This real estate investing business plan example will inspire you and keep you from getting stuck.
Golden Valley Real Estate LLC
Executive Summary
Introduction
Golden Valley Real Estate, LLC (GVRE)
is a start-up company in the Tucson area. It is the mission of GVRE to
provide real estate services in the newly established Golden Valley
Retirement Community, located to the Northwest of scenic Tucson,
Arizona. GVRE is a full service real estate, mortgage, and title
company.
The Company
GVRE
will be a limited liability partnership registered in the state of
Delaware for tax purposes. Its founder is Mrs. Susan Egan, a former
agent for RE/MAX real estate company, where she worked for 23 years.
The company plans to be leveraged through private investment and a limited number of loans. The company expects to begin offering its services in June.
The company's main clients will be retirement age couples looking for a community that can offer significant services for their age group and income levels. Since Mrs. Egan is within this demographic group and knows and understands this market's needs, she believes that she can appeal to such clients far more than most other competitors.
The Services
GVRE
offers comprehensive real estate, mortgage and title services to our
diverse clients. With Quadrant Homes, Inc. as our sponsor in the newly
finished Golden Valley Retirement Community, we will have a premier
position as the dominant seller of these new homes, condos, and
retirement apartments. In addition we will offer a full range of
services to facilitate the purchasing and selling of real estate
including the following:
The Market
The
retirement industry has been steadily growing over the past twenty
years. The percentage of the U.S. population over the age of 55 is at an
all time high of 21% and is growing at an average rate of 3% each year.
In certain parts of the country like the American Southwest, which has a
high concentration of retirement communities, the growth rate is about
8%. This percentage is also expected to grow as the first of the "baby
boomer" generation begins to reach retirement age in the next decade. It
is estimated by the U.S. Census Bureau that the retirement industry,
that includes homes, medical facilities, specialty equipment, retirement
entertainment services, etc., accounts for 4.8 billion dollars each
year.
Financial Considerations
Start-up expenses
and funding required are modest. They include expenses and the rest in
cash needed to support operations until revenues reach an acceptable
level. Most of the company's liabilities will come from outside private
investors and management investment, however, we have current borrowing
from Bank of America Commercial Investments, the principal to be paid
off in two years. A long-term loan through Valley National Bank will be
paid off in ten years.
The company expects to reach profitability in the first year and does not anticipate any serious cash flow problems. We conservatively believe that during the first three years, average profitability per month per segment will be adequate. We expect that about one sale per month will guarantee a break-even point.
1.1 Mission It is the mission of GVRE to provide real estate services in the newly established Golden Valley retirement community, located to the Northwest of scenic Tucson, Arizona. GVRE is a full service real estate, mortgage, and title company
1.2 Keys to Success
GVRE's keys to long-term survivability and profitability are as follows:
1.3 Objectives
The three year goals for Golden Valley Real Estate (GVRE) are the following:
Real Estate Investing Business Plan to Asset Protection