Real Estate Brokerage Business Plan

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RJ Wagner & Associates Realty, Inc., a Texas S corporation, is domiciled in Texas. Regina Wagner, a principal investor and stockholder, is the corporation’s capital. Regina Wagner is both a licensed broker as well as the sponsoring broker of this firm. The sponsoring broker for this firm is Regina Wagner, a licensed broker. This corporation will formalize the real estate services offered.

RJ Wagner & Associates Realty, Inc., opens its doors to the public in July. The office is located in Houston in the Champions area, Houston.

Credibility and reputation excel with the broker of this firm, with a published real estate book and real estate organizational programs placed in the Houston Association of Realtors and the Dallas Association of Realtors bookstores and superstores. Over the past year, novice licensed agents have been enjoying the organization tools and guidance provided by Texas Real Estate/The Mobile Mentor.

1.1 Objectives

Our organization has two primary goals:

• Be a profit-making organization that allows us to take advantage of any other real estate investment opportunities that become available.
• Recrute and hire hardworking, self-motivated sales people.
• Maintain an office of at least 15 sales agents who meet the previous requirements.
• Establish a solid corporate identity in the target market.
• Establishing positive working relationships and starting to work as part of a team.
• In our third year, or sooner, we aim to be the Champion’s top brokerage firm.
• In just 12 months, you can see a positive ROI.

The professionalism of the sales team and the manager of this company will make it possible to achieve the above-mentioned goals. Real estate license holders graduate from school having a working knowledge of real estate laws and procedures. This business has a high turnover rate because agents are not trained outside of the law and regulations. Once an agent has obtained a license, the only way they can obtain the training required for the sales and marketing profession is to get it. Agents can only get this training at a very high cost. Most agents cannot afford the training required to start their career. In addition, the average real estate agent’s earnings are very low compared to the industry.

We will provide a productive office environment that is inviting and welcoming to both the client as well as the agent. Each day will have a different location within the office, with a daily marketing schedule/routine to be followed. Agents can be guided through a daily marketing plan to help them gain clients. They may choose to follow the guidelines and training provided or they may follow their own daily routines. We will offer guidance and stability, so that new agents can earn more than the average agent in real estate.

Our company has an agent who sets a goal to get one buyer and one seller each month. On average, $150,000 per sale, this would bring in $6,750 per months. Twelve months equals $81,000. Regina’s goal is to support each agent in achieving 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 doesn’t include the sales made by the active broker. Each side would receive $4,500 in commission to bring $9,000 (100%) back to the corporation. The corporation will pay the broker a salary.

1.2 Mission

This plan is intended to be a guide for starting and running a new company. It also serves as a foundation for a separate, more detailed marketing plan. Following is a summary of the main points of 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.
• The first mission of RJ Wagner & Associates Realty, Inc., is to first recruit Texas real estate agents.

Agents choosing this firm will get a higher commission that allows them to market more.

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. It is of paramount importance to ensure the customer’s best interests are met.

RJ Wagner & Associates Realty, Inc.’s keys to success are networking, marketing, customer service, and generating repeat business.

We want to build a partnership with our clients, staff members and title companies that respects the goals and interests of all parties.

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

The initial financial analysis shows that this venture is viable. It also has outstanding potential and results. Numerous sources have noted that the realty business has proven to be very lucrative in today’s fast-paced market.

The company will remain competitive in its target market by providing exceptional customer service both to clients and to 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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