Do you offer superior customer service as compared with your competitors? Do you specialize in a niche market?
Example 3 These are just a few examples of the type of structure that LivePlan can offer before you begin with other templates for real estate business plans available as well. Having a template is a game changer as you begin the process of mapping out your business.
The executive summary briefly outlines the opportunities available as well as how you plan to use your unique skill set to take advantage of them. Your executive summary should include details about: 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.
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.
You might include information on the average rental or sales price, vacancy rate or your connection to the neighborhood. 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.
Assess the Market You Plan to Work In The second step in writing a real estate business plan is to assess the market you plan to work in. By advertising and generating leads, you will be sowing seeds.
By converting those leads to clients and closing deals, you will be harvesting your crops. Like any farmer, you need to know as much as possible about your farm area before you begin. Here are some things that you should know about your farm area: 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: Is the area mostly retired people, tech workers, blue collar workers, young families or another group?
Each demographic requires different approaches to lead generation. How many other agents or brokerages are there in the area? How does your brokerage measure up? New agents should generally start out by marketing to their sphere, or circle, of influence.
Your circle of influence is the people you know who you have some kind of influence with. Your friends, family, former co-workers and business associates are all in your circle.
Your next step is going to depend on the demographics of your farm area and your skill set. Because there are so many lead generation ideas from which to choose, have a look at our list of the top 47 lead generation strategies to get an idea of what will work for you and take notes as to which you would like to focus on.
Certain demographics respond best to specific approaches. 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. 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.
Be prepared to contact your leads repeatedly and have a solid way to organize and manage them.
For example, Contactually not only stores all of your leads in certain categories but reminds you when to follow up.
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. To set accurate financial goals in your real estate business plan, you have to understand your expenses.
Outline Your Personal Expenses You cannot accurately create business fiscal goals without knowing what your personal expenses are that you need to cover. Your real estate business plan needs to, at a minimum, cover your cost of living, so this is something that must be tallied carefully.
Be sure to have a detailed list of your living expenses from utility bills to gasoline for your carand know how much you have to make to cover these expenses.
Also include your personal goals, which can be anything from saving up for a better apartment with a specific dollar amount to a down payment on your own investment property including dollar amount. Integrate these as part of your overall business plan, considering the fiscal goals you will have to meet to attain them.
YNAB tracks every aspect of your personal finance from vehicle maintenance to holiday gifts. Know an exact number of how much money you need to make in covering your personal financial obligations and basic living expenses every month.
Outline Your Business Expenses Being a real estate agent involves a variety of business expenses. The key will be trying to put a specific number on your professional costs, considering which of these things will be absorbed by your brokerage and what your area and clientele may demand.
Here are some of the primary areas to consider when examining professional expenses: Technology expenses such as phone, website, software and subscriptions Commission splits and transaction fees FSBO lists.Real Estate Exam Prep Guide Guarantee Your Success!
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Other solutions cost thousands of dollars just to get started. 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.
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 to be sure you on are track to meet your goals.
How to Write a Business Plan for a Real Estate Agent (Houston. According to recent surveys, the average real estate agent makes less than $10, a year and close to 90% of new agents will not last more than two years in the business.
Summer Rentals, Seaside Park real estate, homes for sale, & MLS property listings. NJ Realtors.