RJ Wagner & Associates Realty, Inc., is an S corporation in Texas. It is capitalized by one stockholder and one investor, Regina Wagner. Regina Wagner is a licensed broker and will sponsor independent real estate agents in Texas. This corporation will formalize real estate services.

RJ Wagner & Associates Realty, Inc., will open in July in Houston, Texas (Champions area) in the Greenwood Square Shopping Center to serve the higher income section of Metropolitan Houston.

The broker of this firm has a strong credibility and reputation. They have a published real estate book and real estate organizational programs available in the Houston Association of Realtors and the Dallas Association of Realtors bookstores and superstores. Novice licensed agents have benefited from the tools and guidance provided in the book Texas Real Estate/The Mobile Mentor.


– Become a profitable organization to take advantage of real estate investment opportunities.

– Recruit and hire self-motivated, success-oriented, and hardworking sales agents.

– Maintain an office of at least 15 sales agents.

– Establish a solid corporate identity in our targeted market area.

– Establish good working relationships and promote communication and suggestions from all participants.

– Become a top brokerage firm in the Champion area by our third year of operation.

– Realize a positive return on investment within the first 12 months.

The manager and sales associates of this corporation possess the professionalism necessary for achieving the objectives. Real estate license holders have knowledge of real estate laws and procedures. However, their training is limited to the business itself. Sales and marketing training is expensive and not accessible to most new agents, resulting in low earnings compared to industry standards.

Our office environment will be productive and inviting. We will provide daily marketing routines/schedules for agents to follow. Agents have the option to follow the provided guidelines and training or their own routines. We will offer a program to help new agents earn more than the average real estate agent.

For example, if an agent with our company secures one seller and one buyer for the month, with an average sale of $150,000 on each side, they can earn $6,750 per month or $81,000 per year. The corporation would profit $2,250 per month or $27,000 per year, assuming 15 agents. The active broker of the corporation would receive a commission of $4,500 from each side, totaling $9,000 (100%) for the corporation. The broker will also receive a salary.


– Generate a profit and grow at a challenging and manageable rate.

– Live up to ethical codes set forth by the Texas Real Estate Commission.

– Strengthen our position in the target market by providing superior customer service.

Implementing this plan, along with a detailed marketing plan, will ensure that RJ Wagner & Associates Realty, Inc., becomes a profitable venture for the owner and agents.

Company Summary:

RJ Wagner & Associates Realty, Inc., provides expertise in real estate sales in Texas. It initially focuses on homesellers, homebuyers, and in-house sales agents. Our customer groups include sellers, buyers, and agents.

Sellers are our first customers, as they pay commissions from the sale of their properties. We prioritize clients who have retained us to list and sell their properties.

Buyers of residential real estate are our second customers. We provide superior personal services to buyers.

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Licensed real estate sales agents are our third customers. We are responsible for providing service to our sales agents.

As the company grows, it will take on new agents, providing them with competitive commission earnings and support services to help them gain clients more efficiently. We will also seek additional marketing techniques to serve the public according to the standards set by the Texas Real Estate Commission.

Company Ownership:

RJ Wagner & Associates Realty, Inc., is an S corporation in Texas. It is capitalized by one stockholder and one investor, Regina J. Wagner.

Start-up Summary:

Our start-up costs include website design, office equipment, a main computer station for agent usage, stationery, legal costs, furnishings, office advertising, and services. We will finance these costs through direct owner investment and credit.

Leasing office space costs approximately $1,500 per month (plus utilities) for efficient leased office space. The commercial lease will be for a three to five year agreement, with the first month and a security deposit payable at the time of lease start date.

Real Estate Brokerage Business Plan Example

Start-up Funding

Start-up Expenses to Fund: $23,244

Start-up Assets to Fund: $36,756

Total Funding Required: $60,000


Non-cash Assets from Start-up: $27,000

Cash Requirements from Start-up: $9,756

Additional Cash Raised: $0

Cash Balance on Starting Date: $9,756

Total Assets: $36,756

Liabilities and Capital


Current Borrowing: $0

Long-term Liabilities: $0

Accounts Payable (Outstanding Bills): $10,000

Other Current Liabilities (interest-free): $0

Total Liabilities: $10,000


Planned Investment

Investor 1: $20,000

Investor 2: $20,000

Other: $10,000

Additional Investment Requirement: $0

Total Planned Investment: $50,000

Loss at Start-up (Start-up Expenses): ($23,244)

Total Capital: $26,756

Total Capital and Liabilities: $36,756

Total Funding: $60,000


At RJ Wagner & Associates Realty, Inc., our primary service is selling residential real estate in a targeted market area. Our services provide clients with an international network of buyers and sellers through the multiple listing service (MLS). We sell homes faster than clients could without a licensed real estate agent, thanks to our ability to network with other brokers.

Additionally, our agency has an above-average sales force that generates and closes residential listings. We uphold the strict rules set by the Texas Real Estate Commission, ensuring our commitment to success in the real estate market. This commitment allows us to attract top professionals as sales associates and clients seeking to buy or sell residential real estate.

Agents with our firm receive the following services:

– Top commissions

– 24/7 hour office access

– Own web page

– Marketing/sales guidelines

– Personal goal setting training

– Professional/commercial office setting

– 24-hour answering service

– Free inside/outside panoramic photography of each property listing

– Full broker support

– Professional flyer design with property photos

– Yard signs supplied and installed for agents

– Flyer distribution to other brokers

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Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5 CAGR

Potential Customers Growth CAGR

Home Sellers 3% 153,819 158,434 163,187 168,083 173,125 3.00%

Home Buyers 3% 145,412 149,774 154,267 158,895 163,662 3.00%

Property Photography 3% 48,334 49,784 51,278 52,816 54,400 3.00%

Total 3.00% 347,565 357,992 368,732 379,794 391,187 3.00%

4.2 Target Market Segment Strategy

We cannot survive waiting for customers to come to us. Instead, we must focus on specific market segments whose needs match our offerings. This is the key to our future.

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Therefore, we need to focus our marketing message and services. We need to develop our message, communicate it, and follow through.

Strategy and Implementation Summary

RJ Wagner & Associates Realty, Inc., will focus on real estate needs in Houston and surrounding areas. Our target customers will be homesellers, homebuyers, and relocation clientele.

To achieve success, we must concentrate on our in-house licensed agents. We will support and assist them to the best of our ability.

5.1 Competitive Edge

The corporate broker of this firm has a published real estate book (Texas Real Estate/The Mobile Mentor). This book and accompanying organizational programs are distributed throughout Texas in real estate book stores and associations. It was written for novice agents and will be provided to oncoming agents as a reference tool, allowing for a fast start program.

Our firm offers "Top Commissions" to agents, allowing for more advertising and marketing promotions. We fully support agents in complying with listing tasks, freeing up their time to focus on selling and gaining clients.

We have a marketing plan in place for agents to utilize. The company will assist agents in goal setting, planning, and marketing techniques/strategies. Although agents are independent contractors, we operate as a team and encourage new ideas and suggestions.

Furthermore, please refer to the Services section for an outline of the extensive services we provide to in-house agents, sellers, and buyers. We believe our services give us a competitive edge.

To develop effective business strategies, perform a SWOT analysis of your business. Reference our free guide and template to learn how.

5.2 Sales Strategy

In our business, sales involve gaining property listings and implementing a marketing plan that best serves the client.

We match homes to buyers based on their criteria.

We assist in relocating clients to their new destinations and help clients relocating to our area find their homes. We offer an excellent referral service nationwide.

We search for lease properties for individuals who prefer renting over buying.

We offer above-standard commission rates and provide excellent marketing and advertising programs.

We provide our selling agents with strong support and guidance.

Each potential seller listing or buyer representation must be treated as an individual mission. We analyze each client and property to ensure our marketing program fits their needs and promotes the property effectively.

5.2.1 Sales Forecast

The following table and chart show the forecasted sales. Sales are expected to be slowest from September to December, increase from January to March, and experience the most growth from March to August.

Real Estate Brokerage Business Plan Example

Real Estate Brokerage Business Plan Example

Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
Agent Sales – 25% To Company $83,625 $205,000 $405,000
Broker Sales – 100% To Company $44,245 $45,000 $45,000
Photo Service – 100% To Company $5,280 $5,760 $5,760
Referrals – 25% Agent/25% Company $2,244 $3,750 $3,750
Total Sales $135,394 $259,510 $459,510

5.3 Milestones

The accompanying table lists important program milestones, with dates, managers in charge, and budgets. The milestone schedule signifies our emphasis on planning for implementation.

What the table doesn’t show is the commitment behind it. Our business plan includes provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss variance and course corrections.

Milestone Start Date End Date Budget Manager Department
Business Plan 6/1/2001 6/15/2001 $2,000 RJW Owner
Logo Design 6/1/2001 6/15/2001 $500 RJW Owner
Website Design/Placement 6/1/2001 6/15/2001 $500 RJW Owner
Company Stationary Design/Print 6/1/2001 6/15/2001 $2,000 RJW Owner
Co.Docs (CD-Rom/Disk) Agent Distribution 6/1/2001 6/15/2001 $500 RJW Owner
Company Signs/Advertising 5/15/2001 6/15/2001 $1,300 RJW Owner
BBB Membership/Yearly 1/1/2001 6/15/2001 $390 RJW Owner
Photo Merchant Account Charge 5/15/2001 6/15/2001 $200 RJW Owner
Incorporating Charges 3/15/2001 6/15/2001 $930 RJW Owner
Nat’l Realtor Assoc. Membership/Yearly 1/1/2001 12/31/2002 $300 RJW Owner
TX Realtor Assoc. Membership/Yearly 1/1/2001 12/31/2002 $300 RJW Owner
Houston Assoc.Corp. MLS/Yearly 1/1/2001 12/31/2002 $1,080 RJW Owner
Montgomery Assoc. Membership/Yearly 1/1/2001 12/31/2001 $300 RJW Owner
Purchased Office Equipment/Computer,etc. 5/30/2001 7/1/2001 $3,000 RJW Owner
Office Utilities 6/15/2001 7/30/2001 $200 ABC Department
Commercial Office Lease 6/15/2001 7/30/2001 $3,000 RJW Owner
Answering Service 6/15/2001 7/30/2001 $200 ABC Department
Commercial Phone Lease 6/15/2001 7/30/2001 $200 ABC Department
Lease Copy Machines 6/15/2001 7/30/2001 $1,150 RJW Owner
Totals $18,050
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Management Summary

The initial management team consists of the owner/licensed broker. The broker has the authority to sponsor licensed real estate agents under the corporate broker license. Upon joining, agents will receive a complete training program that includes the broker’s published book, Texas Real Estate: The Mobile Mentor, a complete library of company documents and marketing correspondence furnished on CD-RW and/or diskette, free inside/outside photography of all listings, and marketing plan/goal setting guidance and counseling. Agents will have on-site broker guidance and on-site mortgage advisory at all times.

Currently, the broker is an active listing broker. Recruiting licensed agents is underway in the Houston and surrounding areas. The goal is to add a total of three licensed agents in 2001, with a minimum of 12 agents to be added in 2002 (one per month). The aim is to have a minimum of 15 licensed real estate agents contracting under the sponsored broker. Agents have the option to work in-house or out of a home-based office.

In addition to real estate services, the corporation offers inside/outside photography services in-house as well as to other broker firms. This service is free for in-house agents and has a service fee for other broker sites and agents.

As RJ Wagner is a sole proprietorship, the principal’s personal net worth is as follows:

Personal Net Worth
Current Assets Balance
Checking $1,500
Savings $6,000
Investment $58,000
Household Goods $24,000
Auto $6,300
Auto $0
All Other $0
Total Current Assets $95,800
Long-term Assets
Main Residence $150,000
Improvements $0
Account $0
All Other $20,000
Total Long-term Assets $170,000
Total Assets

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