Start-Up Real Estate Business Plan
With advances in modern medicine, people are living longer. After raising children and retiring from work, they have a new stage of life where they can enjoy their spouse and be free from other responsibilities. They need a place within their budget to help them with that.
Solution
GVRE will provide real estate services in the newly established Golden Valley Retirement Community in scenic Tucson, Arizona. GVRE is a full-service real estate, mortgage, and title company.
Market
The retirement industry has been steadily growing over the past twenty years. The U.S. population over the age of 55 is at an all-time high of 21% and growing at an average rate of 3% each year. In parts of the country like the American Southwest, which has a high concentration of retirement communities, the growth rate is about 8%. This percentage is also expected to increase as the "baby boomer" generation reaches retirement age in the next decade. The retirement industry, including homes, medical facilities, specialty equipment, and retirement entertainment services, accounts for $4.8 billion each year.
Competition
The real estate industry has many potential rivals. Our most serious competitors are Bowditch Realty and RE/MAX. Bowditch has been in operation for the past ten years and has a fine track record. RE/MAX is one of the largest and most well-known real estate firms in the country.
Why Us?
GVRE believes the greatest threat is new entrants to the market attempting to capitalize on this high growth industry. However, GVRE has the advantage of being the exclusive agent for Golden Valley Retirement Community. Competition is intense due to the high number of competitors and low profitability.
Expectations
Forecast
The company expects to reach profitability in the first year and does not anticipate any serious cash flow problems. We conservatively believe that during the first three years, average profitability per month per segment will be adequate. One sale per month will guarantee a break-even point.
Financial Highlights by Year
Financing Needed
We will receive $20,000 in financing from Mrs. Susan Egan and Mr. Daniel Egan.
Opportunity
Problem & Solution
With advances in modern medicine, people are living longer. After raising children and retiring from work, they have a new stage of life where they can enjoy their spouse and be free from other responsibilities. They need a place within their budget to help them with that.
Our Solution
Golden Valley Real Estate, LLC (GVRE) is a start-up company in the Tucson area. Our mission is to provide real estate services in the newly established Golden Valley Retirement Community. The company’s main clients will be retirement age couples looking for a community that can offer significant services for their age group and income levels. Mrs. Egan, being within this demographic group, understands this market’s needs better than most competitors.
Market Size & Segments
GVRE will concentrate on the retirement market in the Tucson area. The U.S. population over the age of 55 is at an all-time high of 21% and growing at an average rate of 3% each year. The retirement industry accounts for $4.8 billion each year. The market analysis shows the number of potential retirees moving into the Tucson area each year.
Competition
Current Alternatives
The retirement industry has been steadily growing over the past twenty years. The U.S. population over the age of 55 is at an all-time high of 21% and growing at an average rate of 3% each year. In parts of the country like the American Southwest, the growth rate is about 8%. This percentage is also expected to increase as the "baby boomer" generation reaches retirement age in the next decade. The retirement industry accounts for $4.8 billion each year.
The power of potential clients is great in this industry because most clients are concentrated in our geographical area. Clients tend to "shop around" for the best package of services and cost.
Competition and Buying Patterns
The real estate industry is highly fragmented, with many potential rivals. Our most serious competitors are Bowditch Realty and RE/MAX.
Our Advantages
GVRE offers comprehensive real estate, mortgage, and title services. With Quadrant Homes, Inc. as our sponsor in the Golden Valley Retirement Community, we will have a premier position as the dominant seller of new homes, condos, and retirement apartments. We offer a full range of services, including a home search database, moving consulting, mortgage consulting, community information, and title transfer.
Keys to Success
GVRE’s keys to long-term survivability and profitability are as follows:
– Establish and maintain close contacts with residential real estate listing services and other service organizations.
– Keep close contact with clients and establish a well-functioning long-term relationship.
– Establish a comprehensive service experience for our clients.
Execution
Marketing & Sales
GVRE will use radio, newspaper, phone directory advertising, and a small business referral group to generate sales and establish a presence in the Tucson area. Quadrant Homes, Inc. will also do their advertising and refer interested clients to GVRE.
GVRE’s management will leverage their contacts with construction companies to generate sales. They will offer promotions of free services to generate sales once the ad campaign starts.
Operations
Technology
Services
GVRE offers comprehensive real estate, mortgage, and title services. Title transfer, loan approval, appraising, and market analysis services will be outsourced to TNT Legal Services, GMC Credit Co., and Templar Real Estate Services. These companies charge a flat monthly rate.
Our first priority is to help the seller set a realistic price for their property. We work closely with buyers and sellers to maximize their opportunities to sell their home at the best possible price within acceptable time frames.
Keys to Success
GVRE’s keys to long-term survivability and profitability are as follows:
– Establish and maintain close contacts with residential real estate listing services and other service organizations.
– Keep close contact with clients and establish a well-functioning long-term relationship.
– Establish a comprehensive service experience for our clients.
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