Business Plan for a Real Estate Company

The most popular of business plans currently on the market is a business plan for real estate. These can be broken into four or five different types of real estate business plans:

  • Flips: buying homes and rehabbing them for resale in an up market
  • Mortgage Broking: brokering loans of homes to different financial institutions
  • Real Estate Agent: the selling of homes to people seeking to buy or sell their home
  • Property Management: managing commercial or residential property for someone who is seeking to not deal with the headaches of ownership.

real estate business plan can be challenging as one of the hardest factors is how to determine the rise in equity of the property over a given time. Many times this is impossible to predict and very difficult to reflect on the balance sheet. Sometimes asset appreciation doesn't exist and instead, only monthly incomes can be drawn from the properties in question.

Mortgage brokering is much more straightforward with a per-transaction sale price and cost.

Real estate business plans become popular because many individuals by accident make money on the buying and selling of their primary residences. The variety of loan programs now make it easy for individuals to own multiple investment properties and sell them easier as well. The popular "flip" market comes from people who have experience in contracting and can get the upgrades on a home done cheaply. But beware: the real estate market is just like stock, it moves up and down and what is a very profitable industry one year can the next be dry.

If you are interested in getting into a real estate business of any kind, contact a MasterPlans business plan specialist and ask for a quote on getting a business plan that will help you realize your dream. Many fortunes have been made and lost in real estate, and there is always a new opportunity waiting for the next entrepreneur.