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 Nigerian Bureau of Labor Statistics projects 11.1 per cent job growth for real estate sales agents between 2012 and 2022, which is about as fast as average. During that time, an additional 38,000 jobs will open up.
The real estate industry involves the buying, the selling, or the renting of lands, buildings or housing facility et al. Real estate agency or a real estate agent is a person who acts as a middleman between the sellers and buyers of real estate / real property. We are involved in searching for sellers who sell properties and buyers who want to buy properties.
As real estate agency (brokerage firm) we usually receive a payment called a commission for successfully matching a seller’s real estate to 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.
It is important to state that in Nigeria, each state has its own unique laws that clearly define the type of relationships that can exist between real estate agencies (professionals) and property owners (clients). Nonetheless, it is always a win-win the case for both real estate agencies and owners of properties, because real estate brokers and their salespersons (commonly called “real estate agents” usually assist sellers in marketing their property and selling it for the highest possible price under the best terms.
The real estate industry is highly regulated in this part 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. However, as a lawyer, you can handle real estate deals in Nigeria and make your commission without operating as a licensed real estate agent.
Table of content
Executive Summary 3
Business Description 9
Products and Services 9
Competitive Advantage 12
Market Research 15
Competitor Analysis 15
Sales and Marketing Plan 16
Operational Plan 17
Business Risk 20
Management and Structure 20
Financial Plan and Projections 21
PATILAD Real Estate Agency is a real estate agency that will operate in all the states of Nigeria but will be headquartered in Lagos state. We intend to become specialists in owning, developing, acquiring, managing, selling and renting / leasing disposing multifamily of residential apartments, office apartments and industrial facilities et al. Part of our goal as a real estate agency, is to grow to become one of the top 5 largest real estate companies in the whole of Nigeria and to own and manage properties across the country.
PATILAD Real Estate Agency will be committed when it comes to maintaining a diverse portfolio of high quality apartment, office structures and industrial facilities. We will also focus on providing a dynamic, proactive and vibrant working environment for all our employees, such as discounted rentals for employees, and mouthwatering bonus (commission) for every deal that comes through any of the staff.
PATILAD Real Estate Agency is founded by DayoAdetiloye, JumobiOyebade and AdekunleKazeem. They are the major financier of the company. DayoAdetiloye is the company’s president and CEO. He has well over 20 years of real estate experience including, significant senior management positions in the areas of sales, marketing, new technologies, and franchise management for top real estate companies in Nigeria.
The real estate industry has been steadily growing over the past twenty years.
Start-up expenses and funding required are modest. They include expenses and the rest in cash needed to support operations until revenues reach an acceptable level. Most of the company’s liabilities will come from outside private investors and management investment.
However, we have current borrowing from a commercial Bank. A long-term loan that will be paid off in ten years.
The company expects to reach profitability in the first year and does not anticipate any serious cash flow problems. We conservatively believe that during the first three years, average profitability per month will be adequate. We expect that about one contract per month will guarantee a break-even point.