Real Estate Business Plan

The real estate industry is one of the many industries that is a major contributor to the growth of the economy of many nations of the world. As a matter of fact, a real estate agent can become a millionaire ‘overnight’ from just one real estate deal; little wonder the industry is responsible for making many instant millionaires in Nigeria, as well as the rest of the world.

The real estate industry involves the buying, the selling, or the renting of lands, buildings or housing facility. Real estate agency or a real estate agent (broker) is a person who acts as a middleman between the sellers and buyers of real estate / real property. They are involved in searching for sellers who sell properties and buyers who wants to buy properties.

A real estate agency (brokerage firm) usually receives a payment called a commission for successfully matching a seller’s real estate want with a buyer’s real estate need; such that a sale or rent/lease can be made. In most cases, the commission generated is shared with other real estate brokers or agents who played their parts in ensuring that the property is sold or rented out as the case may be.

The real estate industry is the fifth largest contributor to the Nigerian economy and a potential goldmine for investors; but as the Nigerian economy grew, the real estate industry’s contribution to GDP dwindled. Experts have attributed this to the restrictions placed on the availability of foreign exchange that affected the construction industry, which is heavily import based, and the unstable economic climate which has affected the general willingness to invest in the country’s real estate sector.

The real estate industry is highly regulated in some parts of the world and anyone who aspires to become a real estate agent or start a real estate agency (company) must apply and obtain a license before they can legally receive remuneration for services rendered as a real estate agency firm or real estate broker. But as a lawyer, you can handle real estate deals in some states in Nigeria and make your commission without operating as a licensed real estate agent.

There are good reasons to want a to venture into the real estate industry. Nigeria currently struggles with a huge housing deficit; the country has 17 million less houses than it should. A real estate boom in recent years has coincided with (or has been driven by) a growth in the size of the middle class (an expansion that has been halted by the recession).

Now housing estates have sprung up in the major urban centers like Lagos, Abuja, Kano, Port Harcourt and even in second and third-tier cities. Estate development companies and single homeowner need people to rent or buy their property, and millions of people are searching for decent accommodation. Agents are in business to link these parties; consequently, their services are in demand.

The real estate industry in Nigeria is largely unregulated, there's no standard eligibility requirement for people who want to become agents.

Table of Contents

i.    Overview3

1.0 Executive Summary3

1.1 Benefits4

1.2 Objectives5

1.3 Vision5

1.4 Mission5

1.5 Key to Success5

1.6 Guiding Principles5

2.0 Company Summary6

2.1 Company Ownership6

2.2 Location6

2.3 Start-Up Summary6

2.4.1 Required Funds7

2.4.2 Sources Funding8

3.0 Service Description8

3.1 Future Services9

4.0 Market Analysis9

4.0.1 Market Summary9

4.0.2 Market Trend10

4.0.3 Marketing Plan10

4.1 Target Market11

4.2 Industry Analysis11

4.3 Demand12

4.4 Challenges Facing the Real Estate Industry12

4.5 SWOT Analysis13

4.5.1 Strengths14

4.5.2 Weakness14

4.5.3 Opportunities14

4.5.4 Threats14

4.6 External Environmental Analysis14

4.7 Competition and Buying Patterns14

4.8 Marketing Strategy14

4.9 Publicity and Advertising Strategy15

4.11 Sales Forecast16

5.0 Strategy and Implementation Summary19

5.1 Competitive Edge19

6.0 Management Summary19

6.1 Management Team19

6.2 Personnel Plan23

Table: Salaries and Wages23

7.0 Financial Plan26

7.1 Breakeven Analysis26

7.2 Projected Cash Flow26

7.2.1 Table: Projected Cash Flow Year One27

7.2.2 Projected Cash Flow Year Two27

7.2.3 Projected Cashflow Statement -  Year Three27

7.3 Projected Balance Sheet28

7.4 Projected Income Statements29

7.5 Operating Expenses Year 1-331