
$9,372 |
$7,347 |
$6,672 |
$7,347 |
$2,285 |
$2,285 |
$14,885 |
$20,960 |
$20,960 |
Gross Margin % |
|
90.52% |
89.95% |
89.98% |
78.64% |
86.01% |
78.11% |
86.01% |
56.52% |
56.52% |
84.85% |
90.47% |
90.47% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll |
|
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
Marketing/Promotion |
|
$200 |
$200 |
$600 |
$700 |
$1,000 |
$700 |
$700 |
$900 |
$700 |
$700 |
$1,000 |
$700 |
Depreciation |
|
$150 |
$150 |
$150 |
$150 |
$125 |
$90 |
$75 |
$75 |
$75 |
$75 |
$75 |
$80 |
Utilities |
|
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
Rent |
|
$1,300 |
$1,300 |
$1,300 |
$1,300 |
$1,300 |
$1,300 |
$1,300 |
$1,300 |
$1,300 |
$1,300 |
$1,300 |
$1,300 |
Insurance |
|
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
$150 |
Office Supplies |
|
$100 |
$100 |
$200 |
$200 |
$300 |
$300 |
$300 |
$300 |
$300 |
$300 |
$300 |
$300 |
Business Software |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$1,000 |
Leased Equipment |
|
$250 |
$250 |
$250 |
$250 |
$250 |
$250 |
$250 |
$250 |
$250 |
$250 |
$250 |
$250 |
Payroll Taxes |
15% |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Other |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
$5,300 |
$5,300 |
$5,800 |
$5,900 |
$6,275 |
$5,940 |
$5,925 |
$6,125 |
$5,925 |
$5,925 |
$6,225 |
$6,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Before Interest and Taxes |
|
($2,063) |
$793 |
$8,185 |
$3,472 |
$1,072 |
$732 |
$1,422 |
($3,841) |
($3,641) |
$8,960 |
$14,735 |
$14,030 |
EBITDA |
|
($1,913) |
$943 |
$8,335 |
$3,622 |
$1,197 |
$822 |
$1,497 |
($3,766) |
($3,566) |
$9,035 |
$14,810 |
$14,110 |
Interest Expense |
|
$4 |
$8 |
$13 |
$17 |
$21 |
$25 |
$29 |
$33 |
$38 |
$42 |
$46 |
$50 |
Taxes Incurred |
|
($620) |
$196 |
$2,043 |
$864 |
$263 |
$177 |
$348 |
($968) |
($920) |
$2,229 |
$3,672 |
$3,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit |
|
($1,447) |
$588 |
$6,129 |
$2,592 |
$788 |
$530 |
$1,045 |
($2,905) |
($2,759) |
$6,688 |
$11,017 |
$10,485 |
Net Profit/Sales |
|
-40.46% |
8.68% |
39.44% |
21.75% |
9.23% |
6.21% |
12.23% |
-71.88% |
-68.25% |
38.13% |
47.55% |
45.26% |
Pro Forma Cash Flow |
|
|
Month 1 |
Month 2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Month 7 |
Month 8 |
Month 9 |
Month 10 |
Month 11 |
Month 12 |
Cash Received |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
Cash from Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Sales |
|
$3,218 |
$6,096 |
$13,988 |
$10,725 |
$7,688 |
$7,688 |
$7,688 |
$3,638 |
$3,638 |
$15,788 |
$20,850 |
$20,850 |
Cash from Receivables |
|
$0 |
$12 |
$368 |
$707 |
$1,542 |
$1,180 |
$854 |
$854 |
$839 |
$404 |
$449 |
$1,773 |
Subtotal Cash from Operations |
|
$3,218 |
$6,108 |
$14,356 |
$11,432 |
$9,230 |
$8,868 |
$8,542 |
$4,492 |
$4,477 |
$16,192 |
$21,300 |
$22,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Cash Received |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Tax, VAT, HST/GST Received |
0.00% |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
New Current Borrowing |
|
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
$500 |
New Other Liabilities (interest-free) |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
New Long-term Liabilities |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Sales of Other Current Assets |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Sales of Long-term Assets |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
New Investment Received |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Subtotal Cash Received |
|
$3,718 |
$6,608 |
$14,856 |
$11,932 |
$9,730 |
$9,368 |
$9,042 |
$4,992 |
$4,977 |
$16,692 |
$21,800 |
$23,123 |
|
|
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|
|
|
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|
|
|
|
|
|
Expenditures |
|
Month 1 |
Month 2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Month 7 |
Month 8 |
Month 9 |
Month 10 |
Month 11 |
Month 12 |
|
|
|
|
|
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|
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|
|
|
Expenditures from Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Spending |
|
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
Bill Payments |
|
$10,062 |
$1,912 |
$3,142 |
$6,260 |
$6,124 |
$4,638 |
$4,905 |
$4,404 |
$3,867 |
$3,861 |
$7,822 |
$9,093 |
Subtotal Spent on Operations |
|
$13,062 |
$4,912 |
$6,142 |
$9,260 |
$9,124 |
$7,638 |
$7,905 |
$7,404 |
$6,867 |
$6,861 |
$10,822 |
$12,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Cash Spent |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Tax, VAT, HST/GST Paid Out |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Principal Repayment of Current Borrowing |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Other Liabilities Principal Repayment |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Long-term Liabilities Principal Repayment |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Purchase Other Current Assets |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Purchase Long-term Assets |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Dividends |
|
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Subtotal Cash Spent |
|
$13,062 |
$4,912 |
$6,142 |
$9,260 |
$9,124 |
$7,638 |
$7,905 |
$7,404 |
$6,867 |
$6,861 |
$10,822 |
$12,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Flow |
|
($9,344) |
$1,696 |
$8,714 |
$2,672 |
$606 |
$1,730 |
$1,137 |
($2,412) |
($1,890) |
$9,831 |
$10,978 |
$11,030 |
Cash Balance |
|
$412 |
$2,108 |
$10,821 |
$13,493 |
$14,099 |
$15,829 |
$16,966 |
$14,554 |
$12,663 |
$22,495 |
$33,472 |
$44,503 |
Pro Forma Balance Sheet |
|
|
Month 1 |
Month 2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Month 7 |
Month 8 |
Month 9 |
Month 10 |
Month 11 |
Month 12 |
Assets |
Starting Balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
$9,756 |
$412 |
$2,108 |
$10,821 |
$13,493 |
$14,099 |
$15,829 |
$16,966 |
$14,554 |
$12,663 |
$22,495 |
$33,472 |
$44,503 |
Accounts Receivable |
$0 |
$358 |
$1,023 |
$2,209 |
$2,694 |
$2,006 |
$1,680 |
$1,680 |
$1,230 |
$795 |
$2,145 |
$4,012 |
$4,556 |
Other Current Assets |
$20,000 |
$20,000 |
$20,000 |
$20,000 |
$20,000 |
$20,000 |
$20,000 |
$20,000 |
$20,000 |
$20,000 |
$20,000 |
$20,000 |
$20,000 |
Total Current Assets |
$29,756 |
$20,770 |
$23,131 |
$33,030 |
$36,187 |
$36,105 |
$37,509 |
$38,646 |
$35,784 |
$33,458 |
$44,640 |
$57,485 |
$69,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term Assets |
$7,000 |
$7,000 |
$7,000 |
$7,000 |
$7,000 |
$7,000 |
$7,000 |
$7,000 |
$7,000 |
$7,000 |
$7,000 |
$7,000 |
$7,000 |
Accumulated Depreciation |
$0 |
$150 |
$300 |
$450 |
$600 |
$725 |
$815 |
$890 |
$965 |
$1,040 |
$1,115 |
$1,190 |
$1,270 |
Total Long-term Assets |
$7,000 |
$6,850 |
$6,700 |
$6,550 |
$6,400 |
$6,275 |
$6,185 |
$6,110 |
$6,035 |
$5,960 |
$5,885 |
$5,810 |
$5,730 |
Total Assets |
$36,756 |
$27,620 |
$29,831 |
$39,580 |
$42,587 |
$42,380 |
$43,694 |
$44,756 |
$41,819 |
$39,418 |
$50,525 |
$63,295 |
$74,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Capital |
|
Month 1 |
Month 2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Month 7 |
Month 8 |
Month 9 |
Month 10 |
Month 11 |
Month 12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts Payable |
$10,000 |
$1,811 |
$2,934 |
$6,054 |
$5,970 |
$4,474 |
$4,758 |
$4,275 |
$3,743 |
$3,601 |
$7,519 |
$8,773 |
$9,282 |
Current Borrowing |
$0 |
$500 |
$1,000 |
$1,500 |
$2,000 |
$2,500 |
$3,000 |
$3,500 |
$4,000 |
$4,500 |
$5,000 |
$5,500 |
$6,000 |
Other Current Liabilities |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Subtotal Current Liabilities |
$10,000 |
$2,311 |
$3,934 |
$7,554 |
$7,970 |
$6,974 |
$7,758 |
$7,775 |
$7,743 |
$8,101 |
$12,519 |
$14,273 |
$15,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term Liabilities |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Total Liabilities |
$10,000 |
$2,311 |
$3,934 |
$7,554 |
$7,970 |
$6,974 |
$7,758 |
$7,775 |
$7,743 |
$8,101 |
$12,519 |
$14,273 |
$15,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid-in Capital |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
Retained Earnings |
($23,244) |
($23,244) |
($23,244) |
($23,244) |
($23,244) |
($23,244) |
($23,244) |
($23,244) |
($23,244) |
($23,244) |
($23,244) |
($23,244) |
($23,244) |
Earnings |
$0 |
($1,447) |
($859) |
$5,270 |
$7,862 |
$8,650 |
$9,180 |
$10,225 |
$7,319 |
$4,561 |
$11,249 |
$22,266 |
$32,750 |
Total Capital |
$26,756 |
$25,309 |
$25,897 |
$32,026 |
$34,618 |
$35,406 |
$35,936 |
$36,981 |
$34,075 |
$31,317 |
$38,005 |
$49,022 |
$59,506 |
Total Liabilities and Capital |
$36,756 |
$27,620 |
$29,831 |
$39,580 |
$42,587 |
$42,380 |
$43,694 |
$44,756 |
$41,819 |
$39,418 |
$50,525 |
$63,295 |
$74,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Worth |
$26,756 |
$25,309 |
$25,897 |
$32,026 |
$34,618 |
$35,406 |
$35,936 |
$36,981 |
$34,075 |
$31,317 |
$38,005 |
$49,022 |
$59,506 |

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