In your executive summary, you could say that you plan to work in SoHo and focus on doorman rental buildings to start, and then work your way up to luxury co-ops. How do you measure success—is it by revenue, profit, or number of transactions?
Certain demographics respond best to specific approaches. In this market, more people are using Facebook through a number of demographics so be sure to see our Facebook for Realtors guide to get yourself up to speed.
Cover letter stating the reasoning behind developing a business plan Non-disclosure statement. You might include information on the average rental or sales price, vacancy rate or your connection to the neighborhood.
Is the area mostly retired people, tech workers, blue collar workers, young families or another group? You could then go on to describe how you will use your advertising skills to bring in buyer and seller clients in SoHo utilizing a solid Google AdWords and Facebook ad campaigns.
Are they on-board with the role you have assigned them?
Be prepared to contact your leads repeatedly and have a solid way to organize and manage them. Were the goals reasonable to achieve, impossible, or too easy? Know an exact number of how much money you need to make in covering your personal financial obligations and basic living expenses every month.
If your farm area is largely young tech workers, you might have better luck with Facebook advertising and a solid social media presence on Instagram.
Outline Your Business Expenses Being a real estate agent involves a variety of business expenses.
Is this growth measured by gross revenue, profit, personnel, or physical office space? Do you specialize in a niche market? Depending on aspects unique to your business, you may want to include additional sections in your plan. The area you plan to work in such as home price range and neighborhoods What type of real estate or clients upon which you plan to focus A general overview of your marketing plan What skills you bring to the table including marketing, sales and business development The executive summary section of your real estate business plan is an example of what you would tell a friend over dinner if they asked you how you planned to make money as a real estate agent, using the above bullet points as a guide.
The average sales and rental prices in the area How long a typical home takes to rent or sell on the market Average months of supply, which is a measure of how long it will take for the number of homes currently on the market to be sold and is calculated by dividing the current number of homes on the market in a particular area by the average number of homes sold in that area each month Local demographics: What experiences do you have that set you apart from your competitors?
How much growth do you aim for annually? Your real estate business plan needs to, at a minimum, cover your cost of living, so this is something that must be tallied carefully. When will you review and refine your business plan goals?
Develop a Realistic Financial Plan to Reach Your Goals The next step is to work on a realistic financial plan to determine and reach your goals. How does your brokerage measure up?Learn this method for creating a simple one-page real estate business plan to organize everything an agent wants to accomplish in a year on a single page.
Writing a business plan may seem a daunting task as there are so many moving parts and concepts to address. Take it one step at a time and be sure to schedule regular review (quarterly, semi-annually, or annually) of your plan. A good real estate business plan shows you where you are today, where you want to be and how you’ll get there.
It also gives you specific, actionable steps to help you measure your performance, and recognize where and when you need to make a course correction. The second step in writing a real estate business plan is to assess the market you plan to work in.
In the real estate industry, this is known as your “farm area.” It may sound a little bit silly at first, but it’s an excellent analogy for real estate. A good business plan is the first step in recession-proofing your business.
Check out some sample business plans for real estate, mortgage broker, realtor, property management, and similar businesses to get ideas for your own business plan. Free Real Estate Agent Sample Business Plans These, and hundreds more sample business plans, are included in LivePlan.
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