Real Estate Brokerage Business Plan Example

Depending on the type of real estate brokerage you want to start, you’re looking at startup costs of at least $10,000. And that’s if you’re bootstrapping it and jumping in with the bare essentials. Costs can easily hit $200,000, and that doesn’t include the ongoing fees you’ll be liable for like license renewals.

broker business plan

For a mortgage broker, it’s important to outline the range of mortgage products and services you plan to offer. Describe how these will cater to the diverse needs of your clientele, such as fixed-rate mortgages, adjustable-rate mortgages, government-backed loans, and refinancing options. The management team section provides Important Features Of Analytical Crm an overview of your mortgage broker business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles. Remember that your business plan is a living document that should be updated as your company grows and evolves.

Why Agents Need a Real Estate Business Plan

We believe this plan is a fair compromise between fairness and expedience, and meets the commitment of our mission statement. The detailed monthly personnel plan for the first year is included in the appendix. Licensed agents will receive 3% commission on “one” side (seller or buyer side) of the sale spectrum.

broker business plan

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. Business plans can help determine if your business is viable and worth the financial investment. 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.

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In your industry analysis, you need to provide an overview of the mortgage industry. 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. 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. Read how our experts feel about this real estate lead generation company in our Zillow Premier Agent review.

  • This might be an overview of your book of business or a list of current investors.
  • You can also quickly finish your plan in just a few hours or less with the help of our business plan software.
  • 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.
  • You should consult with a licensed professional for advice concerning your specific situation.
  • We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their freight broker companies.

With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most freight broker businesses primarily serve customers living in the same city or town, such demographic information is easy to find on government websites. Need help writing a business plan for your mortgage broker business? Our mortgage broker business plan template will help you get started. As a real estate agent, you know that the housing market can be unpredictable.

Education: Management and Leadership

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. There are various methods for conducting market research, and these will vary depending on the nature of the industry and potential business.

broker business plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows. Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan. 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.

Business Description

Supreme Mortgage specializes in mortgage brokering and is committed to helping homebuyers, and homeowners get the best mortgage with the lowest interest rate. The brokerage works with more than 40 lenders who compete to provide mortgages and who pay Supreme Mortgage’s fee so that clients receive the service free of charge. Established in 2010, The Loan Store originates, finances, and sells mortgage and non-mortgage lending products throughout the United States. It offers a range of consumer credit products, such as home loan products, home equity loans, and unsecured personal loans, as well as home and personal loan servicing. The company claims to be one of the largest private, independent retail mortgage lenders in the U.S. Its current business channels include direct lending, affinity, branch retail, and servicing.

By taking the time to write a Real Estate Business Plan, agents can ensure that they are taking all the necessary steps to build a successful business. In this section, you’ll provide a clear vision of how you’ll operate and manage your business. This includes the legal structure of your organization as well as the experience and responsibilities of your management team. While there’s no right or wrong way to write your business plan, there are some key sections you’ll want to include to make the most of it.

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The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 6531. Get in front of buyers and sellers in the largest online real estate network. Real estate listing flyers are an essential part of promoting your property listings. I’m Nick, co-founder of, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

broker business plan

Our target customer will be first-time home buyers and existing homeowners who are interested in refinancing. Our responsibility as mortgage professionals is to determine what a customer’s financial goals are, not just quote a rate. We have access to hundreds of loan programs, allowing us to arrange the most beneficial solution… whatever the buyer’s needs may be. In this section, you will need to analyze your target market thoroughly. It should include information on your customers, your competition, and the overall industry. Your executive summary is an anchor point you can use to understand the overall goals, cement the parameters of your target market, and make decisions aligned with your plan.

Why do you need a business plan for a mortgage brokerage business?

Harvard Business Review (HBR) stated that the chances of success rose by 12% for those that spent no longer than three months on their plan. So, how do you write a business plan for your real estate business without getting bogged down in the details? In this post, we’ll look at actionable steps agents and brokers can take to outline, execute and measure the performance of a business plan. The company will be assisting all agents in goal setting/planning and in their marketing techniques/strategies. Even though the agents are independent contractors, this firm will run as a team. The open door policy will be in place at all times inviting new ideas and suggestions.

Develop a SWOT analysis

While trucking is their specialty, they have been able to increase their road carrier base and have semis on the road at all times. The company is able to utilize all forms of transportation to make international trips and provide all customs clearance and documentation. The team at Desert City is able to customize all transportation services and find logistics solutions for all their clients. On the other hand, it drains the capital faster because of implied leverage and eventually reduces the commission that a brokerage company makes per transaction. It also requires clients to constantly follow the market and actively trade rather than invest.

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