Real Estate Brokerage Business Plan


Real Estate Brokerage Business Plan


RJ Wagner & Associates Realty, Inc., a Texas S corporation, is domiciled in Texas. Regina Wagner, a principal investor and stockholder, is the corporation’s capital. Regina Wagner is a licensed agent and the sponsoring brokers for this business. This licensed broker will sponsor independent contractors licensed real estate agents in Texas. The corporation will provide real estate services.

RJ Wagner & Associates Realty, Inc., opens its doors to the public in July. The office is in Houston, Texas (Champions Area), in the Greenwood Square Shopping Center. It provides services to the Metropolitan Houston residents with higher incomes.

The broker of this firm is a strong representative of trustworthiness and reputation. He has published a real estate book, as well as real estate organizational programs that are available in bookstores and superstores of the Dallas Association of Realtors. For the past year novice licensed agents have enjoyed the organizational tools and guidance offered in the book Texas Real Estate/The Mobile Mentor.

1.1 Objectives

Our primary objectives are:

  • Be a profit-making organization that allows us to take advantage of any other real estate investment opportunities that become available.
  • Recruitment and hiring of self-motivated and successful sales professionals.
  • Minimum 15 sales people must be kept in your office.
  • Create a solid corporate image in the specific target market.
  • To establish good working relationships and begin working as a team, promoting communication and suggestions from all participants.
  • In our third year, or sooner, we aim to be the Champion’s top brokerage firm.
  • In just 12 months, you can see a positive ROI.

We believe that the professionalism of the corporation’s manager and its sales associates will allow us to reach the above-mentioned targets. Individuals gaining a real estate license leave school with the knowledge of the real estate laws and procedures. High turnover is possible because agents don’t receive training beyond what the law and regulations require. Once an agent has obtained a license, the only way they can obtain the training required for the sales and marketing profession is to get it. This training is available at a high price to the agent. Most agents cannot afford the training required to start their career. In addition, the average real estate agent’s earnings are very low compared to the industry.

The office environment we will be providing will be productively arranged yet inviting to the agent as well as the client. Every day there will be an office location with a daily routine/schedule for marketing. Agents will have the chance to be guided every day through a marketing plan in order to win clients. They can choose to follow the training and guidelines provided, or they could follow their daily routines. We will provide guidance and stability to help the new agents make more as real estate agents.

Our company has an agent who sets a goal to get one buyer and one seller each month. On average, $150,000 per sale, this would bring in $6,750 per months. Twelve months equals $81,000. Regina’s goal in being a broker is help each agent to achieve this goal.

This would result in a profit of $2,250 per months X 12 month = $27,000 for the entire year X 15, agents = $405,000. This includes sales from active brokers. These commissions would amount to $9,000 each (100%) to this corporation. The broker will receive a salary from the corporation.

1.2 Mission

This plan is intended to be a guide for starting and running a new company. It also serves as a foundation for a separate, more detailed marketing plan. The following is a summary.

  • RJ Wagner & Associates Realty, Inc. has three objectives: to make a profit, to grow at a challenging but manageable pace, and to adhere to the Texas Real Estate Commission’s ethical codes.
  • RJ Wagner & Associates Realty, Inc.’s first mission is to recruit Texas real-estate agents.

The agents choosing this firm will receive top commission allowing them more financial advantage for advertising in order to gain more business.

  • Through professional and personal help, we will continue to assist homeowners selling their homes as well homebuyers looking to buy the right home. Assuring customers’ best interests is always our priority.
  • RJ Wagner & Associates Realty, Inc.’s keys to success are networking, marketing, customer service, and generating repeat business.
  • We want to build a partnership with our clients, staff members and title companies that respects the goals and interests of all parties.
  • The local market for this business, while not new, is wide open for new and expanding brokerage firms.
  • An initial financial analysis of the viability and potential results of this venture showed great promise. Multiple sources confirm that the real-estate business is very profitable in today’s fast-paced world.
  • While doing so, the company will continue to build its position in the target area by continuing to provide superior customer services to clients and sales associates.

    As you can see, the plan is projected to grow rapidly as more agents join and generate high net profits over three years. This plan, along with a detailed marketing plan, will make RJ Wagner & Associates Realty, Inc. a lucrative venture for both the owner and the contracting agents.

    Start-Up Real Estate Business Plan


    Start-Up Real Estate Business Plan


    Opportunity

    Problem

    People are living longer thanks to modern medicine. After they have children, they can enjoy their spouse and be free from all other responsibilities. This is their second chance to be a happy, carefree young person. They need to find a place within their budget that helps them with that.

    Solution

    GVRE will offer real estate services at the newly-established Golden Valley Retirement Community. It is located in northwest Tucson, Arizona. GVRE can provide real estate services, including mortgages and title.

    Market

    The industry of retirement has experienced steady growth over the last twenty years. The U.S. population is now at 21%, an unprecedented high. It is also growing at an average rate 3% per 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 number is expected to rise as the first baby boomer generation reaches retirement age over the next decade. The U.S. Census Bureau estimates that the annual retirement industry (which includes homes, special equipment, and retirement entertainment services) is worth 4.8 billion dollars.

    Concurrence

    Real estate is fragmented and has many potential competitors. Bowditch Realty (RE/MAX) are our two biggest competitors. Bowditch is an established company that has been in operation for the past ten years, with a fine track record of quality service. It currently employs 12 agents and has long-term contract with several home building companies. This company is slightly larger than GVRE in size and market capitalization.

    RE/MAX, one of the most well-known real estate companies in the country, is the largest. It employs hundreds of agents with deep pockets, which can be used to offset any type of competition.

    Why Us

    GVRE believes there is a major threat in the new entrants to market, who will seek to capitalize on this industry’s high growth. The most likely entrants are small, new realty companies with fewer that ten workers. The main advantage GVRE holds is the exclusive rights to be the agent for Golden Valley Retirement Community. Competition is intense due to the number of firms competing and their low profitability, however.

    This industry is highly dependent on clients who are based in our local area. Potential clients can be very powerful. Clients tend to “shop around,” in order to get the best service and price.

    Expectations

    Forecast

    The company anticipates reaching profitability within the first year. It does not expect any 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.

    Financial Highlights by Year

    Financing Required

    We will receive $20,000

    Susan Egan $10,000

    Mr. Daniel Egan $10,000