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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?

How Needful is Shelter? Every day all over the world several millions of people are being displaced- this could be as a result of the exorbitant rent, wars, amongst others. When this happens, these folks become devastated, so that they do not know what might happen if they failed to secure a roof over their heads ultimately.

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.

More Property Developers Emerge

Good news is that government in major parts of the world is already doing this, and that is why the real estate industry will continue to encounter a boom for a very long time. This is because of the needs of people when it comes to finding befitting properties, either for living or business use. 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.

Need For a Business Plan

This is one of the very essence of putting all plans on paper. Two words that can be used to describe the plan which property developers put together is the ‘business plan’. If you have never come across a business plan before, this can sound foreign, as you may begin to wonder how to go about it. Well, there is respite, as you can employ the services of a business plan writer.

More often than not, this person may be a business consultant who has a vast knowledge about how business plans are being written. You have got to be armed with some cool bucks, as you will be required to pay for this service. More so, they are also in business to make profit.

Conversely, yet another better news is the point that you can write this business plan all by yourself. Does that sound a joke? Truth is that with a business plan template, you can do justice to your own business plan. But be reminded that there are some steps involved in this. What could they possibly be? You will be required to go on a research spree, so as to dig out a property development business plan to work with. It becomes needful that to a large extent you work with a property development business plan so as to get acquainted with some technicalities involved in the trade.

For the sake of this read, all of that research has been taken care of, and so you can see a sample property development business plan below.

A FREE Sample Property Development Business Plan Template

  • Property Development 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.

Property Development Business Plan – 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.

  • Our product 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

Our Vision Statement

To deliver affordable and quality properties to all classes of people in the United States of America.

  • Our Mission Statement

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.

  • 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
  • Accountant
  • Front Desk Officer

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

Project Manager

  • 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.

Civil Engineer

  • 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

Architect

  • 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.

Land Surveyor

  • 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

Company’s Lawyer / Secretary

  • 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

Admin and HR Manager

  • 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.

Business Developer

  • 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

Accountant

  • 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

A Sample Property Development Business Plan Template – 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;

  • Strength:

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.

  • Weakness:

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.

  • Threat:

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.

Property Development Business Plan – 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.

  • 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

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.

Property Development Business Plan – SALES AND MARKETING 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.

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;

  • 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

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.

  • Pricing

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.

Property Development Business Plan – 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

Property Development Business Plan – Financial Projections and Costing

  • 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 Delicious Delight® Catering Services 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

PROPERTY DEVELOPMENT BUSINESS GROWTH: 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
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