FREE Property Development Business Plan - Property Investment Blueprin

 

property development business plan pdf

CITY OF JOBURG PROPERTY COMPANY (PTY) LTD CITY OF JOBURG PROPERTY COMPANY (PTY) LTD BUSINESS PLAN / 3 TABLE OF CONTENTS 1. INTRODUCTION 4 2. EXECUTIVE SUMMARY 12 3. STRATEGIC ANALYSIS 16 Property development aims to maximise the financial, economic and social returns from the. The business plan will identify the business model, proposed financing, marketing studies, operation and implementation plans, and risk assessment. It will project initial start-up costs and include three year financial projections as well as a pro forma of a sample investment property. I have completed research and interviewed business. Property development business plan PDF conclusion. When you’re done, be sure to get your advisors to review your plan for you. I'd love to hear about your project -- drop me a note in the comments below! Property development business plan video transcript. John Wilson here from Property Investment Blueprint and just a quick one today.


A Sample Property Development Business Plan Template | ProfitableVenture


Writing your property development business plan is an essential part of setting up a development company and will form the foundation of your company, property development business plan pdf. A business plan is the document that sets out your entire strategy and is a document I would encourage all developers to write before even thinking of purchasing a development opportunity.

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You can unsubscribe at any time. I mentioned in my starter guide the importance of writing a property development business plan, and the importance is not based solely on the final document itself. The actual process property development business plan pdf writing the property development business plan is equally as important as the final plan. By writing the property development business plan you will go through the process of analysing your entire development strategy and you will have to give thought to the entire development process.

If you are a beginner to property development, the process of writing the property development business plan will provide more questions than you can provide answers, which is a good thing. It means your final document will be a carefully thought out and complete plan which should provide you with a clear strategy and structured strategy for you to start your development career. The final document will also be a live document. As you start buying sites and completing projects, your original business plan may require tweaking and changing as you gain more experience and find new ways of implementing your strategy.

The completed property development business plan will also act as a shop window for your company. It will be a document which can be used to source funding or investors. A polished and professional business plan will give third parties the confidence that you know what you are doing and that you have thought through the key issues related to the business. The contents of your property development business plan will be specific to your company and circumstances, however, there are common themes which should be included and these will be discussed in this article.

As mentioned, the business plan will be specific to your situation, however, as property development business plan pdf investor or potential funding partner there are a few common areas which I would want to see.

If you can cover all of the above in a clear and professional property development business plan, then you will have a great foundation to the company to implement. Understanding how your development business will be structured is critical and something which must be considered as part of the business plan and before any purchases have been made. The implications of a poorly thought out company structure can be long lasting and will attract extra costs, whether its higher tax liabilities or professional fees further down the line.

There are a few options open to a developer in the UK and the most popular is to setup a limited company. It might be worthwhile to spend some money to get professional advice to help with the structuring and formation of your company. It will save money in the long run. Understand what options are open to you and set out a clear structure for your property development business. As a final note under this section, you will also want to work out approximately you company running costs and overhead projections.

This should be included, even if it is only a budget. Your property development business plan is the place to set out who is involved in the business, what their roles are and also how they are remunerated. If there are more than two of you it may be sensible to include a hierarchy diagram which clearly shows the roles and the chain of command. If you are a one-man-band with the intention of outsourcing large areas of the development process, you may want to include key consultants who you plan to use either on an on-going basis or on the first project.

I consider money and financing to be 1 of the 3 pillars of property development. Without money, nothing can happen. It is critical that your property development business plan includes your strategy for funding your development projects.

You need to be clear about how much money you will be investing, how much debt will be used, whether any investors or JV partners will be sought. The funding strategy is a huge topic to write about, but this is probably the most important section of your property development business plan.

Your development strategy should detail everything you can about the projects you intend to purchase for development, property development business plan pdf. The trouble with a property development business plan is that each development opportunity is different and its very difficult to be specific about the development strategy. There are a lot more areas which can be included, but the list give you an idea of the types of questions and strategy which needs to be discussed.

This slightly overlaps with the development strategy, however, the acquisition strategy should be clear about exactly the types of development opportunities you wish to target. They should be as specific as possible, however, you may not really property development business plan pdf exactly what you are targeting or may have a range of different targets. If that is the case, then you should include that in this section.

Includes things like purchase price ranges, planning status, type of construction, ideal sales values on exit and project timescales. The acquisition strategy will be very personal to your company, and will also be an area which evolves with time. Having a clear strategy will help you approach agents. Have a clear brief is always a benefit and it will allow you to find the right opportunities for you property development business plan pdf and more efficiently.

Something which I constantly see novice and amateur developers who do not understand their financial return requirements. It happens all the time on the TV development shows. By not understanding this correctly, and by not setting return targets then there is nothing to benchmark the success of a project, you may be taking undue risk and this will be fundamental to any potential investor.

Your target return should never be a specific figure… it should always be a formula expressed as a percentage. The three most common measures of financial returns are:. All the above are expressed as a percentage and I use all three to assess the profitability of my projects. Which is terrible. Make sure your property development business plan has a clear return target and you understand how to calculate your profits and what they mean, property development business plan pdf.

You may not think this is important, however, the tax man does. There will be tax differences between a property trader and a property investor, so make sure you know what you want to do from the outset and document this in your plan. You may wish to include some content in your property development business plan about your method of selling and marketing.

Not the most important section as the traditional tried and tested route is always to use an agent to market the completed development. However, you may wish to think about other methods, or certain parts of the process you wish to control.

Will you be staging the completed development? The construction strategy is an area which may be difficult to write about in the business plan, however, is something you may want to give some thought to, even if it is just high level content. There are many ways to contract with a builder and you may have a view on how you would want to do this on your first or all projects. Having a clear picture on your procurement method is good, but not necessary given every project may require a different procurement route.

I have included this section as a point worth thinking about, property development business plan pdf you may choose to address this area on a project by project basis. This will be more important if you intend to use your property development business plan to attract funding or investors. Showing that you have thought about all the potential threats and risks, plus how to mitigate them will give you and your investors confidence in your company. Some form of market research will also provide you with the confidence that the area or market you are targeting is the correct one and that your development strategy is sound, property development business plan pdf.

The market research and SWOT analysis should always be focused back to the other sections of your business plan. There are an incredible amount of sources for market research, property development business plan pdf, but make sure you are looking at both macro and micro market data. Research must back up your strategy and show that there is strength behind the strategy.

Writing a property development business plan may seem daunting and tedious, however, it is essential and will provide you with a lot of value. The process of writing the plan is as important as the final document itself.

Each business plan will be different and specific to your company, property development business plan pdf, but the common themes shown above will give you somewhere to start and a lot of advice to start thinking about. Start by preparing a skeleton of the main business plan, with bullet points and then spend time expanding each section. There is tons of information online about general business plan writing, including advice from the government.

Mike — Your Property Pro. This is brilliant…this business plan is making more sense and possible for me to attempt. Just need property development business plan pdf tweaking for a property investor I think!

Do you agree? Thanks Mike. Had to read the page which I came across trying to take my first step into buying a building. I was property development business plan pdf to submit a business plan which I have no idea doing.

Your post is truly informative in tailoring the plan. Great stuff and glad its provided some value for you. We have the single page appraisal under the free downloads. Members of the Academy have the super powerful cash flow appraisal, property development business plan pdf. Email me if you want some more info? Alternatively, you can check out my Academy which may be a great fit for you?

Thank you so much for the information. Notify me of follow-up comments by email. Notify me of new posts by email. Sign me up. A goal without a plan is just a wish. Property Development Business Plan Contents:. Company structure:. Key personnel:. Who is in charge? Who will run the business?

Have you got a number 2? Funding strategy:. Spend time understanding this area and develop a robust and deliverable strategy, property development business plan pdf.

 

 

property development business plan pdf

 

Property development business plan PDF conclusion. When you’re done, be sure to get your advisors to review your plan for you. I'd love to hear about your project -- drop me a note in the comments below! Property development business plan video transcript. John Wilson here from Property Investment Blueprint and just a quick one today. The business plan will identify the business model, proposed financing, marketing studies, operation and implementation plans, and risk assessment. It will project initial start-up costs and include three year financial projections as well as a pro forma of a sample investment property. I have completed research and interviewed business. Writing your property development business plan is an essential part of setting up a development company and will form the foundation of your company. A business plan is the document that sets out your entire strategy and is a document I would encourage all developers to write before even thinking of purchasing a development penticatons.gq: Mike (Property Pro).