REAL ESTATE | Investor Business Plan (Sample))

This file was created by redacting an actual business plan The Plan Writers wrote
for a client. All client information and proprietary content has been removed. As
such, the business model, managers and financial pro forma herein are entirely
theoretical – only the structure of the plan itself and portions of the market and
industry research remain “real”.

1. Founder:
Julia Smith


Investor Business Plan
REAL ESTATE
Company name

2. Real Estate Company Name
Investor Business Plan 2






THIS IS A SAMPLE BUSINESS PLAN


This file was created by redacting an actual business plan The Plan Writers wrote
for a client. All client information and proprietary content has been removed. As
such, the business model, managers and financial pro forma herein are entirely
theoretical – only the structure of the plan itself and portions of the market and
industry research remain “real”.





www.planwriters.net
800-691-6202

3. Real Estate Company Name
Investor Business Plan 3





MISSION STATEMENT


“The mission is to modernize and progress the
experience of buying a home by integrating the
spirit of innovation and integrity that inspires a
positive and long-lasting impact. The client’s
satisfaction inspires our team to deliver quality
that exceeds the client’s expectations.”

4. Real Estate Company Name
Investor Business Plan 4
TABLE OF CONTENTS

MISSION STATEMENT ........................................................................................................................................................................................ 3
TABLE OF CONTENTS ........................................................................................................................................................................................ 4
EXECUTIVE SUMMARY ..................................................................................................................................................................................... 5
Objectives .........................................................................................................................................................................................................................................................8
FINANCIAL OBJECTIVES ................................................................................................................................................................................... 9
START-UP SUMMARY ...................................................................................................................................................................................... 10
Services ................................................................................................................................................................................................................................................................ 11
COMPETITIVE ADVANTAGES ........................................................................................................................................................................ 12
MARKET ANALYSIS: REAL ESTATE MARKET IN LOS ANGELES, NV .................................................................................................... 13
Pre Covid-19 Analysis ......................................................................................................................................................................................................................... 13
Post Covid-19 Analysis...................................................................................................................................................................................................................... 14
OPERATIONAL STRATEGY .............................................................................................................................................................................. 16
Company Structure ............................................................................................................................................................................................................................ 16
Location ............................................................................................................................................................................................................................................................. 16
Target Market ............................................................................................................................................................................................................................................. 19
Strategic Alliances .............................................................................................................................................................................................................................. 20
Business Model Canvas ................................................................................................................................................................................................................. 21
Milestones ..................................................................................................................................................................................................................................................... 22
BRANDING AND MARKETING ...................................................................................................................................................................... 23
Goals .................................................................................................................................................................................................................................................................... 23
Keys to Success .................................................................................................................................................................................................................................... 23
Marketing Campaign ...................................................................................................................................................................................................................... 24
LOCAL COMPETITIVE ANALYSIS .................................................................................................................................................................. 27
SWOT ANALYSIS .............................................................................................................................................................................................. 28
EXIT STRATEGY ................................................................................................................................................................................................. 29
Buyout & Merger .................................................................................................................................................................................................................................... 29
RETURN ON INVESTMENT (ROI) .................................................................................................................................................................. 30
PERSONNEL FORECAST ................................................................................................................................................................................... 31
REVENUE FORECAST ....................................................................................................................................................................................... 32
BREAK-EVEN ANALYSIS ................................................................................................................................................................................ 33
PROJECTED INCOME STATEMENT ............................................................................................................................................................. 34
PROJECTED CASH FLOW .............................................................................................................................................................................. 36
PROJECTED BALANCE SHEET ...................................................................................................................................................................... 37
SENSITIVITY ANALYSIS .................................................................................................................................................................................. 38
FINANCIAL ASSUMPTIONS ........................................................................................................................................................................... 39
REVENUE ASSUMPTIONS ............................................................................................................................................................................... 40
APPENDIX: YEAR ONE FINANCIALS ............................................................................................................................................................ 41

5. Real Estate Company Name
Investor Business Plan 5
EXECUTIVE SUMMARY
Real Estate Company Name and Land (also referred
to as “the Company” or Real Estate Company Name)
will be a real estate company that will focus on
house flipping in Los Angeles. Real Estate Company
Name uses the money from investors to fund and
scale single-family residential property flip projects
that are purchased below market value and sold at a
profit after renovation
and remodeling ,
depending on the scope. The
lucrative properties of ‘Real
Estate Company Name ’ will provide
move-in-ready properties for homebuyers
and return profits to investors. Real Estate
Company Name plans to expand its activities in
home-building from the fourth year of operation. The
owner’s experience and familiarity with industry norms will
play a key role in making the Company a long -lasting
success. To achieve the Compan y’s objective, the
management is seeking $500K in investor financing.
Business Model:
The owner will use the home office for the Company’s operations. The Company’s main
activities will include the following:
FLIPPING HOMES: Real Estate Company Name will purchase distressed and
foreclosed homes below the market value and sell them at a higher
margin after renovation and repairs. The flipping process will consist
of three main processes.


Real Estate
Company Name is
registered in the
state of California
and headquartered
in Los Angeles.
Ownership is held
by Julia Smith.

6. Real Estate Company Name
Investor Business Plan 6




Purchasing Property
The Company will
purchase the single-family
residential property using
the 70% rule of real estate
investing; paying no more
than 70% of after-repair-
value (ARV) less repair
expenses
Renovations/Repairs
The Company will hire
general contractors for
renovation and repairs.
The renovation cost of
each property is
estimated to be around
10-12% of the selling price
of the property
Sale
In the third step, Real Estate Company
Name will stage the property for sale
on its website and real estate listing
websites. The company will also use
the services of a realtor for sale
purposes. The process of purchase, fix
and flip will take an estimated three-
month period

HOME-BUILDING: In the second phase of operations, Real Estate Company Name will
start home-building activities from year four. The Company will build the house from
scratch and sell to secure higher profit margins.
Real Estate Company Name intends to extend its market across the state of California and
plans to offer other real estate services like property management, brokerage, and property
valuator. Real Estate Company Name uses a rigorously defined set of formulas and
parameters to purchase a home in specified geographic areas in suburban areas with a
mix of houses, shops and businesses. According to RCLO’s survey, 27.7% of homebuyers
prefer suburban areas
1
.
Market Size:
According to market research by Norada-Real Estate Investments, the Fix-and-Flip Home
Industry in Los Angeles is showing positive trends. 1,703 single-family houses were sold in
May; the median sales price of previously owned single-family homes increased from

1
https://www.rclco.com/publication/2018-housing-and-community-preference-survey/

7. Real Estate Company Name
Investor Business Plan 7
$315,000 in May 2020 to $325,000 in June 2020, which is up 3.1% and up 7% from June 2019. 3,231
houses were listed on the market in May, up 28.4 percent from April.
There are currently 1,221 properties in Los Angeles, LA that are in some stage of foreclosure
(default, auction, or bank-owned), while the number of homes listed for sale on RealtyTrac
is 6,105. In May, the number of properties that
received a foreclosure filing in Los Angeles, NV, was
84% lower than the previous month and 97% lower
than the same time last year.
Marketing:
Marketing for Real Estate Company Name will be done through a variety of media, with the
Internet being the primary driver. The Company will develop a website that outlines all the
services offered, which will be Search Engine Optimized (SEO) to give it more traction and
traffic. The Company will also have a presence on social media platforms (Facebook,
Instagram, LinkedIn, Twitter and YouTube) to drive strong word-of-mouth and authentic
marketing message. Real Estate Company Name will also list properties on real estate listing
websites, such as Zillow, Realtor.com, Redfin and MLS.
Target Market:
The primary target market includes a household of two to four or more person s. These
include first-time buyers aged between 22 and 39 years. A majority of buyers 39 and
younger were first-time buyers, at 33% in 2020. Among other buyers, the 40 to 54 age group
had the second-highest percentage of first-time buyers. This age group also includes
repeat homebuyers. A seller who wants to sell his/her property that is under a foreclosure
order or is advertised for sale by its mortgagee is the target market for the flipping segment.
Management:
Julia Smith is the owner and Director of Real Estate Company Name. Ms. Smith is a seasoned
business professional who is well connected and attuned to the needs of her targeted
market. Ms. Smith has hands-on experience of over fifteen years in the real estate industry
and served Jones Lang Lasalle (JLL), CBRE (Amazon Account).

8. Real Estate Company Name
Investor Business Plan 8






Objectives
The purpose of this plan is to provide investors
with the information necessary to evaluate the
scope and future growth of Real Estate
Company Name in the marketplace. In addition
to serving as a roadmap for management, th e
plan will show that:

A significant market
opportunity exists when
analyzing the current
market demands and
competitive landscape
The management team
set in place is qualified to
execute on a well-
thought-out operational,
marketing and sales
strategy.
The correct capital
structure will allow for
a long-lasting,
profitable business.
01 02 03
To achieve the Company’s objectives, Grandeur Homes is seeking $500,000 in total funding. The
funding will be utilized in acquiring properties for flipping, staffing, operations, and marketing
initiatives. Financial model shows consistent growth for the brand over the next five years. By year
five, plans call for the Company to achieve $6.06M in annual gross revenue, with a net profit of
$1.08M, or approximately 17.9%.

9. Real Estate Company Name
Investor Business Plan 9
FINANCIAL OBJECTIVES

The following table and graphs illustrate the financial goals of Real Estate
Company Name during the next five years. The financials are explained in detail
throughout the duration of the plan.
Financial Highlights ($1,000's)
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Y1 Y2 Y3 Y4 Y5
Revenue 47 79 95 126 142 142 142 142 158 158 173 173 1,575 2,520 3,465 4,807 6,067
Gross Margin 12 20 24 32 35 35 35 35 39 39 43 43 394 630 866 1,132 1,447
Operating
Expenses
29 13 13 13 13 13 13 13 13 13 13 13 167 228 285 305 362
EBITDA -17 7 11 13 23 23 23 23 23 27 31 31 228 402 582 827 1,085
Net Profit -17 7 11 13 23 23 23 23 23 27 31 31 227 402 582 827 1,085

Gross
Margin/Revenue
25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 24% 24%
EBITDA/Revenue -36% 9% 12% 15% 16% 16% 16% 16% 17% 17% 18% 18% 14% 16% 17% 17% 18%
Net Profit/Revenue -36% 9% 12% 15% 16% 16% 16% 16% 17% 17% 18% 18% 14% 16% 17% 17% 18%

Net Cash Flow 525 26 19 38 31 21 21 22 37 26 41 30 836 181 136 410 659
Cash Balance -
Ending
525 550 570 608 639 660 681 703 740 766 807 836 836 1,018 1,153 1,564 2,223




$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Year 1 Year 2 Year 3 Year 4 Year 5
Projected Operating Highlights By Year ($1,000's)
Revenue Gross Margin EBITDA Net Profit

10. Real Estate Company Name
Investor Business Plan 10
START-UP SUMMARY
The following tables and graphs detail the funding the business will need to bring the vision to reality.





33%
33%
1%
33%
0%
Total Utilization
Total Amount Being Requested
Working Capital For Flipping
Total Start-up Expenses
Total Start-up Assets
Total Long-Term Assets
Use of Start-up Funding

Expenses
Legal Fees $3,000
Grand Opening Advertising $10,000
Website Development $3,000
Initial Office Supplies $500
Total Start-up Expenses $16,500
Long-term Assets
Office Furniture $4,000
Computer & Accessories $2,000
Total Long-Term Assets $6,000
Short-Term Assets
Working Capital For Flipping $497,500
Total Short-Term Assets $497,500
Total Expenses & Assets
Total Start-up Expenses $16,500
Total Start-up Assets $503,500
Total Funding Requirements $520,000
Total Start-up Funding

Total Amount Being Requested $500,000
Total Funds Already Received $20,000
Total Funding $520,000
New Start-up Funding Being Requested
Investor Amount Being Requested $500,000
Total Amount Being Requested $500,000
Start-up Funding Already Received
Owner Contribution $20,000
Total Funding Already Received $20,000
Start-up Capital and Liabilities
Loss at Start-up (Start-up Expenses) ($16,500)
Total Funds Received & Requested $520,000
Cash Balance on Starting Date $497,500

11. Real Estate Company Name
Investor Business Plan 11
REAL ESTATE COMPANY NAME
Real Estate Company Name will be engaged in the residential real estate investment and
management business. The company’s focus will be on acquiring undervalued or depressed
residential properties, improving them, and reselling at an attractive price. Real Estate Company
Name also plans to expand its services in the home-building sector to satisfy the ever-increasing
demand.
Services
The business segments in which the Company will operate are described below:
Phase I - Flipping
Fix-and-Flip
Fix-and-flip is the strategy of purchasing a property, renovating it, then selling it at a profit. The
consultative service blends the best ideas, identifying what work needs to be done to maximize the
return. The Company will work closely with real estate agents, ensuring they can coordinate staging,
schedule viewings, open homes and conduct marketing efforts effectively. The principals will meet
with real estate brokers and agents, owners, and other participants in the real estate community to
secure opportunities that will meet the return requirements. Meeting with contractors and third party
companies will be performed as necessary to complete each due diligence.
Real Estate Company Name will use a 70% rule of real estate investing in determining the purchase
price of the property, which dictates the maximum value of the property should not be more than
70% of the after-repair value (ARV) less the repair cost of the property. The Company expects the
average repair cost to be 10-12% of the property cost. Real Estate Company Name anticipates that it
will take an average of three months to complete a flip from purchase to the sale of the property.
Phase II - Construction
Home Building
The company plans to enter the exciting venture of home building from year four of its operations.
The home building will follow modern up-to-code building and safety regulations that will allow
homes to be more energy -efficient, with the use of proper foundation, insulation, and modern
heating and cooling techniques. This will result in long-term money savings and high property value.
Real Estate Company Name expects to build a home of 2,000 square feet in six months, with the
average cost of $300,000 (an average of $150 per square foot of construction).

12. Real Estate Company Name
Investor Business Plan 12

COMPETITIVE ADVANTAGES




The following is a listing of the primary competitive advantages of the
Company upon entering the market.
• Service uniqueness
• Passion for service delivery
• Resources and capabilities that will contribute to the
success
• Competitive Pricing
• Familiarity with the geographical area
• Relevant experience
• Strong relations and networking with paragons of the
real estate industry
• Established contacts with realtors and general
contractors
• Strong connections and high reputation in the
community
• Aggressive marketing campaign

13. Real Estate Company Name
Investor Business Plan 13
MARKET ANALYSIS: REAL ESTATE
MARKET IN LOS ANGELES, CA
Pre Covid-19 Analysis
In Los Angeles, 2019 ended with the housing
market remaining strong and yet affordable
for homebuyers and investors. The first quarter
of 2020 ended with home sales running ahead
of last year’s pace in the entire Greater Los
Angeles housing market. 2020 has been a
record-breaking year for median home prices
in Los Angeles. The total number of existing
local homes, condos, and townhomes sold
during January was 2,875. Sales were down
from December 2019. But compared to the
same time last year, January 2020 sales were
up 25.2% for homes and up 22.8% for condos
and townhomes. By the end of January, Los
Angeles REALTORS® reported 4,906 single -
family homes listed for sale. In January 2020,
68.8% of all existing local homes and 66.2% of all
existing local condos and townhomes sold
within 60 days. The median sales price of a
single-family home set a record in February
2020, when it hit an all-time peak of $316,000.
This kind of growth was seen before the burst
of the housing bubble that led to a deep
recession in the housing market of Southern
California for over a decade. The year-over-
year increases in the median home price and
sales were 6.7% and 25.7%, respectively
2
. Some
9.8% of local home sales in the first quarter of
2108 were flipped, the ninth-highest share in
the country. Los Angeles flip market is among
the top ten in the USA. The chart shows the
percentage of flip home sales every quarter
3
.

2
https://www.noradarealestate.com/blog/las-vegas-real-estate-market/
3
https://www.reviewjournal.com/business/business-columns/real-estate-insider/las-vegas-among-most-popular-places-in-us-to-flip-houses/

14. Real Estate Company Name
Investor Business Plan 14
Post Covid-19 Analysis
The COVID-19 pandemic is causing a
short-term decline in the Los Angeles housing
market. The economy of Los Angeles is largely
driven by the tourism industry, which took a massive hit
due to the COVID-19 pandemic. Due to rising economic
uncertainly of the likes of the infamous recession, coupled with
stay-at-home orders, the number of home sales in the Los Angeles
housing market for April 2020 dropped sharply when compared to
March 2020. Many construction projects were also canceled or
postponed indefinitely. Some real estate experts, however, are
predicting a fast turnaround of the economy of Los Angeles once
again when the viral pandemic eventually starts diminishing. Redfin,
a real estate brokerage, reported that 42.3% of Los Angeles-area homes had multiple offers
during the four weeks ending in May 2020. According to Los Angeles Realtors, there was a
three-month supply of available homes in Southern California in April, up 48.7% from March
and up 18.4% from the prior year. This indicates that it was still a seller's real estate market.
The median price for a home in Los Angeles is $325,000, which set a record for June 2020, up
3.1% from the previous month and up 7% from the prior year. The numbers for July 2020 have
not yet been released, but according to the experts, the market does not appear to be
slowing down. Currently, in July 2020, there are just over 5,200 homes for sale. Last year in
July, there were more than 8,000. The home resale market also has continued to improve
recently, with 2,460 homes selling in June, representing a 45% jump from the previous month.
According to Forbes, the national housing market
is expected to bounce back faster than
anticipated from the damage caused by the
COVID-19 pandemic. Forbes also believes that the
Los Angeles housing market is among those cities
that are showing the most signs of a positive
recovery. With the reopening of its economy, the
Los Angeles real estate industry is looking forward
to ways the business can be conducted in the new
normal
4
.

4
https://www.noradarealestate.com/blog/las-vegas-real-estate-market/

15. Real Estate Company Name
Investor Business Plan 15
Foreclosure Trends in Los Angeles
California spiraled to the second -highest
foreclosure rates in the nation. Los Angeles
Realtors reported that short sales and
foreclosures combined accounted for 2.7% of all
existing local property sales in January 2020. That
compares to 2.8% of all sales one year ago, 4.3%
two years ago and 11% three years ago.
Unfortunately, then the coronavirus came along
and set things back once again. Due to the
tourism-dependent economy, California has
been rocked by record job losses as a result of the
ongoing pandemic, raising the prospect of waves of
missed mortgage or rent payments. According to the Los
Angeles foreclosure data by Zillow, in Los Angeles, 1.4 homes are
foreclosed per 10,000. This is the same as the Los Angeles-Henderson-
Paradise Metro value, and greater than the national value of 1.2. The percent age of
delinquent mortgages in Los Angeles is 1.2%, which is higher than the national value of 1.1%.
The percentage of Los Angeles homeowners underwater on their mortgage is 7.2%, while the
figure for the Los Angeles-Henderson-Paradise Metro as a whole is just slightly lower, at 7.1%.
There are currently 1,221 properties in Los Angeles, CA that are in some stage of foreclosure
(default, auction, or bank-owned), while the number of homes listed for sale on RealtyTrac
is 6,105. In May 2020, the number of properties that received a foreclosure filing in Los
Angeles, CA, was 84% lower than the previous month and 97% lower than the same time last
year
5
.


5
https://www.noradarealestate.com/blog/las-vegas-real-estate-market/

16. Real Estate Company Name
Investor Business Plan 16
OPERATIONAL STRATEGY
Company Structure
Real Estate Company Name will be a Limited Liability
Company registered in the state of California. Mr. Julia Smith
will be the owner of the Company.
Location
Real Estate Company Name will initially operate from a home
office located at 8414 Antique Cameo Ave, Los Angeles,
California. Los Angeles is the most populated city in the state
of California and the county seat of Clark County. The city
anchors the Los Angeles Valley metropolitan area and is the
largest city within the greater Mojave Desert. Los Angeles is an
internationally renowned major resort city, known primarily for
its gambling, shopping, fine dining, entertainment, and
nightlife. The Los Angeles Valley as a whole serves as the
leading financial, commercial, and cultural center for
California.

Las Vegas
Los Angeles

17. Real Estate Company Name
Investor Business Plan 17

Targeted Locations
Southern Highlands
Southern Highlands is an affluent, master-planned community
located in the southern foothills of the Los Angeles Valley,
California. The community surrounds the Southern Highlands Golf
Club. It is among the most affluent communities in the state of
California, with an average household income of $100,207 and an
average household net worth of $579,866.
Seven Hills
Seven Hills is an affluent neighborhood of Henderson, California
and home to the founder of eBay, Pierre Omidyar, Bryce Harper,
Mike Tyson, Tyson Fury and others. Seven Hills is approximately 7
miles (11 km) from the Los Angeles Strip. It is home to the Rio Secco
Golf Club. Seven Hills is located half a mile east of the Henderson
Executive Airport.
Rhodes Ranch
Rhodes Ranch is a few minutes away from the downtown , and the
famous Los Angeles Strip, Rhodes Ranch Los Angeles community,
offers a variety of new, beautiful homes. Located in Southwest Los
Angeles, at the base of Spring Mountain, Rhodes Ranch is a unique
area in Los Angeles, best-known as a beautifully landscaped,
guard-gated community.
Canyon Gate
Canyon Gate is a neighborhood in Los Angeles, California, with a
population of 19,984. Canyon Gate is in Clark County. Living
in Canyon Gate offers residents a dense suburban feel, and most
residents rent their homes. In Canyon Gate, there are a lot of bars,
restaurants, coffee shops, and parks.

18. Real Estate Company Name
Investor Business Plan 18
Demographics
Demographics Los Angeles, CA
Total Population 626,637
Total Households 234,592
Aged between 22-39 148,599
Population in Real Estate
Business
2.7%
Marital Status 45%
Gender 49.9% Male | 50.1% Female
Housing Units 258,568
House Built Between 1970-1999 59.1%
Single-Family Home 61.2%
Vacant Housing Units 13.03%
Owner Occupied 51.07%
Rent 48.93%
Median HH Income $54,694
Poverty % 15.8%
Median Age 36.7



Demographics
Southern
Highlands
Seven Hills Canyon Gate Rhodes Ranch
Total Population 25,150 47,214 19,984 39,712
Population Density 2,353 909 6,090 3,224
Gender
50.2% Male
49.8% Female
48% Male
52% Female
49.1% Male
50.9% Female
49.2% Male
50.8% Female
Housing Units 9,955 21,996 10,083 16,862
Median Income $100,207 $95,940 $90,127 $88,872
Median Age 33 43 40.4 34

19. Real Estate Company Name
Investor Business Plan 19
Target Market
PRIMARY TARGET
The primary target market will be individuals between
the ages of 22 and 39. Persons in this age group are
mostly first-time homebuyers. According to the
National Association of Realtors, first-time buyers
made up 33 percent of all homebuyers , with the
median age of 31 years
6
. According to ScreenAge, the
men and women in this age group are 30 percent
single, 67 percent couples, and 80 percent of them buy
established homes
7
. First-time homebuyers are young
professionals who don’t have time for renovations and
remodeling the home and prefer to purchase a flip
home. Research published in March 2 020 by the
National Association of Realtors shows 52 percent of
buyers aged 30 to 39 years, and 88 percent of buyers
29 years and younger are first -time homebuyers.
According to the American Community Survey – 2018,
there are 148,599 individuals in Los Angeles aged
between 22-39 years.






6
https://www.inman.com/2015/01/20/whos-in-your-real-estate-target-audience/
7
https://www.screenage.com.au/5-key-property-and-real-estate-target-market-personas/
33%
88%
52%
23%
13%
6% 5%
0%
20%
40%
60%
80%
100%
All Buyers22 to 29 30 to 39 40 to 54 55 to 64 65 to 73 74 to 94
Fist Time Home Buyers by Age Group

20. Real Estate Company Name
Investor Business Plan 20
SECONDARY TARGET
While persons in the above segment will be the primary target, the secondary target will be persons
between the ages of 40-to-54. Persons between 40 to 54 form 23 percent of homebuyers, with a
median age of 47. Buyers between the ages of 40 to 54 had the highest household incomes of any
generation, at $110,900 in 2018
8
.

Strategic Alliances
Real Estate Company Name will seek strategic alliances with realtors, general contractors, and public
housing agencies. The Company has already established a referral base of contractors. These
strategic alliances will help promote the services offered by the company. The realtors and general
contractors not only refer to new business but will suggest the acquisition of suitable properties for
flipping. The company will offer discounts to the referred clients. Real Estate Company Name will only
use licensed companies as per California standard.
WARRIOR CONTRACTING
Real Estate Company Name has contracted Warrior Contracting LLC. Warrior
Contracting is a Service-Disabled, Veteran-Owned Small Business General
Contractor with offices in California & Hawaii. Warrior Contracting is currently the SABER contractor
at Creech AFB in California, the CTOA contractor at the California National Security Site and working
on a sewer rehabilitation project at Schofield Barracks in Hawaii.


8
https://www.nar.realtor/sites/default/files/documents/2020-generational-trends-report-03-05-2020.pdf
0% 5% 10% 15% 20% 25% 30%
Silent Generation: 74 to 94 years
Older Boomers: 65 to 73 years
Younger Boomers: 55 to 64 years
Gen Xers: 40 to 54 years
Older Gen Y/Millennials: 30 to 39 years
Younger Gen Y/Millennials: 22 to 29 years
Gen Zers : 21 years and younger

21. Real Estate Company Name
Investor Business Plan 21
Business Model Canvas
OPERATIVE PARTNERING & FOCUS

FINANCIAL COMMUNICATION

Key Activities Key Partners Revenue Stream Marketing Channels
Employed • Conducting
surveys for suitable
housing properties
within the range of
investment value
• Contracting with
General Contractor
for renovation and
finishing the
property
• Property marketing
• Contracting with
the realtor to sell
the property
• Marketing and
customer
acquisition
• Handling inquiries
of potential clients
on phone, website
and in-person
• Invoicing and
payments tracking
from the clients

• Public Housing
Agency
• Realtors of Los
Angeles
• General
Contractors of Los
Angeles
• Company's
website

• Flipping Home –
Capital Gain

• Social Media
• Real estate listing
websites
• E-mail Marketing
• Word of Mouth
• Networking

Value Proposition Main Cost Drivers Communication with
Clients through • Housing
description
• Location of house
• Custom-Designed
renovation
• Fast response
• Professional
experience


• Marketing
• Legal services
• Administrative
expenses
• Purchase of
distress home
• General
contractor’s
expenses
• Realtor expenses
• Promotional
expenses

• Phone
• Website
• In-person meeting

Business Timings
• Round the clock
including weekends

Customer Relationship

• Valuing the dignity
and respect of
clients
• Fulfilling
commitments
• Word of mouth

22. Real Estate Company Name
Investor Business Plan 22


Milestones
The tentative milestones are shown below. Management reserves the right to make changes to thi s
schedule as needed.



OBTAIN FUNDING CONTRACT WITH
GENERAL CONTRACTOR
CONTRACTING
THE REALTOR
GRAND
OPENING
ACHIEVE $1.5M IN
GROSS SALES
Day 30 Day 45 Day 60 Day 90 Day 455

23. Real Estate Company Name
Investor Business Plan 23
BRANDING AND MARKETING
Real Estate Company Name will strive to meet the following objectives as it accomplishes specific
keys to success:
Goals
Keys to Success


Effectively managing
resources
Use of advertising
campaigns to promote
businesses and property
listings. The success of
the advertisement
campaign is important
for selling property and
attracting new clients
The ability to efficiently
manage developments,
renovations and repairs
can reduce operational
costs and increase profit
for industry participants
Having good relationships with
existing and prospective clients
and understanding their needs
can help the Company to gain
new business and retain existing
customers
A significant amount of capital
and debt is used to finance
property acquisitions.
Therefore, the Company will
properly manage cash flows,
reserves and debt levels to
grow and effectively manage
property portfolios
Location is everything in this
industry because customers pay
a premium for a location near
business centers, transportation
hubs and entertainment venues
Become a recognized market leader
in the Fix-and-Flip Home industry
Remain flexible in-service offerings
Develop a robust customer service
model
To differentiate services to win
new customers
Remain attuned to the
marketplace and integrate
services into the business mix
that meet the needs of the
targeted audience

24. Real Estate Company Name
Investor Business Plan 24

Marketing Campaign
Marketing will be done through the following media:

• Networking at industry events, such as 5 Pillars of Real Estate Investment and Wealth
Building
• Registration with associations such as the Real Estate Investors Association – Los Angeles
• Joining real estate groups like Connected Investors of Los Angeles
• Attending events organized by National Association of Mortgage Brokers
• Attending conferences organized by Originator Connect
• Attendance at trade shows and expos, such as Realty411 Expo, will allow the Company to
showcase its latest services and learn about recent market trends and opportunities.
• Promotional connections with similar businesses, such as real estate agents, property
managers and general contractors for reciprocal marketing and referral opportunities.

Social media will play an important role in marketing for Real Estate Company Name . According to
the research by Screen Age, 71% of first-time homebuyers engage in social media daily.
• Generate brand awareness and maintain a presence on social media website suc h as
Facebook, Twitter, LinkedIn
• A YouTube channel will be created and optimized through the benefits of SEO, which will
accelerate the process of reaching targeted customers.
• YouTube and video blogging will be used by the Company to drive sales by posti ng
relevant and informative videos on YouTube or video blogs.
• Facebook has its pay-per-click network that is also cost-effective and can be targeted to
the Company's demographic.
Adequately executed with the right strategies, email marketing will be a cost-effective
method to acquire potential homebuyers. Keeping in view the following factors, the
Company will use email marketing to engage potential homebuyers:

NETWORKING and Trade Shows
SOCIAL MEDIA
EMAIL MARKETING

25. Real Estate Company Name
Investor Business Plan 25
• Emails will be mobile responsive.
• Segmenting email lists will help to personalize email messages and ensure that
the offer is tailored to the specific audience.
• Optimizing email subject line.
• Landing page: Emails will direct the reader to a landing page using a call-to-
action (CTA) button.
Yelp has tremendous power in the industry, and having a strong backing of positive Yelp
reviews is like having a flock of golden geese. The most important thing to understand about
Yelp is that people can review a cleaning business even if it is not listed. Real Estate
Company Name will use a proactive approach to make a positive and long-lasting impact
on potential homebuyers by listing the following details;

• A lot of before-and-after renovation pictures of homes
• Services offered
• Location
• Price range
• Additional services offered
• Discounts and promotions


• Media coverage in well-known news channels and newspapers, such as Los
Angeles Review-Journal and Los Angeles Real Estate Magazine.
• This will increase the Company’s credibility and recognition among the public and
key industry decision-makers.


Word-of-mouth advertising is one of the most powerful means of propelling the business
forward. The Company will create new business by the referrals of current clients, as the
Company will exceed expectations in providing its services.
EMAIL LISTING AT YELP
PRESS RELEASES
WORD-OF-MOUTH MARKETING

26. Real Estate Company Name
Investor Business Plan 26

According to the New York Times, 65% of all new business comes from referrals. Real Estate
Company Name will gain new customers through existing ones by rewarding new
homebuyers referred by previous clients with a special discount on the purchase of
property, with an exciting gift hamper to the referrer. Real Estate Company Name will reward
general contractors and other referrers with percentages based on the selling price of the
property for each referred homebuyer.


Content marketing is a strategic marketing approach focused on creating and distributing
valuable, relevant, and consistent content to attract and retain a clearly defined audience
to attract and retain visitors, and eventually, turn them into customers. The company can
effectively manage content marketing by
• Telling Real Estate Company Name story: what drove the company to enter the
industry
• By humanizing the Company, by showing videos of b efore and after the
renovation of homes
• Researching to gain insight into questions frequently asked by a potential
homebuyer
• By creating content through blog posts.

A well-optimized website is being constructed, with proper site structure, page layout, and
clear and easy navigation, along with targeted keywords embedded throughout the site,
which will ensure proper search engine place ment and saturation. The Company’s
proposed website, www.grandeurhomesandland.com , is an important marketing asset.
Incorporating SEO, the website is easily navigable, highly informative, and a platform to
generate new business.

SEO is considered by most online marketers to be the cornerstone of any successful search
engine marketing campaign. Websites that appear on the first page of Google are
considered trusted, authoritative sites. SEO is a long-term strategy and has the potential to
be the most lucrative marketing channel for most businesses. This form of marketing uses
unpaid tactics to improve a site’s search engine results ranking. Search engine optimization
is broken up into the following main areas: onsite optimization, offsite optimization, and local
SEO.
REFERRAL MARKETING
CONTENT MARKETING
WEBSITE

27. Real Estate Company Name
Investor Business Plan 27
LOCAL COMPETITIVE ANALYSIS
The identified competitors are described below:

In 2008, Yancey founded the
Las Vegas-based Goliath
Company, a real estate
brokerage and i nvestment
firm. Goliath Company
focuses on investment
properties, the buy-and-hold
approach, flipping properties
and finding land to entitle and
subsidize by selling to large
private companies. Goliath
Company is a full-service Real
Estate Brokerage with
considerable experience
working in luxury residential
markets. By specializing in land
development, income
properties, and buying and
selling, Goliath Company is a
one-stop-shop for all thing’s
real estate.
GOLIATH COMPANY
Croteau Real Estate Services
LLC is a local Las Vegas real
estate company offering
short sales, mortgage loan
modifications, flipping
houses and an affiliated real
estate law firm to handle all
your real estate needs under
one roof. Croteau buys
properties, fixes them and
sells at the margin with the
experience of over twenty
years in flipping houses.
CROTEAU REAL ESTATE
SERVICES LLC
Black Rock Real Estate LLC is
a home-flipping company
in the Las Vegas market. The
company has a staff of five
full-time employees and
employs six differen t
construction crews to
repair and rehab the
properties. Black Rock flips
have fixed and flipped over
600 properties since 2012,
and the company is
targeting the markets in
Nevada, California,
Tennessee and Florida.
BLACK ROCK FLIPS

28. Real Estate Company Name
Investor Business Plan 28
STRENGTHS
•Owner’s experience
•Familiarity with the geographical
area
•Resources and capabilities that
will contribute to the success
•Strong relations and networking
with general contractors and
remodeling companies.
•Established contacts with
realtors
•Strong connections and high
reputation in the community
•Aggressive marketing campaign
WEAKNESSES
•Owner’s experience
•Familiarity with the geographical
area
•Resources and capabilities that will
contribute to the success
•Strong relations and networking
with general contractors and
remodeling companies.
•Established contacts with realtors
•Strong connections and high
reputation in the community
•Aggressive marketing campaign
OPPORTUNITIES
•Owner’s experience
•Familiarity with the geographical
area
•Resources and capabilities that
will contribute to the success
•Strong relations and networking
with general contractors and
remodeling companies.
•Established contacts with
realtors
•Strong connections and high
reputation in the community
•Aggressive marketing campaign
THREATS
•Owner’s experience
•Familiarity with the geographical
area
•Resources and capabilities that will
contribute to the success
•Strong relations and networking
with general contractors and
remodeling companies.
•Established contacts with realtors
•Strong connections and high
reputation in the community
•Aggressive marketing campaign
T
S
W
O
SWOT ANALYSIS
The following is a listing of the key strengths and weaknesses of Real Estate Company Name , as well
as the opportunities and threats that exist within the marketplace.

29. Real Estate Company Name
Investor Business Plan 29
EXIT STRATEGY
After careful consideration, the Company has developed the following strategies to exit the
venture:
Buyout & Merger
Real Estate Company Name experiences growth and sees an opportunity to expand its
brand into additional markets as a successful income-generating operation. Additional
markets open the door for additional product offerings and revenue streams. Due to its
substantial market growth and industry recognition, major competing brands begin to take
notice of the Company. These businesses approach Real Estate Company Name with
attractive buyout offers; then the Company negotiates and sells to the best deal.
Real Estate Company Name merges with another company to expand its market reach and
development capabilities. Potential merger partners include companies that can offer a
more diversified market reach or provide expanded resources for research and
development. Real Estate Company Name ’s management would maintain the majority
control of the Company and combine its operational and sales efforts with its merger
partner.
Instances are:
Griffin Real Estate
In 2017, Poland-based Griffin Real Estate planned to sell part of its asset
portfolio in an initial public offering (IPO) worth about 150 million euros ($159
million). The offering represented the largest IPO on the Warsaw Stock
Exchange since December 2013. Griffin Real Estate invests in the
commercial real estate market in Central and Eastern Europe. Its portfolio
includes office buildings and shopping galleries in Poland’s biggest towns.

30. Real Estate Company Name
Investor Business Plan 30
RETURN ON INVESTMENT (ROI)
Real Estate Company Name is currently seeking an equity investor. The Company has placed a value
on the Company of $1.6 million, and it is looking for a $0.5 million investment for 30% of the company.
Below is a return scenario for this investment.
Company Valuation* Outstanding Shares Per Share Valuation

Issued & Committed $1,666,667 7,000,000 $0.2381
After Investment
Group
$1,666,667 10,000,000 $0.1667

Proposed Shares Per Share Dollar Investment

Investment Group
(IG)
3,000,000 $0.1667 $500,000

10,000,000 Total Shares - ROI for the IG is as follows:

Company Valuation Per Share Price ROI for IG

Year 1 $1,749,773 $0.17 105%
Year 2 $3,088,385 $0.31 185%
Year 3 $4,471,071 $0.45 268%
Year 4 $6,354,396 $0.64 381%
Year 5 $8,336,218 $0.83 500%

Number of Shares Per Share Price Proceeds from Sale
(for IG) (for IG)

Year 1 3,000,000 $0.17 $524,932
Year 2 3,000,000 $0.31 $926,515
Year 3 3,000,000 $0.45 $1,341,321
Year 4 3,000,000 $0.64 $1,906,319
Year 5 3,000,000 $0.83 $2,500,865

ROI Notes: (1) The company valuation has been estimated by management. (2) Future
company valuation based off of EBITDA and the current industry multipliers.

*The assumed company valuation was based on a multiplier of 7.68 multiplied by EBITDA.

31. Real Estate Company Name
Investor Business Plan 31
PERSONNEL FORECAST
The personnel forecast below shows the staffing needs for the next five years.
Personnel Forecast

Year 1 Year 2 Year 3 Year 4 Year 5
Staff Count
Director 1 1 1 1 1
Real Estate Analyst 0 1 2 2 3
Office Assistant 0 1 1 1 1
Total Personnel 1 3 4 4 5

Staff Salary
Director $50,000 $51,500 $53,045 $54,636 $56,275
Real Estate Analyst $33,969 $34,988 $36,038 $37,119 $38,232
Office Assistant $22,535 $23,211 $23,907 $24,625 $25,363

Staff Salary - Total
Director $50,000 $51,500 $53,045 $54,636 $56,275
Real Estate Analyst $0 $34,988 $72,075 $74,238 $114,697
Office Assistant $0 $23,211 $23,907 $24,625 $25,363
Total Payroll $50,000 $109,699 $149,028 $153,499 $196,336
Personnel Assumptions: (1) Costs are based on average wages.

32. Real Estate Company Name
Investor Business Plan 32
REVENUE FORECAST
The following is a five-year revenue and direct cost forecast.
Revenue Forecast

Year 1 Year 2 Year 3 Year 4 Year 5
Total
Flipping Home - Capital Gain 5 8 11 13 17
Constructed Home - Capital Gain 0 0 0 2 2

Price
Flipping Home - Capital Gain $315,000.00 $315,000.00 $315,000.00 $315,000.00 $315,000.00
Constructed Home - Capital Gain $356,162.00 $356,162.00 $356,162.00 $356,162.00 $356,162.00

Revenue
Flipping Home - Capital Gain $1,575,000 $2,520,000 $3,465,000 $4,095,000 $5,355,000
Constructed Home - Capital Gain $0 $0 $0 $712,324 $712,324
Total Revenue $1,575,000 $2,520,000 $3,465,000 $4,807,324 $6,067,324

Direct Cost
Flipping Home - Capital Gain $236,250.00 $236,250.00 $236,250.00 $236,250.00 $236,250.00
Constructed Home - Capital Gain $302,058.10 $302,058.10 $302,058.10 $302,058.10 $302,058.10

Direct Cost of Revenue
Flipping Home - Capital Gain $1,181,250 $1,890,000 $2,598,750 $3,071,250 $4,016,250
Constructed Home - Capital Gain $0 $0 $0 $604,116 $604,116
Subtotal Cost of Revenue $1,181,250 $1,890,000 $2,598,750 $3,675,366 $4,620,366

33. Real Estate Company Name
Investor Business Plan 33
BREAK-EVEN ANALYSIS
The following break-even analysis shows the revenue necessary to break even in the first year of
operation. Break-even is where revenue equals expenses. As shown below, the Company is expected
to incur average monthly fixed costs of $13,876 in Year 1. To cover fixed costs and variable costs, which
rise and fall with revenue, the Company must, on average, achieve revenue of $55,505 per month to
break even.
Year 1 Break-even Analysis

Monthly Revenue Break-even $55,505

Assumptions:
Average Monthly Revenue $131,250
Average Monthly Variable Cost $98,438
Estimated Monthly Fixed Cost $13,876





($20,000)
($15,000)
($10,000)
($5,000)
$0
$5,000
$10,000
$15,000
$20,000
$0 $55,505 $111,010
Year 1 Break-even Analysis

34. Real Estate Company Name
Investor Business Plan 34
PROJECTED INCOME STATEMENT
Real Estate Company Name intends to deploy its funding to maximize growth and profitability. Below
is the projected income statement of the Company:
Pro Forma Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $1,575,000 $2,520,000 $3,465,000 $4,807,324 $6,067,324
Subtotal Cost of Revenue $1,181,250 $1,890,000 $2,598,750 $3,675,366 $4,620,366
Total Cost of Revenue $1,181,250 $1,890,000 $2,598,750 $3,675,366 $4,620,366

Gross Margin $393,750 $630,000 $866,250 $1,131,958 $1,446,958
Gross Margin/Revenue 25.00% 25.00% 25.00% 23.55% 23.85%

Expenses
Rent $2,400 $2,460 $2,522 $2,585 $2,649
General Insurance Liability $24,000 $24,600 $25,215 $25,845 $26,492
Business License/Permits $1,200 $1,230 $1,261 $1,292 $1,325
Telephone/Internet $3,840 $3,936 $4,034 $4,135 $4,239
Website Hosting/Updates $3,000 $3,075 $3,152 $3,231 $3,311
Marketing & Advertising $30,000 $40,500 $50,625 $63,281 $69,609
Supplies $3,600 $3,690 $3,875 $4,068 $4,272
Utilities $3,600 $3,690 $3,875 $4,068 $4,272
Professional Services $9,600 $9,840 $10,332 $10,849 $11,391
Travel & Fuel $12,000 $12,300 $12,915 $13,948 $15,064
Startup Cost $16,500 $0 $0 $0 $0
Bank Charges $600 $615 $630 $646 $662
Depreciation $600 $600 $600 $600 $600
Payroll Taxes $5,575 $12,231 $16,617 $17,115 $21,891
Total Personnel $50,000 $109,699 $149,028 $153,499 $196,336
Total Operating Expenses $166,515 $228,467 $284,679 $305,162 $362,113

Profit Before Interest and Taxes $227,235 $401,533 $581,571 $826,795 $1,084,845
EBITDA $227,835 $402,133 $582,171 $827,395 $1,085,445

Net Profit $227,235 $401,533 $581,571 $826,795 $1,084,845
Net Profit/Revenue 14.43% 15.93% 16.78% 17.20% 17.88%
Income Statement Assumptions: (1) Depreciation is based on 10 years; (2) Total payroll taxes are
7.65%

35. Real Estate Company Name
Investor Business Plan 35



-$30,000
-$20,000
-$10,000
$0
$10,000
$20,000
$30,000
$40,000
$50,000
Month 1
Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
Month 10
Month 11
Month 12
Gross Margin & Profit Monthly
Gross Margin Profit
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Year 1 Year 2 Year 3 Year 4 Year 5
Gross Margin & Profit Yearly
Gross Margin Profit

36. Real Estate Company Name
Investor Business Plan 36
PROJECTED CASH FLOW
The following is a depiction of Real Estate Company Name’ projected cash flow:
Pro Forma Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5
Cash Received
Revenue $1,531,250 $2,493,750 $3,438,750 $4,770,037 $6,032,324
Owner Contribution $20,000 $0 $0 $0 $0
Proceeds from Investor $500,000 $0 $0 $0 $0
Subtotal Cash Received $2,051,250 $2,493,750 $3,438,750 $4,770,037 $6,032,324

Expenditures
Expenditures from
Operations

Total Personnel $50,000 $109,699 $149,028 $153,499 $196,336
Bill Payments $1,142,443 $1,966,442 $2,681,563 $3,733,631 $4,704,084
Subtotal Spent on
Operations
$1,192,443 $2,076,141 $2,830,591 $3,887,130 $4,900,420

Additional Cash Spent
Start-up Costs $16,500 $0 $0 $0 $0
Flipping Properties $0 $236,250 $472,500 $472,500 $472,500
Purchase Long-term
Assets
$6,000 $0 $0 $0 $0
Subtotal Cash Spent $1,214,943 $2,312,391 $3,303,091 $4,359,630 $5,372,920

Net Cash Flow $836,307 $181,359 $135,659 $410,407 $659,404
Cash Balance $836,307 $1,017,666 $1,153,325 $1,563,732 $2,223,136
Cash Flow Assumptions: (1) Proceeds from Investor Funds assume were received in the amount
of $500K; (2) Owner Contribution is $20K.

$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Month 1
Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
Month 10
Month 11
Month 12
Year 1 Cash
Net Cash Flow Cash Balance

37. Real Estate Company Name
Investor Business Plan 37
PROJECTED BALANCE SHEET
Following is the projected balance sheet of Real Estate Company Name.
Pro Forma Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current Assets
Cash $836,307 $1,017,666 $1,153,325 $1,563,732 $2,223,136
Account Receivable $43,750 $70,000 $96,250 $133,537 $168,537
Inventory $0 $236,250 $708,750 $1,181,250 $1,653,750
Total Current Assets $880,057 $1,323,916 $1,958,325 $2,878,519 $4,045,423

Long-term Assets
Long-term Assets $6,000 $6,000 $6,000 $6,000 $6,000
Accumulated
Depreciation
$600 $1,200 $1,800 $2,400 $3,000
Total Long-term Assets $5,400 $4,800 $4,200 $3,600 $3,000

Other Assets
Total Assets $885,457 $1,328,716 $1,962,525 $2,882,119 $4,048,423

Liabilities and Capital
Current Liabilities
Accounts Payable $138,222 $179,947 $232,186 $324,984 $406,443
Subtotal Current
Liabilities
$138,222 $179,947 $232,186 $324,984 $406,443

Total Liabilities $138,222 $179,947 $232,186 $324,984 $406,443

Paid-in Capital $520,000 $520,000 $520,000 $520,000 $520,000
Retained Earnings $0 $227,235 $628,768 $1,210,339 $2,037,134
Earnings $227,235 $401,533 $581,571 $826,795 $1,084,845
Total Capital $747,235 $1,148,768 $1,730,339 $2,557,134 $3,641,979
Total Liabilities and
Capital
$885,457 $1,328,716 $1,962,525 $2,882,119 $4,048,423

Net Worth $747,235 $1,148,768 $1,730,339 $2,557,134 $3,641,979

38. Real Estate Company Name
Investor Business Plan 38
SENSITIVITY ANALYSIS
The sensitivity analysis below assumes that revenues are 10% higher or 10% lower than the figures
projected earlier in this business plan.
Best Case Scenario (Revenue Increases by 10%)

Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $1,732,500 $2,772,000 $3,811,500 $5,288,056 $6,674,056
Cost of Goods $1,299,375 $2,079,000 $2,858,625 $4,042,903 $5,082,403
Gross Margin $433,125 $693,000 $952,875 $1,245,154 $1,591,654
Gross Margin/Revenue 25.00% 25.00% 25.00% 23.55% 23.85%
Operating Expenses $166,515 $228,467 $284,679 $305,162 $362,113
Net Profit $266,610 $464,533 $668,196 $939,991 $1,229,541
Cash Flow $875,682 $244,359 $222,284 $523,603 $804,100
Cash Balance $875,682 $1,120,041 $1,342,325 $1,865,928 $2,670,028
Net Profit/Revenue 15.39% 16.76% 17.53% 17.78% 18.42%

Worst Case Scenario (Revenue Decreases by 10%)

Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $1,417,500 $2,268,000 $3,118,500 $4,326,592 $5,460,592
Cost of Goods $1,063,125 $1,701,000 $2,338,875 $3,307,830 $4,158,330
Gross Margin $354,375 $567,000 $779,625 $1,018,762 $1,302,262
Gross Margin/Revenue 25.00% 25.00% 25.00% 23.55% 23.85%
Operating Expenses $166,515 $228,467 $284,679 $305,162 $362,113
Net Profit $187,860 $338,533 $494,946 $713,600 $940,149
Cash Flow $796,932 $118,359 $49,034 $297,211 $514,708
Cash Balance $796,932 $915,291 $964,325 $1,261,536 $1,776,244
Net Profit/Revenue 13.25% 14.93% 15.87% 16.49% 17.22%

39. Real Estate Company Name
Investor Business Plan 39
FINANCIAL ASSUMPTIONS
The assumptions below provide growth rates, cash on hand, and the terms of funding based on an initial
investment amount of $500,000 and the owner’s contribution of $20,000.

Financial Assumptions

Year 1 Year 2 Year 3 Year 4 Year 5
Growth Assumptions
Total Revenue Growth 60% 38% 39% 26%
Total Expense Growth 37% 25% 7% 19%

Personnel Assumptions
Average Salary Growth 3% 3% 3% 3%
Payroll Growth 119% 36% 3% 28%

Cash Assumptions
Months of Cash on Hand 18 53 49 61 74
Bill Payment Term (Days) 32 32 32 32 32

40. Real Estate Company Name
Investor Business Plan 40

REVENUE ASSUMPTIONS
Real Estate Company Name assumes the revenue generation from its operations as
follows:
Revenue Assumptions

Phase 1
Deals
Av. Selling
Price
Commission
(5%)
Av.
Purchase
Price
Av.
Renovation
Cost
Total
Direct
Cost
Gross
Margin
Revenue
Months
Sep-Feb 2 $315,000 $15,750 $185,500 $35,000 $236,250 $78,750 $630,000
Mar-Aug 3 $315,000 $15,750 $185,500 $35,000 $236,250 $78,750 $945,000
Total 5 $1,575,000

Phase 2
Year of
Operation
Deals
Av. Selling
Price
Commission
(5%)
Cost to
Build
Total Direct
Cost
Gross
Margin
Revenue
4 1 $356,162 $17,808 $284,250 $302,058 $54,104 $356,162
5 2 $356,162 $17,808 $284,250 $302,058 $54,104 $712,324
Total 3 $1,068,486



General Assumptions

Average Size Sq. Ft $1,895
Cost to Build/Sq. Ft $150
Total Cost $284,250
Selling Price $356,162
Commission (5%) $17,808
Total Direct Cost $302,058



70% Rule

Home Price $315,000
70 Percent of Price $220,500
Av. Renovations $35,000
Max Purchase Price $185,500

41. Grandeur Homes

Investor Business Plan 41
APPENDIX: YEAR ONE FINANCIALS
Year 1 Revenue Forecast

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Total
Flipping Home - Capital Gain 1 0 0 0 1 0 1 0 1 0 1 0

Price
Flipping Home - Capital Gain $315,000.00 $0.00 $0.00 $0.00 $315,000.00 $0.00 $315,000.00 $0.00 $315,000.00 $0.00 $315,000.00 $0.00

Revenue
Flipping Home - Capital Gain $315,000 $0 $0 $0 $315,000 $0 $315,000 $0 $315,000 $0 $315,000 $0
Total Revenue $315,000 $0 $0 $0 $315,000 $0 $315,000 $0 $315,000 $0 $315,000 $0

Direct Cost
Flipping Home - Capital Gain $236,250.00 $0.00 $0.00 $0.00 $236,250.00 $0.00 $236,250.00 $0.00 $236,250.00 $0.00 $236,250.00 $0.00

Direct Cost of Revenue
Flipping Home - Capital Gain $236,250 $0 $0 $0 $236,250 $0 $236,250 $0 $236,250 $0 $236,250 $0
Subtotal Cost of Revenue $236,250 $0 $0 $0 $236,250 $0 $236,250 $0 $236,250 $0 $236,250 $0

42. Grandeur Homes

Investor Business Plan 42

Year 1 Personnel Forecast

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Staff Count
Director 1 1 1 1 1 1 1 1 1 1 1 1
Total Personnel 1 1 1 1 1 1 1 1 1 1 1 1

Staff Salary
Director $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167

Staff Salary - Total
Director $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
Total Payroll $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167

43. Grandeur Homes

Investor Business Plan 43

Year 1 Income Statement

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Revenue $47,250 $78,750 $94,500 $126,000 $141,750 $141,750 $141,750 $141,750 $157,500 $157,500 $173,250 $173,250
Subtotal Cost of Revenue $35,438 $59,063 $70,875 $94,500 $106,313 $106,313 $106,313 $106,313 $118,125 $118,125 $129,938 $129,938
Total Cost of Revenue $35,438 $59,063 $70,875 $94,500 $106,313 $106,313 $106,313 $106,313 $118,125 $118,125 $129,938 $129,938

Gross Margin $11,813 $19,688 $23,625 $31,500 $35,438 $35,438 $35,438 $35,438 $39,375 $39,375 $43,313 $43,313
Gross Margin/Revenue 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%

Expenses
Rent $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
General Insurance Liability $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Business License/Permits $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Telephone/Internet $320 $320 $320 $320 $320 $320 $320 $320 $320 $320 $320 $320
Website Hosting/Updates $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Marketing & Advertising $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Supplies $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Utilities $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Professional Services $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Travel & Fuel $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Startup Cost $16,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Bank Charges $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Depreciation $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Payroll Taxes $465 $465 $465 $465 $465 $465 $465 $465 $465 $465 $465 $465
Total Personnel $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
Total Operating Expenses $29,001 $12,501 $12,501 $12,501 $12,501 $12,501 $12,501 $12,501 $12,501 $12,501 $12,501 $12,501

Profit Before Interest and Taxes ($17,189) $7,186 $11,124 $18,999 $22,936 $22,936 $22,936 $22,936 $26,874 $26,874 $30,811 $30,811

Net Profit ($17,189) $7,186 $11,124 $18,999 $22,936 $22,936 $22,936 $22,936 $26,874 $26,874 $30,811 $30,811
Net Profit/Revenue -36.38% 9.13% 11.77% 15.08% 16.18% 16.18% 16.18% 16.18% 17.06% 17.06% 17.78% 17.78%

44. Grandeur Homes

Investor Business Plan 44

Year 1 Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Additional Cash Received
Revenue $47,250 $78,750 $94,500 $126,000 $141,750 $141,750 $141,750 $141,750 $157,500 $157,500 $173,250 $173,250
Owner Contribution $20,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Proceeds from Investor $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $551,500 $73,500 $91,000 $121,625 $138,075 $139,300 $140,000 $140,438 $155,896 $156,217 $171,723 $171,977

Total Personnel $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
Bill Payments $0 $43,722 $67,347 $79,160 $102,785 $114,597 $114,597 $114,597 $114,597 $126,410 $126,410 $138,222

Additional Cash Spent
Start-up Costs $16,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $6,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Cash Spent $26,667 $47,889 $71,514 $83,326 $106,951 $118,764 $118,764 $118,764 $118,764 $130,576 $130,576 $142,389

Net Cash Flow $524,833 $25,611 $19,486 $38,299 $31,124 $20,536 $21,236 $21,674 $37,132 $25,640 $41,146 $29,589
Cash Balance $524,833 $550,445 $569,931 $608,230 $639,353 $659,890 $681,126 $702,800 $739,932 $765,572 $806,719 $836,307