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Comprehensive Real Estate Industry Business Plan: Access Best PDF Word Document

Comprehensive Real Estate Industry Business Plan: Access Best PDF Word Document

Megha Garg

Megha Garg

October 3 2022

What is a Business Plan?


Describing a company's plan for future endeavors is what we call a business plan. Broadly, it is a written PDF or word document that displays details regarding your company's activities, services, market scenario, future plans, or a general overview of the same. Consequently, in the case of a real estate industry business plan, the word document presents the scenario of the country's commercial and residential real estate or a particular region.


Moreover, every organization must have a business plan for itself. It has to explain its key goals, provide facts and general information to the public about the real estate market, and such. Also, the business plan should detail your company's strategy and how the customers can take advantage of the opportunity for their betterment.



Purpose of Having a Real Estate Business Plan


Construction and other vital inventory in the US real estate market increased for both new and existing houses. One of the patterns studied from the analysis states that the inventory of the new housing units for sale at the end of Q2 stood at 348,000 units (SA), at a growth rate of more than 14% from Q1 2021. In contrast, it marked a growth of 16% as compared to 2020.



Via Giphy



Furthermore, there were severe affects to the US residential real estate market by the pandemic and is in the recovery phase, highlighting an increase in sales. The market is anticipated to grow at a CAGR of more than 5.77% from 2022 to 2027. Also, the demand for multifamily houses increased in comparison to single-family homes. Moreover, housing starts at 1.11 million units in single-family homes in Q2 2021 based on the seasonally adjusted annual rate (SAAR).


Henceforth, looking at the real estate market pattern, organizations must plan their goals well in advance using a business plan. Some of the key purposes of having a real estate business plan include:


  • Clears the company’s strategy and the market overview to take the opportunity and excel
  • Keeping investors excited so that they can secure funds in your business plan
  • Section-wise explanation of the business plan to the stakeholders
  • Prove that your idea is unique and you are the first in the market to execute it


Must Elements to Include in a Competent Real Estate Business Plan


Various new start-ups and existing businesses are coming up with unique green solutions to keep up with the pace of post-recovery after the pandemic and technology. In contrast, all real estate businesses provide complete details about the insights of key trends and the technology used to achieve desired results. Competent green solutions offered by these organizations to stakeholders include sustainable-friendly architecture, advanced building methods, AI and advanced analytics, etc. Moreover, they also display every detail in their business plan.


Furthermore, the top 10 vitals that you can’t afford to miss out in your efficient real estate industry business plan are:


  • Cover Page
  • Executive Summary
  • Company Description
  • Products & Services
  • Industry Analysis
  • Target Market
  • Market Opportunities
  • Financial Summary
  • Funding Details
  • Exit Strategy



Significant Trends that are Expected to Play Out in Real Estate Industry


With the passing of the past two years, more signs of uncertainty are breaking the promises of both residential and commercial properties. As the surging real estate market is increasing the prices like a bull, people are shifting to trial homes/rental homes/multi-family homes. Hence, take each and every shift in the market positively as a huge opportunity are their to excel with the idea and balance out the adverse or slow effects of the market. Thus, investors or stakeholders are ready to expect significant market trends.


Consequently, the real estate industry is bound to face some major trends in the upcoming months till 2025, they are: the hot streak for residential and commercial housing will continue for a long, and real estate and material prices will rise; thus, surging growth for existing assets, real estate market will welcome more quantitative firms to their mix for stabilizing the yield and outsizing returns, and more.



How to Build a Business Plan? - Segments Covered in the Real Estate Business Plan PDF Document


Although, the robust, efficient, competent, and insightful business plan for real estate contains every bit of vital information. Business is subject to several markets and industry risks. There are several assumptions made while projecting the financial performance of the company. The business growth will differ if the platform deviates from its underlying cost and growth trend assumptions. Therefore, it is essential to evaluate the business growth.


Check out in our blog the essentials that a real estate industry business plan must have. Also, continue reading to know vitals and facts of the market, recent developments, key trends, etc.


Let’s just dive right into the ‘must haves’ in a real estate industry business plan.



Step 1: Prepare a Cover Page

The real estate industry business plan has been prepared in compliance with the disclosed laws and guidelines in the same industry. Moreover, the successful opening of the real estate firm will create full-time employment for residents and contribute positively towards the economy on a national level.


Consequently, the manual blog on the real estate industry has to give insights on how to frame a word or PDF document business plan. It must cover comprehensive details about the industry. What vitals must a business plan include for clients and investors? Let’s take a look.



Real Estate Industry Business Plan PDF Word Document

Download this Business Plan Word Document



Step 2: Prepare an Executive Summary

Despite of pandemic rattling the economy, the expectations are that the real estate industry will improve in the forthcoming years. The word document for the business plan must highlight the executive summary related to the industry insights. Henceforth, it should showcase that millennials' real estate market share will rise in the forthcoming years. Thus, the real estate industry needs to cater to this market segment to stay relevant.


Moreover, companies must be more proactive in meeting the new market demands. Also, CRE plays a major role in the US economy by supporting direct spending & employment. There is no doubt that the real estate industry is an exciting and vibrant industry. Along with, several profitable challenges and opportunities.


Likewise, one can display more such facts and comprehensive information regarding the real estate industry for clients and investors. This detail gives them insight into the market, commercial and residential real estate opportunities, etc.



Real Estate Industry Business Plan PDF Word Document

Download this Business Plan Word Document



Step 3: Showcase Details About The Entity

To become the first choice of the target segment and further envisage becoming a renowned brand in the real estate market, one has to describe their entity in the business plan insightfully. Consequently, the entity title in the PDF document exhibits must detail for the company's web address, location, etc. Also about the target market, incorporation date, founder's name, vital information about the company, goals, objectives, etc.


Furthermore, the real estate industry has many facets of the property, comprising construction, selling, leasing, managing, etc. Also, the word document business plan is written based on the company. That aims to establish a strong presence within the US real estate market. Along with, become a preferred partner of the target segment, and become a renowned brand in the US real estate market.


In contrast, mention details for the goals and objectives in the business plan so the customers know about your project status. Some goals can be to establish a strong presence within the real estate market, develop good relationships with clients, etc. Also, to encourage repeat business and provide for consistent growth, establish a full-service real estate firm, providing various products and services, and more.


Moreover, the entity details included in the business plan can have facts like: the company will be backed by a strong professional team & abundant resources to run its operations smoothly, spearheaded by the CEO, execute a strategic marketing campaign, utilize both online platforms and traditional direct business channels, etc.



Real Estate Industry Business Plan PDF Word Document

Download this Business Plan Word Document



Step 4: Highlight Information Regarding Products & Services

Real estate industry is majorly segmented into residential, commercial, and service sectors. The word document for the real estate industry business plan must showcase some of the offerings for the different segments. The offerings can include the products and services provided to the customers.


Consequently, the residential real estate products & offerings mentioned in the PDF document are villas, apartments, multifamily houses, townships, condominiums, single-family homes, etc. Moreover, the real estate service market must highlight its services in the word document for the customers. The key services can include leasing, renting, facility management, brokerage, etc.


Likewise, the products that can be mentioned for commercial real estate in the PDF document business plan. Some of them are multifamily (Duplex, Triplex, Quadruplex), industrial (heavy manufacturing light assembly, warehouse), land (greenfield/agricultural land, infill land), etc. Also, mixed-use (combination of office), special purpose (include amusement parks, bowling alleys, parking lots, etc.), and more.


Henceforth, the real estate industry's business plan must display several product and service details for each sector. Moreover, the word document has to provide comprehensive details regarding each of them.



Real Estate Industry Business Plan PDF Word Document

Download this Business Plan Word Document



Step 5: Illustrate Facts for Market Gap

Like every other aspect and industry, the real estate industry has some challenges. The insightful word document for real estate business plans must exhibit some of the key challenges associated with the industry. Consequently, they can be: increased liability, cost of US real estate, market volatility, and lack of supply.


A new regulation is being mandated to operators or property managers almost every day. Also, liability is growing quickly for investors operating their rental portfolios. Although the industry is recovering from the setback, it depends on the investor strategy on how to address the situation.


Moreover, a major challenge real estate investors encounter is market volatility. However, a lot of opportunities are lying ahead for real estate investors. But the uncertainty of the global pandemic and geopolitics make this a difficult phase for investors. Furthermore, investors can work out a deal with an expert property manager. This will limit the liabilities that the government involvement is promptly creating.


Another challenge for the real estate industry is surging prices and stretched supply levels; the United States property market presents the most challenging situation for buyers. This market situation creates competition (between buyers) in the supply-tight market. For more information regarding the latest real estate industry market gaps, refer to our effective word document.



Real Estate Industry Business Plan PDF Word Document

Download this Business Plan Word Document



Step 6: Exhibit All the Market Opportunities

The business plan should highlight some of the top market opportunities for the real estate sector. We know that Covid-19 has increased the prices of houses in the US. With people who work remotely and have higher-than-average standards for driving the market. Thus, some of the top market opportunities presented in the PDF document can include sublease space, which will continue to increase, the US housing market, demand for multifamily homes, rising residential construction, the growing rental market, etc.


The US is undoubtedly becoming a renter’s nation, and this trend will continue in 2022 & beyond. Moreover, housing prices have become so inflated that the percentage of people who can afford a house has already fallen and will continue to decline. Thus, the rental property market is in high demand. Prices for single-family homes are up, henceforth, multifamily housing demand will decline, and rental markets will surge.


Consequently, the trend for multi-family homes has been seen since the onset of the pandemic. And is expected to be continued in full force in the coming 12-18 months. Likewise, sublease space will keep increasing, tenant concessions will keep rising, and rates will continue to weaken and decline.


In addition to building homes, explain in the business plan home renovation also forms a major part of residential construction. Also, building improvements in the residential property sector will have an anticipated annual value of over $205 billion by 2023.


Thus, all these top market opportunities for the real estate industry will aid organizations and individuals. It will aid them to learn more about the market with depth and analysis.



Real Estate Industry Business Plan Word Document

Download this Business Plan Word Document



Step 7: Conduct an Industry Analysis - Overview of the Real Estate Market

No doubt, there is an increase in the existing home sales, including townhomes, cooperatives, single-family homes, etc. Also, more than a decade ago, the property market encountered a great recession. Furthermore, today also, the housing market has made great strides as it accounts for more than 85% of the market. Consequently, rising rents for residential property fosters the demand for customers to buy starter homes. Which has to be exhibited in the business plan, which looks more reasonable to the would-be buyers than renting.


The PDF document for the industry business plan must showcase the overview of the real estate market, statistics with an in-depth view of the US real estate market, etc. It can even include a list of top US real estate markets in 2022, key market trends in the residential market, recent developments in the US residential market, and more.


Some key statistics can be included, highlighting how the stakeholders should act and approach the rest of 2022. They have a rental vacancy rate of 5.8%, an unemployment rate of 3.6%, a price-to-rent ratio of 21.35, and more. Moreover, most of the forecasts and indicators used for analysis of the US real estate market anticipated more stability than appears on the surface.


Henceforth, the word document for the real estate industry business plan should provide facts and developments for the residential property in detail.



Real Estate Industry Business Plan Word Document Real Estate Industry Business Plan Word Document Real Estate Industry Business Plan Word Document

Download this Business Plan Word Document



Step 8: Display Details About Commercial Real Estate

Since 2010, the commercial building market in the United States has constantly been growing. The commercial real estate market is leading the way in the post-pandemic recovery. As firms balance productivity and safety, and retailers face pivotal moments, etc. The word document will be helpful for the organizations to learn about the facts related to the commercial real estate industry.


Companies are also contending with a growing desire for them to give priority to ESG issues, aging technology, more varied competition, etc. According to market size, the US commercial real estate market is ranked first in the leasing & rental industry. Thus, the PDF document for the same must include vital information related to the recent developments in the commercial real estate industry, year-over-year changes in the sectors, etc.


Along with, business plan can showcase that the industrial rents are estimated to grow annually from 3.1% to 3.7% by the end of 2023. Along with some of the top tech trends emerging in the property market are big data analytics, cloud technology, virtual reality, cloud-based mobile applications, 3D imaging, etc.



Real Estate Industry Business Plan PDF Document Real Estate Industry Business Plan PDF Document

Download this Business Plan Word Document



Step 9: Prepare a Financial Summary

Financial computations of the real estate industry are based on the conditions prevailing in the market. Moreover, the financial assumptions work on business practices followed in the normal course of the business. The word document for the business plan must present a financial summary of the real estate industry.


Consequently, the document should exhibit the historical and forecasted data for assumptions like net revenue, operating expenses, balance sheet elements, inflation rate, corporate tax, insurance charges, depreciation on computer/electrical devices, and fixed assets.


Likewise, as the industry expects solid financial results from previous years, one can show the revenue model for the real estate industry. The revenue model will illustrate forecasted data for revenue from residential property, revenue from commercial property, etc. Similarly, break-even analysis estimates the minimum revenue volume required to cover the fixed cost of the business.


The break-even analysis table can show forecasted data for average revenue per year, average variable cost per year, estimated annual fixed cost, contribution margin, etc. Henceforth, the PDF document for the business plan should display historical and forecasted data for revenue, direct costs, gross profit margin, operating expenses, earnings before interest, tax and depreciation, etc.


Moreover, the word document must present a cash flow statement for the real estate industry that shows data for cash flow from operating, investing, and financing activities.



Real Estate Industry Business Plan Word/PDF Document Real Estate Industry Business Plan Word/PDF Document Real Estate Industry Business Plan Word/PDF Document Real Estate Industry Business Plan Word/PDF Document

Download this Business Plan Word Document



Step 10: Build a Competent Exit Strategy

Exit strategies for the real estate industry take on different forms. The robust and competent word document for the business plan must display some of the key strategies for an exit strategy. They are IPO, mergers, acquisitions, private offerings, etc. Initial public offer improves access to liquidity if investors seek returns or redemptions faster than expected. In contrast, mergers help increase brand value.


Likewise, acquisitions give ownership to the acquirer and are generally two types, i.e., friendly and hostile. Through this exit strategy, one acquires another. At last, private offerings allow the current shareholders to be bought out in the new fundraiser rounds; also, they are considered less expensive than other exit strategies.


Get comprehensive details regarding what and how to include vital elements in your real estate industry business plan through our ready-made PDF and word document.



Real Estate Industry Business Plan Word/PDF Document

Download this Business Plan Word Document



Bottom Line


In contrast, there are strong expectations from global real estate market to expand at a compounded annual growth rate of 5.2% from 2022 to 2030. Our ready-made business plan document has essential information regarding the real estate industry, its overview, trend, key facts, recent developments, financial summary, exit strategy, etc.


Moreover, according to the National Association of Realtors, the real estate market is bound and predicted to hold the largest market share worldwide. Even though there is a constant wave-like fluctuation in the market due to various certain and uncertain factors, the real estate market provides stable and appreciating returns.



Take Assistance from SlideTeam!


Real estate industry business plan word PDF document is everything you need to take insight about the sector, market, and both simultaneously. But, what is not everyone’s cup of tea, is the designing and structuring of the vital elements together for an effective business plan.


There comes our role. At SlideTeam, a pool of researchers and designers work together on the projects to draft as per client requirements. One can even customize the same word document as per their business needs.


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P.S. Read our blog that is a complete guide to prepare real estate business plan (With various Templates Included).

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