Sample Business Plan on Real Estate Investing Business Plan
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EXECUTIVE SUMMARY_____________________________
The Business Concept
Advantage Homes, Inc. (AHI or the Company) specializes in providing unprecedented real estate service for the elderly and disabled. The Company buys houses and converts them into homes that are designed to accommodate the needs of frail elderly and disabled people and to make it easier for them to live independently. The Company is located in Fayetteville, North Carolina.
AHI has three areas it focuses on:
Ø Providing homes for low income, elderly and handicapped people
Ø Buy, fix, and sell real estate
Ø Purchase Tax Lien properties
All remodeling of homes and property will be consistent with HUD’s or the state’s statute or regulation (which ever is more stringent). The Company’s goal is to assure a supply of rental housing suited to the needs of the elderly and handicapped. The Company guarantees quality and equity in all its homes. Most importantly it guarantees the customer’s satisfaction.
The Company has two major goals:
Ø Assure a supply of rental housing suited to the needs of the elderly and handicapped
Ø Buy houses and remodel them with cutting edge features and add curve appeal to enhance the community and add value to the home
Excellent Market Opportunity
AHI will take advantage of the large number of low income, elderly or disabled people to drive its growth. Housing for this group is especially attractive since most of the local rental properties on the HUD’s listing are in very poor shape and of poor quality.
The Company’s main clients will be low-income households (that also include at least one person 62 years of age or who is handicapped) who are looking for housing that offers significant accommodation for their disabilities and age group.
A secondary market for AHI is other real estate investors and people looking to become homeowners. This market is especially profitable because all the houses the Company sells will be purchased at least 50% below fair market value.
HUD has approximately 2,700 families currently assisted through the various Section 8 assistance and subsidized housing program in the Middle Georgia Region. AHI will have a premier position as the dominant provider of handicap equipped housing.
Growth Opportunities
AHI is focused on making houses for the elderly and handicap people more energy efficient, starting with simple methods such as weatherizing buildings with more insulation to save energy. The Company’s goal is to have solar panels installed in all of its homes within five years.
The Company also wants to begin construction of an apartment complex with ten rental housing units for the elderly or handicapped. The design and layout will mimic a home accommodation and will be consistent with HUD or the States’ statute or regulations (which ever is more stringent).
Profitable Business
AHI expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars, the number and kinds of distribution channels and the competitive landscape.
Projections call for the Company to generate revenues of $22,800 in the next twelve months. AHI will achieve strong growth over the next several years, reaching $365,000 in revenues and almost $219,000 of net income by the fifth year.