Real Estate Developer Business Plan and SWOT Analysis

Real Estate Developer Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Real Estate Developer Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Real Estate Developer business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Real estate developers are some of the most profitable businesses. They are able to produce large-scale structures were a number of homes and sell them for a substantial profit. The demand for housing is not expected to decline any time soon given that populations in most countries are increasing. This trend is expected to continue in perpetuity. While the barriers to entry for starting a new real estate development business are low, there are a substantial amount of issues that must be dealt with on an ongoing basis. For most, most real estate developers are in a constant need of capital in order to continue to develop new properties. The operating expenses are considered very high given that there is a substantial amount of labor and material inputs that are required in order to develop a new property. Most real estate developer start out small by developing an individual property in order to sell it to the general public. This is the most common ways that individuals get into the business. The startup costs for a new real estate development firm range anywhere from $250,000 all the way to several millions of dollars depending on the initial scope, scale, and size of the business from the onset of operations. Generally, the gross margins generated from real estate sales range anywhere from 30% to 50% depending on the location.

Almost all real estate developers use bank financing in order to produce their properties. As such, a business plan is needed. This business plan should include a three-year loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Most real estate developers will also produce a business plan or a detailed financial statement for each anticipated development that they are going to undertake. Most financial institutions will require these individual financial statements each time a loan is requested in order to develop a property or a number of properties. Beyond the financial statements, a detailed analysis of the local and regional real estate market should also be included. This includes a full evaluation of how properties hold their pricing in both good economic times as well as bad economic times. Beyond this information and analysis of the population size, population density, median household income, and median family income should also be included.

As it relates to marketing, many Realty developers work very closely with real estate brokerages in order to produce their marketing strategies. Most brokerages are able to sell the units relatively quickly so that real estate holding costs are kept to a minimum. This should be the foremost strategy for any real estate developer given that these individuals are heavily commission driven. Beyond working with a real estate brokerage, many real estate developers will often develop a large-scale website to show properties that have been completed or that are in development. This website should be included on all marketing materials distributed by the business.

A real estate developer SWOT analysis should also be created. As it relates the strengths, real estate developers generally are able to remain profitable in most economic climate climates is set except when interest rates are extremely high order issues with the financial markets. One of the nice things about operating a real estate development business is that they are able to pull back their operations during difficult housing market climates. For weaknesses, real estate developers have very high operating costs relating to both labor as well as material inputs that are going to be used in conjunction with construction operations. As it relates to opportunities, many real estate developers operate on an ongoing basis with the development of new projects. As such, the quickest way to grow a real estate development business is to acquire additional capital and develop larger scale properties. For threats, economic downturns are always a major concern for any real estate developer coupled with increases in the prevailing interest rate. It is important that any real estate development firm is looking to develop a large-scale property have a complete understanding of the local and regional real estate market also focusing on the capital markets as it relates to mortgages.