Real Estate Business Plan
Real Estate Brokers will represent the owner of a property and act as an intermediary between the owner and potential buyers. Real Estate Brokers will deal with a variety of properties ranging from residential lettings to commercial or industrial properties which can be to sell, to purchase or to let or to rent.
You can also offer a range of associated services such as structural surveys, valuations and financial services.
Housing is one of the most basic of human needs. Whether you're looking for a new apartment to rent, buying your first home, or relocating for work, there are many places to look when it comes to meeting your housing needs. If you're looking for information on buying, selling or renting property, the Real Estate Listing Guide is here to help.
Where do you currently look when it comes to finding a new home? Most people check the Real Estate section of their local paper. Most classified sections offer a simple description of the property, the location and the contact information. This can be a time consuming process. Before you even can consider if this is the home for you, you have to go to the property and take a look for yourself. A simple photo cuts down on a lot of wasted time.
Many people opt to hire a real estate broker to help them find their dream home. This service is great if you can afford it, but it's not for everyone. There are other more economical ways to buy a home. You can drive around the neighborhood you want to live in, and look for "For Sale" signs in the yards. This is a great for people with a lot of time on their hands. It's definitely not an option if you're relocating to another city or state. You can also sign up for a real estate listing service. You can sign up with a realtor-sponsored site, or you can opt for a privately operated service. The latter offers you a chance to deal with individual property owners.
When you list your property with a service, you increase your chances of selling your home quickly. Especially when you're dealing with an internet-based site. Nothing reaches more people faster than the Internet. When you list your home online, you can post as many photos as you like.
This is a great service for someone who is selling his home without a real estate agent. You have direct contact with potential buyers, and because it's online, the service is available 24 hours a day, 7 days a week. If you're currently trying to sell your property, you know how important it is to sell as quickly as possible. The longer your property is on the market, the more it depreciates in value. Why not do everything you can to have your property viewed by as many people as possible?
When you're in the market for a new apartment most people skip the realtor, and consult the apartment rental listings in the paper or online. A listing service is great for people who need to relocate, or move in a hurry. If you've signed a long-term lease, many apartment managers will allow you to break a lease if you provide them with a new tenant. Whether you're in the market for an apartment, a house, or commercial property, a listing service is an inexpensive way to find your next real estate rental.
A real estate agent is actually a wide-ranging title applied to a number of specialisms. Some estate agents specialise in the residential market, but even then, individual homes vary from studio apartments to mansions with acres of land. Some agents specialise in dealing with commercial properties such as office blocks, factories, shops and licensed premises.
Others deal specifically with lettings and property management, which involves letting property and dealing with all aspects of the let - which includes in many cases the responsibility for the property on behalf of the property owner. In addition, some estate agents extend their service by offering the specialised knowledge and skills needed to carry out property auctions.
Estate agency is an almost unique form of selling. The estate agent is not selling something which belongs to them, but represents their client - the property owner. Agents act as a representative or intermediary between the owner and a possible buyer, using a mixture of skills to persuade customers to sell and buy.
One of the essential skills of an estate agent is good communication. Estate agency is a 'people' business - agents have to communicate with many different people - potential buyers and sellers, conveyancers and solicitors for example - and they have to be able to communicate effectively. A house sale and purchase is usually the largest single purchase that anyone undertakes and is consequently high on the list of the recognised 'stressors' in everyday life. Good communication on the part of the agent can reduce the stress enormously, can make a sale go through more quickly and efficiently and will ensure that customers come back to the agency with more business. This communication might be face-to-face, either in the office or in people's homes - or it might be by telephone or by letter.
So, the main qualities needed in estate agency are good communication and interpersonal skills; and the ability to persevere when things are moving slowly or the market is not particularly favourable.
Owning an estate agency can be challenging and rewarding, but there are also times when you'll find it frustrating even infuriating, but as this is a people business you'll have to keep your fury to yourself. Long protracted delays can ensue just after you have done the bulk of your work and the process of legally transferring land and/or property starts. Sometimes cancellations can occur at a very late stage, about which little can be done, and so those to whom a career in 'selling' appeals may need to think twice about going into estate agency, as the final results can take some time to achieve.
Real Estate Brokers tend to generate business from their signage presence in a particular area - the more signs the more prominence your Real Estate brokers will have. To get to that point though you need some kind of a strategy, that does not happen overnight. First of all you should have your own shop front to advertise new properties on the market. The first thing you will need is an internet presence where potential cleints will be able to contact you and put up their property for sale. You can also send flyers round to every house advertising in your region; your services to begin with should be offered at a heavyily discounted rate to attract potential customers in order to drum up business and get those properties on the board and on your website. You can also generate new clients through a combination of networking and monthly public seminars that introduces otherwise unreachable segments of the population. Besides the seminars developing new business, it is also a way that your real estate can give back to the community.
Real estate franchises represent a very lucrative market. If you are a real estate agent, or even if you are not, you should consider buying into real estate franchises. The real estate market is always going in cycles. However, as the owner of a real estate firm, you stand to benefit both when people buy, or sell. If you have an office of talented agents, then you can charge them a commission percentage, and make a lot of money.
Franchise opportunities exist throughout the World. There are many different types of franchises, from gyms, to coffee shops. If you want to become a business owner, then you should consider franchises opportunities. There is less risk involved in the owning and operation of a franchise, as opposed to starting your own business from scratch.
If you are seriously considering buying into a franchise, consider your options very carefully. You can choose a field or industry of which you have experience in, or one that you do not. If you are currently in the real estate business, or are interested in entering it, real estate franchises may be the perfect franchise opportunity.
When you operate a real estate franchise, you will receive guidance and instruction from the head of your franchise. This means that the franchise board will set much of your business procedure and protocol. This will alleviate much of the stress and pressure that most business owners experience. You can better focus on the overall success of your company through the guidance of owning a franchise.
It's unlikely your Real Estate Broker will make a profit in the first year due to set-up costs and marketing costs. Your aim should be to get as many clients on board as possible.
Commercial real estate is a hot property in more ways than one, and many investors make their fortunes in commercial real estate. People who bought property in Manhattan or L.A. in the 1950s can sell even small lots for millions today. But real estate's lucrative potential is mediated by its complexity: negotiations, contracts, disclosures, rental obligations, and unexpected expenses make commercial real estate enterprises a real challenge to buyers, sellers, and investors alike.
If you are getting ready to buy or lease commercial property, perhaps to expand your business or take a home-based business out of the home, you are probably wondering how to go about it. When people are house hunting, they tend to start looking at houses on the Internet, in newspapers, or by wandering through the neighborhoods where they want to live. Attending open houses may lead to meeting a real estate agent who seems knowledgeable and reliable, and before you know it, Saturdays are spent visiting houses up for sale.
Buying a house is one of the most stressful and expensive events in the life of a couple: marriages have been known to come to an end over disagreements about attached garages and second bathrooms! But buying a house is relatively simple: the intricacies and potential pitfalls of commercial property makes buying a home look like child's play.
Commercial real estate properties often cost more than the average single family dwelling. Issues such as appraisals, zoning, build-outs (that's remodeling to fit the needs of the new owners), and commercial mortgages are complicated and potentially dangerous in the legal sense. Reading, writing, and negotiating leases and purchasing agreements take special knowledge: an understanding of real estate laws and the local regulations are just the beginning.
When acquiring commercial real estate, start out by thinking about your needs, both immediate and in the longer run. Consider space requirements carefully: you don't want to end up moving to a still larger space in a couple of years because you underestimated your needs today! Will you need temperature-controlled storage space, natural light, kitchen facilities, and/or parking? The more you understand about what you need, the more likely you will be able to make effective choices between properties.
You probably already have a general idea of the location you want: you can contact commercial realtors to find out what space per square foot costs in the areas you're researching. What you learn may impact your decisions about location and space: the trade-off is often between larger spaces in less-ideal locations and great locations with smaller space. Talking with commercial realtors is also a good way to start working on the next step in your commercial property venture: finding a responsive and responsible commercial real estate broker.
Commercially-oriented real estate is no place for do-it-yourself attempts: you want the advice and assistance of someone who knows the market, who is familiar with available properties, and who knows the pitfalls of commercial real estate. A trustworthy broker can save you tens of thousands of dollars by keeping you informed and sharing his or her professional expertise. An ethical broker will prevent you from making costly mistakes, and will work to make sure your needs are met in the choosing, negotiating, and buying of your commercial property.
Some brokers represent both buyers and sellers, and while many of these brokers are responsible and concerned about all their clients, you may prefer to work with a broker who specializes in meeting your particular needs. When you work with a broker who only works with buyers, you can feel more confident in your broker's ethical representation. Your broker will try to get you the fairest price under the best terms: there are no competing interests.
The objectives for the first three years of your real estate operation should include:
- To create a service-based Real Estate Broker whose primary goal is to exceed customer's expectations.
- To increase the number of clients served by at least 20% per year through superior performance and word-of-mouth referrals.
- To develop a sustainable Real Estate Broker that generates value for their customers.
- To generate a profit, grow at a challenging and manageable rate, and to live up to the ethical codes set forth by the local real estate commission.
Your mission is to provide comprehensive real estate services for your customers. You exist to attract and maintain customers. When you adhere to this maxim, everything else will fall into place.
Your services should exceed the expectations of your customers.
A good way to begin a relationship with a real estate agent is to actually go look at some properties. Hands on experience works better than merely describing what you are looking for. If you are actually standing inside a house, the real estate agent will get a better idea about who you are and what you are looking for.
Whether you own or rent your office space, property costs are one of the largest business overhead expenses. That's why it's important to comprehend the full ramifications of taking over the title to a property or entering into a lease agreement. Before you sign a lease, work with a commercial real estate broker with a proven track record, and consult with an attorney skilled in real estate law. You should also familiarize yourself with some common real estate terms:
- Appraisal. A written report by a state-licensed professional that includes an unbiased analysis of the property's value and the reasoning that led to that opinion. An appraisal report is required for any property sale.
- Broker. An agent who brings together a buyer and a seller, or a landlord and a tenant, in a real estate transaction. All brokers must be licensed by the state in which they work. Most work on commission, and the landlord or seller usually pays the fee.
- Build-to-suit. A method of leasing property in which the landlord makes improvements to a space based on the tenant's specifications. The cost of construction is generally factored into the lease terms. Most build-to-suit provisions apply to long-term (10-year) leases.
- Concessions. Benefits or discounts given by the seller or landlord of a property to help close a sale or lease. Common concessions include absorption of moving expenses, space remodeling or upgrades (also called "build-outs"), and reduced rent for the initial term of the lease.
- Escalation clause. A clause in a lease that allows the landlord to increase rent in the future. Rent increases dictated under an escalation clause may be charged in various ways, including: A fixed increase over a definite period - A cost-of-living increase tied to a government index, such as the tax rate - An increase directly related to increases in operating the property
- HVAC. An acronym for "heating-ventilation-air-conditioning" system. In a commercial building, the landlord generally is responsible for maintaining the HVAC.
- Lease. An agreement by which the owner of a property (the "lessor") grants the right of possession to a tenant (the "lessee") for a specific period of time (the "term") for a predetermined amount of money (the "rent"). A "leasehold estate" is the space occupied by the tenant. Common types of leases include: A straight, or flat, lease, which stipulates that the same periodic payment (usually monthly) be made for the entire term of the lease - A percentage lease, which uses a percentage of the net or gross sales to determine the monthly rent. This is most often used in retail properties and with a minimum base rent - A net lease, which requires the tenant to pay maintenance, taxes, insurance and so on, along with a fixed rent. This is also called "net-net-net" or "triple net."
- Lien. A legal claim filed against a property for payment of a debt or obligation. If a property owner fails to pay a creditor, for example, the creditor can place a lien on the property. A lien can halt the sale of a property.
- Sale-leaseback. A transaction in which an owner sells a property to an investor, who then leases the property back to the original owner under prearranged terms. Sale-leaseback deals offer the original owner freed-up capital and tax breaks and the investor a guaranteed return and appreciation.
- Sublease. A lease given by a tenant for some or all of a rented property. For example, if a tenant rents 20,000 square feet but only ends up needing 10,000 square feet, they may want to sublet the extra space for some or all of the remaining term of the lease, providing they continue to occupy and pay rent for the property.
The need to advertise real estate is readily apparent. People in search of apartments, home and office space cannot connect with eligible properties without some promotion. Making it known that a property is available is the only way to get it off your hands.
There are a few proven strategies that produce results. Keep in mind that everyday that you have to advertise commercial space or investment property is another day that you are not reaping any financial benefits. If you can minimize the vacancy period you save yourself from losing potential profits.
Advertising is simple, right? Well, yes and no. It is vital that you understand your product, in this case real estate, and that your clientele. For instance, you can advertise real estate in Milwaukee in a Los Angeles newspaper, but the results won't be promising. Target the appropriate audience and your chances for a positive outcome goes through the roof.
The world we live in is dynamic, interactive and always in full motion. This means that you have multiple opportunities to advertise available real estate at every moment. Just as one person sees your sign, another can happen upon your listing on the Internet.
One important element when advertising anything is exposure. Take advantage of all the opportunities to reach more people. Whether you want to advertise industrial space or apartment units, visibility is key.
You can attend lengthy seminars in order to develop advertising skills, but it might be a waste of time and money. When you need to advertise apartments for lease your main concern is getting the units filled. Let the experts handle the details so that you can stay on track with your daily duties. The experts advertise real estate with skill in order to get you the very best leads in a short time.
If you want to learn how to sell vacant land, take a hint from the pros. When they want to advertise real estate of any variety they really get the word out. Everything from signs, online listings and mail outs can be used as a coordinated advertising campaign.
Of course you can decide to advertise apartments, homes, land or retail space on your own, but be sure to consider your options first. You may discover that there is a better way to make a sale without putting so much of your time into the project. When time is of the essence and your want results fast, some assistance really pays off.
One major theme of your Real Estate Business Plan may surprise you. It’s as simple as it is important. You, as the prospective Real Estate Business owner, are the most important person you must convince of the soundness of your proposal. Therefore, much of the work you are asked to do here serves a dual purpose. It is designed to provide answers to all the questions that prospective lenders and investors will ask. But it will also teach you how money flows through your Real Estate Business, what the strengths and weaknesses in your business concept are and what your realistic chances of success are.
The detailed Real Estate Business Planning process is not infallible - nothing is in a small Real Estate Business - but it should help you uncover and correct flaws in your business concept. If this analysis demonstrates that your idea won’t work, you’ll be able to avoid starting or expanding your Real Estate Business. This is extremely important. It should go without saying that a great many businesspeople owe their ultimate success to an earlier decision not to start a Real Estate Business with built-in problems.
Writing a Real Estate Business Plan allows you to see how changing parts of the Real Estate Business Plan increases profits or accomplishes other goals. You can tinker with individual parts of your Real Estate Business with no cash outlay. If you are using a computer spreadsheet to make financial projections, you can try out different alternatives even more quickly. This ability to fine tune your plans and business design increases your chances of success.
Writing A Real Estate Business Plan
Writing A Real Estate Business Plan
Real Estate Business Plans should meet certain criteria. They need to be user-friendly; therefore present a simplified, workable Real Estate Business Plan for a complex topic. The Real Estate Business Plan needs to encourage rather than discourage its use. It needs to reflect the same goals and objectives that you pursue each day in their work. A Real Estate Business Plan fails when its goals are different from the work requirement. Another use of a Real Estate Business Plan is to provide guidance when you don’t know what to do. This becomes the direction and benchmark for your actions.
One of the main reasons resistance to Real Estate Business Planning happens is because of the paperwork it produces. When we think of Real Estate Business Planning we automatically envision reams of papers, three-ring binders, and thick bound reports. These perceptions cause people to avoid Real Estate Business Planning.
It does not have to be that way.
Real Estate Business Plans should contain the essence of what you need to do. You can build your Real Estate Business Plan using brevity, succinctness, and focused text. You can tell your story using a Real Estate Business Plan with only five components of a single page each.
Not all Real Estate Business Plans include all the components we suggest. In fact, you will not find a textbook example of a written Real Estate Business Plan. If you are like most people who get this far into the Real Estate Business Planning process, you need to complete your Real Estate Business Plan for your Real Estate Business and not someone elses.
Your Real Estate Business Plan should include only what is important to you and your Real Estate Business. If your Real Estate Business Plan is short — or written mostly for your own purposes — you can dispose of the executive summary, for example. And if you’re a Real Estate Business of one, you probably don’t need a section describing the organization of your Real Estate Business (unless you want to give yourself a Real Estate Business Plan for how to get organized yourself!).
For most Real Estate Businesses however, the more complete your Real Estate Business Plan is, the better off you are. If yours is a one-person Real Estate Business, for example, you may figure you can do without the company overview section because you already know what your Real Estate Business is all about, right? Well, you may find that by compiling that section — by putting your mission, vision, values, product offering, and unique attributes into words — you uncover new ideas about what you really plan to do with your Real Estate Business.
And that can be an extremely valuable exercise for any Real Estate Business, no matter how big it is.
Creating a written Real Estate Business Plan forces you to face tough issues that you may otherwise ignore, such as
- How big is my market?
- Why will customers come to me and not my competition?
- How much money do I honestly need to get the Real Estate Business off the ground? When can I realistically expect to make a profit?
- What other opportunities can I take advantage of? What threatens my Real Estate Business?
Your accountant should be a person of experience and imagination who can help you to diagnose the real cause of any problems, or point you in the way of exploiting opportunities and suggest where you should go for other specialist advice.
It is often difficult to decide which accountant will serve you best. Don’t just rely on the Yellow Pages. Have a word with other small Real Estate Businesses in your locality to find out what they ask for and get from their accountants - and how much they pay. Make sure, too, that the firm you choose does not hand you over to an inexperienced beginner. The small business needs experienced advice, and an accountant capable of giving such is well worth the fee.
Do join your local chamber of commerce, if only for the contacts you can make. They can help you in many ways.
When you are doing your market research, it is often wise to get in touch with the trade association relevant to your business. It may provide useful statistics and other information, and enable you to decide whether there is sufficient potential to give you a chance of success. The local Chamber of Commerce will be able to supply the address.
Many county library services are very well organized to help the start-up business person. The local business libraries will prove to be a particularly useful source of information for your market research. Consult the librarian.
Real Estate Business Plan
Real Estate Business Plan
Always talk to your customers. Do not hesitate to ask their advice (remembering, however, that their advice will not be unbiased). You will have consulted as many potential customers as possible in assessing the market for your product, and your business plan will be built on what they told you. Do not neglect them as a source of information and assistance later.
A major supplier has a vested interest in the success of your Real Estate Business. Listen to the supplier’s advice - unless it is trying to sell you something you don’t really want. Remember, your supplier can be a valuable source of trade gossip and information about your competitors.
Great Real Estate Brokers do not just happen
They are planned that way
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