how to make a property development business plan

Property Development Business Plan Template

Written by Dave Lavinsky

Property Development Business Plan

This sample property development business plan, written by the experts at PlanBuildr.com, provides the foundation to turn your vision into a successful real estate development venture.

With over 20 years of experience helping entrepreneurs create profitable businesses, our expertise is evident in every section of the plan, from project management strategies to financial projections. Use this plan to launch and grow your property development business.

Below is a template to help you create each section of your Property Development business plan.

Executive Summary

Business overview.

Redstone Development is a new property development company located in Salt Lake City, Utah. We focus on residential property development for single-family and multi-family homes. We handle all steps of the process, from sourcing the land to selling the finished property. Redstone Development aims to be the most trusted source of affordable housing in the Salt Lake City metro area.

Redstone Development is owned and operated by Jack Grant, a real estate development industry veteran who is well-versed in the entire property development process. Jack has over 30 years of experience developing residential properties and holds a Master’s in Real Estate Development. His education, experience, and industry connections will ensure that Redstone Development becomes one of the area’s most successful property development businesses.

Product Offering

Redstone Development will handle the entire development process, including sourcing land, securing all necessary approvals and permits, construction, and sale of the finished property.

The company focuses on building single-family homes and multi-family apartment complexes in the heart of Salt Lake City. All projects are designed to make these homes aesthetically appealing and luxurious. However, they will also be affordable to ensure that anyone in the Salt Lake City area can afford to live in our properties.

Customer Focus

Redstone Development will serve home buyers and real estate investors who live and work in Salt Lake City, Utah, or the surrounding area. Salt Lake City is a growing city in need of additional housing. More people come to this beautiful city every year, which reduces the number of available homes and apartment units. Therefore, we will target buyers who are struggling to find affordable housing.

Furthermore, there are thousands of first-time home buyers in the area. These buyers are an ideal target market for the company.

Management Team

Redstone Development will be owned and operated by Jack Grant. He recruited his former administrative assistant, Sheila Johnson, to be his Office Manager and help manage the office and operations.

Jack has over 30 years of experience developing residential properties and worked for several of our competitors. He also holds a Master’s in Real Estate Development from the University of Utah. His education, experience, and industry connections will ensure that Redstone Development becomes one of the area’s most successful real estate development businesses.

Sheila Johnson has been Jack Grant’s loyal administrative assistant for over ten years at a former property development firm. Jack relies strongly on Sheila’s diligence, attention to detail, and focus when organizing his clients, schedule, and files. Sheila has worked in the property development industry for so long that she understands all aspects required to run a successful property development company.

Jack will also employ several other full-time and part-time staff to assist with all aspects of running a real estate development business.

Success Factors

Redstone Development will be able to achieve success by offering the following competitive advantages:

• Location: Redstone Development’s office is near the center of town, in the shopping district of the city. It is visible from the street, where many residents shop for both day-to-day and luxury items.
• Client-oriented service: Redstone Development will have a full-time assistant with property development experience to keep in contact with clients and answer their everyday questions. Jack realizes the importance of accessibility and will further keep in touch with his clients through monthly newsletters.
• Management: Jack has been highly successful working in the property development sector. His unique qualifications will serve customers in a much more sophisticated manner than many of Redstone Development’s competitors.
• Relationships: Having worked and lived in the community his whole life, Jack knows many local leaders, real estate agents, and other influencers in the local property development industry.

Financial Highlights

Redstone Development is seeking $1,000,000 in debt financing to launch its property development business. The funding will be dedicated to purchasing our first property, construction costs, securing the office space, and purchasing office equipment and supplies. Funding will also be dedicated toward six months of overhead costs, including payroll, rent, and marketing costs. The breakout of the funding is below:

• Office space build-out: $50,000
• Office equipment, supplies, and materials: $20,000
• Land purchase and construction expenses: $530,000
• Six months of overhead expenses (payroll, rent, utilities): $250,000
• Marketing costs: $50,000
• Working capital: $100,000

The following graph below outlines the pro forma financial projections for Redstone Development.

Company Overview

Who is redstone development.

Redstone Development is a new property development company located in Salt Lake City, Utah. We focus on residential property development for single-family and multi-family homes. We handle all steps of the property development process, from sourcing the land to selling the finished property. Redstone Development aims to be the most trusted source of affordable housing in the Salt Lake City metro area.

Redstone Development is owned and operated by Jack Grant, who is a real estate development industry veteran and well-versed in the entire property development process. Jack has over 30 years of experience developing residential properties and holds a Master’s in Real Estate Development. His education, experience, and industry connections will ensure that Redstone Development becomes one of the area’s most successful property development businesses.

Redstone Development’s History

After 30 years of working in the property development industry, Jack Grant began researching what it would take to create his own property development company. This included a thorough analysis of the costs, market, demographics, and competition. Jack has compiled enough information to develop his business plan and approach investors.

Once his market analysis was complete, Jack began surveying the local office spaces available and located an ideal location for the property development headquarters. Jack incorporated Redstone Development as a Limited Liability Corporation on October 1st, 2022.

Once the lease is finalized on the office space, renovations can be completed to make the office a welcoming environment to meet with clients.

Since incorporation, Redstone Development has achieved the following milestones:

• Located available office space for rent that is ideal for meeting with clients
• Identified the first property to develop
• Developed the company’s name, logo, and website
• Hired an interior designer for the decor and furniture layout
• Determined equipment and fixture requirements
• Began recruiting key employees

Redstone Development’s Services

Redstone Development will handle the entire property development process, including sourcing land, securing all necessary approvals and permits, construction, and sale of the finished property.

Industry Analysis

The real estate and property development industries have been strong over the past few years. As of 2021, the real estate industry was valued at $3.69 trillion and is expected to grow at a compound annual growth rate of 5.2% from now until 2030.

This growth will be driven by increasing demand for personal housing. Millennials and Gen-Z are beginning to rent their first apartments or buy their first homes. After years of living with family or roommates, they are ready to have a space to call their own. This trend is leading to a substantial demand for housing that many cities are struggling to supply.

The main challenge to the property development industry is the decrease in market size in the land development industry. Over the past five years, the industry saw an average annual decline of 0.7%. However, we believe that the pandemic was a considerable factor in this decline. Currently, the land development market is valued at $12 billion USD, and we expect it to grow substantially due to the growth of similar industries and the increasing demand for housing, as mentioned above.

Customer Analysis

Demographic profile of target market.

Redstone Development will serve home buyers and real estate investors in Salt Lake City, Utah, and its surrounding areas.

The community of Salt Lake City has thousands of first-time home buyers, residential real estate investment firms, and people looking for affordable housing options in the area. The company will also target millennials specifically since the majority of first-time home buyers are in this age group.

The precise demographics for Salt Lake City, Utah are:

Customer Segmentation

Redstone Development will primarily target the following customer profiles:

• Home buyers
• Real estate investors
• Millennials
• Apartment/Condominium management companies

Competitive Analysis

Direct and indirect competitors.

Redstone Development will face competition from other companies with similar business profiles. A description of each competitor company is below.

Upscale Property Developers, Inc.

Upscale Property Developers, Inc. is a property development company in Salt Lake City. In business for over 40 years, Upscale Property Developers, Inc. provides oversight for the entire property development process for new single-family and multi-family residences, commercial offices, and government buildings across the area. Upscale Property Developers, Inc also offers a variety of property renovation, demolition, and revitalization services for existing buildings.

Although Upscale Property Developers, Inc. provides homes with a luxury aesthetic, they are also the most expensive property developments on the market, thus resulting in many first-time home buyers being priced out of the market.

Premium Property Development Solutions

Established in 1990, Premium Property Development Solutions is a property developer of new commercial and residential properties in Salt Lake City. The company specializes in eco-friendly building materials and upscale design options for individual and corporate clients. Clients can customize their building design or choose from a variety of standard design options. The company employs experienced property developers and designers who are well-versed in green building design.

Premium Property Development Solutions is more affordable than Upscale Property Developers Inc. but is still out of most first-time home buyers’ price ranges.

Salt Lake Residential

Salt Lake Residential is also a local property development company that manages the complete property development process from sourcing and permitting to construction and sale. They are mostly known for their unique apartment complex designs but are equipped to take on a variety of different builds. The company has been in business for about ten years and has developed a reputation for building quality homes for affordable prices.

Although Salt Lake Residential has a similar value proposition of luxury homes at affordable prices, this company lacks the green building and eco-efficiency component to their business model, thus losing out on business from eco-conscious home buyers.

Competitive Advantage

Redstone Development enjoys several advantages over its competitors. Those advantages include:

• Location: Redstone Development’s office is near the center of town, in the city’s shopping district. It is visible from the street, where many residents shop for both day-to-day and luxury items.

Marketing Plan

Brand & value proposition.

Redstone Development will offer the following unique value proposition to its clientele:

• Service built on long-term relationships and personal attention
• Big-firm expertise in a small-firm environment
• Client-focused property development, where the company’s interests are aligned with the client
• Effective project management
• Affordable pricing

Promotions Strategy

The promotions strategy for Redstone Development is as follows:

Website/SEO

Redstone Development will invest heavily in developing a professional website that displays all of the features and benefits of the property development company. It will also invest heavily in SEO, so the brand’s website will appear at the top of search engine results.

Social Media

Redstone Development will invest heavily in a social media advertising campaign. The marketing manager will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Print Advertising

The company will invest in professionally designed advertisements to be printed in real estate publications. Redstone Development will also list its properties for sale in key local publications, including newspapers, area magazines, and its own newsletter.

Community Events/Organizations

The company will promote itself by distributing marketing materials and participating in local community events, such as local festivals, business networking, or sporting events.

Redstone Development’s pricing will be moderate so consumers feel they receive great value when purchasing properties from the company.

Operations Plan

The following will be the operations plan for Redstone Development.

Operation Functions:

• Jack Grant will be the Owner and President of the company. He will oversee all staff and manage client relations. He will also oversee all major aspects of the development projects. Jack has spent the past year recruiting the following staff:
• Sheila Johnson – Office Manager who will manage the office administration, client files, and accounts payable.
• Kenneth Bohannon – Staff Accountant will provide all client accounting, tax payments, and monthly financial reporting.
• Beth Martinez – Marketing Manager who will provide all marketing for Redstone Development and each property it manages.
• Jack will also hire a team of architects, engineers, interior designers, and contractors to design and build the properties.

Milestones:

The following are a series of steps that lead to our vision of long-term success. Redstone Development expects to achieve the following milestones in the following six months:

1/1/202X         Finalize lease agreement

2/1/202X         Design and build out Redstone Development

3/1/202X         Hire and train initial staff

4/1/202X         Purchase first property for development

5/1/202X         Kickoff of promotional campaign

6/1/202X         Find second property for development

Jack has over 30 years of experience developing residential properties and worked for several of our competitors. He also holds a Master’s in Real Estate Development from the University of Utah. His education, experience, and industry connections will ensure that Redstone Development becomes one of the area’s most successful property development businesses.

Jack will also employ several other full-time and part-time staff to assist with all aspects of running a real estate development business as outlined in the Operations Plan.

Financial Plan

Key revenue & costs.

Redstone Development’s revenues will come primarily from the sale of completed properties. The company will sell new single-family homes, multi-family townhomes, and apartment complexes/condominium properties to individual buyers and investors.

The cost drivers will be the overhead costs required to staff a property development office. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

• Average monthly payroll expenses: $50,000
• Office lease per year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, property development business plan faqs, what is a property development business plan.

A property development business plan is a plan to start and/or grow your property development business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Property Development business plan using our Property Development Business Plan Template here .

What are the Main Types of Property Development Businesses?

There are a number of different kinds of property development businesses , some examples include: Single-family detached housing, Multifamily housing, Developing and Subdividing Lots, and Commercial buildings.

How Do You Get Funding for Your Real Estate Development Business Plan?

Property Development businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a real estate developer business plan and a real estate investment business plan template.

What are the Steps To Start a Property Development Business?

Starting a property development business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Write A Property Development Business Plan - The first step in starting a business is to create a detailed real estate development company business plan that outlines all aspects of the venture. This should include market research on the real estate market and potential target market size, information the services you will offer, marketing strategies, pricing details and a solid financial plan.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your property development business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks, so it’s important to do research and choose wisely so that your property development business is in compliance with local laws.

3. Register Your Property Development Business - Once you have chosen a legal structure, the next step is to register your property development business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your property development business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Property Development Equipment & Supplies - In order to start your property development business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your property development business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Essential Steps to Take Before Writing a Property Development Business Plan

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Are you ready to dive into the world of property development? Before you embark on writing your business plan, there are crucial steps you must take to lay a solid foundation. From researching the local real estate market to establishing a budget and identifying your target audience, each step is vital for success. Discover the essential 9-step checklist that will guide you through this process and set you on the path to achieving your property development goals. For a comprehensive business plan template tailored for property development, visit this link .

Why Do You Need A Business Plan For Property Development?

Creating a robust business plan for property development is essential for the success of any venture in the real estate sector. A well-structured plan not only serves as a roadmap for your project but also helps in securing funding and guiding decision-making throughout the development process. According to a study by the Small Business Administration, companies that plan their business are 30% more likely to grow than those that do not.

For a business like Urban Oasis Developments , which aims to provide affordable and sustainable housing solutions, having a clear strategy is critical. A comprehensive property development checklist can streamline the process and ensure that all aspects are considered, from initial research to final execution.

Here are some key reasons a business plan is vital for property development:

• Clarity of Vision: A business plan helps articulate your vision for the project, ensuring that all stakeholders are aligned with the goals and objectives.
• Market Analysis: Conducting a real estate market analysis allows you to understand trends and demands, which is crucial for identifying the right target audience.
• Financial Planning: It provides a framework for property development financial projections , helping you estimate costs, revenues, and funding sources effectively.
• Risk Management: A thorough plan includes a property development risk assessment to identify potential challenges and develop mitigation strategies.
• Regulatory Compliance: Understanding and documenting legal requirements for property development ensures that your project adheres to local laws and regulations.
• Funding Opportunities: A solid business plan can attract investors by clearly outlining the potential return on investment and the strategy for achieving it.
• Marketing Strategy: Establishing a marketing plan within your business strategy helps in effectively reaching your target audience.

Tips for Creating a Strong Business Plan

• Utilize a property development business plan template to ensure all critical elements are included.
• Regularly update your financial forecasts to reflect changing market conditions and project timelines.
• Engage with stakeholders early to gather insights and foster collaboration throughout the planning process.

In summary, a well-prepared business plan is a crucial component of successful property development. It not only guides the project from inception to completion but also enhances the likelihood of securing the necessary funding and support. For more insights on creating effective plans, consider reviewing resources that discuss best practices for property development planning .

How Do You Choose A Business Plan Template For Property Development?

Choosing the right business plan template for property development is a critical step in ensuring the success of your project, such as Urban Oasis Developments . A well-structured template provides a roadmap that aligns with your unique vision for sustainable and affordable housing solutions.

When selecting a template, consider the following factors:

• Relevance to Property Development: Ensure the template is specifically designed for real estate projects. It should cover essential components like market analysis , financial projections , and legal requirements for property development .
• Flexibility: Look for a template that allows customization. Every project has different goals and requirements, so being able to modify sections according to your needs is crucial.
• User-Friendly Layout: A clear and intuitive layout can make a significant difference in how easily you can fill out the template. A complicated format could lead to overlooked details.
• Incorporation of Financial Metrics: Choose a template that includes sections for property development financial projections . This is vital for assessing profitability and sustainability.
• Success Metrics: The template should guide you in defining measurable goals and objectives. This ensures you can track your progress effectively.

Tip for Selecting a Template

• Do a preliminary review of available templates online. Websites like BusinessPlan-Templates offer tailored options.
• Consult with experts in property investment business plans to gather insights on which templates have proven effective in the past.

Additionally, keep in mind the importance of market trends in property development . A template that incorporates current industry standards and innovations—such as eco-friendly practices and community-centric designs—will serve better in today's evolving real estate market.

Lastly, track documentation for property development that you may need to gather. The template should prompt you to include necessary paperwork, which may vary based on legal requirements for property development in your area.

What Should Be Included In A Business Plan For Property Development?

A comprehensive business plan for property development is essential for outlining your vision and direction. It should cover a variety of elements that will guide Urban Oasis Developments through its projects. Here are the critical components:

• Executive Summary: A brief overview of your business concept, including mission and vision. This serves as an introduction to potential investors.
• Market Analysis: Detailed real estate market analysis , including trends, demand, and demographics. Consider citing local market statistics to bolster your claims.
• Target Audience: Identification of your target audience and their needs. Understanding customer profiles can significantly impact marketing strategies.
• Competitor Analysis: A thorough competitor analysis for property development to understand your competition’s strengths and weaknesses.
• Legal Considerations: Outline any legal requirements for property development , such as zoning laws and environmental regulations.
• Project Description: A detailed description of the projects you plan to undertake, including design concepts and sustainability measures.
• Development Timeline: A schedule highlighting critical milestones for each stage of the property development projects.
• Marketing Strategies: Strategies and channels for promoting your developments, crucial for attracting potential buyers.
• Financial Projections: Detailed property development financial projections that include budgets, forecasts, and funding sources. Be sure to include estimated costs and expected returns on investment.
• Risk Assessment: An analysis of potential risks with a corresponding risk mitigation strategy. This is vital to reassuring stakeholders about project viability.
• Supporting Documentation: Include all documentation for property development such as permits, plans, and financial documents.

Incorporating these elements will provide a solid framework for your business plan and help you navigate the complexities of property development successfully.

Tips for Creating Your Business Plan

• Utilize a property development business plan template to ensure that you cover all necessary components effectively.
• Conduct your market trends in property development research regularly to stay updated and competitive.
• Leverage expert analysis to enhance your financial forecasts for property development projects , ensuring accuracy in expense and revenue projections.

How Do You Write A Business Plan Step By Step For Property Development?

Writing a business plan for property development, particularly for a venture like Urban Oasis Developments , requires a systematic approach. Below are essential steps to guide you through the process of creating an effective business plan tailored for property development:

Research The Local Real Estate Market

Start with a thorough analysis of the real estate market in your targeted area. Understand current trends, property values, and demographic shifts. For instance, urban areas are projected to grow by 1.5 billion people by 2030 , emphasizing the need for sustainable housing.

Understanding your target audience is crucial. Conduct surveys and interviews to determine the needs and preferences of potential residents. This can include features such as energy-efficient designs, community spaces, and proximity to amenities.

Analyze Competitors And Market Trends

Perform a competitor analysis for property development to identify strengths and weaknesses in your competitors. This step should also encompass evaluating market trends to position your project effectively.

Identify all the legal requirements for property development in your locality. This includes zoning laws, environmental regulations, and permits needed for construction. Non-compliance can lead to costly delays.

Establish A Budget And Funding Sources

Develop a comprehensive property development budget that outlines all projected costs, including land acquisition, construction, and marketing expenses. Additionally, identify potential funding sources for real estate projects , such as banks, investors, or grants.

Draft a detailed timeline for your project, including key milestones. This helps in project management and keeps stakeholders informed about progress. Aim for realistic deadlines to avoid setting yourself up for failure.

Outline Marketing And Sales Strategies

Develop marketing strategies focused on how to reach your target audience. Implement both digital and traditional marketing methods to maximize visibility. Consider collaborations with local businesses and events to enhance community engagement.

Assess Risks And Develop Mitigation Strategies

Conduct a thorough property development risk assessment . Identify possible risks, such as market fluctuations or regulatory changes, and formulate mitigation strategies to minimize their impact.

Gather Necessary Documentation And Resources

Compile all documentation for property development to support your business plan. This includes feasibility studies, architectural designs, and legal paperwork. Proper documentation is essential when presenting your plan to investors or lenders.

Tips for Writing Your Business Plan

• Leverage free resources like business plan templates to streamline the process.
• Engage with local community groups to gain insights and foster goodwill.

A well-structured business plan for property development is not just a roadmap but also a powerful tool to secure funding and manage your project effectively. Ensure it is dynamic and adaptable to changing market conditions and stakeholder needs.

What Financial Projections Are Needed In A Business Plan For Property Development?

Creating a robust financial forecast is an essential component of a business plan for property development . It serves as a roadmap, guiding your investment decisions and demonstrating the potential profitability of your project to stakeholders. A thorough financial projection should encompass various facets of your development project, including initial costs, ongoing expenses, and potential revenue.

Key financial projections to include in your property development business plan template are:

• Initial Capital Requirements: A detailed assessment of the funds needed to kick-start your project, including land acquisition, construction costs, and legal fees. For urban developments, initial investment can range from $1 million to over $20 million depending on the location and scale.
• Operating Expenses: Ongoing costs such as maintenance, property management, and utilities. Research indicates that operating expenses typically account for about 30% of gross rental income .
• Revenue Projections: Estimation of rental income or sales revenue. For instance, if you’re developing multifamily housing, you may project a rental yield of 6-8% annually, influenced by local real estate market analysis.
• Return on Investment (ROI): Calculating projected ROI is crucial. A well-planned property development should aim for an ROI of at least 15% within five years .
• Break-even Analysis: Determine when the project will start generating profit. This analysis helps to understand how many units need to be sold or rented before covering costs.
• Contingency Funds: It's advisable to set aside approximately 10-15% of total costs as a buffer for unexpected expenses.

When drafting these projections, utilize historical data and current market trends to substantiate your assumptions. Consult industry benchmarks to ensure your figures align with typical outcomes in the property development sector.

Tips for Accurate Financial Projections

• Engage a financial consultant with experience in property development to validate your assumptions.
• Regularly update your projections based on market fluctuations and economic changes.
• Utilize software tools for advanced forecasting techniques to enhance accuracy.

For more insights into managing operating expenses effectively, refer to this article: Managing Expenses in Property Development .

How Do You Define Business Goals And Objectives For Property Development's Business Plan?

Defining clear business goals and objectives is a critical step in creating an effective business plan for property development . Goals provide direction, while objectives offer measurable targets for success. Here’s how to effectively establish these components for your business—Urban Oasis Developments, focusing on sustainable and affordable housing solutions.

Begin with an analysis of your target audience identification . Understanding who you aim to serve will help shape your goals to align with customer needs. Consider these essential goals:

• Market Penetration: Aim to capture a specific percentage of the urban housing market within the first three years, targeting a 10% market share in your chosen area.
• Community Development: Set objectives to complete five major projects that convert neglected urban spaces into thriving communities over the next five years.
• Sustainability Metrics: Establish a goal to incorporate eco-friendly practices in at least 70% of your developments by 2025.

Additionally, financial goals are crucial for the property development business plan template . Outline specific revenue targets:

• Achieve annual revenue of $5 million by the end of Year 3.
• Maintain a gross profit margin of 25% on all projects.
• Develop a funding strategy to secure at least $2 million in investments through grants and partnerships.

It’s also important to define the operational objectives that will support your overarching goals:

• Project Timeline: Create a schedule that includes key milestones for each development project, aiming for a timeline that reduces project completion time by 20% compared to industry norms.
• Regulatory Compliance: Ensure adherence to all legal requirements for property development and receive necessary approvals within the first quarter of each project’s initiation.
• Customer Satisfaction: Aim for a customer satisfaction rate of at least 90% based on post-sales surveys.

Tips for Defining Goals and Objectives

• Utilize the SMART criteria (Specific, Measurable, Achievable, Relevant, Time-bound) to ensure all goals are clear and realistic.
• Regularly review and adjust your goals in response to market trends in property development and feedback from stakeholders.

In summary, the combination of clear goals and measurable objectives within your property development checklist will guide Urban Oasis Developments toward revolutionizing urban living successfully. Establishing a firm foundation in these areas will enhance your ability to adapt and thrive in the competitive real estate landscape.

What Are The Steps To Writing A Business Plan For Property Development?

Creating a comprehensive business plan for property development is vital for the success of any project. For Urban Oasis Developments, which aims to deliver affordable and sustainable housing, the following steps are essential:

Understanding the dynamics of the local market is crucial. Analyze the latest market trends in property development to identify opportunities and challenges. Conduct a real estate market analysis to assess pricing, demand, and future growth potential.

Define who will benefit from your developments. Utilize surveys or focus groups to gauge potential residents' preferences and identify their needs, ensuring that your project aligns with their vision.

Conduct a detailed competitor analysis for property development to understand what similar projects offer and how your proposal can differentiate itself. Look at pricing, amenities, and customer satisfaction.

Investigate the legal requirements for property development in your area. This includes zoning laws, building codes, and environmental regulations. Compliance is essential to avoid costly delays.

Creating a realistic property development budget planning is imperative. Outline all projected costs and identify potential funding sources for real estate projects , such as loans, investors, or grants. A budget should also include contingencies for unexpected expenses.

Establish a timeline that outlines each phase of the project. Set clear milestones in property development projects to track progress. This helps in maintaining accountability and ensuring that the project stays on schedule.

Effective marketing is key to attracting your target audience. Develop strategies for promoting your properties, which may include online advertising, open houses, and community engagement. Consider how to leverage social media for outreach.

Every property development project carries risks. Conduct a thorough property development risk assessment to identify potential challenges such as market downturns or construction delays. Create mitigation strategies for property development risks to address these issues proactively.

Compile all essential documentation for property development, such as land acquisition papers, contractor agreements, and financial records. Having organized resources ensures that you can respond quickly to inquiries and decision-making processes.

Tips for Successful Business Planning

• Engage stakeholders early in the planning process to ensure that their insights are considered.
• Regularly update your business plan as market conditions change to remain relevant and effective.

Business Plan Writing Steps

Writing a business plan for property development involves several critical steps that set the foundation for a successful venture. Each step requires careful consideration and research to effectively address the unique challenges and opportunities within the real estate market.

Conducting thorough real estate market analysis is a crucial first step when developing a business plan for property development . Understanding the dynamics of the local market will enable you to make informed decisions and tailor your project to meet the specific needs of the community. Here are essential components to consider:

• Market Trends: Identify current trends in property development, such as the demand for sustainable housing or affordable living spaces. This can be vital for Urban Oasis Developments as it aims to revolutionize urban living.
• Property Values: Assess property values in the area where you plan to invest. Research historical price movements and projections to understand potential returns.
• Demographics: Study the demographics of the local population. Recognize age groups, income levels, and family structures that influence housing requirements.
• Supply and Demand: Analyze the current availability of properties and the demand for housing. This can provide insights into optimal pricing and project feasibility.
• Local Economic Conditions: Review local economic indicators such as employment rates and GDP growth, which can significantly influence real estate markets.

Gathering statistical data can also bolster your research. For instance, according to the National Association of Realtors, home prices have increased by an average of 7.6% annually across many urban markets. Understanding these statistics helps in setting realistic property development financial projections .

Tips for Effective Market Research

• Utilize online tools and databases to collect the latest market data.
• Engage with local real estate agents to gain insights into neighborhood conditions.
• Survey potential buyers or renters to identify their preferences and needs.

Additionally, keep an eye on competitor analysis for property development . Identify other projects within your target area and evaluate their success. What are their strengths and weaknesses? Understanding the competition will help you position your project more effectively.

Overall, thorough target audience identification and careful analysis of the local real estate market are foundational steps in crafting a winning property development business plan template . The insights gained here will inform crucial sections of your business plan, from budgeting to marketing strategies.

For more detailed guidance on how to create a comprehensive property development plan, check out this business plan template .

Identify Target Audience And Customer Needs

Identifying your target audience is a crucial step in developing a successful business plan for property development . For Urban Oasis Developments, understanding who your potential customers are and what their needs entail will directly influence your project’s design, amenities, pricing, and marketing strategies. Failing to accurately identify this can lead to misaligned offerings that do not resonate with the market, ultimately impacting sales and occupancy rates.

To effectively pinpoint your target audience, consider the following demographics:

• Age Group: Urban dwellers typically range from young professionals in their 20s to families and retirees. Understanding their unique preferences will shape your offerings.
• Income Level: Affordable housing is essential; assess the average income levels in your selected market area to set realistic price points.
• Lifestyle Preferences: Do your customers prefer eco-friendly living, community spaces, or smart home technology? Conducting surveys and focus groups can provide valuable insights.
• Family Size: Analyze the average household size in the area to determine whether to build single-family homes, multi-family units, or mixed-use developments.

In addition to demographics, it’s equally important to understand your potential customers' needs. This encompasses a range of factors that will help shape your property development business plan template :

• Convenience: Proximity to public transport, schools, and shopping centers can be a significant draw.
• Amenities: Features such as green spaces, gyms, and communal areas are increasingly sought after in urban living environments.
• Sustainability: Many modern buyers are looking for developments that prioritize eco-friendliness, including energy-efficient appliances and sustainable materials.

Tips for Identifying Customer Needs

• Engage with community forums or conduct polls to gauge interest in specific types of housing or amenities.
• Analyze real estate market analysis data to determine trends and shifting preferences in urban living.
• Consider hiring a professional market research firm to conduct a comprehensive study on consumer behaviors.

Incorporating this information into your property development checklist will help to ensure that your projects are not only developed with an eye for aesthetics but are also intimately aligned with the needs and preferences of your intended market. By doing so, Urban Oasis Developments will be well-positioned to offer a desirable product that meets both the demands of modern living and the economic realities of your target audience.

By taking the time to thoroughly identify your target audience and understand their customer needs , you will create a more effective and comprehensive business plan for property development . This fosters not only financial growth but also builds a community that aligns with the vision of Urban Oasis Developments—transforming urban spaces into thriving living environments.

To learn more about how to craft your property development business plan, visit here .

In the realm of property development , understanding your competitive landscape and the prevailing market trends is crucial. This step ensures that your business plan for property development is not only robust but also aligned with current dynamics within the real estate market.

To effectively conduct a real estate market analysis , consider the following elements:

• Identify Local Competitors: Research existing developers in your target area, focusing on their project types, pricing strategies, and customer demographics.
• Evaluate Market Trends: Analyze emerging trends affecting property development, such as sustainability practices, urbanization rates, and shifts in consumer preferences towards affordable housing.
• Demand Assessment: Use tools such as surveys or local housing data to evaluate the demand for specific types of developments, such as multifamily units or eco-friendly homes.
• SWOT Analysis: Perform a SWOT analysis on your competitors to uncover their strengths, weaknesses, opportunities, and threats.
• Benchmark Key Performance Indicators: Gather data on average development costs, timelines, and ROI percentages from similar projects to establish realistic financial projections for your own development.

Tips for Conducting Competitor Analysis

• Utilize online databases and local real estate commissions for accurate data procurement.
• Attend industry seminars and networking events to gain insider knowledge on competitor strategies and market insights.

When focusing on trends, consider statistical data for better context. For instance, the National Association of Realtors (NAR) reported a 10% increase in urban housing demand in the last year alone. Additionally, 62% of millennials prefer living in walkable neighborhoods, indicating a shift towards urban lifestyle developments.

Furthermore, understanding your target audience identification is essential. By aligning your property development goals with market needs, such as affordable, sustainable housing, you can position your business as a leader in innovative urban solutions.

In summary, leveraging a thorough competitor analysis and market trend evaluation will equip you with the knowledge necessary to craft a compelling property development business plan template . This foundational work, combined with careful property development budget planning , will set the stage for successfully realizing the vision of Urban Oasis Developments.

Determine Legal And Regulatory Requirements

Before diving into property development, it is essential to thoroughly understand the legal requirements for property development . This process ensures compliance with local laws, mitigates risks, and fosters a smoother project execution. Urban Oasis Developments, aiming to transform urban spaces into sustainable living environments, must navigate a complex regulatory landscape.

• Identify zoning regulations that dictate what can be built in a specified area. Each city has its own zoning laws that must align with the intended use of the property.
• Understand building codes that set the standards for construction. These codes cover everything from safety regulations to energy efficiency requirements.
• Secure necessary permits, which are crucial for any development activity. Common permits include land use permits, construction permits, and environmental impact assessments.
• Review environmental regulations to ensure compliance with laws aimed at protecting natural resources. This may involve conducting an environmental impact study.
• Explore local government policies related to affordable housing, sustainability initiatives, and community development to align Urban Oasis Developments' goals with community objectives.

It is crucial to engage with professionals such as real estate attorneys and local planning consultants. They can provide guidance on the steps to write a business plan that includes compliance measures and documentation. Here are some tips to help navigate these regulatory requirements:

Tips for Managing Legal and Regulatory Requirements

• Establish a timeline for obtaining permits to prevent project delays.
• Network with local regulatory bodies to stay updated on any upcoming changes in policies.
• Document all communications with regulatory agencies for accountability and future reference.

To illustrate the importance of understanding the legal landscape, consider that nearly 40% of property development projects experience delays due to regulatory issues. Furthermore, projects that lack proper permitting can incur fines ranging from $5,000 to $50,000 , depending on the jurisdiction.

In summary, navigating the legal and regulatory landscape is vital for the success of Urban Oasis Developments. This groundwork not only protects the investment but also enhances community relations and sustainability goals, contributing to a more resilient urban environment.

Establishing a comprehensive budget and identifying reliable funding sources are crucial steps in developing a successful business plan for property development . For Urban Oasis Developments, this not only means determining the financial resources required to transform urban spaces but also understanding how to secure these funds effectively.

The initial budget should encapsulate all anticipated costs associated with the property development project. This includes land acquisition, construction, permits, and marketing efforts. A detailed breakdown helps in providing clarity on the financial roadmap:

To ensure effective property development budget planning , it’s imperative to include a contingency fund of at least 2.5% of the total budget to account for unexpected costs, which is a common occurrence in real estate projects.

Identifying funding sources is equally important. There are various avenues that property developers can explore:

• Traditional Bank Loans: Most developers opt for bank financing; however, securing a loan often requires a robust property development business plan template that showcases financial projections and risk assessments.
• Private Investors: Developing relationships with private investors can lead to significant funding opportunities. Investors often seek a share in the profits in exchange for their capital.
• Government Grants and Programs: Investigating local government programs aimed at urban development can reveal potential grants and incentives that align with sustainable housing efforts.
• Crowdfunding: This modern approach allows developers to raise small amounts of money from a large number of people, often through specialized platforms focused on real estate.

When planning the budget, integrating current market trends into financial forecasts is essential. According to recent studies, sustainable housing projects increasingly attract funding, with a reported 30% increase in investment directed towards eco-friendly developments in urban areas.

Tips for Establishing Your Budget

• Regularly review and adjust your budget according to changes in the market or project scope to ensure financial sustainability.
• Consult with financial advisors familiar with real estate market analysis to optimize your funding strategy.

By meticulously establishing a budget and securing appropriate funding sources, Urban Oasis Developments can lay a solid foundation for its vision of creating affordable, sustainable housing solutions. For those interested in a more detailed guide, consider checking out resources that provide insights into how to create a business plan for property development.

For further information regarding setting up a business plan, visit this link .

Create A Development Timeline And Milestones

Creating a well-defined development timeline and setting specific milestones is crucial in the property development business plan. This ensures that every phase of the project is organized, achievable, and measurable, allowing for adjustments as needed along the way. A robust timeline helps track progress while keeping stakeholders informed.

To effectively structure the timeline, consider the following key stages:

• Pre-Development Phase: This includes market analysis, legal requirements, and stakeholder engagement.
• Design Phase: Involves finalizing architectural plans and obtaining the necessary permits.
• Construction Phase: Actual building of the project, which should be broken down into detailed timelines for each construction task.
• Post-Construction Phase: Focus on marketing strategies, sales processes, and community engagement.

When establishing milestones, it's essential to set clear, measurable goals that align with your overall objectives. Here are some recommended milestones for your property development project:

• Market Analysis Completion: Aim for completion within 3 months of project inception.
• Design Approval: Set a timeline of 6 months for finalizing architectural and engineering plans.
• Construction Start: Launch construction within 1 year of project initiation.
• Project Completion: Target completion of the construction phase within 18 months after breaking ground.

Utilizing a Gantt chart can help visualize the timeline effectively, ensuring that all parties involved are aware of deadlines and expectations. Below is an example of how to structure your timeline:

To optimize your development timeline, consider the following tips:

Tips for Creating an Effective Timeline

• Utilize project management tools such as Trello or Asana for tracking tasks and deadlines.
• Include buffer time to accommodate unforeseen delays, ensuring your project remains on schedule.
• Regularly review and adjust the timeline as needed to reflect actual progress.

By establishing a clear development timeline and realistic milestones, Urban Oasis Developments can effectively navigate the complexities of property development while achieving its goals of providing sustainable housing solutions. For further assistance, consider utilizing a property development business plan template that guides you through each step of the process.

Crafting effective marketing and sales strategies is crucial for the success of Urban Oasis Developments, as it enables us to connect with our target audience and achieve our property development goals. A comprehensive marketing strategy will not only showcase our affordable and sustainable housing solutions but also position our brand as a leader in the evolving real estate market.

1. Define Your Unique Selling Proposition (USP)

Start by identifying what makes Urban Oasis Developments stand out in the property market. Our commitment to eco-friendly designs and transformation of neglected urban spaces into lively communities should be emphasized.

2. Target Audience Identification

Understanding the demographics, preferences, and needs of potential buyers is essential. Conduct a real estate market analysis to identify key segments such as:

• Young professionals seeking affordable living.
• Families looking for sustainable neighborhoods.
• Investors interested in eco-friendly developments.

3. Develop a Multi-Channel Marketing Plan

Utilize a variety of marketing channels to reach your audience effectively. Strategies may include:

• Online Marketing: Leverage social media platforms and a well-optimized website to attract potential buyers.
• Content Marketing: Create blogs and articles that inform your audience about market trends and sustainable living.
• Traditional Marketing: Use local newspapers, community boards, and real estate expos to showcase your developments.

4. Create Engaging Content

Produce high-quality content that resonates with your target audience. Consider using:

• Visuals that highlight the beauty and sustainability of your projects.
• Testimonials from satisfied residents to build trust and authenticity.
• Case studies showcasing successful transformations of urban spaces.

5. Implement a Sales Strategy

To convert leads into customers, establish a clear sales strategy that includes:

• Training your sales team on the unique features of your properties.
• Setting up a streamlined process for inquiries and follow-ups.
• Offering virtual tours or augmented reality experiences for potential buyers.

6. Measure and Analyze Performance

Regularly assess the effectiveness of your marketing efforts. Key performance indicators (KPIs) to consider include:

• Lead conversion rates.
• Cost per acquisition (CPA).
• Return on investment (ROI) for marketing expenditures.

7. Networking and Partnerships

Develop partnerships with local businesses, real estate agents, and community organizations to expand your reach and credibility. Attend networking events and join local real estate associations to build connections.

8. Legal Compliance and Best Practices

Ensure that all marketing materials comply with local advertising laws and regulations related to property sales. Understanding legal requirements for property development will protect your business and enhance your reputation.

9. Gather Feedback

Collect feedback from customers and stakeholders to refine your marketing and sales strategies. Surveys and direct interviews can provide insights into buyer experiences and preferences.

Tips for Effective Marketing Strategies

• Stay updated with market trends in property development to adapt your marketing approaches.
• Utilize targeted advertising to reach specific audience segments.
• Regularly update your marketing plan based on performance analytics.

By following these steps to write a comprehensive marketing and sales strategy, Urban Oasis Developments will be well-positioned to launch successfully in the competitive property development landscape. For more insights, consider utilizing a property development business plan template to guide your planning process effectively.

When embarking on property development projects, particularly with a vision like Urban Oasis Developments, it's essential to conduct a thorough property development risk assessment . This process involves identifying potential risks that could impact the project's success and formulating robust mitigation strategies to address these challenges proactively.

Risks in property development can be diverse and complex, encompassing financial, regulatory, environmental, and market-related factors. Below are some significant risks to consider:

• Financial Risks: Unforeseen expenses can inflate project budgets, potentially leading to overages that jeopardize profitability.
• Regulatory Changes: Changes in local laws or zoning regulations can significantly affect project timelines and feasibility.
• Market Volatility: Fluctuations in the real estate market can impact demand and pricing, threatening the project's financial viability.
• Environmental Hazards: Issues such as contamination or natural disasters can lead to increased costs or delays.
• Construction Risks: Delays or miscalculations in the construction phase can lead to extended timelines and increased costs.

To effectively manage these risks, Urban Oasis Developments can implement the following mitigation strategies :

• Detailed Financial Projections: Create comprehensive property development financial projections that account for potential variances in costs and revenues, ensuring a buffer for unexpected expenses.
• Regular Compliance Review: Stay updated on legal requirements for property development and proactively address any changes to avoid non-compliance penalties.
• Market Analysis: Conduct ongoing real estate market analyses to identify trends and adjust project strategies according to market demands.
• Environmental Assessments: Perform thorough environmental impact assessments to anticipate potential hazards and develop contingency plans.
• Project Management Tools: Utilize effective project management tools to monitor timelines and budgets closely, enabling early detection of delays or overruns.

Incorporating data can greatly enhance the risk assessment process. For example, a study from the National Association of Home Builders (NAHB) found that over 70% of property developers faced significant financial risks attributed to rising costs. Understanding such statistics helps in framing property development budgets more realistically.

Tips for Effective Risk Mitigation

• Regularly update financial forecasts based on real-time data and market conditions.
• Engage in open communication with stakeholders to enhance transparency regarding potential risks.
• Establish a risk management team to continuously monitor and identify new threats during the project lifecycle.

By assessing risks meticulously and developing tailored mitigation strategies, Urban Oasis Developments can ensure that the path towards creating sustainable urban living spaces is not just a vision but a reality, maximizing the likelihood of success in a competitive landscape. For those looking to start with a strong foundation, utilizing a property development business plan template can significantly streamline the process.

Gathering the right documentation and resources is crucial in the initial stages of developing a business plan for property development. The success of your project largely depends on how well you prepare and organize your documentation, allowing you to streamline processes associated with property development.

Here are the essential documents and resources you should focus on:

• Market Analysis Reports: Conduct a comprehensive analysis of the real estate market to understand current trends, property values, and demographic shifts. Utilize available data sources such as local government statistics, real estate platforms, and market research firms.
• Legal Documentation: Compile all legal requirements for property development, including zoning laws, environmental regulations, and building codes. Ensure compliance to avoid costly delays or penalties.
• Financial Documentation: Prepare your financial forecasts and budgets, including projected expenses, revenue, and funding sources for your property development business plan. It is important to ensure your property development financial projections are realistic and achievable.
• Design Plans and Blueprints: Engage with architects and designers to create preliminary design plans and blueprints. These will be integral in demonstrating your vision for the project.
• Competitor Analysis: Document your findings from a competitor analysis for property development . Understanding your competition helps to position Urban Oasis Developments effectively in the market.
• Marketing Materials: Prepare marketing strategies that align with your target audience identification, enabling you to communicate the value of your development effectively.
• Risk Assessment Tools: Utilize property development risk assessment tools to identify potential challenges and develop mitigation strategies.

Tips for Gathering Documentation and Resources

• Utilize online databases and local government resources to access documentation for property development and real estate statistics. This can save you time and ensure that you have the most accurate information.
• Network with other professionals in the industry to gain insights and share resources related to property investment and development.
• Consider hiring a consultant with expertise in real estate to assist in collecting and reviewing necessary documentation.

Here is a checklist of the documents and resources you should gather:

The proper organization of your documentation not only streamlines the property development process but also enhances your credibility when seeking funding. For an effective and structured approach, consider using a property development business plan template that incorporates these elements.

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Home » Sample Business Plans » Real Estate

A Sample Property Development Business Plan Template

Are you about starting a real estate development company? If YES, here is a complete sample property development business plan template you can use for FREE. Okay, so we have considered all the requirements for starting a property development business.

We also took it further by analyzing and drafting a sample property marketing plan template backed up by actionable guerrilla marketing ideas for property development businesses. So let’s proceed to the business planning section.

Why Start a Property Development?

It is therefore no doubt that housing is one very essential ingredient to life. The moment one is able to find a place of abode, there comes a form of huge relief. It is for that reason that the need for the government of different parts of the world to provide basic shelter for its citizens cannot be over flogged.

Every day there are an avalanche of people who dive into the property development business because they know how lucrative this trade is and how money spinning it becomes when one is able to get a hang of it. This is why those who have scaled through the teething stage of the business know that adequate planning is one of the hurdles that just must be scaled so as to get things right.

1. Industry Overview

The property development industry falls into the real estate category and it is indeed a very large industry that has the potential to make entrepreneurs millionaire within a short period of time. Property development industry is a many-sided business that covers all aspect of activities, ranging from acquiring raw lands, to selling or renting or leasing of fully finished and furnished properties.

In essence, developers are responsible for turning ideas into real properties; i.e. they acquire lands, they finance real estate deals, they engage in building projects and they sell, rent, lease and even manage properties on behalf of their clients.

Beyond every reasonable doubt, one of the most profitable, creative and interesting aspect of the real estate industry is property development. As a matter of fact, developers are major players when it comes to determining the prices of properties. Although this type of business venture can be risky, but in order to make it big in the trade as a property developer, you have got to just take calculated risks.

Just like all other investment vehicles, there are potential down sides that you need to look out for as a property developer. One of the major risks in property development is a sudden down turn in the economy. Property development could take a period of two to three years from conception to completion, depending on the size of the project and the cash flow.

As a matter of fact, some projects could even take much longer than that. Because of the time frame involved in developing properties from start to finish, loads of unanticipated things could crop up and it falls in the thick of property cum economy downturn which is not good for the business considering the investment that has gone into the project.

Another factor that is of major concerns and a threat to property development business generally could be cost increase as a result of inflation, currency devaluation as well as economic challenges.

Unforeseen delays from the part of government agencies, litigation and also delays from contractors could lead to substantial cost increase especially if the project is heavily dependent on bank loans. If perhaps during this period there is a change in the supply and demand dynamics of the property sector, the project could as well be affected negatively.

As a property developer, it is very important to be creative, to be able to use your ideas to meet the rapidly changing needs of the society when it comes to properties; you should be able to convert a slum into a beautiful city, if indeed you want to become a major player in the real estate industry.

Over and above, the property development sector is known to be a major contributor in the economy of many nations of the world and the industry is notable for producing some of the richest men in the world.

2. Executive Summary

Solorio’s® Property Development Company is a property development company that will be based in 530 Madison Avenue New York, NY 10033, USA. Our aim of starting this business is to work in tandem with the government of the united states of America to deliver affordable homes and properties for all classes of people in the United States of America.

Our Head Office will be located in New York City, but we will have our branch offices in major cities in all regions of the United States of America. During the first two years of operation we would have set up our offices in the following locations; Las Vegas, Washington, DC, Dallas, Texas and Boston.

Solorio’s® Property Development Company is going to be a self-administered and a self-managed real estate investment trust (REIT). We will work towards becoming one of the largest owners, managers, and developers of first-class properties (accommodations, public buildings and office properties) in the United States of America.

We are quite aware that property development business requires a huge capital base, which is why we have perfect plans for steady flow of cash from private investors who are interested in working with us. We can confidently say that we have a robust financial standing and we are ready to take on any property development deal that comes our way.

As part of our plans to make our customers our number one priority and to become the leading property development company in New York City, we have perfected plans to work with our clients to deliver projects that can favorably compete with the best in the industry, at an affordable and reasonable price within the stipulated completion date barring any unforeseen circumstance and also to generate great value from any property that we manage (both for our clients and for the company).

Solorio’s® Property Development Company will become a specialist in turning slums into beautiful cities and turning a run –down and dilapidated building into a master piece. And that hopefully will be our brand and signature.

Solorio’s® Property Development Company will be owned majorly by Shannon McKenzie and family. Shannon McKenzie is a property guru that has worked with top Real Estate Companies in the United States of America for many years; prior to starting his own business. Other investors with same investment ideology whose name cannot be mentioned here for obvious reasons are also part owners of the business.

3. Our Products and Services

Solorio’s® Property Development Company will be involved in the core real estate business and because we aspire to become one of the leading property development company in New York City, we have decided to explore every available means of generating money from Property Development. Our business offering can are listed below;

• Developing Properties for our Clients
• Leasing of Properties
• Renting of Properties
• Selling of Fully Furnished Properties
• Selling of Landed Properties
• Leasing of Bare Land
• Manage Properties and Facility for Clients
• Property Makeover Services
• Real Estate Consultancy and Advisory Services

4. Our Mission and Vision Statement

• To deliver affordable and quality properties to all classes of people in the United States of America.
• At Solorio’s® Property Development Company, our mission and values is to help people and businesses in the United States of America and throughout the world realize their dreams of owning properties.

Our Business Structure

Solorio’s® Property Development Company is aiming to be amongst the leading property development companies in New York City, and the only way for us to attain this position is to structure the business for growth and to hire the best hands we can get in the industry.

We want to build a team that will work together towards achieving the company’s goal and also a business with standard structure and processes; a business that runs on auto pilot. In view of the above, we have made provisions for the following positions in our organization;

• Chief Executive Officer

Project Manager

Civil Engineer

• Structural Engineer
• Quantity Surveyor

Land Surveyor

Company’s Lawyer/Secretary

Admin and HR Manager

Business Developer

• Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for the day to day running of the business
• Responsible for handling high profile clients and deals
• Responsible for fixing prices and signing business deals
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board
• Responsible for the planning, management and coordinating all projects on behalf of the company
• Supervise projects
• Ensures compliance during project executions
• Provides advice on the management of projects
• Responsible for carrying out risk assessment
• Using IT systems and software to keep track of people and progress of ongoing projects
• Responsible for overseeing the accounting, costing and billing of every project
• Represents the organization’s interest at various stakeholders meetings
• Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.
• Responsible for preparing bids for tenders, and reporting to clients, public agencies and planning bodies
• Ensures that sites meet legal guidelines, and health and safety requirements
• Assesses the environment impact and risks connected to projects
• Responsible for judging whether projects are workable by assessing materials, costs and time requirements
• Draws up blueprints, using Computer Aided Design (CAD) packages
• Discusses requirements with the client and other professionals (e.g. architects and project managers et al)
• Responsible for managing, directing and monitoring progress during each phase of a project
• Responsible for creating building designs and highly detailed drawings both by using the hands and by using specialist computer – aided design (CAD) software
• Working around constraining factors such as town planning legislation, environmental impact and project budget
• Writes and presents reports, proposals, applications and contracts
• Adapts plans according to circumstances and resolving any problems that may arise during construction
• Works with project team and management to achieve a common goal
• Responsible for applying for planning permission and advice from governmental new building and legal department.
• Responsible for undertaking land surveys/measurements using a variety of specialist technical equipment such as theodolites, laser alignment devices and satellite positioning systems et al.
• Responsible for presenting data to clients
• Responsible for producing and advising about construction plans and drawings
• Responsible for advising about technical matters and whether the construction plans are viable
• Responsible for drawing up contracts and other legal documents for the company
• Consults and handles all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial/securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
• Develops company policy and position on legal issues
• Researches, anticipates and guards company against legal risks
• Represents company in legal proceedings (administrative boards, court trials et al)
• Plays a part in business deals negotiation and take minutes of meetings
• Responsible for analyzing legal documents on behalf of the company
• Prepares annual reports for the company
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s need s, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for financial forecasting and risks analysis.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Front Desk/Customer’s Service Officer

• Receives Visitors/clients on behalf of the organization
• Receives parcels/documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distributes mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

In as much as property development business is a very lucrative business, there are loads of investors and entrepreneurs who are interested in owning a business portfolio in the industry, so as such the competition for available business deals will be much.

This is why we invested time and resources to prepare a killer property development marketing plan. Prior to setting up Solorio’s® Property Development Company we employed the services of tested and trusted business and HR consultants to help us conduct critical SWOT analysis for us.

We did this so as to know how to maximize our strength and opportunities and also to look for ways to properly manage our weakness and the threat that we may likely face in the property development industry as a newbie. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Solorio’s® Property Development Company;

Solorio’s® Property Development Company prides itself in the fact that the management team are core professionals and experts in their own chosen fields and they are some of the best in New York City. Despite the fact that we a new property development company, we can confidently say that we have a strong financial strength to handle most of the deals that we will have to handle.

Our weakness could not be farfetched; we are a new property development company, and there is the possibility of clients to think twice before awarding us contracts. Most people would prefer to deal with companies that have been in existence for a long period of time , as against dealing with a new company that they are not sure will deliver as planned.

• Opportunities:

Our business concepts and our mission and vision put us at an advantage in the industry. We are set to not only work with big money bags but also to work with smaller clients whose wish is just to have a roof over their head. Furthermore, we are certain that the location of our business is going to bring multiple business opportunities to us.

Some of the threats that we are likely going to face as a property development company are unfavorable government policies, global economic downturn and other big money bags that are major players in the property development industry. There is hardly anything we could do as it concerns this threats, other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

It is no longer news that property development involves various stakeholders with various contributions and responsibilities. In property development you have a synergy involving the property owner, the financier, the property developer and a team of technical experts. The property owner may be an individual or a group and could also be a corporate body.

Before now, the interest of most owners is to sell the property to any willing buyer and move on with their life. However, because of the profitability of the business, there are land owners now who are willing to use their property as a leverage to have an equity stake in the project.

This is a win-win for all the parties since the developer too will use the extra cash savings to accelerate the completion of the project and also to handle other projects. It is obvious that loads of investors are now very much interested in property development business, because it is one of the quickest means of becoming a millionaire and as a matter of fact, it is rare to see a multi – millionaire who does not have a business portfolio in the real estate industry.

One good thing about the property development industry is that it has room wide enough to accommodate as many investors that wants to dive into the industry. We know that we can achieve our business goals and targets in the property development industry in New York City and the United States, which is why we have mapped out our own marketing and sales strategies.

8. Our Target Market

Our target market cuts across people of different classes and people from all walks of life. We are coming into the industry with a business concept that will enable us work with the highly placed people in the country and at the same with the lowly placed people who are only interested in putting a roof under their head.

We are in business to make profits at the same we in business to give our customers the opportunities to own their own properties at an affordable price.

Solorio’s® Property Development Company wants to be known as a company that has the interest of the rich, the middle class and the poor in the United States of America. Below is a list of the people and organizations that we have specifically design our products and services for;

• Families who are interested in renting/leasing or acquiring a property
• Corporate organizations who are interested in renting/leasing or acquiring their own property/properties
• Land Owners
• Properties Owners
• University Campuses (Private Hostels)
• Foreign investors who are interested in owning properties in the United States of America
• The government of the United States of America (Government contracts)
• Managers of public facilities

Our Competitive Advantage

There are major players who have gotten a grip of the property development business in New York, but that does not deter us from entering the trade to build our business to become one of the top property development businesses in New York City. Solorio’s® Property Development Company has a management team members that are considered experts in their own chosen area of specialization.

Our CEO has a robust experience in the real estate industry and he is bringing the experience to help build Solorio’s® Property Development Company to become a top brand as far as property development business is concern. Of course, we are a new company, but we have been able to build our capital base to be able to handle most of the projects that we will bid for and also to acquire properties for the organization.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Solorio’s® Property Development Company is established with the aim of maximizing the profits in the real estate industry via delivering quality and affordable property to our highly esteemed clients. The property business is wide in scope and there are several means of generating income for the company. Below are the sources we intend exploring to generate income for Solorio’s® Property Development Company;

10. Sales Forecast

Prior to launching Solorio’s® Property Development Company we have serious interest in the industry and we have been able to secure some properties that is still under construction. We are optimistic that the projects / properties will be completed within the next two months and we have concluded plans to put the property for lease.

They are office complexes and it is interesting to know that people are already queuing up to rent / lease the available spaces. We are quite optimistic that we will meet out set target of generating enough income / profits from the first month or operations.

We have critically studied the property market and we have examined our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions;

• Build/develop at least 2 office complex (3 story building each) within the first 12 months of operation
• Manage a minimum of 5 properties for clients within the first 6 months of operations
• Sell a minimum of 20 hectares of land within the first 12 months of operation
• Develop at least one estate within the first 24 months of operations
• Provide advisory and consultancy services for a minimum of 1 client per month
• Handle a minimum of 12 building makeover projects within the first 12 months of operations

N.B: Please note that we could not put a specific amount to the projection because the prices may differ for different services and for different clients. Part of our business strategy is to work within the budget of our clients to deliver quality property / properties hence it will be difficult to project what we are likely going to make from such deals.

But the bottom line is that we are definitely going to make reasonable profits from any business deal that we execute. The property market is structured in such a way that property developers will always make profits from any deal they handle.

• Marketing Strategy and Sales Strategy

Solorio’s® Property Development Company is aware that there are stiffer competition in the property development market in the United States of America, hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

Our goal is to become one of the leading property development companies in New York City and in every other city where we operate, which is why we have mapped out strategies that will help us take advantage of the available market. Solorio’s® Property Development Company will adopt the following marketing and sales strategies;

• Introduce our business by sending introductory letters alongside our brochures to all the corporate organizations in New York and other States in the US.
• Promptness in bidding for contracts.
• Advertise our business in real estate / properties magazines and websites.
• List our business on yellow pages.
• Attend expos, seminars, and business fairs et al.
• Create different packages for different category of clients in order to work with their budgets and still deliver quality housing/ property to them.
• Leverage on the internet to promote our business.

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the hearts of our target market. First and foremost, we want our brand to be visible and well communicated, which is why we have decided to work with different classes of people in the society.

All our publicity materials and jingles are done by some of the best hands in the industry. Below are the platforms we intend to leverage on to promote and advertise our property development business;

• Place adverts on both print and electronic media platforms (real
• Sponsor relevant TV shows
• Maximize our company’s website to promote our business
• Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ et al
• Install our Bill Boards on strategic locations
• Distribute our fliers and handbills in targeted areas from time to time

12. Our Pricing Strategy

Part of business strategy is to ensure that we work within the budget of our clients to deliver excellent properties to them. We are quite aware that there are major players in the property development industry in the United Stated of America who are not interested in small business deals.

Although our prices may not be outrageously lower than what is obtained in the industry, but we are hopeful that whatever price we bill our customer will be amongst the lowest they can get in the industry. The fact that we are going to be billing our clients lower than what is obtainable in the industry does not in any way affect the quality of our properties.

• Payment Options

Our payment policy is all inclusive because we are quite conscious that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches.

13. Startup Expenditure (Budget)

• The Total Fee for incorporating the Business in New York: $750.
• The budget for Liability insurance, permits and license: $5,000
• The Amount needed to acquire a suitable Facility with enough space in New York City (Re – Construction of the facility inclusive): $80,000.
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $15,000
• The Cost of Launching a Website: $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $5,000
• Working capital (investment fund): $3,000,000 (3 Million US Dollar)

Going by the report from our research and feasibility studies, we will need about $3,200,000 (3.2 US Million Dollars) to set up a property development company in New York City. In property development business, the larger your capital base, the greater the opportunities you can access and the more profits you will make.

Despite the fact that we have a working capital of 3 Million US Dollar, we have been able to create a business relationship with our banks so as to easily access loans when the need arises.

Generating Funding/Startup Capital for Property Development Company

• The CEO Dr. Shavonne McPherson will generate 20 percent of the start – up capital from her personal savings
• 30% of the capital will be generated from partners and investors
• 50% of the capital will be sourced from banks

14. Sustainability and Expansion Strategy

Solorio’s® Property Development Company was established with the aim of building a company that will outlive the founders and partners. Part of the vision of the company is to handover the baton of the company from one generation to another generation; hence we have perfected our plans to put the right structures in place that will aid our succession plan.

We are quite aware that the growth of any business depends solely to the business deals or sales they execute per financial year. We will continue to give our marketing team all the supports they would need to continue to deliver and meet all set targets and corporate goals.

Lastly, we will not relent in taking calculated business risks when it comes to investment and taking on new business challenges and new business frontiers.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Renting of Office Facility in New York City: Completed
• Conducting Feasibility Studies: Completed
• Generating capital from the CEO and Business Partners: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of business plan : Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents (Tenancy Agreements et al), and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility face lift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): Completed

More on Real Estate

Property Development Business Plan Template

If you are starting a property development business or scaling your operations, a business plan is a vital tool for achieving success.

This property development business plan template includes all the key elements to create a strong plan. It works for residential, commercial, and mixed-use property development projects.

You can download our property development business plan template (including a full, customizable financial model) to your computer here.

Sample Property Development Business Plan Template

Below is a property development business plan example with each of the key sections to help you write a property development business plan for your own company.

I. Executive Summary

Business overview.

[Company Name], located in [insert location here] is a new property development company that focuses on residential property development for single family and multifamily homes. The company is owned and operated by a real estate development industry veteran who is well-versed in the entire property development process. [Company Name] aims to be the trusted source for affordable housing in the area.

Products Served

[Company Name] will handle the entire property development process from sourcing land and securing all necessary approvals and permits to the design, construction, and sale of the finished property.

The company focuses on building single family homes and multifamily apartment complexes in the heart of the city. All projects are designed using green materials that promote maximum energy efficiency, while providing homeowners with aesthetically appealing homes that look luxurious, but are highly affordable.

Customer Focus

[Company Name] will primarily serve home buyers and real estate investors in a 30-mile radius of the location. The demographics of these customers are as follows:

• 195,203 residents
• Average income of $35,000
• 49.3% married
• 40.5% in Management/Professional occupations
• Median age: 30 years

Of the above-mentioned demographic profile, there are thousands of first time home buyers, an ideal target market for the company.

Management Team

[Company Name] is led by [Founder’s Name], a local property developer who has over 30 years of experience developing residential properties. He has a bachelor’s degree in real estate and has been working for a well-known property development company for the last ten years. Prior to this, he worked as a project manager for a large construction company where he gained valuable experience managing the entire property development process.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• [Company Name] will fill a specific market niche in the growing community in the heart of [Location].
• The company will be using modern building materials coupled with innovative design elements for homes that are green, functional, and affordable, while maintaining a luxurious aesthetic.
• The management team has a track record of success in the property development business.
• The local area is currently under served and has few experienced property developers offering affordable housing solutions for first time home buyers.

Financial Highlights

[Company Name] is seeking a total funding of $500,000 of debt capital to open its property development company.

• Office design/build-out: $100,000
• Software and supplies: $200,000
• Brand development and marketing: $100,000
• Working capital: $100,000 to pay for licensing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

II. Company Overview

Who is [company name].

[Company Name], located in [insert location here] is a newly established property development company that specializes in residential property development for single family and multifamily homes. The company is owned and operated by a real estate development industry veteran who is well-versed in the entire property development process. [Company Name] aims to be the trusted source for affordable homes in the area.

[Company Name] is led by [Founder] who has over 30 years of experience developing residential properties. He has a bachelor’s degree in real estate and has been working for a well-known property development company for the last ten years. Prior to this, he worked as a project manager for a large construction company where he gained valuable experience managing the building process.

[Founder] began researching what it would take to create his own property development company and did a thorough analysis on the costs, market, demographics, and competition. [Founder] has compiled enough information to develop his business plan in order to approach investors.

[Company Name]’s History

Once his market analysis was complete, [Founder’s Name] began surveying the local office spaces available and located an ideal location for the property development headquarters. [Founder’s Name] incorporated [Company Name] as a Limited Liability Corporation on [date of incorporation].

Once the lease is finalized on the office space, renovations can be completed to make the office a welcoming environment to meet with clients.

Since incorporation, the Company has achieved the following milestones:

• Located available office space for rent that is ideal for meeting with clients
• Developed the company’s name, logo and website located at [website]
• Hired an interior designer for the decor and furniture layout
• Determined equipment and fixture requirements
• Began recruiting key employees

[Company Name]’s Products/Services

Below are [Company Name]’s product and service offerings:

[Company Name] specializes in designing and building new residential properties of the following types:

• Single family homes
• Multifamily apartment complexes and condominiums

In addition to new home development, the company also provides property conversion and renovation services for existing homes.

III. Industry Analysis

The property development industry in the United States is valued at an estimated $231B. There are currently around 64,982 housing development businesses and over 180,000 employees working in the industry throughout the country.

Industry operators must focus on the accuracy of their cost estimations and successful bidding tactics to ensure profitability. Large established industry players have advantages over new entrants because they have more access to capital. However, smaller companies and new entrants can compete by targeting a specific market niche or geographic location.

Demand determinants for property development include population growth, disposable income, and employment rates. A significant trend in the residential real estate market is the rising demand for single family homes which has led to increased costs for new homes and more people moving to the area.

Millennials who are ready to buy their first homes are boosting housing market growth rapidly. This increased demand has resulted in single family home availability being the lowest it has been in the past 40 years.

National statistics reflect the local market. Last month there were approximately 830,000 homes on the market in the U.S., down 39% from this time last year. This has opened up an opportunity for new property developers looking to build new residential homes.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve home buyers and real estate investors of [company location] and its surrounding areas.

The community of [company location] has thousands of first time home buyers, residential real estate investment firms, and people looking for affordable housing options in the area. The company will also target millennials specifically, since the majority of first time home buyers are in this age group.

Customer Segmentation

The Company will primarily target the following three customer segments:

• Home Buyers: Home buyers, with an average age of 30 in this community, are mostly made up out of individuals who are moving into the community, and first time home buyers. First time home buyers are an ideal target for affordable homes.
• Real Estate Investors: The area is also home to numerous real estate investment firms looking for profitable investment properties.
• Apartment Complex and Condominium Management Companies: The company will also target property management companies looking to add new properties to their portfolio.

V. Competitive Analysis

Direct & indirect competitors.

The following businesses are located within a 30-mile radius of [Company Name], thus providing either direct or indirect competition for customers: Upscale Property Developers, Inc.

Upscale Property Developers, Inc is a property development company in [location]. In business for over 40 years, Upscale Property Developers, Inc provides oversight for the entire property development process for new single family and multifamily residences, commercial offices, and government buildings across the area. Upscale Property Developers, Inc also offers a variety of property renovation, demolition, and revitalization services for existing buildings.

Although Upscale Property Developers, Inc provides homes with a luxury aesthetic, they are also the most expensive property developments on the market, thus resulting in many first time home buyers to be priced out of the market.

Premium Property Development Solutions

Established in 1990, Premium Property Development Solutions is a property developer of new commercial and residential properties in [Location]. The company specializes in eco-friendly building materials and upscale design options for individual and corporate clients. Clients can customize their building design or choose from a variety of standard design options. The company employs experienced property developers and designers who are well versed in green building design.

Premium Property Development Solutions is more affordable than Upscale Property Developers Inc, but is still out of most first time home buyers’ price ranges.

Home Plate Residential

Home Plate Residential is also a local property development company that manages the complete property development process from sourcing and permitting to construction and sale. They are mostly known for their unique apartment complex designs, but are equipped to take on a variety of different builds. The company has been in business for about ten years and has developed a reputation for building quality homes for affordable prices.

Although Home Plate Residential has a similar value proposition of luxury homes at affordable prices, this company lacks the green building and eco-efficiency component to their business model, thus losing out on business from eco-conscious home buyers.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. Those advantages include:

• Location : [Company Name]’s office is near the center of town, in the shopping district of the city. It is visible from the street where many residents shop for both day-to-day and luxury items.
• Client-oriented service : [Company Name] will have a full-time assistant with property development experience to keep in contact with clients and answer their everyday questions. [Founder’s Name] realizes the importance of accessibility and will further keep in touch with his clients through monthly newsletters.
• Management : [Founder’s Name] has been extremely successful working in the property development sector. His unique qualifications will serve customers in a much more sophisticated manner than many of [Company Name]’s competitors.
• Relationships : Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers, and other influences.

VI. Marketing Plan

[Company Name] seeks to position itself as the trusted source for affordable residential property developments in the area. Home buyers and real estate investors can expect to obtain residential assets that are high quality, green, functional, and luxurious, all at an affordable price point.

The [Company Name] Brand

The [Company Name] brand will focus on the company’s unique value proposition:

• Service built on long-term relationships and personal attention
• Big-firm expertise in a small-firm environment
• Client-focused property development, where the company’s interests are aligned with the client
• Effective project management
• Affordable pricing

Promotions Strategy

[Company Name] expects its target market to be home buyers and real estate investors living within a 30-mile radius of its location. The company’s promotion strategy to reach these individuals includes:

Social Media [Company Name] will invest heavily in a social media advertising campaign. The marketing manager will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Print Advertising The company will invest in professionally designed advertisements to be printed in real estate publications. [Company Name] will also list its properties for sale in key local publications, including newspapers, area magazines, and its own newsletter.

Website/SEO [Company Name] will invest heavily in developing a professional website that displays all the features and benefits of the property development company. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Community Events/Organizations The company will promote itself by distributing marketing materials and participating in local community events, such as local festivals, business networking, or sporting events.

Sponsorships [Company Name] will also invest in sponsoring certain nonprofit and community events so that their banners and collateral material are displayed all over the event where numerous clients will potentially be.

Referrals The company understands that the best promotion comes from satisfied customers. The Company will encourage its clients to refer other home buyers and real estate investors by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Pricing Strategy

[Company Name]’s pricing will be moderate, so consumers feel they receive great value when purchasing properties from the company.

VII. Operations Plan

Functional roles.

Service Functions [Company Name] will carry out its day-to-day operations as a property developer. There will also be numerous administrative functions involved.

In order to execute on [Company Name]’s business model, the company needs to perform several functions. [Company Name] anticipates using the services of X employees, divided into the following roles.

Service and Administrative Roles

• Team of designers
• General contractor
• General and administrative functions including legal/compliance, marketing, bookkeeping, etc.
• Brand management/social media
• IT management
• Sales and marketing

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

VIII. Management Team

Management team members.

[Company Name] is led by [Founder’s Name], a local property developer who has over 30 years of experience developing residential properties. He has a bachelor’s degree in real estate and has been working for a well-known real estate development company for the last ten years. Prior to this, he worked as a project manager for a large construction company where he gained valuable experience managing the property development process.

[Company Name] will also employ an experienced assistant to help with various administrative duties around the office. [Assistant’s name] has experience working with C-level executives and has spent significant time as an administrator for another property development firm.

Hiring Plan

[Founder] will serve as the Owner and Manager of [Company Name]. In order to launch, he needs to hire the following personnel:

• Lead Designer: 1 full-time employee to oversee the design process.
• General Contractor: 1 full-time employee to manage the construction process.
• Permitting & Compliance Manager: 1 full-time employee who is an expert in the permitting and regulatory compliance aspects of property development.
• Administrative Assistant: 1 full-time employee to oversee the office staff.
• Office Staff: 2–3 employees who will manage the phone calls, scheduling, accounting, marketing, clerical, bookkeeping, billing, and any administrative task required.
• Marketing Manager: 1 full-time employee who will be responsible for developing and launching the brand; manage the website, and social media accounts.

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come primarily from the sale of completed properties. The company will sell new single family homes, multifamily town homes, and apartment complex/condominium properties to individual buyers and investors.

The office lease, equipment, materials, supplies, and labor expenses will be the key cost drivers of [Company Name]. The major cost drivers for the company’s operation will consist of:

• Design software
• Building materials and equipment
• Permitting/licensing fees
• Business Insurance
• Lease on office and utilities

Ongoing marketing expenditures are also notable cost drivers for [Company Name].

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $500,000 of debt capital to open its property development company. The capital will be used for funding capital expenditures and office build-out, hiring initial employees, marketing and branding expenses, and working capital.

Specifically, these funds will be used as follows:

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

  5 Year Annual Income Statement

  5 Year Annual Balance Sheet

  5 Year Annual Cash Flow Statement

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A Sample Property Development Business Plan Template

A property development company is a company that is involved in buying land, financing real estate, building, or having builders build and develop projects for commercial purposes. Property development companies renovate and re-lease existing buildings, purchase raw land, and sell developed land or parcels to others. They are involved in developing a property from beginning to end.

A report released by the National Association of REALTORS® shows that over 5.64 million existing homes were sold in 2020. Also, according to data from the U.S. Census Bureau, 822,000 newly constructed homes were sold in the same year. In 2019, 64.9 percent of families owned their primary residence, according to the Federal Reserve’s Survey of Consumer Finances.

Steps on How to Write a Property Development Business Plan

1. executive summary.

Vintage Group© Property Development Company, Inc. is an American-based and licensed real estate cum property development company. Our head office will be located in a standard and centrally located facility in the heart of New York City, New York.

We will engage in property development projects for a wide range of clients. We will work towards becoming one of the largest property development companies in New York and the whole of the United States of America. Jason Theodora is the founder and CEO of Vintage Group© Property Development Company, Inc.

Company Profile

A. our products and services.

Vintage Group© Property Development Company, Inc. will be involved in;

• Houses and housing estate developments
• Apartments and other residential developments
• Commercial developments
• Industrial developments
• Other developments (Investment Properties)
• Real estate consultancy and advisory services

b. Nature of the Business

Our property development company will operate the partnership business model. We will work with investors who are willing to partner with us to grow their investment portfolios in the real estate market.

c. The Industry

Vintage Group© Property Development Company, Inc. will operate under the real estate sales and brokerage industry.

d. Mission Statement

Our mission is to be at the forefront of buying property and partnering with landowners, then develop a plan for what to build or rebuild on that property. We will bring in investors and predict how much money the new homes or businesses will bring in.

e. Vision Statement

Our vision of to be listed among the top three property development companies in the whole of New York.

f. Our Tagline (Slogan)

Vintage Group© Property Development Company, Inc. – The Genius of Property Development!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Vintage Group© Property Development Company, Inc. will be formed as a Limited Liability Partnership (LLP).

h. Our Organizational Structure

• Chief Executive Officer
• Project Manager
• Company’s Lawyer/Secretary
• Admin and HR Manager
• Head of Construction and Renovation
• Business Developer/Sales and Marketing
• Customer Service Executive/Front Desk Officer

i. Ownership/Shareholder Structure and Board Members

• Jason Theodora (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
• Hilary Kings (Board Member) 14 Percent Shares
• Harrison Williams (Board Member) 10 Percent Shares
• Rachael Abraham (Board Member) 10 Percent Shares
• Stella Norman (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Ideal location for property development (thriving real estate market)
• Highly experienced and qualified employees and management
• Access to finance from business partners
• Robust relations with property owners and properties investment moguls
• Good returns on investment for investors.

b. Weakness

• Financial Constraints
• Our business will be competing with well-established property developers and other home remodeling companies
• Inability to retain highly experienced and qualified employees longer than we want

c. Opportunities

• New York is a thriving market for property development companies and the real estate industry.
• Good support structure for property development companies.

i. How Big is the Industry?

The market size, measured by revenue of the real estate sales and brokerage industry is put at $156.2 billion in 2023 hence it will be safe to safe the industry is amongst the biggest industries in the United States of America.

ii. Is the Industry Growing or Declining?

All available data points to the fact that the real estate and brokerage industry is growing. The market size of the industry is expected to increase 0.4 percent in 2023.

iii. What are the Future Trends in the Industry

The real estate sales and brokerage industry is changing, and players in the industry are improvising. No doubt, technology and climate change (the go green initiative) will change the landscape of the industry going forward.

iv. Are There Existing Niches in the Industry?

No, there are no existing niche ideas when it comes to the property development business. This is because the property development line of business is a subset of the real estate and brokerage industry.

v. Can You Sell a Franchise of your Business in the Future?

Vintage Group© Property Development Company, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving real estate markets in the United States of America.

• The arrival of new property development companies within our market space
• Unfavorable government policy and regulations.
• Community resistance
• Liability problems
• Continuously changing consumer demands especially as it relates to style and design of properties et al.

i. Who are the Major Competitors?

• New World Development Co. Ltd
• Wheelock and Company
• AvalonBay Communities
• Greystar Real Estate Partners
• Wood Partners
• Mill Creek Residential
• Continental Properties Company, Inc.
• Trammell Crow Company
• The JBG Companies
• Lowe Enterprises
• Simon Property Group
• General Growth Properties
• SITE Centers
• Kimco Realty Corp
• Brixmor Property Group
• Panattoni Development Co.
• McDonald Development Co.
• USAA Real Estate Co.
• LaSalle Investment Management
• Gibraltar Syndication & Development Company

ii. Is There a Franchise for Property Development Business?

Well, for now, there are no known franchise opportunities in the property development business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Property Development Business?

Yes, there are county or state regulations and zoning laws for the business. Zoning laws are found in virtually every municipality in the United States, affecting land use, lot size, building heights, density, setbacks, and other aspects of property use.

In addition to that, it is important to state that in the United States, government agencies and departments routinely grant variances to rules and regulations. Often, you only have to fill out a short form. In other cases, your request may have to be publicly heard before your city council, zoning board, or other body. Please check with your zoning or planning department to find out what options are available to you.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market comprises adults above 18 years old who have the finance to do business with us.

ii. Level of Educational

We don’t have any restriction on the level of education of those we are ready to work with as investors or buyers of the properties we develop.

iii. Income Level

The income level of those we are looking to do business with will be between $70,000 and above $124,000.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we are looking to partner with.

v. Language

There is no restriction when it comes to the language spoken by the people we will partner with.

vi. Geographical Location

Anybody from any geographical location will be welcome to partner with us or do business with our company.

vii. Lifestyle

Vintage Group© Property Development Company, Inc. will not restrict any investor or client from partnering with us or doing business with us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Host Themed Events That Catch Attention.
• Tap Into Text Marketing.
• Make Use of Bill Boards.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Develop Your Business Directory Profiles
• Build Relationships with players in the real estate and brokerage industry.

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Vintage Group© Property Development Company, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package for each property,

In all our pricing strategy will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the real estate and brokerage industry, and freelancers to help refer clients to us.

Vintage Group© Property Development Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need the required building materials means that Vintage Group© Property Development Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Vintage Group© Property Development Company, Inc. will make available to her clients;

• Payment via bank transfer
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

d. Return Policy, Incentives, and Guarantees

At Vintage Group© Property Development Company, Inc., we develop properties and the nature of products (properties) we offer does not accommodate return policy, but we will guarantee our investors of good returns on their investment (ROI). Our Operating Margin targets for housebuilders across the economic cycle will be placed at 15-20 percent on Gross Development Value (GDV).

e. Customer Support Strategy

Our customer support strategy will involve seeking customers’ feedback. This will help us provide excellent properties, return on investment (ROI) and customer service to all our clients and investors, it will help us understand their needs, experiences, and pain points. We will work with effective CRM software to be able to achieve this.

Operational Plan

Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.

Overall, we plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting grants and fundraising strategies that will enable us to boost our properties and service offerings.

a. What Happens During a Typical Day at a Property Development Business?

• The office is open for the day
• Documentation and other administrative works are conducted throughout the day
• Marketers go out in the field to market our properties and services
• If there is an ongoing property development project, the required team and machinery are sent to the field to carry out the project.
• The team and machinery return to base (office) after the day’s job
• Report for the day is written and submitted to the required authority
• The office is closed for the day.

b. Production Process (If Any)

There is no production process when it comes to the property development business.

c. Service Procedure (If Any)

No, there are no defined service procedures for a property development business.

d. The Supply Chain

Vintage Group© Property Development Company, Inc. will rely on key players in the real estate and brokerage industry to refer business deals to us. So also, we have been able to establish business relationships with wholesale supplies of building materials.

e. Sources of Income

Vintage Group© Property Development Company, Inc. make money from;

Financial Plan

A. amount needed to start your property development company.

Vintage Group© Property Development Company, Inc. would need an estimate of $4.5 million to successfully set up a property development company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Cost Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $7,300.
• Marketing, Branding and Promotions – $5,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $200,000.
• Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $100,000
• Start-up Inventory – $15,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Furnishing and Equipping – $80,000
• Liquid Cash for Execution of Projects: $3.5 million
• Website: $600
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Vintage Group© Property Development Company, Inc. will not build a new facility; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our facility.

d. What are the Ongoing Expenses for Running a Property Development Company?

• Transportation cost
• Cost of building materials and supplies
• Utility bills (internet, phone bills, signage and sewage et al)
• Salaries of employees

e. What is the Average Salary of your Staff? List the Job Position and their proposed salary based on industry rate and your startup capital

• Chief Executive Officer – $85,000 Per Year
• Project Manager – $72,000 Per Year
• Head of Construction and Renovation – $70,000 Per Year
• Company’s Lawyer/Secretary – $68,000 Per Year
• Admin and HR Manager – $45,000 Per Year
• Business Developer/Sales and Marketing – $42,000 Per Year
• Accountant – $40,000 Per Year
• Customer Service Executive/Front Desk Officer – $30,000 Per Year.

f. How Do You Get Funding to Start a Property Development Company

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from, government, donor organizations, and angel investors
• Source for soft loans from your family members and your friends.

Financial Projection

A. how much should you charge for your service.

At Vintage Group© Property Development Company, Inc. our fee will be based on the location and type of property we want to develop.

b. Sales Forecast?

• First Fiscal Year (FY1): $3.5 million
• Second Fiscal Year (FY2): $5 million
• Third Fiscal Year (FY3): $9 million

c. Estimated Profit You Will Make a Year?

The ideal profit margin we hope to make at Vintage Group© Property Development Company, Inc. will be between 16 and 20 percent on development costs.

d. Profit Margin of a Property Development Company

Vintage Group© Property Development Company, Inc. will collect developer fees that will range from 5 to 10 percent aside from making profits off every property sold.

Please note in planning our property development project, we will make sure that the bottom line shows a suitable return for the money and effort we put into it.

Growth Plan

A. how do you intend to grow and expand .

Vintage Group© Property Development Company, Inc. will grow our property development company by first opening other offices in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why? (Geographical locations)

Vintage Group© Property Development Company, Inc. plans to expand first to Los Angeles – California, San Francisco – California, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Philadelphia – Pennsylvania.

The reason we intend to expand to these geographic locations is the fact that available statistics show that the cities listed above have the highest real estate market in the United States. New York has the highest real estate value in the country at $2.8 trillion.

The founder of Vintage Group© Property Development Company, Inc. plans to exit the business via family succession. We have placed structure and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.

More on Real Estate

Property Development Business Plan Template

Written by Dave Lavinsky

Property Development Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their property development companies.

If you’re unfamiliar with creating a business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a property development business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Property Development Business Plan?

A business plan provides a snapshot of your property development business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Property Development Company

If you’re looking to start a property development business or grow your existing property development company, you need a business plan. A proper property development business plan will help you raise funding, if needed, and plan out the growth of your business to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Property Development Companies

With regards to funding, the main sources of funding for a property development company are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for property development companies.

Finish Your Business Plan Today!

How to Write a Business Plan for a Property Development Company

If you want to start a property development company or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your property development business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of property development business you are running and the status. For example, are you a startup, do you have a business that you would like to grow, or are you operating property development businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the property development and real estate industry.
• Discuss the type of property development business you are operating.
• Detail your direct competitors. Give an overview of your target market.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of business you are operating.

For example, you might specialize in one of the following types of property development businesses:

• Single-family detached housing : these types of property developers build free-standing residential buildings for sale.
• Multifamily housing: these types of property developers build apartment buildings, condos, and mixed-use developments.
• Developing and Subdividing Lots: these types of property developers purchase property, either developed or undeveloped, and clear it and prepare it for sale to builders.
• Commercial buildings: these types of property developers build and manage commercial buildings such as shopping centers or offices.

In addition to explaining the type of property development company you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the property business?
• What milestones have you achieved to date? Milestones could include the number of properties developed, reaching X percentage of vacancy/occupancy, reaching X amount of revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the property development industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the property development industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your property development business plan:

• How big is the property development industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your property development company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your property development business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, and small businesses.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of property development business you operate. Clearly, families would respond to different marketing promotions than businesses, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other property development businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes realtors, foreclosure markets, rental housing, or companies purchasing and remodeling their own building. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of property development company are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide finance packages?
• Will you offer amenities or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a property development company, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of property development company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you specialize in single-family detached housing, mixed use developments, or shopping centers?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the project types and/or services you offer and their prices.

Place : Place refers to the site of your property development company. Document where your company is situated and mention how the site will impact your success. For example, is your property development business located in a business or industrial district, or is it a standalone office surrounded by models? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your property development marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday Short-Term Processes

In this section, include all of the tasks involved in running your property development business, including answering calls, meeting with potential customers, performing construction, showing properties, etc.

Long-Term Goals

Your long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your Xth home, or when you hope to reach $X in revenue. It could also be when you expect to expand your business to a new city.  

Management Team

To demonstrate your property development business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing property development businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your management team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a property development business or successfully running a construction project management firm.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you develop 5 or 25 properties per quarter, and/or offer property management services? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your property development business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a property development business:

• Cost of construction equipment and supplies
• Cost of contract labor
• Cost of office space and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your model properties’ blueprints or a breakdown of development types you offer.  

Writing a business plan for your property development company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the property development industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful property development business.

Don’t you wish there was a faster, easier way to finish your Property Development business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Hire someone to write a business plan for you from Growthink’s team.

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