Real Estate Management Business Plan

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MSN Real Estate

Financial Plan

Forecast

Key assumptions

MSN’s plan depends on the assumptions that are made in the following table. These are annual and monthly assumptions that show the consistent growth of the company. Since we operate on a monthly collection basis, we are assuming that the majority of the collections will be timely and in full.

Some of the underlying assumptions are:

  1. We assume a healthy growth trend in the local real estate market, along with a continued strong local economy.
  2. We assume that we stay in line with the continuing advances in technology and housing.

Revenue by Month

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for Net Profit (or Loss) by Year

Financing

Use of funds

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.

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 $91,000

Sources of Funds

We are getting startup funding from a couple of sources: 

An angel investment firm will give us $1,000,000. They believe its a good investment due to our company assets 

Long term liabilities – 200,0000

Menashe – 25,000

Koach – 25,000 

Totaling $1,250,000

 

Statements

Projected Profit and Loss

2018 2019 2020
Gross Margin $812,570 $1,135,180 $1,309,310
Operating Expenses
Salaries & Wages $249,600 $254,592 $259,683
Employee Related Expenses $49,920 $50,918 $51,937
Leased Equipment $24,000 $24,000 $24,000
Utilities $21,600 $21,600 $21,600
Rent $43,200 $43,200 $43,200
Insurance $18,000 $18,000 $18,000
Amortization of Other Current Assets $0 $0 $0
Interest Incurred $13,805 $11,638 $9,339
Depreciation and Amortization $40,000 $40,000 $40,000
Gain or Loss from Sale of Assets
Income Taxes $0 $0 $0
Total Expenses $539,455 $574,969 $587,548
Net Profit $352,445 $671,231 $841,552

Projected Balance Sheet

Starting Balances 2018 2019 2020
Cash $44,000 $401,326 $1,075,272 $1,917,238
Accounts Receivable $0 $0 $0
Inventory
Other Current Assets $12,000 $12,000 $12,000 $12,000
Total Current Assets $56,000 $413,326 $1,087,272 $1,929,238
Long-Term Assets $1,200,000 $1,200,000 $1,200,000 $1,200,000
Accumulated Depreciation ($40,000) ($80,000) ($120,000)
Total Long-Term Assets $1,200,000 $1,160,000 $1,120,000 $1,080,000
Accounts Payable $0 $0 $0
Income Taxes Payable $0 $0 $0
Sales Taxes Payable $0 $0 $0
Short-Term Debt $35,119 $37,285 $39,585 $42,027
Prepaid Revenue
Total Current Liabilities $35,119 $37,285 $39,585 $42,027
Long-Term Debt $210,881 $173,595 $134,010 $91,983
Long-Term Liabilities $210,881 $173,595 $134,010 $91,983
Paid-In Capital $1,100,000 $1,100,000 $1,100,000 $1,100,000
Retained Earnings ($90,000) ($90,000) $262,445 $933,676
Earnings $352,445 $671,231 $841,552

Projected Cash Flow Statement

2018 2019 2020
Net Cash Flow from Operations
Net Profit $352,445 $671,231 $841,552
Depreciation & Amortization $40,000 $40,000 $40,000
Change in Accounts Receivable $0 $0 $0
Change in Inventory
Change in Accounts Payable $0 $0 $0
Change in Income Tax Payable $0 $0 $0
Change in Sales Tax Payable $0 $0 $0
Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold
Investments Received
Dividends & Distributions
Change in Short-Term Debt $2,166 $2,300 $2,442
Change in Long-Term Debt ($37,285) ($39,585) ($42,027)
Cash at Beginning of Period $44,000 $401,326 $1,075,272
Net Change in Cash $357,326 $673,946 $841,966
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