MSN Real Estate (MSN), an Oregon-based realty company, will provide benchmarked rental units in Eugene, Oregon. MSN’s units are designed to provide tenants with safety, modern features, and a positive experience.
Market
MSN will target 3 distinct customer segments. They will serve the largest segment, University of Oregon students. This segment is growing at 7% a year with 18,000 prospective customers. This segment is especially attractive, as many local rental properties are not in good condition and are targeted at students. Local professionals are the second segment, with 12,000 potential members and growing at 4%. Faculty and staff at the University is the last segment. This segment has a 5% rate of growth and potential customers of 6,000.
Competiton
The market for high quality, reasonably priced apartment units has been growing at a rate of 6.7%. Oregon’s fourth quarter rental rates remained steady at $697 per square foot (or $.79/square foot). Although the Oregon market is seeing rapid employment growth, there is not much new housing. Not only is MSN pioneering this particular niche of affordable quality living, but it is capitalizing on the strength of the current economic growth in Oregon
Why Us?
MSN Real Estate offers high-quality and comfortable rental units in Eugene, Oregon. MSN’s apartment units reflect the rapid advances in technology and growing demand for quality housing. Our company offers a hassle-free environment where our tenants can enjoy all the benefits of attractive, safe and welcoming units. MSN’s primary goal is to provide the best customer service possible, unlike many realty companies which are only concerned with making profits. Our top priorities are tenant safety, happiness, as well as comfort. MSN maintains competitive market prices, while working toward expanding the number of units owned, and increasing total profits earned. As a company, we will strive for a harmonious and cohesive unit that is committed to achieving our mission. MSN’’s success is largely dependent on customer satisfaction. Equally important is employee satisfaction. MSN Real Estate founders are convinced that employee satisfaction will make the company succeed and be the key to their long-term success.
Expectations
Forecast
The company will be able to buy its second facility by year 2. It is currently in discussions with the owners of a 20-unit apartment building in downtown Portland, OR. It is difficult to predict changes in the building values over the long term, but it is estimated that we will be able to purchase this building for $570,000.
Financial Highlights by Year
Financing Needed
We will start with $1,250,000 of funding from diverse sources. We will have a $1,000,000.00 angel investment firm. A loan of $200,000. Lastly we will get $50,000 from the two owners
EquineAcres is a recreational real estate development project. It is not a horse business. The good news is that …
It is hard to believe that anyone working in business doesn’t love the story about Levi Strauss, the poor migrant man. We have included a brief summary of the story here, just in case.
Levi Strauss arrived in California during the great gold rush. He joined tens of thousands of other people who had their sights set on making the #8220 big strike, and living rich for the rest their lives. Levi was an observer man. The pull to the golden fields was strong. But Levi could not help but notice that there were 1,000 people who came home with pennies for every one who returned with the gold. He noticed that supplies were scarce and that those who supplied the gold fields with their goods made their “big strike” without leaving the city. One of the commodities in particularly short supply was canvas. Levi wired the grub stake to his East relatives, giving them instructions to purchase as many canvas as possible and have it shipped back to San Francisco. He received his canvas and sold it in a matter of days at an amazing margin. He ordered more, bought more, and ordered even more. He was soon supplying all kinds of supplies for those heading to the “gold fields.” Levi did not seek the riches in the gold fields. Rather, he found his fortune supplying those who were going. They say the rest is history. Today, Levi Strauss Company is a member in the global Fortune 1000. It has been a profitable and successful business for more than 100 year.
EquineAcres follows the same simple business model. The American equine market is multi-billionaire. Oklahoma ranks fourth in activity. The writer of this business plan has already “gone to the gold fields,” and come up wanting, i.e., already participated in the typical form of equine business and found it (as so many have) without financial reward. But as we all know, blessings can often be mixed, and thus is the case with this business proposal. The EquineAcres business plan presented here is the direct result of experience in the equine business which has identified the real, “big strike.” EquineAcres is not directly involved with the horse business. EquineAcres meets the needs and desires of those who are. Thank you, Mr. Strauss.
EquineAcres will take the experience and business knowledge gained from a successful 20-year-old professional career and leverage existing business contacts, target markets knowledge, and relationships to penetrate a vastly underserved sector in an extremely lucrative industry. EquineAcres also offers attractive products and service packages in a format that was virtually unknown before. EquineAcres can be a very profitable and expandable entity that is well-suited to rapid growth.
The reviewer of this business plan is hereby invited and encouraged to review it’s content in the greatest of detail. After recognizing the potential, the reviewer should contact the originator for further discussion in order to establish a mutually rewarding and profitable business relationship.
1.1 Mission
EquineAcres is a clean, attractive, well run resort community dedicated to horses and their owners. For horses, the primary focus is on exceptional care and 24-hour monitoring. This includes safety, security, health, and general well-being. For the owners, primary focus is placed upon providing a community atmosphere, professional and reliable business operations, competitive pricing of a complete range of equine products and services, and a full service facility ideally suited to meet all of their equestrian needs. Customers, the business operation, the professionalism of staff, and the goodwill of the community will prevail over all else.
1.2 Keys To Success
Here are the keys to EquineAcres’s success:
Maintaining a 100% Lease Rate
To maintain a minimum of 75% sales goal for products and services.
A retreat community setting that provides a welcoming, relaxing and fun environment for the lessors.
We offer a full range of equestrian products to help lessors capture maximum revenue.
Providing a return on investment substantial enough to fund the opening of two additional EquineAcres facilities, one each serving the Tulsa and Oklahoma City markets.
1.3 Objectives
EquineAcres’ success will be measured by five main objectives:
Percentage of leased lot, 10 available leases: Minimum 80%, 90%, acceptable medium, 100% = primary objective.
Percentage of maximum occupancy, 30 available equine residencies: 80% = minimum, 90% = acceptable medium, 100% = primary goal.
EquineAcres.com: Minimum, 90%, acceptable medium, 100% as primary goal.
Percentage of monthly product sale goal of $2,500 = 75% ($1,875) = minimum; 90% ($2,250); acceptable medium; 100% ($2,750); primary goal.
RJ Wagner & Associates Realty, Inc., a Texas S corporation, is based in Texas. This corporation is capitalized by one single stockholder and one principal investor, Regina Wagner. Regina Wagner is both a licensed broker as well as the sponsoring broker of this firm. This licensed broker will sponsor independent contractors licensed real estate agents in Texas. This corporation will formalize the real estate services offered.
RJ Wagner & Associates Realty, Inc., will open its doors for operation in July. The office is located at the Greenwood Square Shopping Center in Houston, Texas, in the Champions area. It will provide services for the Metropolitan Houston’s higher-income section.
With this broker, credibility and reputation are top priorities. The firm has a published realty book and realty organizational programs in Dallas Association of Realtors books and superstores. Over the past year, novice licensed agents have been enjoying the organization tools and guidance provided by Texas Real Estate/The Mobile Mentor.
1.1 Objectives
Our organization’s primary goals are:
Make your company a success and you will be able to profit from other real estate investments opportunities as they arise.
You can recruit and hire self-motivated, successful, and hardworking agents.
At least 15 of the above-mentioned sales agents must be in your office.
Develop a solid, corporate identity in our specified targeted market area.
To establish good working relationships and begin working as a team, promoting communication and suggestions from all participants.
Our third year in operation will make us one of top brokerage firms in the Champion Area.
In just 12 months, you can see a positive ROI.
The professionalism of the sales team and the manager of this company will make it possible to achieve the above-mentioned goals. After obtaining a realty license, individuals must be familiar with real estate laws. This business has a high turnover rate because agents are not trained outside of the law and regulations. Once they have a license, only then, they may obtain the sales and marketing training that is needed upon entering the profession. This training can be expensive for agents. When starting out, most agents are not able to obtain this training at the high prices set forth, and without the proper training the average earnings of a beginning real estate agent is very low in comparison to industry standards.
The office environment we provide will be inviting, yet productive. There will be a location in the office each day with a daily marketing routine/schedule to follow. Agents have the option to be led through a plan for gaining clients each day. They can follow the provided training or choose to go their own way. We will offer guidance and stability, so that new agents can earn more than the average agent in real estate.
If an agent with our company sets a goal to obtain only one seller and one buyer for the month, on an average of $150,000 sale on each side, would earn the agent $6,750 per month X 12 months = $81,000 per year. Regina’s goal as a broker is to help each agent achieve this goal.
This would result in a profit of $2,250 per months X 12 month = $27,000 for the entire year X 15, agents = $405,000. This includes sales from active brokers. These commissions would amount to $9,000 each (100%) to this corporation. The corporation will pay the broker a salary.
1.2 Mission
This plan serves as a guide for setting up and managing a new business. It will also be used as a template for a detailed marketing plan. This summary summarizes the key points of the plan.
RJ Wagner & Associates Realty, Inc. has three objectives: to make a profit, to grow at a challenging but manageable pace, and to adhere to the Texas Real Estate Commission’s ethical codes.
RJ Wagner & Associates Realty, Inc.’s first mission is to recruit Texas real-estate agents.
Agents choosing this firm will get a higher commission that allows them to market more.
As a result, the ongoing mission is to help homeowners sell their homes and homebuyers buy the home of their dreams by offering professional and personal support. Assuring customers’ best interests is always our priority.
The keys to success for RJ Wagner & Associates Realty, Inc., are marketing and networking, responsiveness and quality of customer service and generating repeat customers.
We aim to create a positive partnership with our clients as well our staff members and our title companies. It should respect the goals and interests each of them.
The local market for this business, while not new, is wide open for new and expanding brokerage firms.
This venture has shown outstanding promise and financial results in its initial financial analysis. Multiple sources confirm that the real-estate business is very profitable in today’s fast-paced world.
The company will continue to grow its market position by offering superior customer service to clients as well as to sales associates.
As shown in the highlights chart, this plan projects rapid growth as additional agents join. It also predicts high net profits for the next three years. RJ Wagner & Associates Realty, Inc. can be a very profitable venture if it implements this plan in conjunction with a thorough and detailed marketing plan.
People are living longer thanks to modern medicine. They are able to enjoy their spouse after having children or retiring from work. This is their second chance to be a happy, carefree young person. They must find a suitable place within their budget to help them achieve this.
Solution
GVRE will provide real-estate services in the newly created Golden Valley Retirement community, which is located northwest of Tucson, Arizona. GVRE is a full-service real estate, mortgage, and title company.
Market
The retirement industry has been steadily growing over the past twenty years. The U.S. 55+ population is at an all-time high of 21%. This is growing at an average rate in excess of 3% every year. 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 estimates that the annual retirement industry (which includes homes, special equipment, and retirement entertainment services) is worth 4.8 billion dollars.
Concurrence
The realty industry is highly fragmented. There are many potential competitors. Bowditch Realty (RE/MAX) are our two biggest 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 employees twelve agents and has long-term contracts with various home building companies. The company is slightly larger in size and market capitalization than GVRE.
RE/MAX may be the biggest and most well-known of all the real estate firms in America. It employs hundreds of agents with deep pockets, which can be used to offset any type of competition.
Why Us?
GVRE believes that the greatest threat at the moment is in new entrants to the market who will want to capitalize on this high growth industry. The most likely entrants are small, new realty companies with fewer that ten workers. The one advantage GVRE does have is the exclusive right to act as an agent for Golden Valley Retirement Community. However, due to the high number of competitors and the overall low profitability of each firm, competition is quite intense.
This industry has a lot to offer potential clients because clients tend to be concentrated in our area. Clients tend to “shop around,” in order to get the best service and price.
Expectations
Forecast
The company anticipates being profitable in the first 12 months and doesn’t expect to have any cash flow problems. We conservatively believe that during the first three years, average profitability per month per segment will be adequate. Our expectation is that there will be about one monthly sale to guarantee a breakeven point.
Although we are lucky and arrogant, our place in the market has allowed us to change the face of the real estate industry. The growth of the Internet and the advent of electronic commerce have not had any impact on our business plan. The Internet, in our opinion, is just a tool used by our company to supply services directly to an agent’s home office, but still conform to all our legal obligations under state and federal laws. Our company has the option to pay 100% commission on all sales for our agents, a status that is reserved only for the best realtors. We can charge them $200 per monthly plus $100 for each sale and listing. You can see that our projections show we can do this, and still make huge profits. This is why it’s imperative for agents to join our company. They save thousands of dollar. We make a huge profit and our clients save a lot. Amerihall Realest(r), which is a title awarded to real estate agents who have achieved the highest levels of professionalism and knowledge, are members of Amerihall.
This program partners are both highly capable in the automation and knowledge of real estate agents. With the Web’s ability to change quickly, we were able create a site that addresses the needs of the realty industry. This website is accessible to all parties, including clients, suppliers and real estate educational services. Our company will offer continuing education classes exclusively via our website to agents. They can do all of the continuing education required by their respective states from their computers at home. All the way to automatic renewal of their state license through the appropriate agencies, the process will be completed.
Simply put, we are ‘#8220 the future of real-estate”. With the support of these affiliated organizations, this will transform the real estate sector.
1.1 Strategic Alliances
AT&T provides all our Web services. It also automates servers that are specifically tailored for agents. Agents can receive all their calls through the virtual floor plan. Each agent will receive an extension number. Clients will be asked to enter their extension number when they call our toll free phone number. The agent’s home office will receive the call. If a client doesn’t have the extension numbers for an agent, they’ll be instructed to enter another option. The call is automatically forwarded the Amerihall agent nearest to them. AT&T recognizes the strength in our business plan and anticipates that we will grow so quickly that they need to automate more of their systems to meet the demand. Their projection, which is independent of our own, is 10,000 within the 1st year and an anticipation for 100,000 transactions on their network before retooling their system. Their strength lies with their ability supply all of their potential clients with high-band Internet access using cable modems. We are currently looking at a script page to allow our agents easy sign up and discounted installation program. This will allow our agents to sign-up easily and provide a discounted program for installation. Our agents will also be able to link directly through our website, which promotes fast Internet access at low rates. Growth of our company will depend on how quickly clients and agents adapt technology. AT&T is the best option for implementing these products.
Bank of America is the provider of most services to our company. They recognized early on in preliminary talks with our Web developer that this company will be a huge asset to the real estate industry. Aside from providing merchant services that meet our billing requirements, they have also created scripts in collaboration with our Web development team to accommodate the unique needs of Amerihall Agents. Amerihall has developed a system that allows agents to deposit their escrow check directly into our corporate account. This can be done from their virtual office terminal. The electronic transfer will take place instantly and the receipt will be printed immediately to the printer of the realtors’#8217. This service is unique in the industry. Our clients will have the best quality control possible as the bank will also certify our escrow accounts monthly.
These measures exceed all state requirements regarding escrow management. The software developers at Bank of America are working on additional features that will allow agents and clients to monitor the progress of transactions from start to finish.
Sterling Capital Mortgage is a national brokerage firm for residential mortgages. They have made it possible for agents to visit our site online exclusively to check the credit history of clients. The server will instantly print a prequalification letters, which can be used by the client and agent to make an offer to purchase a specific property. This, again, is a system that was developed specifically for Amerihall and its members.
Lowen Signs, the largest manufacturer of real estate signs in the country, is the best. Our agents can order personalized Amerihall signs online and have them shipped directly to their offices.
1.2 Service Description
Our product will be offered online to agents, giving them the power to manage all their realty activities. They have already access to the Internet’s regional multiple listing services. This allows them to list their listings and report their sales. We want to offer them all of the services that a traditional office offers without ever having to visit the designated office.
Agents will be able pick a job to do and the website will direct them to the page where they can complete it.
If agents need to order paper supplies, they simply go to our vendor area and pick the style, quantity, and the personal information to be printed. This website will be connected with a printer which will fill the order, and then ship the material directly back to the agents’ home offices. In the end, we would like to make the entire event transparent to the agent. We want it to look like Amerihall’s other service. This system could also be used for house signs, Errors & Omissions Insurance policies, home inspection agencies, real estate lawyers, and property lawyers. We will also offer a website to a nationally-recognized mortgage company. A realtor can easily enter the personal information of their clients. The site will run a credit report and then download a prequalification letters for the sale of the new house.
Agents can be charged by credit card using our system for all services, even monthly fees.
Our company will have a blanket Error & Omissions policy. Amerihall would pay one annual fee to the insurer and charge agents a monthly fee of around $60 each.
Finally, all agents will have access to a nationally advertised number that is toll free. This number will also be advertised on Realest(r), which includes their extension. Toll-free numbers will be called and the caller will then be asked to provide the extension. The agent’s home office would receive the phone call.
It will also be an advertised number throughout the country, which allows us to advertise the number to all potential clients through traditional advertising. AT&T automation will forward the call to the agent if a prospect calls the number. If Amerihall Realest(r), fails to locate an agent in the area, the call is returned to the corporate office. After that, it will be referred to an agent who is not participating with an agreement to pay 20%.
This will enable us pay for national advertising in order to increase our public awareness without having to burden individual agents with high costs. We are keen to eventually do all the phone features in-house as technology advances.
We will offer 24/7 online support to all our agents. There will also be an online help desk available by email.
In addition to all these feature, the agents will be able to download all of the forms used in the sale and management of real estate via the website.
In the future, our virtual office will take advantage of a live chat through NetMeeting, which will allow all agents (with the appropriate equipment) to communicate with each other, as well as deal with questions and concerns directly with our staff.
We would like to also offer agents their own email address, which corresponds with their Amerihall picture.
1.3 Description of Company
Amerihall is a culmination of the ownership of several real estate companies both franchises and partnerships. Hall Properties Realty, Inc. is a real estate brokerage that has been in operation for more than 18 years. It also owns a management and sales company. Hall properties has also owned franchise rights for a residential real estate franchise D.B.A. Re/Max Junction. We have made our real-estate sales more creative by using technology.
There are many problems with real estate sales as a system. The traditional realty office follows a plan that brokers supply basic equipment and office space. phone, fax, computer, printers). They also supply all prerequisites dictated by state law, in that the company will have a place of business that is open for inspection by the appointed agencies of the state during normal business hours. The office and all documents required to run the business will be accessible for inspection during business hours. They must also supply at most one designated broker who answers all state agencies regarding real estate-related issues.
There is no limit to the number of agents under one broker’s license, and the only rule designated by the state concerning the amount of agents is that all of their licenses must be displayed conspicuously in the office.
In the traditional office, 20%-50% of commissions are paid to the company from any sales generated by agents. They can make thousands and still charge agents for miscellaneous items. This can add up to hundreds of thousands of dollar per month.
The Re/Max program is a simple desk rental fee paid monthly on triple net leases. The average agent pays $2,000 per monthly for desk rental. A shared fee is paid for all other expenses, such as salaries, utilities, supplies, etc. ).
Both cases leave the agent responsible for any personal advertising done in an effort to benefit the office. They can never be sure that they will receive the greatest return on investment.
Our goal is to harness the power of the Internet to give agents the opportunity to work remotely from home using a computer,fax, and Internet connection. This eliminates the cost of having an office. The agent can advertise in the manner permitted by law and will receive all profits from their investment. Amerihall agents are paid a flat fee equal to $200.00 per month, and $100.00 for each transaction. The agent gets 100% of their commissions in return.
1.4 Mission
Amerihall’s mission is to transform the way real estate agents do business by replacing traditional offices with virtual ones that use the Internet. Real estate agents can save as much as $30,000- $50,000 per year by using Amerihall. This will allow them to increase their profits and be able to charge less to consumers than traditional realtors. The result is that the consumer will ultimately save thousands of money on the sale of their property.
1.5 Financing Requirements
The company’s owner has invested $125,000. Rest of the money will be raised through new members or sales of services.
Our interest in seeking outside funding is solely for the purpose of expanding on a national level. Funds will be used to market Amerihall across the United States. The Freedom of Information Act allows us to access lists from state licensing agencies. This will allow us to launch a direct marketing campaign. Our campaign will be modified slightly to take into account the differing state laws as well as regional policies for real estate agents.