Real Estate Brokerage Business Plan

Real Estate Brokerage Business Plan

RJ Wagner & Associates Realty, Inc., a Texas-based S corporation, is located in Texas. Regina Wagner, a principal investor and stockholder, is the corporation’s capital. 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 formalize all real estate services.

RJ Wagner & Associates Realty, Inc. will be open for business in July. The office is located in Houston in the Champions area, Houston.

With a published book on real estate and programs for organizing real estate in superstores and bookstores of the Dallas Association of Realtors, the broker of this company has a reputation of credibility and excellence. For the past year novice licensed agents have enjoyed the organizational tools and guidance offered in the book Texas Real Estate/The Mobile Mentor.

1.1 Objectives

Our primary objectives include:

  • Become a profitable organization allowing us the freedom of taking advantage of other real estate investment opportunities as they become available.
  • You can recruit and hire self-motivated, successful, and hardworking agents.
  • A minimum of 15 sales agents must be present in the office to meet the previous requirements.
  • Create a solid corporate image in the specific target market.
  • Establishing good working relationships, and working together as a team. Promoting communication and ideas from all members.
  • Our third year in operation will make us one of top brokerage firms in the Champion Area.
  • In the first 12 month, you’ll see a positive return.

We believe these objectives can be achieved because of the professionalism and dedication of the managers and sales associates of this corporation. A real estate license is granted to individuals who have a basic understanding of real-estate laws and procedures. High turnover is possible because agents don’t receive training beyond what the law and regulations require. Once they have a license, only then, they may obtain the sales and marketing training that is needed upon entering the profession. This training can be expensive for agents. 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.

We will create an office environment that is both professional and inviting. Each day will have a different location within the office, with a daily marketing schedule/routine to be followed. Agents have the option to be led through a plan for gaining clients each day. They can choose to follow the training and guidelines provided, or they could follow their daily routines. We will be supplying a program allowing the new agents to earn more than the average real estate agent by providing guidance and stability.

An agent working for our company would be able to achieve a goal of obtaining only one seller or buyer per month. This would net the agent $6,750 per monthly X 12 months = $81,000 annually. Regina’s goal as a broker is to help each agent achieve this goal.

This would result in a profit of $2,250 per months X 12 month = $27,000 for the entire 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 corporation will pay the broker a salary.

1.2 Mission

This plan is designed to guide you in starting and managing your new business. Additionally, it will be the basis of a separate, detailed marketing strategy. Here is a summary of key points from this plan.

  • RJ Wagner & Associates Realty, Inc. aims at generating a profit, growing at a challenging pace, and adhering to the Texas Real Estate Commission ethical codes.
  • RJ Wagner & Associates Realty, Inc. was founded with the primary mission to recruit Texas agents.

The agents choosing this firm will receive top commission allowing them more financial advantage for advertising in order to gain more business.

  • It will continue to be our mission to support homeowners in selling their homes and homebuyers in purchasing their dream home by providing personal and professional assistance. Customers’ best interests are of paramount 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 desire to form a strong partnership with our clients and staff members as well as our title companies. This partnership will respect each party’s interests and goals.
  • While this market isn’t new, there are many opportunities for expanding brokerage firms to enter the local market.
  • A preliminary financial analysis of this venture’s viability shows great promise and excellent results. Many sources claim that the real estate industry has been very lucrative in today’s fast-paced environment.
  • The company will also continue to increase its market share by offering exceptional customer service to clients, as well 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. RJ Wagner & Associates Realty, Inc. can be a very profitable venture if it implements this plan in conjunction with a thorough and detailed marketing plan.

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