The Financial Plan is one of the most important, if not the absolute most important, parts of your real estate business plan.
Revenue and Cost Drivers
[Sender.Company]’s revenues will come primarily from the commissions earned from client real estate sales, purchases, and rental fees. Half of the deals each quarter are expected to be rentals, one-quarter of sales, and one-quarter of purchases.
As with most services, labor expenses will be key cost drivers. [Sender.FirstName][Sender.LastName] and future brokers will earn a competitive base salary. Furthermore, the costs of transactions are projected to be roughly 40% of regular commission revenue and cover the advertising of listings, travel and supply costs for clients, and other direct costs for each deal.
Moreover, ongoing marketing expenditures are also notable cost drivers for [Sender.Company].
Capital Requirements and Use of Funds
[Sender.Company] is seeking total funding of (Enter the amount needed) of debt capital to open its office. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
Store design/build: $(Enter value)
Working capital: $(Enter value) to pay for marketing, salaries, and lease costs until [Sender.Company] reaches the break-even point
Key Assumptions and Forecasts
The following table reflects the key revenue and cost assumptions made in the financial model.
Annual Lease/Rent per location: