Golden Valley Real Estate

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Start-Up Real Estate Business Plan

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Company Summary

GVRE will be a limited liability partnership registered in the state of Delaware for tax purposes. Its founder is Mrs. Susan Egan, a former agent for RE/MAX real estate company, where she worked for 23 years.

The company plans to be leveraged through private investment and a limited number of loans. Mrs. Egan is establishing this firm as a "lifestyle" oriented endeavor in order to supplement her retirement. The company has its main offices in Tucson, AZ. The facilities include a conference room and office spaces. The company expects to begin offering its services in June of 2003.

The company's main clients will be retirement age couples looking for a community that can offer significant services for their age group and income levels. Since Mrs. Egan is within this demographic group and knows and understands this market's needs, she believes that she can appeal to such clients far more than most other competitors.

2.1 Company Ownership

The company will be jointly owned by Mrs. Susan Egan and her husband Daniel, who will be putting up equal amounts of equity. All other financing will come from loans.

2.2 Start-up Summary

Start-up expenses and funding required are shown in the table below. This includes expenses and the rest in cash needed to support operations until revenues reach an acceptable level. Most of the company's liabilities will come from outside private investors and management investment, however, we have obtained current borrowing from Bank of America Commercial Investments, the principal to be paid off in two years. A long-term loan through Valley National Bank will be paid off in ten years.

Start-up
Requirements
Start-up Expenses
Legal $800
Insurance $1,500
utilities $200
Rent $3,000
Accounting and bookkeeping fees $2,000
Expensed equipment $8,000
Advertising $6,500
Other $8,000
Total Start-up Expenses $30,000
Start-up Assets
Cash Required $44,500
Other Current Assets $3,500
Long-term Assets $5,000
Total Assets $53,000
Total Requirements $83,000
Start-up Funding
Start-up Expenses to Fund $30,000
Start-up Assets to Fund $53,000
Total Funding Required $83,000
Assets
Non-cash Assets from Start-up $8,500
Cash Requirements from Start-up $44,500
Additional Cash Raised $0
Cash Balance on Starting Date $44,500
Total Assets $53,000
Liabilities and Capital
Liabilities
Current Borrowing $15,000
Long-term Liabilities $45,000
Accounts Payable (Outstanding Bills) $3,000
Other Current Liabilities (interest-free) $0
Total Liabilities $63,000
Capital
Planned Investment
Mrs Susan Egan $10,000
Mr. Daniel Egan $10,000
Additional Investment Requirement $0
Total Planned Investment $20,000
Loss at Start-up (Start-up Expenses) ($30,000)
Total Capital ($10,000)
Total Capital and Liabilities $53,000
Total Funding $83,000