MSN Real Estate

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Real Estate Management Business Plan

Company Summary

MSN Real Estate is an enterprise that is involved in numerous aspects of the industry. Primary experience and expertise is in the development of high-quality, lower cost living for students and professionals seeking the most up-to-date technologically advanced living environment. An area of intense training and attention is the importance of strong customer service.

The first property purchased by the company is a 40-unit apartment building on the corner of Hilyard and 14th in Eugene. It is relatively close to the University, so will be easily rented to capacity nine months out of the year. For the remaining three months, the price of rent will be reduced and we will aim to remain at 60% capacity.

2.1 Start-up Summary

The total start-up expenses include legal, stationery, architect, brochures, consultants, insurance, rent, construction, expensed equipment, etc. Start-up assets required include short-term assets (truck, cell phone, etc.), and initial cash to handle the architect and contractor fees prior to opening. Additional cash is needed to pay all zoning fees and governmental regulations.

Long-term asset purchases and the assumption of long-term liabilities are anticipated.

The details are included in the following table and chart.

Start-up Expenses
Legal $6,400
Architect Fees $3,000
Stationery etc. $270
Brochures $275
Consultants $2,550
Insurance $1,315
Rent $1,400
Construction $75,000
Expensed Equipment $600
Other $750
Total Start-up Expenses $91,560
Start-up Assets
Cash Required $1,111,330
Other Current Assets $12,000
Long-term Assets $120,000
Total Assets $1,243,330
Total Requirements $1,334,890
Start-up Funding
Start-up Expenses to Fund $91,560
Start-up Assets to Fund $1,243,330
Total Funding Required $1,334,890
Non-cash Assets from Start-up $132,000
Cash Requirements from Start-up $1,111,330
Additional Cash Raised $0
Cash Balance on Starting Date $1,111,330
Total Assets $1,243,330
Liabilities and Capital
Current Borrowing $5,000
Long-term Liabilities $1,080,000
Accounts Payable (Outstanding Bills) $3,890
Other Current Liabilities (interest-free) $0
Total Liabilities $1,088,890
Planned Investment
Menashe $23,000
Koach $23,000
Investors $200,000
Additional Investment Requirement $0
Total Planned Investment $246,000
Loss at Start-up (Start-up Expenses) ($91,560)
Total Capital $154,440
Total Capital and Liabilities $1,243,330
Total Funding $1,334,890

2.2 Company Ownership

MSN Real Estate will be created as a Limited Liability Corporation based out of Portland, Oregon. It will be owned by its principal investors, Shawn Menashe and Nathan Koach. Shawn Menashe is the acting CEO and holds a 40% stake in the company. Nathan Koach is the acting CFO and holds a 40% share of the company as well. The other 20% is held by silent investors.

2.3 Company Locations and Facilities

MSN headquarters will be established in A-quality office space in the downtown area of Portland, Oregon. This will be the heart of our company, with satellite locations in Beaverton and Eugene, Oregon. We are also installing an in-house Internet server and 24-hour answering service so that all customer or business communications are dealt with in an expedient and fluid manner. Within any living development with more than 32 units a representative of the company will be located.

The company is currently in the final stages of purchasing its first building, a 40-unit apartment building on the corner of Hilyard and 14th in Eugene. The price of this building is $1.2 million. The company will make a down payment $120,000 and spend an additional $75,000 on renovation. This building houses mostly 2-bedroom units with average per unit price of $775 per month.

In Year 2 the company will purchase its second facility. It is currently in discussions with the owners of a 20-unit apartment building in downtown Portland, OR. It is difficult to predict changes in the building values over the long term, but it is estimated that we will be able to purchase this building for $570,000.