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Real Estate Brokerage Business Plan

RJ Wagner & Associates Realty

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Executive Summary

1.0 Executive Summary

RJ Wagner & Associates Realty, Inc., is an S corporation domiciled in the state of Texas. This corporation is capitalised by one single stockholder and one principal investor, Regina Wagner. Regina Wagner is a licensed broker and the sponsoring broker for this firm. The licensed broker of this firm will sponsor licensed real estate agents (independent contractors) in the state of Texas. This corporation will formalise the real estate services offered.

RJ Wagner & Associates Realty, Inc., will open its doors for operation in July 2001. The office is located in Houston, Texas (Champions area) in the Greenwood Square Shopping Centre, to provide services to the higher income section of Metropolitan Houston.

Credibility and reputation excel with the broker of this firm, with a published real estate book and real estate organisational programmes placed in the Houston Association of Realtors and the Dallas Association of Realtors bookstores and superstores. For the past year novice licensed agents have enjoyed the organisational tools and guidance offered in the book Texas Real Estate/The Mobile Mentor.

1.1 Objectives

The primary objectives of our organisation are to:

• Become a profitable organisation allowing us the freedom of taking advantage of other real estate investment opportunities as they become available.
• Recruit and hire self-motivated, success-oriented, and hardworking sales agents.
• Maintain an office of at least 15 sales agents who meet the previous requirements.
• Develop a solid, corporate identity in our specified targeted market area.
• To establish good working relationships and begin working as a team, promoting communication and suggestions from all participants.
• Become one of the top brokerage firms in operation in the Champion area by our third year of operation, or before.
• Realise a positive return on investment within the first 12 months.

We believe the above-mentioned objectives are obtainable because of the professionalism of the manager and sales associates this corporation will hold. Individuals gaining a real estate license leave school with the knowledge of the real estate laws and procedures. The turnover rate in this business is high since agents have no training outside the laws and regulations of the business itself. Once they have a license, only then, they may obtain the sales and marketing training that is needed upon entering the profession. This training is available at a high price to the agent. When starting out, most agents are not able to obtain this training at the high prices set forth, and without the proper training the average earnings of a beginning real estate agent is very low in comparison to industry standards.

The office environment we will be providing will be productively arranged yet inviting to the agent as well as the client. There will be a location in the office each day with a daily marketing routine/schedule to follow. Agents have the opportunity to be guided each day through a marketing plan to gain clients. They may choose to follow the guidelines and training provided or they may follow their own daily routines. We will be supplying a programme allowing the new agents to earn more than the average real estate agent by providing guidance and stability.

If an agent with our company sets a goal to obtain only one seller and one buyer for the month, on an average of £150,000 sale on each side, would earn the agent £6,750 per month X 12 months = £81,000 per year. Regina's goal as the broker is to assist each agent in conquering this goal.

The same sales as noted above would profit the corporation £2,250 per month X 12 months = £27,000 for the year X 15 agents = £405,000. This is not including sales from the active broker of this corporation which would be £4,500 commission from each side to total £9,000 (100%) to the corporation. The broker will receive a salary from the corporation.

1.2 Mission

This plan is written as a guide for starting and managing this new business, and will also serve as the basis for a separate, detailed marketing plan. Following is a summary of the main points of this plan.

• The objectives of RJ Wagner & Associates Realty, Inc., are to generate a profit, grow at a challenging and manageable rate, and to live up to the ethical codes set forth by the Texas Real Estate Commission.

• The first mission of RJ Wagner & Associates Realty, Inc., is to first recruit Texas real estate agents. The agents choosing this firm will receive top commission allowing them more financial advantage for advertising in order to gain more business.

• The ongoing mission will be to assist both homeowners selling their homes, as well as homebuyers purchasing the home of their future, by providing professional and personal assistance. Ensuring customer's best interest are always of the utmost importance.

• The keys to success for RJ Wagner & Associates Realty, Inc., are marketing and networking, responsiveness and quality of customer service and generating repeat customers.

• We wish to establish a successful partnership with our clients, our staff members, and our title companies, that respect the interests and goals of each party.

• The local market for this business, while not new, is wide open for new and expanding brokerage firms.

• An initial financial analysis of the viability of this venture shows outstanding promise and results. Several sources note that the real estate business has proven to be quite lucrative in today's fast-paced world.

While so doing, the company will always continue to strengthen its position in the target market area by providing superior customer service to clients and to sales associates.

In conclusion, as shown in the highlights chart to follow, this plan projects rapid growth, as additional agents join, and high net profits over the next three years. Implementing this plan, in conjunction with a comprehensive and detailed marketing plan, will ensure that RJ Wagner & Associates Realty, Inc., rapidly becomes a profitable venture for the owner as well as for the contracting agents.