The following are some highlights from this business plan for Home At Last Realty:
- Jose and Diana have a combined 27 years of experience as realtors and they are now looking to start their own independent real estate office called Home At Last Realty that will offer their clientele the entire gamut of services offered by realtors. They will first be focusing on the sale and rental of residential properties and later plan to begin offering specialized commercial real estate leasing and sales services as well.
- The total startup costs to open doors at Home At Last Realty during the spring of 2012 are projected to be $66,435. Of this Jose will be contributing 60% or $30,000 and Diana will be bringing $20,000 representing 40% to the new enterprise. The remaining $16,435 will be acquired in the form of a fully amortizing term loan from a local community bank where both Jose and Diana have long relationships.
- The target market for Home At Last Realty will be Alameda County, California which has a population of approximately 1.5 million people.
- The offices of the company will be located in downtown Oakland which is home to many well known businesses.
- Based on the most recently available data, there are 398 real estate offices based in Alameda County employing a total of approximately 1,290 professionals. Each establishment employes on average approximately 4 professionals and has an average annual employee payroll cost of $57k. Of the 398 real estate offices, 95% of them employ less than 9 people.
- There are over 306k detached single family homes in the target market of Alameda County which represent about 53% of the total housing stock.
- Approximately 74% of the total housing stock of Alameda County was built after 1970 compared to approximately 62% for the State of California.
- More than 79% of the householders who own their homes in Alameda County, moved into their homes before 1990 compared to 81% statewide.
- 78% of all housing units in Alameda County have a mortgage as compared to 76% for the State of California.
- Having a lower cost structure and using strong advertising and strategic alliances will contribute greatly to the success of our firm.
- Average sales projections of $360k, $540k and $900k are anticipated for the first three years of operations respectively.
- Net profit margins of 2.4%, 3.8% and 4.5% are projected for the first three years of operations.
- Significant use of technology will be used for both the back end and the client facing end of the operations to ensure high levels of productivity and competitiveness.
- Go to the Corresponding Questionnaire section for this industry.