real estate business plan example pdf

Real Estate | How To

How to Write a Real Estate Business Plan (+ Free Template)

Published June 30, 2023

Published Jun 30, 2023

REVIEWED BY: Gina Baker

WRITTEN BY: Jealie Dacanay

This article is part of a larger series on How to Become a Real Estate Agent .

• 1 Write Your Mission Statement
• 2 Conduct a SWOT Analysis
• 3 Set Specific & Measurable Goals
• 4 Plan Your Marketing Strategies & Tactics
• 5 Create a Lead Generation & Nurturing Strategy
• 6 Calculate Your Income Goal
• 7 Set Times to Revisit Your Business Plan
• 8 Why Agents Need a Real Estate Business Plan
• 9 Real Estate Business Plan Examples & Templates
• 10 Bottom Line
• 11 Frequently Asked Questions (FAQs)

A real estate business plan lays the groundwork and provides direction on income targets, marketing tactics, goal setting, lead generation, and an overview of your industry’s competition. It describes your company’s mission statement in detail and assesses your SWOT (strengths, weaknesses, opportunities, and threats) as an organization. Business plans should include measurable goals and financial projections that you can review periodically throughout the year to ensure you meet your goals.

Continue reading to see real estate business plan examples and discover how to write a real estate business plan. Start by making your own by downloading and using the free real estate business plan template we’ve provided below.

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Real Estate Business Plan Template

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💡Quick tip:

Market Leader provides a comprehensive paid inbound lead, automated marketing, and CRM solution to help agents acquire, engage, and nurture real estate leads.

Furthermore, Market Leader offers and guarantees you a number of exclusive seller and buyer leads in your target niche at a monthly rate.

1. Write Your Mission Statement

Every real estate agent’s business plan should begin with a mission statement, identifying your values and why your business exists. Your mission statement serves as the guide to achieving your ultimate business objective. When you create a solid clear mission statement, all other items identified in your realtor business plan should be aimed at fulfilling this statement.

Compass’ mission statement: “Our mission is to help everyone find their place in the world.” (Source: Compass )

Your mission statement should identify your target audience, what product or service you provide, and what makes your business distinct. As seen in the example above, a powerful mission statement should be short and concise but sums up a business objective.

Let’s take Compass’ mission statement above as an example: “Our mission is to help everyone find their place in the world.” The statement identifies what the company offers, for what reasons, and who it benefits.

2. Conduct a SWOT Analysis

SWOT is an acronym that stands for a business’ strengths, weaknesses, opportunities, and threats. The primary objective of these four elements is to assess a business by evaluating internal and external factors that can drive decision-making and help you make more money . Conducting a SWOT analysis as you develop your business plan for real estate uncovers opportunities to differentiate yourself from the massive competition currently on the market.

Strengths & Weaknesses

Strengths and weaknesses are internal parts of your organization. Strengths identify what product or services you provide better than others, your access to resources, and items that benefit your customers. Weaknesses are items that need improvement, lack of resources, or what your competition does better. These are items within your control to change because you can convert a weakness into a strength.

See the example below if “Agent X” was doing their SWOT analysis:

Opportunities & Threats

External factors drive opportunities and threats and are areas you can take advantage of to benefit your business. Examples of opportunities can be shifts in the current marketplace, emerging trends you can capitalize on, features that competitors lack, or even changes with your competitors. Threats, on the other hand, are anything that can negatively impact your business. You don’t have control over changing the opportunities or threats, but you can develop a practice to anticipate and protect your business against the threats.

The opportunities and threats for “Agent X” would be:

When you complete your SWOT analysis, use it as a guide when creating strategies to meet your business objectives. To gain the most benefit from creating a SWOT analysis, make sure you are being realistic about your business and evaluating it in its present state. You don’t want to be unrealistic by listing strengths or opportunities that don’t exist yet, and you want to allocate time and money to the most impactful solution to your business issues.

If “Agent X” completed the above SWOT analysis, a few strategies they could derive would be:

• Incentivize agents to keep them at the brokerage for longer
• Implement a technology-based key machine to reduce lost keys and keep the team accountable
• Find a competitive advantage against competing brokerages and use that in marketing messages

Zillow agent finder (Source: Zillow )

To help agents locate other brokerages operating in your preferred market, agents can use Zillow’s agent finder page as a research tool to see which agents or brokerages are operating in a specific area. You can find an agent by location, name, specialty, and language. Once you click on a Zillow profile , you can read their reviews, see their team members, contact and website information, and property listings. Take a deep dive into your competitor profiles and can use the information to implement strategies within your own business.

Visit Zillow

Read how our experts feel about this real estate lead generation company in our Zillow Premier Agent review .

3. Set Specific & Measurable Goals

You’re ready to set some business goals after clearly defining your mission statement and SWOT analysis. Goals can help set the tone to increase your performance and drive your business in the right direction. Your goals should have a definitive way to show progress, which can be a prime motivator to keep you on track to achieving them.

Each goal should follow a pattern to identify set criteria. This will ensure that your daily efforts are performed to meet business objectives within a set period. A way to do this is by using SMART goals:

Examples of SMART goals for agents or brokerages:

• Increase closed transactions by 20% to a total of 150 deals within the next year
• I will ask all closed clients for a referral and review within 30 days of closing the deal

Goals can be split into short-term and long-term goals. Short-term goal lengths vary between days and weeks but do not exceed six months. Short-term goals can also be worked on simultaneously with long-term goals. Long-term goals can take up to six months or more to complete and require careful planning and perseverance. A mix of short-term and long-term goals will help you maintain motivation.

All goals are equally important; however, success will stem from how you prioritize each one. Slowly add on additional goals as you have the capacity and feel comfortable with the current progress of your current set of goals. Without identifying your business goals, you’ll leave your results up to luck to attain your business objectives.

4. Plan Your Marketing Strategies & Tactics

Developing marketing strategies and tactics and implementing them help you identify and locate your current value proposition in the real estate industry, along with specific timelines for execution. In addition to determining your overall business objectives and goals, your marketing strategy and plan should include the following:

• Pinpoint general marketing goals
• Estimate projected marketing budget
• Know your geographic farm area data and identify your target niche audience
• Analyze market competition
• Identify your unique selling proposition
• Establish a timeline and set your plan in motion
• Track your progress and readjust as needed

While a marketing strategy identifies the overall marketing goals of your business, developing marketing tactics will help you achieve those individual goals. They can include referral business tactics, retention efforts, and ways to acquire new customers. For example, you can offer incentives to anyone who refers your business, or you can implement new email drip campaigns to help increase lead conversion rates.

These tactics should have set key performance indicators (KPIs) to help you evaluate your performance. For instance, a KPI you can set for your business could be that referral business should exceed 20% of your lead generation sources.

If you’re unsure how to put together your marketing plan, check out our article Real Estate Marketing Plan Template & Strategy Guide and download the free template to get started.

Postcard campaign example (Source: ProspectsPLUS! )

If direct mail is part of your promotion strategy, services like ProspectsPLUS! can help easily create and distribute mailers to a targeted area. It also has options for postcards , brochures, newsletters , flyers, and folders. You can also send mailers to prospective clients by geographic or demographic farm areas through its campaigns. Check out its templates and mailing options today.

Visit ProspectsPLUS!

Read how our experts feel about this real estate direct mail service in our ProspectsPLUS! review .

5. Create a Lead Generation & Nurturing Strategy

Having a successful lead generation strategy will help you maintain business growth. Lead generation can be performed organically and through paid advertisements to attract and convert prospective clients. In addition to generating leads, agents should have systems to manage, nurture, and re-engage with contacts to maximize opportunities.

Generating leads through a multipronged approach is the best way to maintain lead flow. Use organic strategies like hosting an open house, reaching out to your sphere of influence, and attending networking events. Employ paid generation strategies, such as purchasing leads from a lead generation company or setting up a website to funnel potential clients. Your marketing strategies will directly correlate with your lead generation strategies.

Every lead is an opportunity, even if they don’t immediately convert into a deal. Effectively nurturing leads can make sure no opportunity falls through the cracks. Agents can nurture leads by continuously engaging and developing relationships with prospective leads . It’s important to provide prospective clients with a constant flow of essential and relevant information, depending on where they are in the real estate buying or selling process.

Here are the top lead generation companies for real estate agents and brokers:

Engage more efficiently with buyer and seller leads using Market Leader’s new feature Network Boost. Network Boost has shown a 40% increase in agents successfully connecting with leads. Market Leader social media experts design highly targeted and optimized ads for your Instagram and Facebook. As visitors engage with your ads, they will be prompted to complete a form and funnel directly into your Market Leader client relationship manager (CRM). This will also trigger an automatic marketing campaign that nurtures your clients and lets you know they are ready to engage with you personally. Try Market Leader’s Network Boost today.

6. Calculate Your Income Goal

Your income goal is one of the most critical items to be included in your business plan. While this may be more difficult for new agents who are still learning the business, it’s still necessary to estimate the amount of money you will earn for the year. Work with an experienced agent or mentor to help you estimate your monetary goals. For professional agents, review your previous years to judge your income goals for the upcoming year.

To calculate your income goal and the amount of work you’ll need to complete to get to that goal, you’ll need to have some basic number estimates:

• Net income: The amount of money you will put in your pocket after commission splits with your real estate brokerage.
• Fee split with brokerage: This is the agreed-upon commission split you have with your brokerage for each completed transaction. For example, if you have a 70/30 split with your brokerage, you will collect 70% of the commission, and your brokerage will receive a 30% commission for each deal.
• Estimate of completed deals per year: You also want to estimate the number of deals you intend to complete yearly. Remember that some months will be busier than others, so make sure to account for holidays, weather, and your schedule.

Real Estate Yearly Goal Calculator

By figuring out these numbers, you can give yourself a realistic number for your income goal. Compute the gross income commission (GCI) or amount of money you must make before the commission splits and the average profit per deal and month you’ll need to reach your goal.

For a more detailed breakdown of your yearly goal, download and use our yearly goal calculator. Input your information into the highlighted yellow boxes, and the spreadsheet will automatically calculate the GCI, total deal count, and gross income you’ll have to earn each month to reach your goal. Adjust the average gross commission per deal and brokerage split as necessary.

FitSmallBusiness Year Goal Calculator

For additional information on real estate agent salaries, review our article Real Estate Agent Salary: How Much Do Real Estate Agents Make?

7. Set Times to Revisit Your Business Plan

Business plans are only effective if you use them. A business plan is a roadmap for your business, and you’ll need to revisit it often to ensure you’re staying on track. It should be a constant resource to guide you through meeting your goals and business objectives, but it’s not necessarily set in stone if you need to make any changes.

Agents should revisit their business plans monthly to measure progress and make any changes to stay the course. If you find that you’re missing the times set for your goals, then you should continue to revisit your business plan regularly. Changing the business plan itself should occur annually once you can have a complete picture of your yearly performance. Evaluating the business plan can help you discover new strategies and ensure you have the appropriate resources for the upcoming year.

Overall status of sales activities in the dashboard (Source: Pipedrive )

Sales software like Pipedrive can help you track your overall business performance when revisiting your business plan. It presents company sales data in easy-to-visualize dashboards that track your business performance and contains forecasting tools to project future revenue. It can maintain company and team goals with progress tracking to keep goals top of mind.

Visit Pipedrive

Read how our experts feel about this real estate customer relationship manager (CRM) system in our Pipedrive review .

Why Agents Need a Real Estate Business Plan

A real estate business plan keeps you up to date on market developments and one step ahead of your competitors. It also enables you to test lead-generating tactics and create new marketing campaigns while keeping track of results over time. A solid business plan for a real estate agent presents the following:

• Where you are at the moment
• Where you would like to be
• How you’re going to get there
• How to evaluate and measure your performance
• When and when to correct the course

Real Estate Business Plan Examples & Templates

Real estate agents and brokerages don’t have to build their business plans from scratch, as many resources provide different examples. Business plan templates can also have different objectives. Some are used to secure financing or help you focus on lead generation, while others are single-page plans meant to get you started.

Here are five real estate business plan examples you can use to create yours:

Lead Generation & Income Plan

Market Leader business plan example (Source: Market Leader )

This business plan is from Market Leader, a third-party lead generation platform. It specializes in lead generation, marketing, and converting leads into customers with an attractive IDX (Internet Data Exchange) website and robust automation tools. Agents can also participate in purchasing leads through their lead products to receive a guaranteed number of leads per month.

A Single-page Business Plan

Business plan for real estate (Source: PngFind )

Agents who are new to writing a business plan can start small. Business plans do not have to be multipage to be effective. This single-page business plan helps identify a single goal followed by three areas to focus on and five objectives for each focus area. As real estate agents begin to feel comfortable with goal setting and completion, they can continue to add to this single-page business plan with duplicate pages, identifying additional goals.

Business Plan for Real Estate Brokers

Real estate broker business plan (Source: AgentEDU )

This robust real estate broker business plan is designed to address organization and management goals. It contains pages identifying personnel information like title, job description, and salary. The business plan also encourages the broker to identify operational goals for future personnel changes. It’s best suited for a broker with a larger team to help drive operational change.

Business Plan With Detailed Financials

Example of real estate agent business plan template (Source: FinModelsLab )

This multipage business plan contains eye-catching graphics and detailed company financial information for real estate agents and brokers seeking funding from outside investors. One of the last sections of the business plan is a financial planning section geared toward showing how viable your business is through your provided income statements, cash flow, and balance sheet reports.

Real Estate Developers’ Business Plan

Realtor business plan template sample (Source: Upmetrics )

Upmetrics’ real estate business plan templates are easy to edit and share and contain professional cover pages to help agents convert their business ideas into actionable goals. The business plans from Upmetrics are geared toward agents looking to transition into real estate development. This plan includes vital sections important for a developer to analyze, such as building location, demand for housing, and pricing.

Real estate CRM (Source: Market Leader )

Market Leader’s business plan is centered around driving more business through lead generation. It helps agents understand their lead sources, average sales price, and how much commission was earned in a given year. It also allows agents to set income and transactional goals for the following year.

Visit Market Leader

Bottom Line

Whether you are a new real estate agent or looking to grow your brokerage, writing a real estate business plan template will help you define the steps needed to build a successful business . It serves as a guided roadmap to help you achieve your business goals, identify areas of improvement, and provide guidance in all aspects of your business, from marketing, operations, and finance to your products and services. Business plans can help determine if your business is viable and worth the financial investment.

Frequently Asked Questions (FAQs)

What is a real estate business plan.

A real estate business plan is a document that presents an outline of your organizational goals. A business plan lays out future company goals and structured procedures to achieve them. Business plans commonly contain plans for one to five years at a time, though they can differ from investor to investor.

A real estate business plan will put you in a position to succeed while also assisting you in avoiding potential pitfalls. It serves as a guide to follow when things go as expected and when they diverge from the initial plan of action. Also, a real estate business plan will ensure that investors know the steps they need to take to succeed.

How do I jump-start my real estate business?

It is important to note that starting a real estate business is not a simple task. Before launching a firm in any field, entrepreneurs should spend numerous hours researching and developing a solid business plan. As you start your real estate business, use the following tips as guidance:

• Think about your professional goals
• Conduct extensive research
• Organize your finances
• Create a business plan
• Establish an LLC
• Make a marketing plan
• Create a website
• Start campaigns
• Keep track of leads
• Develop a network of connections

How can I grow my real estate business?

You can use multiple strategies and ways to grow your real estate business. They include:

• Assess your current situation
• Invest in your professional growth
• Establish strategic alliances
• Take advantage of omnichannel marketing
• Start blogging
• Create consistent social media profiles and campaigns
• Improve your website
• Consider working with a marketing company
• Optimize your signs and direct mail

About the Author

Find Jealie On LinkedIn

Jealie Dacanay

Jealie is a staff writer expert focusing on real estate education, lead generation, marketing, and investing. She has always seen writing as an opportunity to apply her knowledge and express her ideas. Over the years and through her internship at a real estate developer in the Philippines, Camella, she developed and discovered essential skills for producing high-quality online content.

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• Writing a Business Plan

Writing a business plan may seem a daunting task as there are so many moving parts and concepts to address. Take it one step at a time and be sure to schedule regular review (quarterly, semi-annually, or annually) of your plan to be sure you on are track to meet your goals.

Why Write a Business Plan?

Making a business plan creates the foundation for your business. It provides an easy-to-understand framework and allows you to navigate the unexpected.

Quick Takeaways

• A good business plan not only creates a road map for your business, but helps you work through your goals and get them on paper
• Business plans come in many formats and contain many sections, but even the most basic should include a mission and vision statement, marketing plans, and a proposed management structure
• Business plans can help you get investors and new business partners

Source: Write Your Business Plan: United States Small Business Association

Writing a business plan is imperative to getting your business of the ground. While every plan is different – and most likely depends on the type and size of your business – there are some basic elements you don’t want to ignore.

Latest on this topic

NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles ( E ) are available only to NAR members and require the member's nar.realtor login.

Defining Your Mis​sion & Vision

Writing a business plan begins by defining your business’s mission and vision statement. Though creating such a statement may seem like fluff, it is an important exercise. The mission and vision statement sets the foundation upon which to launch your business. It is difficult to move forward successfully without first defining your business and the ideals under which your business operates. A company description should be included as a part of the mission and vision statement. Some questions you should ask yourself include: 

• What type of real estate do you sell?
• Where is your business located?
• Who founded your business?
• What sets your business apart from your competitors?

What is a Vision Statement ( Business News Daily , Jan. 16, 2024)

How to Write a Mission Statement ( The Balance , Jan. 2, 2020)

How to Write a Mission Statement ( Janel M. Radtke , 1998)

Using a SWOT Analysis to Structure Your Business Plan

Once you’ve created a mission and vision statement, the next step is to develop a SWOT analysis. SWOT stands for “Strengths, Weaknesses, Opportunities, and Threats.” It is difficult to set goals for your business without first enumerating your business’s strengths and weaknesses, and the strengths and weaknesses of your competitors. Evaluate by using the following questions:

• Do you offer superior customer service as compared with your competitors?
• Do you specialize in a niche market? What experiences do you have that set you apart from your competitors?
• What are your competitors’ strengths?
• Where do you see the market already saturated, and where are there opportunities for expansion and growth?

Strength, Weakness, Opportunity, and Threat (SWOT) ( Investopedia , Oct. 30, 2023)

How to Conduct a SWOT Analysis for Your Small Business ( SCORE , Apr. 28, 2022)

SWOT Analysis Toolbox ( University of Washington )

Setting ​Business Goals

Next, translate your mission and vision into tangible goals. For instance, if your mission statement is to make every client feel like your most important client, think about the following:

• How specifically will you implement this?
• Do you want to grow your business?
• Is this growth measured by gross revenue, profit, personnel, or physical office space?
• How much growth do you aim for annually?
• What specific targets will you strive to hit annually in the next few years?

Setting Business Goals & Objectives: 4 Considerations ( Harvard Business School , Oct. 31, 2023)

What are Business Goals? Definition, How To Set Business Goals and Examples ( Indeed , Jul. 31, 2023)

Establishing a Format

Most businesses either follow a traditional business plan format or a lean startup plan.

Traditional Business Plan

A traditional business plan is detailed and comprehensive. Writing this business plan takes more time. A traditional business plan typically contains the following elements:

• Executive Summary
• Company description
• Market analysis
• Organization and management
• Service or product line
• Marketing and sales
• Funding request
• Financial projections

Lean Startup Plan

A lean startup plan requires high-level focus but is easier to write, with an emphasis on key elements. A lean startup plan typically contains the following elements:

• Key partnerships
• Key activities
• Key resources
• Value proposition
• Customer relationships
• Customer segments
• Cost structure
• Revenue stream

Creating a Marketing Plan

You may wish to create a marketing plan as either a section of your business plan or as an addendum. The Marketing Mix concerns product , price , place and promotion .

• What is your product?
• How does your price distinguish you from your competitors—is it industry average, upper quartile, or lower quartile?
• How does your pricing strategy benefit your clients?
• How and where will you promote your services?
• What types of promotions will you advertise?
• Will you ask clients for referrals or use coupons?
• Which channels will you use to place your marketing message?

Your Guide to Creating a Small Business Marketing Plan ( Business.com , Feb. 2, 2024)

10 Questions You Need to Answer to Create a Powerful Marketing Plan ( The Balance , Jan. 16, 2020)

Developing a Marketing Plan ( Federal Deposit Insurance Corporation )

Forming a Team

Ensuring the cooperation of all colleagues, supervisors, and supervisees involved in your plan is another important element to consider. Some questions to consider are:

• Is your business plan’s success contingent upon the cooperation of your colleagues?
• If so, what specifically do you need them to do?
• How will you evaluate their participation?
• Are they on-board with the role you have assigned them?
• How will you get “buy in” from these individuals?

How to Build a Real Estate Team + 7 Critical Mistakes to Avoid ( The Close , May 17, 2023)

Don’t Start a Real Estate Team Without Asking Yourself These 8 Questions ( Homelight , Jan. 21, 2020)

Implementing a Business Plan and Reviewing Regularly

Implementation and follow-up are frequently overlooked aspects to the business plan, yet vital to the success of the plan. Set dates (annually, semi-annually, quarterly, or monthly) to review your business plans goals. Consider the following while reviewing:

• Are you on track?
• Are the goals reasonable to achieve, impossible, or too easy?
• How do you measure success—is it by revenue, profit, or number of transactions?

And lastly, think about overall goals.

• How do you plan to implement your business plan’s goals?
• When will you review and refine your business plan goals?
• What process will you use to review your goals?
• What types of quantitative and qualitative data will you collect and use to measure your success?

These items are only a few sections of a business plan. Depending on your business, you may want to include additional sections in your plan such as a:

• Cover letter stating the reasoning behind developing a business plan
• Non-disclosure statement
• Table of contents

How To Write a Business Proposal Letter (With Examples) ( Indeed , Jul. 18, 2023)

How To Implement Your Business Plan Objectives ( The Balance , Aug. 19, 2022)

The Bottom Line

Creating a business plan may seem daunting, but by understanding your business and market fully, you can create a plan that generates success (however you choose to define it).

Real Estate Business Plans – Samples, Instructional Guides, and Templates

9 Steps to Writing a Real Estate Business Plan + Templates ( The Close , Apr. 3, 2024)

How to Write a Real Estate Business Plan (+Free Template) ( Fit Small Business , Jun. 30, 2023)

The Ultimate Guide to Creating a Real Estate Business Plan + Free Template ( Placester )

Write Your Business Plan ( U.S. Small Business Administration )

General Business Plans – Samples, Instructional Guides, and Templates

Business Plan Template for a Startup Business ( SCORE , Apr. 23, 2024)

Guide to Creating a Business Plan with Template (Business News Daily, Mar. 28, 2024)

Nine Lessons These Entrepreneurs Wish They Knew Before Writing Their First Business Plans ( Forbes , Jul. 25, 2021)

How to Write a Business Plan 101 ( Entrepreneur , Feb. 22, 2021)

Books, eBooks & Other Resources

Ebooks & other resources.

The following eBooks and digital audiobooks are available to NAR members:

The Straightforward Business Plan (eBook)

Business Plan Checklist (eBook)

The SWOT Analysis (eBook)

The Business Plan Workbook (eBook)

Start-Up! A Beginner's Guide to Planning a 21st Century Business (eBook)

Complete Book of Business Plans (eBook)

How to Write a Business Plan (eBook)

The Easy Step by Step Guide to Writing a Business Plan and Making it Work (eBook)

Business Planning: 25 Keys to a Sound Business Plan (Audiobook)

Your First Business Plan, 5 th Edition (eBook)

Anatomy of a Business Plan (eBook)

Writing a Business Plan and Making it Work (Audiobook)

The Social Network Business Plan (eBook)

Books, Videos, Research Reports & More

As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.

Writing an Effective Business Plan (Deloitte and Touche, 1999) HD 1375 D37w

Have an idea for a real estate topic? Send us your suggestions .

The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.

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Real Estate Business Plan Template

Download our template and create a business plan for your real estate business!

Updated September 22, 2023 Reviewed by Brooke Davis

A real estate business plan is as essential as a business plan for any new or existing business. This step-by-step guide will explain how to make a real estate business plan, provide a real estate business plan template for you to work with, and explain how and why each step is necessary for your business plan to be effective.

We also provide links to downloadable templates to help you create your real estate business plan and sample plans to show you the best ways to tailor your plan for any number of real estate business needs.

Whether you seek investors to grow your business or want to track your goals from year to year as your business develops, a carefully crafted plan will help you.

Why You Need a Business Plan for Your Real Estate Business

How to write a business plan for real estate, real estate business plan sample.

The real estate business plan fills several needs. It gives you an outline of your business goals and the direction you want your business to take. It keeps you in line with industry trends. It lets you monitor your annual performance and change your goals as the market changes.

An effective real estate business plan also acts as a financial summary of your business, showing how it stands about your competition and the industry. The business plan acts as a road map for you and a snapshot of your business for any investors or bankers who want to understand your business.

A real estate business plan will help you spot risks and weaknesses early in your business development and help you set realistic goals for your business.

These are known as SMART goals: Specific, Measurable, Achievable, Relevant, and Time-based goals.

Creating a business plan without goals is like starting a journey without a destination. Having a destination without a map means going down many blind alleys, taking unnecessary detours, and wasting time as you frequently need to return and start again.

Your business plan will help you avoid these pitfalls and adjust your course while you travel towards your final goal — a successful real estate business.

You must cover critical topics and include the correct information to ensure your business plan is as effective as possible. Follow our guide to writing a well-formed real estate business plan below.

1. Executive Summary

The executive summary contains an overall review of the rest of the business plan. It should include an outline of your history, your mission statement, and an overview of the rest of the report.

This section will include things like:

• Target clients with a fictional “ideal buyer” persona;
• Target neighborhoods, price ranges, and listings;
• Market overviews and potential threats and opportunities;
• A marketing plan outline.
• Your mission statement. This should include where and how your agency was founded, discuss the legal and financial structure, and stress your dedication to your customers and any special advantages you provide to your target clients.

2. Management Team

If you have a management team or a group that has contributed to the business’s success, summarize their names and contributions.

This section highlights everyone who has been involved in your business.

• Owners, founders, and original managers;
• New management, assigned duties and areas, and specific clients;
• Planned management expansion and anticipated managerial goals.
• Include all information about your managers, names, positions and duties, education and work history, past business successes, and other relevant details. Think of this section as your management team’s biography.

As the business expands, your management team section will be one section that needs constant improvement and updating.

3. Products and Services 

Your products and services should be phrased to make you unique in the industry and highlight how you stand out from your competitors. As a real estate business, what do you provide for your clients that others do not? How do your agents compare with your competition?

In real estate, your product is your listing and your brand. What is it that makes your company the one that your target buyer wants to use? In this section, you will highlight the following:

• Your niche market and how you acquire specific listings in your area;
• Your lead generation model and the way you obtain leads that differentiate you from your competitors;
• Your branding. A defining brand can be nebulous, and many firms resort to hiring a brand agent to help them customize and market their brand. You may be a family-friendly agent or specialize in the young professionals market. Determining how you present yourself is critical to your service profile.

4. Customers and Marketing

The customers and marketing section lets you identify your niche within the real estate business and how you intend to reach them.

You defined your ideal customer in your executive summary; now is where you expand on your perfect customer “persona.” A “persona” is the industry name for the imaginary person you sell to.

• Their demographics, age, gender, job, family preference, and income.
• Deal-breakers. What do they have to have in a home? What can they do without?
• Amenities, recreation, entertainment. Does your ideal buyer need dog parks nearby or bike paths? Do they want access to the water or the theater district?
• What type of neighborhood is your ideal buyer looking for? Do they need a school district or prefer to be far from children?

After establishing your ideal customer, you can select the viability of your marketing niche. For instance, is your buyer likely to be a first-time buyer? If so, what percentage of first-time sales were made in your chosen area in the last two years?

The more detailed you can make your Customers and Marketing section, the more you know how your business will likely thrive in your chosen area.

5. SWOT Analysis

Strengths, weaknesses, opportunities, and threats are necessary for every business analysis. In what areas are you and your business strongest, and where do you need improvement?

Investors appreciate a business owner who can accurately pinpoint their good and bad points and demonstrate how to improve.

This analysis should be fact-based, not opinion-based. You should be able to provide statistics and metrics for your and your competitors’ business research. Some things to consider are:

• In what areas of your business plan are you strongest? Are they similar or dissimilar to your nearest competitor’s strengths?
• In what areas are you weakest? Are you weak where your competitors are strongest?
• What opportunities can you exploit in the next six to 12 months? Are these opportunities unavailable to your competitors?
• What threats are you facing in the next year? How can you avoid these threats or turn them into advantages?

By analyzing your business objectively and reviewing all the facts and numbers, you can determine how you will be placed in the next year.

6. Financials 

The meat of your business plan is the financials. This includes your expenses, annual income forecast (sales, commissions, or other income), cash flow, and costs. As your business grows, your business plan will include previous years’ financials to track the growth.

Your financials should include, at a minimum:

• Expenses. These include operating expenses, whether you have a physical location or are still in the virtual stage of operations, licensing and permitting, fees and filing costs, and other operating expenses. If you have employees, it will also include payroll.
• The past income portion will track how much you have already made. You should be able to show how many leads you have generated, how many transactions you made, and your income from those efforts.
• Future income is how much you would like to make going forward. You can estimate how many leads are needed per transaction and how many transactions per sale from your past efforts.
• Goals. With this information, you should include your projections for the next year and five-year periods. Presumably, you wish to increase profit over the next five years. You can demonstrate how to achieve these goals using income tracking and market research.

7. Operations

Operations contain the moving parts of your financial projections. This section describes how you intend to reach your business goals in the upcoming year. This section might also include upcoming personnel changes, office expansions, etc.

Real Estate operations can include your projected hours of operation, your action plan for achieving your goals, and your marketing and advertising plan. Initially, this may be somewhat fluid if you do not plan to have set hours of operation or a brick-and-mortar office.

Later, as your business increases, this section will include business hours, open house times, etc.

8. Appendix

If your real estate business plan includes any ancillary documents, such as your Articles of Incorporation or a  Business Purchase Agreement , they would be included in the Appendix.

After your first real estate business plan, your previous years’ plans will go into the Appendix so they can be reviewed by potential investors or by your board. You can also include your quarterly statements and other financial documents.

Your Appendix is the section for any documents you want to have that are not essential for your readers’ overall understanding.

Now that you know what goes into your real estate business plan, all that is left for you to do is click on the business plan creation template and begin. Ensure you have all your documentation and research-ready in advance, and the template will provide you with cues as to what information needs to go into which spaces.

After filling in all the blanks, the template will generate a real estate business plan to your specifications.

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Real Estate Business Plan Template

Written by Dave Lavinsky

Real estate businesses come in a wide range of sizes and styles, from one person offices that handle a few homes in a handful of neighborhoods to enormous chains that cover both commercial and residential properties across the country. Many new real estate agents try to expand too much too soon, failing as the result of unsustainable growth. A written business plan will keep you on track and help you grow your real estate business in an organized way. In addition, if you plan to seek funding, investors and lenders will use your business plan to determine the level of risk.

Download our Ultimate Real Estate Business Plan Template here >

What is a Real Estate Business Plan?

Your business plan provides a snapshot of your real estate company as it currently exists, and lays out a road map for the next three to five years. It highlights your business goals, identifies potential challenges, and describes your strategies for overcoming adversity and meeting your goals. It is a living document that should be frequently updated as your real estate business grows and evolves.

Below is our general template for real estate business plans. We also have templates for specific types of real estate businesses as follows:

• Property Management Business Plan Template
• Real Estate Agent Business Plan
• Real Estate Development Business Plan
• Real Estate Investment Business Plan
• Rental Properties Business Plan

Why You Need a Business Plan Real Estate Business

If you’re looking to start a real estate business or grow your existing real estate business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your real estate company in order to improve your chances of success. Your real estate business plan is a living document that should be updated annually as your company grows and changes.

Finish Your Business Plan Today!

General real estate business plan template.

Below is a template that will help you with how to write a real estate business plan. The plan should include the following 10 sections:

Executive Summary

Although it serves as the introduction to your business plan, your executive summary should be written last. The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of real estate business you are operating and the status. For example, are you a startup, do you have real estate agent business that you would like to grow, or are you operating a chain of real estate businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the real estate industry. Discuss the type of real estate business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of real estate business you are operating. For example, are you an existing real estate agent looking to launch your own company or are you an existing real estate brokerage looking to expand?

Describe the company’s founding, current stage of business, and legal structure. Highlight any past milestones, such as lining up key clients or hiring an agent with a proven track record. Elaborate on your unique qualifications, such as expertise in a currently underserved niche market and include a mission statement, if possible. Include your mission statement, key objectives and business goals.

Industry Analysis

In your industry analysis, you need to provide an overview of the real estate market. The real estate industry is incredibly large and diverse, but your analysis should focus on your specific segment of the market. Do you specialize in multifamily residential buildings? Single family homes? Office buildings? Small commercial properties? Figure out where your real estate company fits in, and then research the current trends and market projections that affect your niche. Create a detailed strategy for overcoming any obstacles that you uncover.

The following questions should be answered in the industry analysis section of your real estate business plan:

• How big is the real estate market (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your real estate business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

Who are your potential clients? Are they first-time homebuyers? Upwardly mobile young professionals? Developers, speculators, or investors? What is important to them in a real estate agent? Do they require hand holding through the entire process, or are they savvy buyers that just want you to show them the properties that interest them? How do they decide on a particular property? Narrow down their demographics as closely as you can, and then figure out what their unique needs are and how you can fulfill them.

Finish Your Real Estate Business Plan in 1 Day!

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Competitive Analysis

Your direct competitors are those real estate companies that fulfill the same needs for the same target market as yours. Your indirect competitors are real estate businesses that target a different market, or other companies that fulfill a different need for your target market. Describe each of your direct competitors individually, and talk about the things that set your real estate company apart. Categorize your indirect competitors as a group and talk about them as a whole.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses in a SWOT analysis. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:  

Marketing Plan

A solid marketing plan is based on the four P’s: Product, Price, Promotion, and Place. Your marketing efforts should center around these four marketing strategies. The Product section describes the real estate you sell along with any other services you provide. Price will change according to the specifics of the property, but you can delineate your fees here. Promotion is your means of getting new business. Place is your physical office location, along with your web presence and the areas where you sell. Another category, Customer retention, refers to the ways you will build loyalty.

Employing a marketing strategy based on these four principles will allow you to generate leads for prospective clients.

Operations Plan

Your operations plan explains your methods for meeting the goals you set forth. Everyday short-term processes include all of the daily tasks involved in signing up clients, showing properties, and closing sales. Long-term processes are the ways you will meet your defined business goals, such as expanding into new markets or new types of properties.  

Management Team

The management team section highlights the backgrounds of the key members of your real estate team. Focus on those aspects that prove your team’s ability to build and run a successful company. A business mentor or advisor can help fill in any gaps, provided you can identify the specific ways that your advisor will influence your company’s growth. Be sure to highlight how many real estate agents will be on your team.  

Financial Plan

Investors and lenders heavily scrutinize the financial plan, but it is often the most challenging part of the business plan to write. Real estate is a fickle market, subject to changing whims and economic cycles. Yet the financial plan requires you to detail your specific business model and individual revenue streams by implementation timeline and relative importance, and disclose any sources of outside funding. You also need to summarize your past and future Income Statements, Cash Flow Statements, and Balance Sheets, based on key assumptions that must be both reasonable and verifiable based on an analysis of similar companies. You should also provide a solid exit strategy that shows your understanding of the market and your desire to capitalize on profitability.  

Your full financial projections should be attached in the appendix along with any other documents that support your claims, such as letters from key partners.  

Real Estate Business Plan Summary

Putting together a business plan for your real estate business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the real estate industry, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful real estate business.

Download Our Real Estate Business Plan PDF

You can download our real estate business plan PDF here . This is a business plan template you can use in PDF format.

Real Estate Business Plan FAQs

What is the easiest way to complete my real estate business plan.

Growthink's Ultimate Real Estate Business Plan Template allows you to quickly and easily complete your Real Estate Business Plan.

Where Can I Download a Free Real Estate Business Plan PDF?

You can download our real estate business plan PDF template here . This is a business plan template you can use in PDF format.

This can be used for a commercial real estate business plan too.

Don’t you wish there was a faster, easier way to finish your Real Estate business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan writer can create your business plan for you.

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Realtor Business Plan PDF Sample

Use this Realtor business plan pdf sample as a template to follow in order to create your annual business plan and a system for implementation over the course of the year.

Today we are giving you a free Realtor Business Plan PDF Sample to use when creating your own business plan. We are also giving you a free downloadable Action Steps PDF Sample, which supports your business plan. I’m going to break down why these two documents are absolutely necessary for your success this year.

It is essential for real estate agents to create (and implement) a business plan each year. It’s true that people who hit their goals are people who give themselves a process, or as system, by which to make tiny incremental steps to reach their big goal . Along with these free downloads, we will also teach you how to make sure you stick by your business plan, like the top-producing agents do.

VIDEO: Realtor Business Plan PDF Sample

A Realtor business plan pdf sample that works

Top producers live by their annual business plan. They know the powerful effect it has on their success for the year. That said, most real estate agents (low performers) skip it. Usually this is because once a business plan is made, it is forgotten. If you do not implement the plan, obviously it’s a waste of your time. If you want to be a successful Realtor, you need to learn how to implement your business plan like the top producers do. That’s why we are giving you a Realtor business plan pdf sample today. We want to help get you started on the right foot.

Elements of a good business plan

• Simple format. Our 1-3-5 Business Plan makes the 1 big annual goal clear at the top. Then, it breaks that 1 big goal into 3 key focus areas. Finally, there are 5 objectives for each key focus areas.
• SMART goals. The goals outlined on your business plan must be SMART! Specific (GCI, units closed, sales volume), Measurable (based on a number), Achievable (don’t choose a goal too lofty to reach), Relevant (make it meaningful), and Time-bound (give it a due date).
• One page. If your business plan fits on one page, you are more likely to review it throughout the year. It also forces you to be concise and intentional. The one-page format also makes it easy to display at your desk or on a wall of your office.
• Meet, review regularly, and keep yourself accountable. More on this in a moment.
• Action Steps. A good business plan should have an additional document that assigns tasks to people and puts due dates on to-dos. This allows you to timeblock accordingly and pace yourself to accomplish your 1 big goal by the end of the year.

It all starts with 1 big goal

Start your 1-3-5 Business Plan with 1 big annual goal. Make sure that goal is SMART (see above). The more specific the better! When you break down that 1 big goal into 3 key focus areas, those key focus areas must all be in support of that 1 big goal. What key focus areas will help you achieve that 1 big goal? Then, when you create 5 objectives for each key focus area, these need to be actionable and SMART as well. All 15 objectives must be in direct alignment with the 1 big goal at the top of the business plan. You’ll see exactly what we mean when you download our Realtor Business Plan PDF Sample.

Implementation of your 1-3-5 business plan

There are two keys to implement your 1-3-5 business plan. Remember, this process is all about baby steps. The first key is to meet weekly . The second key is to create an Action Steps document to push yourself forward, assign tasks, and add due dates.

1. Team meeting / weekly accountability

If you want a detailed process of how to hold an effective team meeting, pick up The High-Performing Real Estate Team . Good team meetings are focused. In the first half of your team meeting, go over the team dashboard, look at all Activity Based Indicators (ABIs), and hold team members accountable. In the second half of your team meeting, pick a few key objectives on your 1-3-5 Business Plan. See the Realtor Business Plan PDF Sample for some good examples. What is the tiniest, actionable baby step that can be accomplished before your next team meeting? Once those weekly baby steps are chosen and assigned, report back at next week’s team meeting with results.

You are moving forward in baby steps . It’s all about incremental progress. Once you accomplish an objective, you move on to the next. This continues all year long. Make your weekly to-dos as small as possible. (Remember, in this weekly team meeting, we are only talking about your 1-3-5 and the objectives that need to be accomplished to reach that 1 big goal. We aren’t talking about the day-to-day business or customer service issues, or other things going on that might distract you from that 1 big goal.)

Most of the agents and teams that we coach here at ICC accomplish their 1 one big goal halfway through the year. It happens so fast because they take baby steps and suddenly they’ve accomplished their goals. When this happens, you can meet and create a 1-3-5 Business Plan for the rest of the year. When you focus on your business plan and carve out the time to meet weekly and take those baby steps, you meet your goals.

You can do this as a solo agent, yes . But you need to keep yourself on track, and this is hard without group accountability. I recommend that you find a mentor, accountability partner, or coach to push you forward and keep you on track.

2. Action Steps to keep your objectives moving forward

Creating an Action Steps document is great for teams and solo agents alike. The Action Steps document takes each objective that you outlined on your 1-3-5 Business Plan (as shown in the Realtor Business Plan PDF Sample) and assigns each objective to a person with a due date. You’ll have three Action Steps sheets because you have one Action Steps sheet for each of the 3 key focus areas outlined on your 1-3-5 Business Plan.

If you want to ensure that you get stuff done, create your 1-3-5 Business Plan, then create your Action Steps form for each of the 3 key focus areas. Then, you timeblock and add the due dates to your calendar. You will look at your 1-3-5 Business Plan and Action Steps each week, whether its by yourself as a solo agent or at your meeting if you’re a team leader or team member.

FREE DOWNLOAD: Realtor Business Plan PDF Sample

Sign up for our newsletter and receive a free download of our Realtor Business Plan PDF Sample, as well as our Action Plan PDF.

If you can create these two documents to support your 2022 goals, you’re going to be much better at sticking by your business plan. And, ultimately, accomplishing those goals.

Need more help creating your 1-3-5 Business Plan?

Enroll in our online course, Business Planning . This course takes the mystery out of real estate business plan and guides you through the entire process. It includes information and helpful templates for both solo agents and teams of varying sizes and structures.

Want to learn more?

• Enroll in our Business Planning online course. Designed specifically for Realtors, this course will walk you through the creation and implementation of your 1-3-5 Business Plan.
• Read The High-Performing Real Estate Team . You can buy Brian Icenhower’s best-selling book on Amazon .
• Subscribe to The Real Estate Trainer Podcast. You can find it on Apple Podcasts , Google Podcasts , Spotify , Podbean , and anywhere you listen to your favorite podcasts.
• Join the Real Estate Agent Round Table . We are always posting fresh content, including market updates, free templates, and host dynamic discussions with the industry’s top producers.
• Subscribe to our newsletter. In the sidebar of this blog, you’ll see a form to fill out to subscribe. You’ll be the first to find out about our new resources, free downloads, premium online courses, as well as promotions.
• Reach out and talk to an ICC coach. Not sure which of our coaching programs is right for you? Let us help you.

Check out our latest posts:

• Realtor Open House Ideas That Generate Clients
• Real Estate Designations and Certifications – Do They Really Help?
• The NAR Compliant Organized Sales Process for Real Estate Agents
• Luxury Real Estate Coaching Programs & Strategies
• How to Coach Realtors – The 4 Key Principles
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Brian Icenhower

Brian Icenhower is the CEO and Founder of Icenhower Coaching & Consulting (ICC), which provides customized coaching and training programs to many of the highest producing real estate agents, teams, and brokerage owners in North America. This progressive company also produces online courses, podcasts, training materials, white label training portals, speaking events, video modules, and real estate training books. ICC is one of the largest real estate coaching companies in the world with thousands of clients and a large team of the most accomplished coaches in the industry.

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Real Estate Investment Business Plan

Real estate has been one of the fastest-growing industries in recent times. So, if considering starting a real estate investment business—this is the right time.

Whether you’re a seasoned investor to get into real estate or a rookie aiming to set your foot in this rapidly growing market, you need a solid business plan to make your real estate investing business a runaway success.

Need assistance writing your business plan? Worry not.

We have prepared a real estate investment business plan template to help you get started.

Let’s cut to the chase: download this template, follow step-by-step instructions, and finish the first draft of your plan.

recognize opportunities and deal with challenges in an effective way. It’ll also help you devise an investment strategy that brings you maximum returns.

Real Estate Industry Overview 2023

Here is an overview of the current state of the real estate industry in 2023:

Market size and growth potential:

Employment scenario:, key players:.

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Things to Consider Before Writing a Real Estate Investment Business Plan

Select the right property location.

Selecting the right location to invest in is one of the primary requirements for a real estate business’s success. You should select the location based on what is the potential of infrastructural development in the area. Is it a preferable location for commercialization and urbanization or not? You should always keep these things in mind to ensure the maximum possible returns on your investment.

Know the purpose of your investment

Knowing what you want by investing in real estate is the first step toward making a proper plan. After all, a proper purpose gives you a well-defined goal to work towards and makes it easier to decide what steps you’ll need to take. Hence, decide why you want to invest in real estate. Whether it is for primary income, secondary income, planning for the future, etc.

Do your research

Research is essential if you want to thrive in the real estate business. Doing your research helps you understand what you are getting yourself into and how your different decisions can impact your business. It also helps you make a better and more fact-based plan.

Know all of your options

Although a lot of people go for long-term investments, it might not be the right thing depending on various factors. But that doesn’t mean that you have to give up on your idea of real estate investment. You can simply look into the other options like real investment trust, real investment company stocks, and so on and pick the option that works for you.

How Can a Real Estate Investment Business Plan Help You?

You may want to start investing as soon as possible, after all, investments take time to grow, right? But just like a stitch in time saves nine, a real estate investment business plan can help your investment business prosper in the future even if it seems time-consuming at the moment.

It can help you design a proper business model and formulate a great business growth strategy. Moreover, it can also help you track your progress along the way.

All in all, it can make your investments way smoother than going about without a business plan.

Chalking out Your Business Plan

The real estate sector is one of the most profitable sectors to invest in. Many investors swear by it as a bankable source of secondary income.

Not just that, the real estate investment market increased from 9.6 trillion dollars in 2019 to 10.5 trillion dollars in 2020. Although it may take time, investment in the housing market can help your money grow.

And though the above information invests in the real estate sector as a rosy prospect, it can go horribly wrong without a proper business plan and investment strategy.

Read on to find out what a business plan can do for your investment business.

Real estate investment business plan outline

This is the standard real estate investment business plan outline which will cover all important sections that you should include in your business plan.

• Purpose of the Plan
• Introduction
• The Problem
• The Solution
• A fundamental change in the US housing market
• All three legs of the apartment investment stool are in place
• Weak Housing Market
• Competitive Advantage
• Business Model
• Growth Opportunity
• Corporate Structure Overview
• Source and Use of Funds
• Return on Investment
• Mission Statement
• Business Objectives
• Legal Structure
• Company Ownership
• Location and Premises
• Intellectual Property
• CREI Business Model
• Revenue Projections
• The Amount of Investment Funds Requested
• Business Benefits
• Investment Repayments
• Good Investment Trends in Apartment Rentals
• Rent Spikes Coming For a Good Investment in Apartment Buildings
• Apartments Continue as Good Investment Through 2012 and Beyond
• Apartment Buildings Going From Good Investment to Great
• Filling Basic Needs Makes for a Good Investment
• More Americans renting by choice
• The Apartment Building Investment Triple Opportunity Is Right Now
• Internet Growth Allows Renters to Locate Good Apartments
• Industry Participants
• Competitive Advantages
• Strategic Initiatives?
• Brand Strategy
• Provide Individuals, Families, and Businesses with Quality Rental Properties at an Affordable Price.
• Positioning Statement
• Pricing Strategy
• Sales Strategy
• Sales Forecast
• Sales Programs
• Strategic Alliances
• Social networking websites
• Email campaigns
• SEO (Search Engine Optimization) PPC
• Banner advertisements
• Search Engine Optimization
• Organizational Structure
• SWOT Analysis
• Key Assumptions
• Key Financial Indicators
• Explanation of Break-even Analysis
• Business Ratios
• Long-term Plan and Financial Highlights
• Projected Income Statement
• Projected Cash Flow
• Projected Balance Sheet

How to Write a Real Estate Investment Business Plan?

A real estate investment business plan consists of several key areas that must be included in it and add things that would be unique to you and your business.

Also, there are several ways in which you can write a business plan including online business plan software and pre-designed templates. You can choose the method that works best for your individual needs.

What to Include in a Real Estate Investment Business Plan?

Although a business plan should be customized as per the needs of an individual and market situation, there are certain areas that every real estate investment business plan must include. They are as follows:

1. Executive Summary

The executive summary section is the first and foremost section of your business plan. It consists of what your entire business stands for. It focuses on everything ranging from opportunities and threats, competitive advantages your business has, the structure of the current market as well as the financial needs of the business.

Most importantly for a real estate investment business plan, it would also consist of the prospective return of investment one can expect from the business as well as the expected duration of time for that growth to happen.

2. Business Concept and Revenue Model

This section would include the type of investment concept and revenue model you plan on following with your business. So, before writing this section it is a good practice to analyze the current trends in the market as well as your own finances, to find the concept that fits the best for you in the current market situation.

In this section, you can also include methods of tracking the progress of your investments.

3. Market Analysis

Whenever one starts a new business it is mandatory to carry out market analysis to flourish in it. It not only helps you in understanding the market, but it also helps you in choosing the right strategy for your own business.

For example, in the US rent spikes and increasing demand for rental accommodations make the rent department an extremely profitable segment in the real estate market. A thorough analysis of the market can thus help you choose the most favorable market segment as well as the best locality to invest in.

4. Growth Strategy

In this section, you should include the milestones you plan on having for your investment business. It helps you set well-defined tasks to achieve those milestones and keeps you motivated while doing the same. Also, with the help of milestones, you can always pinpoint when and where you are going wrong and need a shift in direction.

5. Web Plan

Having a web presence can be immensely helpful in building your network and reaching out to potential partners and organizations that can help you grow.

For building an online presence you can use various tools like social media, email marketing, optimized web pages, etc.

6. Management Summary

This segment includes information regarding the roles and responsibilities of the people in your business. The people in your business are a major aspect that decides its success or downfall, therefore a thorough detail of their work and progress is an essential part of your business plan.

7. SWOT Analysis

Carrying out a SWOT analysis before writing your business plan can make the process faster, easier, and way more well-defined. Hence, including it in your business plan is always a good idea.

8. Financial analysis

Even though financial analysis is crucial for any business, it is especially important for investment businesses. In this section, you can include the time required to reach the break-even point, the projected growth of your business, long-term finances as well and strategies to deal with potential changes in the market.

Download a sample real estate investment business plan

Need help writing your business plan from scratch? Here you go; download our free real estate investment business plan pdf to start.

It’s a modern business plan template specifically designed for your real estate investment. Use the example business plan as a guide for writing your own.

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Small Business Plan Writers

Frequently asked questions, do you need a business plan for real estate investing.

Indeed. Whether you plan to start a real estate investing, development, or mortgage broker business—you need a solid business plan to make your real estate business a runaway success. You can use Upmetrics’ real estate & rental business plan templates to get started writing your plan.

What's the importance of a marketing strategy in a real estate investment business plan?

Marketing strategy is a key component of your real estate investment business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

What is the easiest way to write your real estate investment business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any real estate investment business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business planning tool .

How do I write a good market analysis in a real estate investment business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry.

We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Real Estate Business Plan

Considering how big the real estate industry is, wealthy investors and entrepreneurs alike are looking to partake in such a line of business. In line with that, both of them require a document to act as a window that shows how viable business can be. This document is known as a business plan . It completely details the realtors or agents’ strategies in many areas of a real estate business, including the financial, operational, marketing, and other aspects. Moreover, such a document’s content is leveraged by small businesses, both commercial and residential, as a proposal   to potential investors. Established ones, on the other hand, use it as a guide for their businesses’ growth. Know more about the real estate business plan through our examples and article below!

15+ Real Estate Business Plan Examples

1. real estate business plan template.

• Google Docs

Size: A4, US

2. Start-Up Real Estate Business Plan Template

3. Real Estate Agent/Agency Business Plan Template

4. Real Estate Website Business Plan Template

5. Free One Page Real Estate Business Plan Template

6. Free Sample Real Estate Business Plan Template

7. Free Simple Real Estate Business Plan Template

8. Free Commercial Real Estate Business Plan Template

9. Real Estate Investing Sample Business Plan

Size: 484 KB

10. Basic Real Estate Business Plan

Size: 28 KB

11. Real Estate Network Business Plan

Size: 785 KB

12. Real Estate Business Plan Example

Size: 899 KB

13. Investment Real Estate Business Plan

Size: 14 KB

14. Real Estate Business Plan in PDF

15. simple real estate business plan.

16. Real Estate Business Plan Format

Size: 876 KB

What Is a Real Estate Business Plan?

A real estate business plan is a process document that provides a detailed overview of the real estate agency’s procedural concepts, from the property acquisitions to the budget setting. Ignition Financial pointed out that it is necessary for various ways. According to them, the document helps proprietors understand how their business works even better, budget for short-term goals and long-term goals , comply with loan application requirements, and raise finances through investments . Once created, it must be updated from time to time to cope with the constant changes in the market and gain a competitive advantage.

Types of Real Estate

Real estate agencies mostly specialize in only one type of real estate business. For your information, such a business can be categorized into four. These include residential, commercial, industrial, and land.

Residential Real Estate – This consists of single-family homes, condominiums, vacation homes, high-value homes, multi-generational homes, and townhouses. Commercial Real Estate – This type of real estate focuses on shopping centers, malls, educational buildings, offices, hotels, and apartments. The latter establishments are considered commercial because they generate income. Industrial Real Estate – This type refers to the construction and reselling of manufacturing properties and warehouses. Basically, the establishments are used to produce goods, research, distribution, and even storage. Land – Undeveloped lands, ranches, and working farms are the main focus of this type of real estate.

How To Prepare a Real Estate Business Plan

Business plans follow a standardized document flow. This only means that the writer has to study what the standards are. Not only that, but various qualities, such as their thoroughness and clarity, also have to be incorporated. To assist you with these, we offer you our standardized outline that you can refer to below.

1. Give Summary of the Plan

The executive summary is the very first section of all business plans. However, most writers compose it after all the sections have all been set. As the name implies, this section summarizes the entire content of the business plan. The very reason why most people prefer composing it last is that doing so allows them to take note of the important details in every section, making it easier for writers to write it.

2. Provide an Overview of the Business

The section next to the executive summary is the business overview. In this section, the business opportunity is being presented, along with explanations of what issues have been addressed and why it is the solution. Moreover, analyses’ activities, such as the real estate market analysis , SWOT analysis , and target market analysis , have to be described in complete details. They have to be included to preliminarily examine whether or not the said activities are fit to get the desired results about the market and the competitors.

3. Cite the Sales and Marketing Strategies

Sales and marketing are among the pillars of any business. For this very reason, you must never forget to cite the sales and marketing strategies of your business. This has to include subjects such as pricing, packaging, promotion, and advertising. Each of the aforementioned elements has its corresponding methodologies and structures. Thus, you have to research each of them to learn which is more effective and efficient for your business proposition.

4. Discuss How Operations and Management are Done

Other pillars of business take the form of operations and management departments. Their main function is to spearhead the setting of key performance indicators (KPIs), acquisition of equipment, recruitment plan , employee training plan , distribution of responsibilities, and supervision. In this section, you’re going to present your company’s statements of your mission and objectives, which will be linked to the operations and management activities later on.

5. Present the Financial Plan

Anything that involves monetary numbers and figures goes in this last section. For this part, the most important and only thing you have to include is the sales forecast. You might think that’s easy. However, the said forecast comes with many processes, including the provision of profit and loss statement , cash flow statement , and real estate balance sheet . If you’re using this business plan to gather financial assistance from investors, you have to clearly describe how you’ll spend their money and how you can deliver the return on investment (ROI). Lastly, you have to incorporate descriptions of your exit strategy. This is crucial to let investors or other affiliations know how you plan on paying debts and interests if you decide to end your business.

What are the components of a profit and loss statement?

Profit and loss statements consist of the following sections:

– Income

– Cost of Goods Sold (COGS)

– Gross Margin

– Operating Expenses

– Total Operating Expenses

– Operating Income

– Interests, Taxes, Depreciations, and Amortizations

– Total Expenses

– Net Profit

How long should a business plan be?

According to the United States Small Business Administration (SBA), the recommended number of pages for a business plan is 30 to 50.

What is the commonly used pricing strategy for real estate?

The best pricing strategy to sell a property quickly is value pricing. Every real property has a market value, which is calculated by deducting or adding adjustments on the actual price based. Most buyers also look into the market value before purchasing real property.

Many have already testified how profitable a real estate business is for both entrepreneurs and investors. Still, there’s a need for you to be very careful. And, there’s no better way of becoming careful than planning and documenting concepts, which are some of the things that a real estate business plan can manage.

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• Instructive
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Create a study plan for final exams in high school

Develop a project timeline for a middle school science fair.

How to Write a Real Estate Investment Business Plan + Free Sample Plan PDF

Elon Glucklich

8 min. read

Updated February 19, 2024

Download a free one-page real estate investment sample business plan

With the worst of recent inflation in the rear-view mirror and interest rates projected to start falling in 2024, real estate investors see signs of optimism. 

New apartment construction is rising sharply . These new properties coming onto the market and the prospect of lower borrowing costs point to plenty of long-term opportunities for investors.

However, investing in real estate requires a sharp eye for market trends, as well as significant upfront resources. Investors need to understand the different strategies for securing financing, and how to manage their properties to increase their value before reselling.

A business plan reduces your likelihood of making a bad investment, because it gets you in the habit of organizing your market research, and updating it as conditions evolve. The plan ultimately helps align your investment strategies with your opportunities.

| Looking for a fix and flip , home inspection , or other type of plan? Browse the Bplans library of sample real estate business plans |

• What should you include in a real estate investment business plan?

Here are the most common sections any real estate investor should consider including in their plan:

• Executive summary
• Company overview
• Investment strategy
• Market analysis
• SWOT analysis
• Financial plan and forecasts
• Exit strategy

The length and depth of your business plan will vary depending on your business. For instance, a real estate investment firm with a national portfolio of office and apartment buildings is bound to have a more complex set of financial projections and supporting documents than an investor with single-family houses in a few markets.

Here’s an example of a real estate investment business plan outline.

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• The 8 elements of an effective real estate investment business plan

1. Executive summary

Most business plans start with an executive summary outlining the business opportunity and the core strategies of your business. 

It’s the first section that most readers (including loan officers) will read. You’ll want to highlight any unique value or competitive edge you have, such as a track record of generating positive returns, or knowledge of a specific market. 

You should also give a high-level overview of your financial projections and anticipated returns, which you’ll go into greater detail on in the plan’s financial section. If you’re writing a business plan because you’re seeking bank financing or an investment, this is a good section to state your funding request and how you’ll use those funds.

2. Company overview 

The company overview describes your company’s operational and legal structure . 

List whether you have any partners, and detail your team’s experience, expertise, and roles within the company. Also, outline your portfolio, such as investing in residential properties, commercial buildings, or new development projects. 

3. Investment strategy

There are many ways to invest in real estate — buying homes to rent out, fixing and flipping houses, pooling your resources with partners into a real estate investment group, investing in real estate investment trusts, and more. Describe your strategy and why it will generate the highest returns.You should also describe your criteria for choosing properties to invest in, and whether your primary focus is to invest in a certain geographic region or a type of property, such as apartments or fixer-upper homes.

4. Market analysis

If you have any experience in investment real estate, you know how important market research is. Imagine paying $1 million for an apartment building and adding $100,000 on renovations, only to realize you can’t find tenants to pay the higher rents you want to charge.

That’s where a thorough market analysis comes in. It helps you understand the landscape you’re operating in. 

Use resources like the U.S. Census Bureau to research your target market’s age, income, and population trends. Look online for local data about real estate prices and how they’ve changed over time, or reach out to local realtors to get a feel for the market.

You should also try to determine how much investment activity is taking place in the market and who you’re competing with for opportunities. 

Many cities and larger towns with development departments make their building permit databases available online, since permits are typically public records. Reviewing permit records can show you how much development activity is already occurring where you plan to invest.

5. SWOT analysis

Because of the risks involved in real estate investment, a SWOT analysis can be a helpful exercise. It’s a strategic way of evaluating your company’s internal and external environment (think about your company’s financial health as an internal factor, and interest rates as an external factor).

The SWOT analysis gets you thinking about your company’s:

Strengths: What you do well , and what unique resources you have.

Weaknesses: What you need to improve on, what resources you lack, or what your competitors do better than you.

Opportunities: What are the current opportunities you want to take advantage of?

Threats: What factors could expose your company to risk, or what might competitors do to harm your position?

6. Financial plan and forecasts

Your financial plan should provide a detailed view of the expected financial performance of your real estate investments. Include income statements , cash flow forecasts , and balance sheets projecting the next 3-5 years. 

List the assumptions you used in your projections, such as rental income changes from rent increases or unrealized revenue due to certain amounts of vacant commercial space. 

You should also include a break-even analysis. This calculates when you expect a property’s operating income to exceed the debt taken to buy and maintain it.

7. Exit strategy

If you’re writing your business plan for investors, detailing your exit strategy will clarify their pathways for realizing their returns. It also trains you to think about the long-term timeline for your investments and how to maximize their value. 

Consider strategies that will help you maximize your profits, like refinancing your properties or looking into potential tax-deferral opportunities like a 1031 exchange.

8. Appendix

The appendix is an optional section at the end of your business plan. It’s where you include additional documents that support your business plan but don’t fit in the plan. This might include your detailed market research data, financial tables not covered in the main sections of the plan, legal documents, or permit records.

• Key considerations for writing a real estate investment business plan

To write a business plan that you can use as a guide for your decision making, consider places in the plan to emphasize these key points.

1. Develop a niche

If you’re a small investor or just starting, focus on carving out a specific niche for your investment strategy instead of trying to compete in multiple real estate segments. This could mean concentrating on a particular property type, such as multi-family homes, commercial real estate, or foreclosure properties, and diversifying your portfolio only after you’ve developed some traction. Or, you may decide to focus only on the segment you have the greatest advantage in.

2. Understand your risks

Real estate investment is inherently risky. 

Market dynamics, regulatory changes, and economic fluctuations can all impact the performance of your investments. 

As you compile research for your market analysis, dedicate time to conduct a detailed risk analysis to understand these factors and their potential impact on your investments. This includes assessing location-specific risks, economic cycles, and tenant or occupancy issues. 

Writing these out before they happen will help you think of strategies to mitigate these risks if they actually occur.

3. Network and develop market knowledge

Building a strong network with other real estate professionals, such as brokers and contractors, can provide valuable insights into the markets you hope to operate in. Document in your business plan how you will cultivate these relationships — you can include timelines for developing contacts in the milestones section of your plan.

Also, try to keep up to date on current events in the area, especially news about the regional economy. Look into the tax climate in the area, as well. All of this helps you build a deeper understanding of your market dynamics, and helps validate your investment strategy — or gives you reasons to reconsider.

4. Consider help with your financials

Even if you have the financial background to write financial forecasts, you may want to leave room in your budget for accounting support. 

If you’re starting or investing in an unfamiliar market, a CPA will help you navigate tricky tax issues that could throw off your projections. 

Include the expense of hiring an accountant in your plan if you decide to bring one on, and describe their role, whether it’s helping with budgeting, tax planning, or financial analysis.

• Download your free real estate investment one page sample business plan

Download your free real estate investment sample business plan right now, or explore the Bplans gallery of over 550 sample business plans if you want to see plans for other industries.

You can also see how other real estate businesses have written their plans by checking out our free library of real estate business plans .

There are many reasons why real estate investors should write a business plan . Not only does it demonstrate credibility to the banks or investors you want to fund your acquisitions — it also increases your chances for growth , and gives you a strategy to manage your finances for the long term.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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