Start-Up Real Estate Business Plan Leave a comment

Opportunity

Problem

People live longer due to the advancements in medicine. They can now enjoy their spouse, and no longer have to worry about other responsibilities, after they have had children. They can be carefree again. They need to find a place within their budget that helps them with that.

Solution

GVRE is a real estate company that will provide services in the Golden Valley Retirement Communities, which are located to the northwest of Tucson, Arizona. GVRE offers full-service title, real estate and mortgage services.

Market

Over the past twenty-years, the industry of retirement has been growing steadily. The U.S. has a record 21% over-55 population, and this number is increasing at an average of 3% annually. There are areas in the United States with high concentrations of retirement communities like the American Southwest where the growth rate is around 8%. As the first generation of “baby boomers” reaches retirement age in the next ten years, this percentage is expected to increase. The U.S. Census Bureau has estimated that the industry of retirement, which includes home, medical, specialty equipment and retirement entertainment, generates 4.8 billion dollars per year.

Competition

The real estate industry is highly fragmented, with a large number of potential rivals. Bowditch Realty & RE/MAX are the two most important competitors. Bowditch Realty is a well-established company with a strong track record of providing quality service. It has been in business for ten years. It currently employs twelve agents. This company is slightly bigger than GVRE in terms of market capitalization and size.

RE/MAX has a reputation for being one of America’s most prominent real estate firms. It has hundreds and thousands of agents. They have deep pockets and can be used as a counter to any type of competitive move.

Why Us

GVRE believes the biggest threat to the current market is new entrants who want to capitalize on this high-growth industry. The most likely entrants will be new, small real estate companies with fewer than ten employees. The main advantage GVRE holds is the exclusive rights to be the agent for Golden Valley Retirement Community. Due to the low profitability of each firm and the large number of competitors, there is fierce competition.

This industry is highly dependent on clients who are based in our local area. Potential clients can be very powerful. Clients are more inclined to shop around for the best price and package of services.

Expectations

Forecast

The company expects profitability within the first one year. There are no cash flow issues. The average margin per month for each segment should be sufficient, according to our estimates. We expect that about one sale per month will guarantee a break-even point.

Financial Highlights by Year

You will need financing

We will be receiving $20,000

Susan Egan $10,000

Mr. Daniel Egan $10,000