Real Estate Property Managment Business Plan Sample

Investor Business Plan
Contact:
John Smith
Address: Sample street 1256
Phone: 123-444-256
Fax: 123-444-256
Real Estate Property Management Group
THIS IS A SAMPLE BUSINESS PLAN
This file was created by redacting an actual business plan The Plan Writers wrote
for a client. All client information and proprietary content has been removed. As
such, the business model, managers and financial pro forma herein are entirely
theoretical – only the structure of the plan itself and portions of the market and
industry research remain “real”.
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Investor Business Plan 2

The Real Estate Property Management Group's mission is to

become the best Property Management and Corporate
Rentals company and provide the best service to the clients,
building on teamwork. Real Estate Property Management
Group believes in maintaining a reputation for quality and
integrity.

MISSION STATEMENT .......................................... 3 Milestones ..................................................... 23

TABLE OF CONTENTS .......................................... 4 BRANDING AND MARKETING ......................... 24
EXECUTIVE SUMMARY ........................................5 Goals ............................................................... 24
Objectives ........................................................8 Keys to Success ......................................... 24
FINANCIAL OBJECTIVES .................................................. 9 Marketing Campaign ............................... 25
START-UP SUMMARY ....................................................... 10 COMPETITIVE ANALYSIS ................................. 27
REAL ESTATE PROPERTY MANAGEMENT Competitive Advantages ....................... 28
GROUP, LLC ............................................................ 11 Barriers to Entry ........................................... 29
Property Management Services ............ 11 SWOT ANALYSIS ................................................ 30
MARKET ANALYSIS SUMMARY: PROPERTY Risk Analysis ................................................... 31
MANAGEMENT IN THE U.S. ............................... 14 EXIT STRATEGY ................................................... 32
Products and Services Segmentation 15 Buyout & Merger ......................................... 32
Demand Determinants ............................. 17 INVESTMENT RETURNS ..................................... 32
Major Market Segmentation .................. 18 PERSONNEL FORECAST .................................... 33
OPERATIONAL STRATEGY ................................ 19 REVENUE FORECAST .........................................34
Company Structure ................................... 19 BREAK-EVEN ANALYSIS................................... 36
Location .......................................................... 19 PROJECTED INCOME STATEMENT................ 37
Demographics ............................................ 20 PROJECTED CASH FLOW ................................. 38
Target Market .............................................. 20 PROJECTED BALANCE SHEET ......................... 39
Business Model Canvas ...........................22 SENSITIVITY ANALYSIS ................................... 40
Pricing Model ............................................... 23 APPENDIX: YEAR ONE FINANCIALS ...............41

Real Estate Property Management Group, LLC

(also referred to as "the Company") will be a
property management business registered and
headquartered in Los Angeles. The Company's
services will include finding and vetting tenants,
drawing up legal tenancy contracts, checking on
how tenants are looking after the property,
dealing with maintenance and repair issues,
managing to finance, and liaising between the
tenants and the landlord. The management
team comprises an experienced, enthusiastic
team of professionals with years of combined
experience in the real estate sector. Their proven
experience enables them to offer effective and
individualized services. The management is
seeking $200K from investors to bring the vision to
reality.
Problem: Profitably managing an owned property is quite a daunting task. Many owners
incur losses when they are unable to tackle certain situations. Buildings and individual
houses need ongoing maintenance in structural aspects, plumbing, and electrical systems.
Anything can pop up at any time, and repairs have to be attended to immediately to avoid
tenants' inconveniences. Complaints from tenants can keep pouring in daily. Further, not
receiving rent on time and many vacant units are property owners' major issues. These
problems range from small issues to mild and gain significance if not addressed well in time.
Solution by Real Estate Property Management Group: Real Estate Property Management
Group offers an ideal solution for investors that do not live near their rental properties or do
not enjoy dealing with tenants. The company focuses on a pro-active preventive
maintenance program and has a professional team attending to the repairs and
maintenance. The Company considers every complaint, especially ones that show potential
problems in structural aspects of the building. Tenants should also feel that their complaints
are being heard and appropriate action is being taken. The Company also handles vacancy
issues with the right marketing techniques for attracting tenants to the property and
considers proper advertising and a good reputation about the property to make a major
difference in getting the right tenants.

Market Size: According to the market research firm, IBISWorld, California has an estimated
8.5% share in the Property Management industry in the U.S. with an estimated 23,228
businesses and $7.5 billion revenue, which is
expected to increase at an annualized rate
of 1.1% to reach $7.93 billion over the next five
years to 2025. These trends bode extremely
well for the Real Estate Property
Management Group, as they show the
market and industry's long-term potential
and industry in general.1
Marketing: Marketing for Real Estate Property

Management Group, LLC will be done through various channels, with networking, influencers
and e-mail marketing is the most significant strategies. The Company will develop a user-
friendly portal that will outline all the Company's services provided to its customers and
reviews for the satisfactory services already provided to its clients. The Company will also
have a social media presence via Facebook, Twitter, Instagram, and Yelp. Direct Marketing,
Word of Mouth, and print advertising in publications typically read by
members of the targeted audience will
round out the marketing model.
Target Market: The target market for the

services, LLC will be residential and
commercial property owners, including
homeowners, landlords, real estate
investors, and businesses in California and
Chicago, Illinois. Residential clients are
expected to generate 55.7% of industry
1 “Property Management in the U.S. in the US” IBISWorld 2020 - Obtained at www.ibisworld.com

revenue in 2020. The non-residential market comprises office, retail, industrial and
warehouse facilities, and other non-residential building types. Non-residential tenants
include a wide variety of industries and businesses. The commercial segment includes malls
and shopping plazas, containing movie theaters, clothing stores, restaurants, and other
consumer-oriented businesses.
Management: Mr. John Smith is the owner and

CEO of Real Estate Property Management Group,
LLC. Mr. Smith was an active member of the youth
ministry and enjoyed participating in local
activities and giving back to the communities
and less privileged society segments. He has
been a philanthropist, a founding member of a
not-for-profit organization on the west side of
Chicago, and four other young members active
in the community. He has experience working
with the corporate banking sector, insurance
industry, and insurance catastrophic insurance
adjuster in his career.
Mr. Smith is a seasoned business professional

who is well connected and attuned to his
targeted market needs. His work ethic and
business acumen will be the key drivers that
propel this venture towards a position of lasting
success.

The purpose of this plan is to provide investors with the information necessary to evaluate
the scope and future growth of Real Estate Property Management Group, LLC, in the
marketplace. In addition to serving as a roadmap for management, the plan will show that:
A significant market opportunity The management team set The correct capital structure
exists when analyzing the in place is qualified to will allow for a long-lasting,
current market demands and execute on a well-thought- profitable business.
competitive landscape; out operational, marketing
and sales strategy, and
To achieve the Company’s objectives, Real Estate Property

Management Group, LLC is seeking $200,000 in total funding.
The funding will be utilized in acquiring assets, staffing,
operations, and marketing initiatives. Real Estate Property
Management Group, LLC’s financial model shows consistent
growth for the brand over the next five years. By year five,
plans call for the Company to achieve $988K in annual gross
revenue, with a $428K or approximately 43% net profit.

The following table and graphs illustrate Real Estate Property Management Group, LLC's
financial goals during the next five years. The financials are explained in detail throughout
the duration of the plan.
Financial Highlights ($1,000's)

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Y1 Y2 Y3 Y4 Y5
Revenue 11 13 17 19 19 19 19 21 21 23 23 210 379 547 757 988
Gross Margin 6 10 12 16 18 18 18 18 20 20 23 23 205 370 534 739 965
Operating Expenses 22 16 16 16 16 18 18 18 18 18 18 19 210 285 391 474 536
EBITDA -16 -5 -3 1 3 1 1 1 3 3 5 4 -4 87 145 269 432
Net Profit -16 -5 -3 1 3 1 1 1 3 3 5 4 -5 85 143 266 428
Gross Margin/Revenue 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98%
EBITDA/Revenue -254% -52% -27% 4% 15% 5% 5% 5% 14% 14% 22% 17% -2% 23% 26% 35% 44%
Net Profit/Revenue -255% -52% -27% 4% 14% 4% 4% 4% 14% 14% 21% 17% -2% 22% 26% 35% 43%
Net Cash Flow 188 -6 -4 0 2 2 1 1 3 3 5 5 198 74 132 252 414
Cash Balance - Ending 188 182 178 178 180 182 183 183 186 189 193 198 198 272 404 656 1,070
Projected Operating Highlights By Year ($1,000's)
$1,200
$1,000
$800
$600
$400
$200
$0
-$200
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue Gross Margin EBITDA Net Profit

The following tables and graphs detail the funding the business will need to bring the vision
to reality.
Use of Start-Up Funding
Expenses
Legal Fees $1,000
Website Development $1,200 Total Start-Up Funding
Branding $500
Contingency $3,800 Total Amount Being Requested $200,000
Total Start-up Expenses $6,500 Total Funds Already Received $5,000
Long-Term Assets Total Funding $205,000
Furniture & Fixture $1,000 New Start-up Funding Being Requested
Computer & Accessories $2,500 Investor Amount Being Requested $200,000
Maintenance Equipment $5,000 Total Amount Being Requested $200,000
Total Long-Term Assets $8,500 Start-up Funding Already Received
Short-Term Assets Owner Contribution $5,000
Working Capital $190,000 Total Funding Already Received $5,000
Total Short-Term Assets $190,000 Start-up Capital and Liabilities
Total Expenses & Assets Loss at Start-up (Start-up
($6,500)
Total Start-up Expenses $6,500 Expenses)
Total Start-up Assets $198,500 Total Funds Received & Requested $205,000
Total Funding Requirements $205,000 Cash Balance on Starting Date $190,000
$190,000
Working Capital
$6,500 $8,500
Total Start-up Total Long-Term
Expenses Assets

Real Estate Property Management Group, LLC will manage residential

and non-residential real estate for property owners. Property
management responsibilities relate to the overall operations,
including maintenance, rent collection, responding to tenants'
complaints, security, and renovation activities. This will also cover
property screening services for the investors and tenants to find a
perfect match, hence marketing rental properties.
MARKETING OF RENTAL PROPERTIES
Benefits Description & frequency

Providing ease and mental Targeting audience and developing interest before
satisfaction to owners for letting the consumers. Using different marketing strategies
the properties to attract the community.
COLLECTING RENT

Collecting rents of multiple Collection of rent for individuals and commercial
properties and depositing on the concerns to make their time hassle-free.
owner's prescribed method

HANDLING REPAIR AND MAINTENANCE ISSUES

Comforting owners from day-to- Serving residential and commercial tenants on
day issues of repairs and behalf of property owners for repairs and
maintenance calls from tenants maintenance issues.
RESPONDING TO TENANTS’ COMPLAINTS (DISPUTE RESOLUTION)

Resolution of matters Receiving complaints and serve as a mediator between
related to facilities owners and lessees to avoid disputes and resolve the matters
according to documented contracts and best practices.

PROPERTY EVICTION SERVICES

To make the eviction process To act in favor of property owners within the given
safe through experienced lease contract and with the landlord's authority, start
professionals. eviction proceedings and even appear in eviction
court on their behalf.
CORPORATE RENTAL SERVICES

Providing unique, flexible, and Evaluate the property and determine an accurate
affordable management rental rate, market the property for rent, tenant
solutions to commercial clients screening and selection, rent collection, evictions,
to help them achieve their inspections, maintenance, repairs, and remodeling
property performance and
profitability goals.
The following is a listing of the types of services available through Real Estate Property
Management Group, LLC.

Property
Management in The U.S. 2
According to IBISWorld, Property Management in the U.S.

industry mainly focuses on establishments that
manage residential and
non-residential real
$88.2bn
Annual Growth 15-20: 2.6% estate for property
Annual Growth 20-25: 1.1% owners. The
industry is structurally
Annual Growth
15-20: -1.4% $8.6bn resistant to economic
downturns,
Annual Growth
primarily as a
15-20: -2.2% 9.8% result of
countercyclical
demand trends. When
Annual Growth 15-20: 3.5%
Annual Growth 20-25: 2.4%
273k the national economy
struggles, the
homeownership rate tends to decline as
consumers and lenders remain cautious, creating demand for rental markets and property
management. During periods of economic prosperity, the residential market segment tends
to weaken as homeownership becomes a more attainable goal and the need for
management services slows. During economic upswings, however, the expansion of
commercial properties becomes more important to the industry.
While the US economy has expanded over the five years to 2020, the homeownership rate is
expected to rise, albeit remaining relatively lower than the historical average. This has pro
ved favorable for industry operators, as exhibited by a decline in rental vacancy rates over
the past five years. However, rental vacancy rates are expected to decline in 2020, primarily
due to regulations against evictions and federal stimulus due to the COVID-19 (coronavirus)
pandemic. While industry revenue is expected to decline due to a decline in business activity
and a rise in office rental vacancy. As a result, industry revenue has increased at an
2 “Property Management in the U.S. in the US” IBISWorld 2019 - Obtained at www.ibisworld.com

annualized rate of 2.7% to $88.2 billion over the five years to 2020, including
a decline of 2.7% in 2020.
Over the next five years, corporate property managers are

forecast to experience relatively stronger demand
compared with the residential market. An
increasing number of U.S. businesses, along with
the expansion of existing operators, is
expected to create new demand for property
managers. The number of U.S. businesses is
expected to increase an annualized
0.4% over the five years to 2025, while
corporate profit is expected to
expand at an annualized rate of 10.4%
during the same period. These factors
will likely drive revenue for the
nonresidential market, which will likely
play a key role during the period. As a
result of these trends, industry revenue is
expected to increase at an annualized rate of 1.1% to
$93.3 billion over the five years to 2025. These growth
trends bode extremely well for Real Estate Property Management
Group, LLC, establishing its brand in the marketplace.
Property Management
$88.2bn
Residential property management 55.2% 2020 Industry Revenue
Nonresidential property management 25.8%
Land management 1.7% Construction 0.9%
Real estate brokerage2.9% Other 13.5%

As seen in IBISWorld's graph, companies in this industry

generally primarily handle commercial, industrial, and
residential real estate maintenance. Property managers are
responsible for nearly every aspect of real estate operation,
including rent collection, accounting, staffing, and building
maintenance. Additionally, property managers act as the
liaison between landlords and tenants. As a result, property
managers often negotiate tenant leases, collect security
deposits and process maintenance requests from tenants.
Property Management Services
According to the latest US Census data and IBISWorld

estimates, 81.0% of industry revenue is directly related to
property management services, with the remainder of activity
associated with a brokerage, sales, construction, and property
ownership. Most industry revenue is generated from residential
property within the property management sector, generating
55.2% of industry revenue in 2020. Industry participants also
manage non-residential buildings and commercial space,
including office buildings, industrial parks, and storage facilities.
Non-residential property management is estimated to
81.0% of industry
account for 25.8% of industry revenue in 2020. Additionally, revenue is directly
industry participants generate 1.7% from managing lands, such related to property
as farms, parks, or undeveloped plots. Over the past five years, management services
property management services have remained a similar
proportion of industry revenue. Revenue earned from property management services
increased in line with the overall industry. Growth in demand for residential services is
expected to outpace demand for non-residential services due to increasing per capita
disposable income. While the homeownership rate has increased over the five years to 2020,
homeownership rates are still relatively lower than its historical norm. Consumers have been
leaning toward renting instead of
purchasing new homes, benefiting industry
operators. Additionally, rental vacancy rates
are expected to fall in 2020 amid the COVID-
19 (coronavirus) pandemic, benefitting this
segment.
Other Real Estate Services
In addition to property management,

industry participants also provide various
Construction accounts for 0.9%
other real estate-related services, including
of industry revenue in 2020
property appraisal, brokerage, construction,

and sales. The real estate brokerage segment is

estimated to account for 2.9% of industry
revenue in 2020. Industry participants
occasionally provide brokerage services to
facilitate ma naged properties, which is
important for operators that position
themselves as full-service real estate
management companies. Similarly, some
industry participants also provide construction
management services for managed properties,
with most activities generally associated with the
management of retrofits and renovations of
existing buildings and land. Construction accounts
for 0.9% of industry revenue in 2020. In addition to services
directed toward property owners, industry participants also provide facilities management,
including various specialty services. Facility management is a fast-growth segment
generally associated with non-residential buildings and tenants, such as government and
major company tenants. Facilities management includes the management of hard services,
such as air conditioning, electrical systems, fire safety, lifts, boilers, mechanical repairs, and
maintenance; control of contracts for soft services, such as cleaning, security, pest control,
catering, and grounds maintenance; and property agent services, such as management of
leases, property inspections, rent reviews, releasing of space and tenant relocations.
Within the residential marketplace, changes in economic conditions can dramatically affect
demand for apartments and other rental units. Generally, demand for apartments rises as
the economy strengthens because more individuals can afford to live independently
instead of relatives and friends. Simultaneously, demand for apartments can be hindered by
economic expansion, as more people can often afford to purchase homes. However, the rise
in homeownership is also influenced by changes in interest rates and credit availability,
particularly during the real estate boom in the first half of the 2000s.
• Within the commercial segment, economic conditions can influence demand for
office, industrial or storage space as businesses generally determine their need for
space by forecasting their future growth. Economic activity also influences the
creation of new business ventures, with the number of companies increasing during
periods of strong economic growth. In contrast, smaller or weaker companies often
struggle to stay afloat during economic downturns, hurting non-residential space
demand.

• General economic conditions also influence new buildings and properties, which is an
important industry growth component. Specifically, as more properties enter the
market, industry services' potential demand rises as the pool of facilities needing
management grows. At the same time, property development is influenced by the
availability of credit, interest rates and property appreciation. During economic
downfalls, industry operators are expected to generate less revenue.
• Demand for industry services is also influenced by outsourcing activity because

participants rely on real estate owners and investors to outsource property
management functions. Over the past five years, corporations, government agencies
and other real estate owners have increasingly outsourced operations to reduce
operational costs. This trend has also supported the increase in facilities
management services, as tenants and other large entities turn to market
professionals to manage their real estate costs. Simultaneously, the outsourcing of
property management functions is expected to continue to come under pressure
from the growth and influence of real estate investment trusts, as many of these large
operators manage their assets.
Residential Properties
Nonresidential Properties
$88.2bn
Property Management
2020 Industry Revenue

Real Estate Property Management Group, LLC will be a Limited

Liability Company registered in the state of California.
Ownership will be held by Mr. John Smith.
Real Estate Property Management Group will be

situated at Sample street Blvd 6523. Los Angeles
is a city in the U.S. state of California, located in
Tarrant County. It forms part of the Mid-Cities
region of the Dallas–Fort Worth–Los Angeles
metropolitan statistical area and is a city's
principal city. According to the U.S. Census
Bureau's 2019 population estimates, the city
had a population of 398,854, making it the
second-largest city in the county after Fort Real Estate Property
Worth. Los Angeles is the 49th-most populous city Management Group
in the United States, the seventh-most populous city LLC
in California, and the largest city in the state that is not
a county seat.3
California
Mr. John Smith
Sample street Blvd
6523
3 https://www.census.gov/quickfacts/Los AngelescityCalifornia

Los Angeles City, Tarrant County, Chicago City,

Demographics
California California Illinois
Population 398,854 2,102,515 2,693,976
Housing units 115,400 791,743 1,182,016
Renter-occupied housing
44.8% 39.5% 55.0%
unit rate
Renter-occupied housing
63,701 312,738 650,109
units
Median gross rent $1,055 $1,095 $1,112
Median household
$60,571 $67,700 $58,247
income
Total firms 35,988 173,389 291,007
The primary target market for the services

offered by Real Estate Property
Management Group, LLC will be residential
and commercial property owners, including
homeowners, landlords, real estate
investors, and businesses in California and
Chicago, Illinois.
Residential properties
The residential segment

primarily services the consumer
market, including individuals,
couples, families, and other
housemates. Occasionally, residential
properties are leased to businesses or other
entities, but this does not often occur as
most of these leases are associated with the
relocation of employees and new hires. As a
result of this structure, property managers
typically interact with residential tenants
and owners. Leases are traditionally
standardized, and negotiations are often

limited. Residential clients are expected to generate 55.7% of industry revenue in 2020.
Over the five years to 2020, this segment is expected to increase as a share of industry
revenue. As a result of a decline in rental vacancy rates during the period, industry operators
are expected to benefit from a relatively higher building capacity to manage. Additionally,
per capita, disposable income has risen at an annualized rate of 2.8% over the five years to
2020. This has led tenants to pay relatively higher rental costs and lowering rental vacancy
rates, benefiting industry operators.
Non-residential properties
The non-residential market comprises office, retail, industrial and

warehouse facilities, and other non-residential building types. Non-
residential tenants include a wide variety of industries and businesses.
The office segment comprises financial service companies and
professionals, including accountants, lawyers, insurance companies
and computer technology companies. In contrast, industrial clients include
manufacturers. The commercial segment includes malls and shopping plazas,
containing movie theaters, clothing stores, restaurants, and other consumer-oriented
businesses. Together, these properties represent the industry's most non-residential
properties and account for 44.3% of industry revenue.
Compared with residential properties, non-residential properties have much more

sophisticated leases, so property managers are often required to have skilled personnel
to negotiate leases and contend with tenant issues. Over the five years to 2020, this
segment has declined as a share of industry revenue, primarily due to declining
corporate profit. As the value of private non-residential construction declines, so too
does the available capacity of non-residential building space for industry operators to
manage.

OPERATIVE PARTNERING & FOCUS FINANCIAL COMMUNICATION
Marketing Channels
Key Activities Key Partners Revenue Stream
Employed
• Management of • Residential and • Property • Social Media

the housing units commercial building Management fees • Word of Mouth
• Management of owners • Marketing of • Networking
commercial areas • Building rental properties • Website
• Leasing of maintenance • Collecting rent • Print Media
housing and providers • Handling repair
commercial units • Legal and maintenance
• Property consultants issues
marketing • Marketing • Dispute
• Handling consultants resolution
suggestions and • Property
complaints eviction services
resolution of Communication
Value Proposition Main Cost Drivers
residents with Clients through
• Handling
• Property description • Administrative • Phone
inquiries of potential
• Marketing expenses • Website
clients on phone,
Engaging the client • Marketing In-person meeting
website, and in-
in the selection expenses
person
process Maintenance labor
charges
Customer
Target Customers Business Timings
Relationship
• Valuing the • Single-family 9:00am – 6:00pm

dignity and homeowners (Monday – Friday)
respect of • Multi-family
clients homeowners
• Fulfilling • Commercial
commitments building owners
• Word of mouth • Offices

Management Fee: The Company will charge a standardized flat fee of 7% of the monthly rent
for performing normal property management duties, including a collection of rent.
Maintenance services: The Company's maintenance team coordinate vendors to assist

residents with any repair issues that may occur. If any repair exceeds the agreed-upon repair
limit, the Company will contact the customer for approval. A surcharge for acting as a general
contractor on maintenance items—on average, 10% percent of the monthly property rent.
Finder's fees: The Company will charge a fee for finding a new tenant for a vacant unit. The
rental owner will pay this fee at 50% of the first month's rental value.
The tentative milestones are shown below. Management reserves the right to make changes
to this schedule as needed.
Milestones
Start Date Duration (Days)
Obtain Funding 01-01-2021 60.00
Branding 02-03-2021 45.00
Acquire Equipment & Supplies 16-04-2021 25.00
Targeted Marketing Campaign 11-05-2021 45.00
Hire Staff 31-05-2021 25.00
Secure Customer Agreement 25-06-2021 75.00
Achieve $210K in Gross Revenue 08-09-2021 365.00
01-01-2021 02-03-2021 16-04-2021 11-05-2021 31-05-2021 25-06-2021 08-09-2021
OBTAIN BRANDING ACQUIRE TARGETED HIRE SECURE ACHIEVE $210K

FUNDING EQUIPMENT MARKETIN STAFF CUSTOMER IN GROSS
& SUPPLIES G AGREEMENT REVENUE

Real Estate Property Management Group, LLC will strive to meet the following objectives as it
accomplishes specific keys to success:
Become a recognized To differentiate services Remain attuned to the

market leader in Property to win new customers marketplace and
Management in the U.S. integrate products
industry into the business mix
that meet the needs
of the targeted
audience
• Having contacts within key markets: places with strong population growth
Companies need to establish contacts tend to be key markets for industry
within the real estate sector because participants.
most property management clientele • Business expertise of operators:
is gained through personal contacts Businesses and individuals often seek
and business relationships. industry participants' advice during
• Having a well-defined strategy/goal: real estate transactions due to their
The property management industry is expertise in the local real estate market,
highly fragmented, so it is important to including zoning, financing, and tax
have a strategic plan to differentiate structures.
property management businesses • Ability to effectively communicate:
from competitors. Property managers often serve as the
• Proximity to key markets: Property liaison between owners and tenants
managers must be in markets where and must communicate quickly and
there is ample demand for real estate professionally.
services. Densely populated areas or

Marketing for Real Estate Property Management Group, LLC will be done through the following
media:
NETWORKING
• Registration with associations such as the Community Associations Institute, Institute of

Real Estate Management, California Apartment Association, and National Association of
Residential Property Managers.
• Associations provide members with newsletters and other publications to keep them up
to date on current industry news and trends.
• Being a part of an association will add to the Company’s legitimacy with tenants and
customers.
• Association’s resources will be used to screen potential tenants, learn more about
managing properties or gain valuable business information.
INFLUENCER MARKETING
• Influencer marketing is an important strategy to include in property management

marketing campaign.
• The Company will involve endorsements from people who have social influence in the
field.
• Influencer marketing is one of the most effective property management marketing
strategies because it will help the Company target a specific group of people interested
in property management with the help of the right influencer.
INTERNET (WEB SITE & SOCIAL MEDIA)
• The website serves as the primary marketing channel of the Company’s services. The
Company’s website www.5starsdevelopmentgroup.com will feature all the services,
undertaken projects, and contact info.
• The website will further be promoted by Search Engine Optimization (SEO). SEO
campaigns help the Company gain better rankings in search engine result pages, which
translates to more targeted visits and more clients.

• Generate awareness about the Company and maintain a presence on social media
websites, such as Facebook, Twitter, LinkedIn, and Instagram. A YouTube channel will be
created and optimized with the benefits of SEO, which will accelerate the process of
reaching targeted customers.
• YouTube and video blogging will be used by the Company to drive sales by posting
relevant and informative videos on YouTube or video blogs of landlords and tenants and
their video testimonials about the Company’s efficient services.
EMAIL MARKETING
Properly executed with the right strategies, email marketing will be a cost-effective method
to retain and enroll new participants. Based on the data presented by MailChimp, the
average open rate across all industries is at 21.80%, and the average click-through rate is
2.78%. Keeping in view the following factors, the Company will use email marketing to engage
customers:
• Emails will be mobile responsive.
• Segmenting email lists will help to personalize email messages and ensure that each
offer is tailored to the specific audience.
• Optimizing email subject line.
• Landing page: Emails will direct the reader to a landing page using a call-to-action (CTA)
button.

The identified competitors are described below:
SMALLWOOD CORPORATE HOUSING

Phone: 817.765.6170
Email: info@smallwoodcorporatehousing.com
The Smallwood team understands the demands of doing business. In tune with today’s corporate
executive's needs, the Company gives the option of providing in-unit copy and fax machines,
computer desks, or other business equipment. The team is happy to recommend local facialists,
massage therapists, or yoga and Pilates class schedules for the weary. Smallwood is providing
services as an HR Corporate Travel Manager and housing solutions for construction crews. Smallwood
Corporate Housing has one point of contact for the procurement office and a local Smallwood staff
member in each community specifically assigned to ensure all needs are being met.
ANDREW DILLINGHAM –
Phone: 214-638-05771601
Address: East Lamar Los Angeles, California
Andrews-Dillingham Properties is a locally run Commercial Real Estate/Property Management

Company that has been in business for over 100 years in the DFW Metroplex, with office spaces for
lease in the Dallas, Los Angeles, Irving, and Grand Prairie area. Office buildings are located across the
Dallas-Fort Worth Metroplex with great proximity to attractions, including the Ranger’s and Cowboy’s
Stadiums and DFW and Love Field airports. Offering several different office styles to fit your business
needs, our spaces range from 300 to 7,000 Square Feet. The Company pride is personalized customer
service with the mission of providing every tenant, no matter their size, the fairest and most
competitive lease rates possible. Andrew Dillingham provides a pleasant, professional work
environment for customers, staff, and invitees.
Kautz Property Management LLC

Phone: (817) 419-0088
Address: 76015, Los Angeles, TX, United States
Kautz Property Management understands that tenants and owners need to trust their property
managers to look out for their needs. The Kautz family has been a trusted name in Real Estate in
Tarrant County since 1952. The Company has seen great changes in the county and the Industry in
more than half a century. Kautz looks forward to the opportunity to serve customers your housing
needs. At Kautz Property Management, the staff has decades of experience in nearly all real estate
industry areas. Not only have many team members been investors in the past, but they’ve also all
been tenants at some point in their lives.

The following is a listing of the primary competitive advantages of the Company upon
entering the market.
Knowledge of management about

Honesty and transparency in
the geographic area
transactions
Range of high-quality
Exceptional marketing skills
services
Exceptional negotiation
Eagerness to learn and
skills
produce outstanding
results
Passion for helping families A fair and simple

and businesses achieve approach
their real estate goals

Barriers to Entry Checklist • The Property Management industry is

labor-intensive, as most operations require
Competition Medium personal communication.
Concentration Low
• Subsequently, there are low capital
Life Cycle Stage Mature costs within the industry, as most of the
technology supports traditional property
Technology Change Low
management activities.
Regulation & Policy Light
• At the same time, there is a significant
Industry Assistance Low
industry competition level due to the
similarity of services. As a result, industry participants compete on price, quality,
breadth of service offerings, and local market knowledge.
• The industry has a low level of regulation, which reduces

barriers to entry. Still, the industry is subject to regulators
from various local, state, and national jurisdictions. As
a result, barriers to entry may vary on a state-by-
state basis, depending on local policies. These
policies and regulations include licensing
procedures, prescribed fiduciary
responsibilities and antifraud
prohibitions. Besides, property
managers are also indirectly subject
to various real estate specific laws,
including zoning, ordinances, and
licensing requirements.

The following is a listing of the key strengths and weaknesses of Real Estate Property
Management Group, LLC, as well as the opportunities and threats that exist within the
marketplace.
• Knowledge of management about

market
STRENGTHS • Integrity
• Excellent customer service and
commitment
• The location of Los Angeles and
Chicago are growing market in
real estate.
• The Company is coming up with
extensive advertising and aims to
market and promote new project
opportunities
• Company needs funding and

working capital for a successful
WEAKNESSES
launch
• As a new business, the Company
must build its credibility
• The Company must maintain a low
employee turnover ratio
• The increasing popularity of the

industry
OPPORTUNITIES • Growth among demographic
segments
• Expanding to other markets
through networking
• Favorable conditions, including
falling vacancy and strong rent
growth, have served to bolster
industry profitability
• Instability of the US economy leads

to unpredictable market activity
THREATS
• Larger companies that have more
resources and the ability to reach
deeper into the market

A low level of revenue volatility characterizes the Property Management industry. The
industry typically follows cyclical fluctuations in property prices, as more consumers move
to residential rental properties when home prices are unaffordable. Further, shifts in rental
markets are typically slow-moving, with some leases lasting more than a year. Over the five
years to 2020, the industry has performed well as more consumers rented apartments with
the homeownership rate remaining relatively lower than its historical norm. Over the five
years to 2025, revenue volatility is expected to be low as the non-residential market
strengthens. Demand for commercial property rentals is expected to rise over the next five
years as more companies enter the US economy, and existing companies expand
operations.

After careful consideration, the Company has developed the following strategies to exit the
venture:
Real Estate Property

Management Group,
LLC, experiences growth
and sees an opportunity to
expand its brand into
additional markets as a
successful income-generating
operation. Additional markets open the
door for additional product offerings and
revenue streams. Due to its substantial
market growth and industry recognition, major competing brands begin to notice the
Company. These businesses approach Real Estate Property Management Group, LLC with
attractive buyout offers; then the Company negotiates and sells to the best deal.
Real Estate Property Management Group, LLC merges with another company to expand its
market reach and development capabilities. Potential merger partners include companies
that can offer a more diversified market reach or provide expanded resources for research
and development. Real Estate Property Management Group, LLC’s management would
maintain majority control of the Company and combine its operational and sales efforts
with its merger partner.
Real Estate Property Management Group, LLC is currently seeking an investor, and offering
returns at 25%. Below is a return scenario for this investment over a period of five years.
YEARS INVESTMENT RETURNS
Year 2 $21,228
Year 3 $35,684
Year 4 $66,405
Year 5 $107,083
TOTAL RETURNS IN 5 YEARS $230,460

The personnel forecast below shows the staffing needs for the next five years.
Personnel Forecast

Staff Count
President 1 1 1 1 1
Virtual Assistant 1 1 1 1 1
Supervisor 0 0 1 1 1
Cleaning Staff 2 3 5 7 9
Total Personnel 4 5 8 10 12
Staff Salary
President $0 $40,000 $60,000 $80,000 $82,400
Virtual Assistant $18,000 $18,540 $19,096 $19,669 $20,259
Supervisor $0 $0 $23,040 $23,731 $24,443
Cleaning Staff $23,040 $23,040 $23,040 $23,040 $23,040
Staff Salary - Total

President $0 $40,000 $60,000 $80,000 $82,400
Virtual Assistant $13,500 $18,540 $19,096 $19,669 $20,259
Supervisor $0 $0 $23,040 $23,731 $24,443
Cleaning Staff $46,080 $69,120 $115,200 $161,280 $207,360
Total Payroll $59,580 $127,660 $217,336 $284,680 $334,462
Personnel Assumptions: (1) Costs are based on average wages.

The following is a five-year revenue and direct cost forecast.
Revenue Forecast
Total
Management Fee 60 108 156 216 282
Maintenance Services 36 65 94 130 170
Finder's Fee 24 44 63 87 113
Price
Management Fee $2,100.00 $2,100.00 $2,100.00 $2,100.00 $2,100.00
Maintenance Services $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00
Finder's Fee $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00
Revenue
Management Fee $126,000 $226,800 $327,600 $453,600 $592,200
Maintenance Services $54,000 $97,500 $141,000 $195,000 $255,000
Finder's Fee $30,000 $55,000 $78,750 $108,750 $141,250
Total Revenue $210,000 $379,300 $547,350 $757,350 $988,450
Direct Cost
Management Fee $50.40 $50.40 $50.40 $50.40 $50.40
Maintenance Services $36.00 $36.00 $36.00 $36.00 $36.00
Finder's Fee $30.00 $30.00 $30.00 $30.00 $30.00
Direct Cost of Revenue

Management Fee $3,024 $5,443 $7,862 $10,886 $14,213
Finder's Fee $720 $1,320 $1,890 $2,610 $3,390
Subtotal Cost of Revenue $5,040 $9,103 $13,136 $18,176 $23,723
Revenue Forecast Assumptions: (1) Revenue and costs are based on averages.

B2B Client Acquisition Model
Percentage of
Triggers Year - 1 Year - 2 Year - 3 Year - 4 Year - 5
Revenue
Marketing Expense - Networking/Contacts $90,000 $94,500 $99,225 $104,186 $109,395

Emails Contacts 2,727 2,864 3,007 3,157 3,315
Average Open Rate 22.51% 20.00% 21.00% 22.05% 23.15%
Email Open 614 573 631 696 768
Average Click/Contact Rate 2.62% 2.62% 2.62% 2.62% 2.62%
Number of Client Meetings/Presentations 16 15 17 18 20
Conversion 60.00% 66.00% 72.60% 79.86% 87.85%
Estimated number of B2B Clients 10.00 10.00 12.00 15.00 18.00
Customer Retainership Rate - 80.00% 80.00% 80.00% 80.00%
Customer Retained 0.00 8.00 14.00 21.00 29.00
Total Customers 10.00 18.00 26.00 36.00 47.00
Demand Per B2B Consumer 12.00 12.00 12.00 12.00 12.00
Revenue Streams - Annual No. of units

Management Fee 50% 60 108 156 216 282
Maintenance Services 30% 36 65 94 130 170
Finder's Fee 20% 24 44 63 87 113
Average Pricing
Management Fee $2,100 $2,100 $2,100 $2,100 $2,100
Finder's Fee $1,250 $1,250 $1,250 $1,250 $1,250
Revenue
Management Fee $126,000 $226,800 $327,600 $453,600 $592,200
Finder's Fee $30,000 $55,000 $78,750 $108,750 $141,250
Total Revenue $210,000 $379,300 $547,350 $757,350 $988,450
Cleaning Staff 2.00 3.00 5.00 7.00 9.00

The following break-even analysis shows the

revenue necessary to break even in the first year of
Year 1 Break-Even Analysis
operation. Break-even is where revenue equals Monthly Revenue Break-even $17,902
expenses. As shown below, the Company is expected
to incur average monthly fixed costs of $17,473 in Assumptions:
Average Monthly Revenue $17,500
Year 1. To cover fixed costs and variable costs, which
Average Monthly Variable Cost $420
rise and fall with revenue, the Company must, on
Estimated Monthly Fixed Cost $17,473
average, achieve revenue of $17,902 per month to
break even.
Year 1 Break-even Analysis

$20,000
$10,000
$0
($10,000)
($20,000)
$0 $17,902 $35,805
Year 1 Break-Even Analysis

Breakeven Analysis Dollars Percent
Annual Sales Revenue $210,000.00 100.00%

Cost of Sales $5,040.00 2.40%
Gross Margin $204,960.00 97.60%
Salaries and Wages $59,580.00

Fixed Operating Expenses $150,093.17
Total Fixed Business Expenses $209,673.17
Breakeven Sales Calculation $209,673.17

97.60%
Breakeven Sales (Annual) $214,829

Breakeven Sales (Monthly) $17,902

Real Estate Property Management Group, LLC intends to deploy its funding to maximize
growth and profitability. Below is the projected income statement of the Company:
Pro Forma Income Statement

Revenue $210,000 $379,300 $547,350 $757,350 $988,450
Subtotal Cost of Revenue $5,040 $9,103 $13,136 $18,176 $23,723
Total Cost of Revenue $5,040 $9,103 $13,136 $18,176 $23,723
Gross Margin $204,960 $370,197 $534,214 $739,174 $964,727

Gross Margin/Revenue 97.60% 97.60% 97.60% 97.60% 97.60%
Expenses
Rent $15,700 $16,093 $16,495 $16,907 $17,330
Telephone/Internet $4,200 $4,305 $4,413 $4,523 $4,636
Website Hosting/Updates $1,200 $1,230 $1,261 $1,292 $1,325
Marketing & Advertising $90,000 $94,500 $99,225 $104,186 $109,395
Supplies $1,800 $1,845 $1,891 $1,938 $1,987
Utilities $3,000 $3,075 $3,152 $3,231 $3,311
Professional Services/Accountant $4,000 $4,100 $4,203 $4,308 $4,415
Travel & Fuel $6,600 $6,765 $6,934 $7,107 $7,285
Startup Cost $6,500 $0 $0 $0 $0
Miscellaneous Expenses $9,600 $9,888 $10,185 $10,490 $10,805
Depreciation $850 $1,350 $2,150 $3,150 $4,150
Payroll Taxes $6,643 $14,234 $24,233 $31,742 $37,293
Total Personnel $59,580 $127,660 $217,336 $284,680 $334,462
Total Operating Expenses $209,673 $285,045 $391,477 $473,555 $536,394
Profit Before Interest and Taxes ($4,713) $85,152 $142,737 $265,619 $428,333
EBITDA ($3,863) $86,502 $144,887 $268,769 $432,483
Net Profit ($4,713) $85,152 $142,737 $265,619 $428,333

Net Profit/Revenue -2.24% 22.45% 26.08% 35.07% 43.33%
Income Statement Assumptions: (1) Depreciation is based on 10 years; (2) Total payroll taxes are 11.15%.
Gross Margin & Profit Yearly

$1,500,000
$1,000,000
$500,000
$0
($500,000)
Gross Margin Profit

The following is a depiction of Real Estate Property Management Group, LLC’s projected cash
flow:
Pro Forma Cash Flow

Cash Received
Revenue $201,250 $372,246 $540,348 $748,600 $978,821
Owner Contribution $5,000 $0 $0 $0 $0
Proceeds from Investor $200,000 $0 $0 $0 $0
Subtotal Cash Received $406,250 $372,246 $540,348 $748,600 $978,821
Expenditures
Expenditures from Operations
Total Personnel $59,580 $127,660 $217,336 $284,680 $334,462
Bill Payments $133,625 $165,474 $183,226 $202,306 $220,009
Subtotal Spent on Operations $193,205 $293,134 $400,562 $486,987 $554,472
Additional Cash Spent
Start-up Costs $6,500 $0 $0 $0 $0
Purchase Long-term Assets $8,500 $5,000 $8,000 $10,000 $10,000
Subtotal Cash Spent $208,205 $298,134 $408,562 $496,987 $564,472
Net Cash Flow $198,045 $74,112 $131,786 $251,613 $414,349

Cash Balance $198,045 $272,157 $403,943 $655,556 $1,069,905
Cash Flow Assumptions: (1) Proceeds from investors assume funds were received in the amount of $200,000.
Year 1 Cash
$250,000
$200,000
$150,000
$100,000
$50,000
$0
-$50,000
Month 1
Month 2
Month 7
Month 8
Month 3
Month 4
Month 5
Month 6
Month 9
Month 11
Month 10
Month 12
Net Cash Flow Cash Balance

Following is the projected balance sheet of Real Estate Property Management Group, LLC.
Pro Forma Balance Sheet

Assets
Current Assets
Cash $198,045 $272,157 $403,943 $655,556 $1,069,905
Account Receivable $8,750 $15,804 $22,806 $31,556 $41,185
Total Current Assets $206,795 $287,961 $426,749 $687,112 $1,111,091
Long-term Assets
Long-term Assets $8,500 $13,500 $21,500 $31,500 $41,500
Accumulated
$850 $2,200 $4,350 $7,500 $11,650
Depreciation
Total Long-term Assets $7,650 $11,300 $17,150 $24,000 $29,850
Total Assets $214,445 $299,261 $443,899 $711,112 $1,140,941
Liabilities and Capital

Current Liabilities
Accounts Payable $14,158 $13,822 $15,723 $17,318 $18,813
Subtotal Current
$14,158 $13,822 $15,723 $17,318 $18,813
Liabilities
Total Liabilities $14,158 $13,822 $15,723 $17,318 $18,813
Paid-in Capital $205,000 $205,000 $205,000 $205,000 $205,000

Retained Earnings $0 ($4,713) $80,439 $223,176 $488,795
Earnings ($4,713) $85,152 $142,737 $265,619 $428,333
Total Capital $200,287 $285,439 $428,176 $693,795 $1,122,128
Total Liabilities and
$214,445 $299,261 $443,899 $711,112 $1,140,941
Capital
Net Worth $200,287 $285,439 $428,176 $693,795 $1,122,128

The sensitivity analysis below assumes that revenues are 10% higher or 10% lower than the
figures projected earlier in this business plan.
Best Case Scenario (Revenue Increases By 10%)

Revenue $231,000 $417,230 $602,085 $833,085 $1,087,295
Cost of Goods $5,544 $10,014 $14,450 $19,994 $26,095
Gross Margin $225,456 $407,216 $587,635 $813,091 $1,061,200
Operating Expenses $209,673 $285,045 $391,477 $473,555 $536,394
Net Profit $15,783 $122,172 $196,158 $339,536 $524,806
Cash Flow $218,541 $111,132 $185,207 $325,531 $510,822
Cash Balance $218,541 $329,673 $514,880 $840,411 $1,351,232
Net Profit/Revenue 6.83% 29.28% 32.58% 40.76% 48.27%
Worst Case Scenario (Revenue Decreases By 10%)

Revenue $189,000 $341,370 $492,615 $681,615 $889,605
Cost of Goods $4,536 $8,193 $11,823 $16,359 $21,351
Gross Margin $184,464 $333,177 $480,792 $665,256 $868,254
Operating Expenses $209,673 $285,045 $391,477 $473,555 $536,394
Net Profit ($25,209) $48,133 $89,316 $191,701 $331,861
Cash Flow $177,549 $37,093 $78,364 $177,696 $317,877
Cash Balance $177,549 $214,641 $293,006 $470,702 $788,578
Net Profit/Revenue -13.34% 14.10% 18.13% 28.12% 37.30%

Year 1 Revenue Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Total
Management Fee 2 3 4 5 5 5 5 5 6 6 7 7
Maintenance Services 1 2 2 3 3 3 3 3 4 4 4 4
Finder's Fee 1 1 1 2 2 2 2 2 2 2 3 3
Price
Management Fee $2,100.00 $2,100.00 $2,100.00 $2,100.00 $2,100.00 $2,100.00 $2,100.00 $2,100.00 $2,100.00 $2,100.00 $2,100.00 $2,100.00
Maintenance Services $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00
Finder's Fee $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00
Revenue
Management Fee $3,780 $6,300 $7,560 $10,080 $11,340 $11,340 $11,340 $11,340 $12,600 $12,600 $13,860 $13,860
Maintenance Services $1,620 $2,700 $3,240 $4,320 $4,860 $4,860 $4,860 $4,860 $5,400 $5,400 $5,940 $5,940
Finder's Fee $900 $1,500 $1,800 $2,400 $2,700 $2,700 $2,700 $2,700 $3,000 $3,000 $3,300 $3,300
Total Revenue $6,300 $10,500 $12,600 $16,800 $18,900 $18,900 $18,900 $18,900 $21,000 $21,000 $23,100 $23,100
Direct Cost
Management Fee $50.40 $50.40 $50.40 $50.40 $50.40 $50.40 $50.40 $50.40 $50.40 $50.40 $50.40 $50.40
Maintenance Services $36.00 $36.00 $36.00 $36.00 $36.00 $36.00 $36.00 $36.00 $36.00 $36.00 $36.00 $36.00
Finder's Fee $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00
Direct Cost of Revenue
Management Fee $91 $151 $181 $242 $272 $272 $272 $272 $302 $302 $333 $333
Maintenance Services $39 $65 $78 $104 $117 $117 $117 $117 $130 $130 $143 $143
Finder's Fee $22 $36 $43 $58 $65 $65 $65 $65 $72 $72 $79 $79
Subtotal Cost of Revenue $151 $252 $302 $403 $454 $454 $454 $454 $504 $504 $554 $554

Year 1 Personnel Forecast
Staff Count
President 1 1 1 1 1 1 1 1 1 1 1 1
Virtual Assistant 0 0 0 1 1 1 1 1 1 1 1 1
Cleaning Staff 2 2 2 2 2 2 2 2 2 2 2 2
Total Personnel 3 3 3 4 4 4 4 4 4 4 4 4
Staff Salary
Virtual Assistant $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Cleaning Staff $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920
Staff Salary - Total
Virtual Assistant $0 $0 $0 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Cleaning Staff $3,840 $3,840 $3,840 $3,840 $3,840 $3,840 $3,840 $3,840 $3,840 $3,840 $3,840 $3,840
Total Payroll $3,840 $3,840 $3,840 $5,340 $5,340 $5,340 $5,340 $5,340 $5,340 $5,340 $5,340 $5,340

Year 1 Income Statement
Revenue $6,300 $10,500 $12,600 $16,800 $18,900 $18,900 $18,900 $18,900 $21,000 $21,000 $23,100 $23,100
Subtotal Cost of Revenue $151 $252 $302 $403 $454 $454 $454 $454 $504 $504 $554 $554
Total Cost of Revenue $151 $252 $302 $403 $454 $454 $454 $454 $504 $504 $554 $554
Gross Margin $6,149 $10,248 $12,298 $16,397 $18,446 $18,446 $18,446 $18,446 $20,496 $20,496 $22,546 $22,546
Gross Margin/Revenue 97.60% 97.60% 97.60% 97.60% 97.60% 97.60% 97.60% 97.60% 97.60% 97.60% 97.60% 97.60%
Expenses
Rent $200 $200 $200 $200 $200 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100
Telephone/Internet $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350
Website Hosting/Updates $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Marketing & Advertising $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Supplies $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Utilities $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Professional Services/Accountant $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $1,250
Travel & Fuel $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550
Startup Cost $6,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Miscellaneous Expenses $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Depreciation $71 $71 $71 $71 $71 $71 $71 $71 $71 $71 $71 $71
Payroll Taxes $554 $554 $554 $554 $554 $554 $554 $554 $554 $554 $554 $554
Total Personnel $4,965 $4,965 $4,965 $4,965 $4,965 $4,965 $4,965 $4,965 $4,965 $4,965 $4,965 $4,965
Total Operating Expenses $22,239 $15,739 $15,739 $15,739 $15,739 $17,639 $17,639 $17,639 $17,639 $17,639 $17,639 $18,639
Profit Before Interest and Taxes ($16,091) ($5,491) ($3,442) $657 $2,707 $807 $807 $807 $2,857 $2,857 $4,906 $3,906
Net Profit ($16,091) ($5,491) ($3,442) $657 $2,707 $807 $807 $807 $2,857 $2,857 $4,906 $3,906
Net Profit/Revenue -255.41% -52.30% -27.32% 3.91% 14.32% 4.27% 4.27% 4.27% 13.60% 13.60% 21.24% 16.91%

Year 1 Cash Flow
Additional Cash Received
Revenue $6,300 $10,500 $12,600 $16,800 $18,900 $18,900 $18,900 $18,900 $21,000 $21,000 $23,100 $23,100
Owner Contribution $5,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Proceeds from Investor $200,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $208,150 $9,450 $11,900 $15,925 $18,165 $18,410 $18,550 $18,638 $20,679 $20,743 $22,795 $22,845
Total Personnel $4,965 $4,965 $4,965 $4,965 $4,965 $4,965 $4,965 $4,965 $4,965 $4,965 $4,965 $4,965
Bill Payments $0 $10,855 $10,956 $11,006 $11,107 $11,157 $13,057 $13,057 $13,057 $13,108 $13,108 $13,158
Additional Cash Spent
Start-up Costs $6,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term
$8,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Cash Spent $19,965 $15,820 $15,921 $15,971 $16,072 $16,122 $18,022 $18,022 $18,022 $18,073 $18,073 $18,123
Net Cash Flow $188,185 ($6,370) ($4,021) ($46) $2,093 $2,288 $528 $615 $2,657 $2,671 $4,722 $4,722
Cash Balance $188,185 $181,815 $177,795 $177,749 $179,842 $182,130 $182,657 $183,273 $185,930 $188,600 $193,322 $198,045

Year 1 Balance Sheet
Current Assets
Cash $188,185 $181,815 $177,795 $177,749 $179,842 $182,130 $182,657 $183,273 $185,930 $188,600 $193,322 $198,045
Account Receivable $3,150 $4,200 $4,900 $5,775 $6,510 $7,000 $7,350 $7,613 $7,933 $8,190 $8,495 $8,750
Total Current Assets $191,335 $186,015 $182,695 $183,524 $186,352 $189,130 $190,007 $190,885 $193,863 $196,790 $201,818 $206,795
Long-term Assets
Long-term Assets $8,500 $8,500 $8,500 $8,500 $8,500 $8,500 $8,500 $8,500 $8,500 $8,500 $8,500 $8,500
Accumulated
$71 $142 $213 $283 $354 $425 $496 $567 $638 $708 $779 $850
Depreciation
Total Long-term Assets $8,429 $8,358 $8,288 $8,217 $8,146 $8,075 $8,004 $7,933 $7,863 $7,792 $7,721 $7,650
Total Assets $199,764 $194,374 $190,982 $191,740 $194,498 $197,205 $198,012 $198,819 $201,726 $204,582 $209,539 $214,445
Current Liabilities
Accounts Payable $10,855 $10,956 $11,006 $11,107 $11,157 $13,057 $13,057 $13,057 $13,108 $13,108 $13,158 $14,158
Subtotal Current Liabilities $10,855 $10,956 $11,006 $11,107 $11,157 $13,057 $13,057 $13,057 $13,108 $13,108 $13,158 $14,158
Total Liabilities $10,855 $10,956 $11,006 $11,107 $11,157 $13,057 $13,057 $13,057 $13,108 $13,108 $13,158 $14,158
Paid-in Capital $205,000 $205,000 $205,000 $205,000 $205,000 $205,000 $205,000 $205,000 $205,000 $205,000 $205,000 $205,000
Earnings ($16,091) ($21,582) ($25,024) ($24,367) ($21,660) ($20,853) ($20,046) ($19,239) ($16,382) ($13,526) ($8,619) ($4,713)
Total Capital $188,909 $183,418 $179,976 $180,633 $183,340 $184,147 $184,954 $185,761 $188,618 $191,474 $196,381 $200,287
Total Liabilities and Capital $199,764 $194,374 $190,982 $191,740 $194,498 $197,205 $198,012 $198,819 $201,726 $204,582 $209,539 $214,445
Net Worth $188,909 $183,418 $179,976 $180,633 $183,340 $184,147 $184,954 $185,761 $188,618 $191,474 $196,381 $200,287

Real Estate Property Managment Business Plan Sample

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Real Estate Property Managment Business Plan Sample

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Investor Business Plan

THIS IS A SAMPLE BUSINESS PLAN

Investor Business Plan 2

The Real Estate Property Management Group's mission is to

Investor Business Plan 3

MISSION STATEMENT .......................................... 3 Milestones ..................................................... 23

Investor Business Plan 4

Real Estate Property Management Group, LLC

Investor Business Plan 5

Marketing: Marketing for Real Estate Property

Target Market: The target market for the

Investor Business Plan 6

Management: Mr. John Smith is the owner and

Mr. Smith is a seasoned business professional

Investor Business Plan 7

To achieve the Company’s objectives, Real Estate Property

Investor Business Plan 8

Financial Highlights ($1,000's)

Revenue 11 13 17 19 19 19 19 21 21 23 23 210 379 547 757 988

Gross Margin 6 10 12 16 18 18 18 18 20 20 23 23 205 370 534 739 965

Operating Expenses 22 16 16 16 16 18 18 18 18 18 18 19 210 285 391 474 536

EBITDA -16 -5 -3 1 3 1 1 1 3 3 5 4 -4 87 145 269 432

Net Profit -16 -5 -3 1 3 1 1 1 3 3 5 4 -5 85 143 266 428

Net Cash Flow 188 -6 -4 0 2 2 1 1 3 3 5 5 198 74 132 252 414

Projected Operating Highlights By Year ($1,000's)

Revenue Gross Margin EBITDA Net Profit

Investor Business Plan 9

Use of Start-Up Funding

Investor Business Plan 10

Real Estate Property Management Group, LLC will manage residential

MARKETING OF RENTAL PROPERTIES

Benefits Description & frequency

Benefits Description & frequency

Investor Business Plan 11

HANDLING REPAIR AND MAINTENANCE ISSUES

Benefits Description & frequency

RESPONDING TO TENANTS’ COMPLAINTS (DISPUTE RESOLUTION)

Benefits Description & frequency

Investor Business Plan 12

PROPERTY EVICTION SERVICES

Benefits Description & frequency

CORPORATE RENTAL SERVICES

Benefits Description & frequency

Investor Business Plan 13

According to IBISWorld, Property Management in the U.S.

Investor Business Plan 14

Over the next five years, corporate property managers are

Nonresidential property management 25.8%

Land management 1.7% Construction 0.9%

Real estate brokerage2.9% Other 13.5%

Investor Business Plan 15

As seen in IBISWorld's graph, companies in this industry

Property Management Services

According to the latest US Census data and IBISWorld

Other Real Estate Services

In addition to property management,

Investor Business Plan 16

and sales. The real estate brokerage segment is

Investor Business Plan 17

• Demand for industry services is also influenced by outsourcing activity because

2020 Industry Revenue

Investor Business Plan 18