Start-up | |
Requirements | |
Start-up Expenses | |
Legal/Incorporating | $930 |
Better Business Bureau Fee | $399 |
Stationery etc. | $2,000 |
Brochures | $1,000 |
Mailings/Postal | $1,000 |
Advertising | $2,500 |
Company Yard Signs | $1,300 |
Insurance | $225 |
Answering Service | $200 |
Website Design | $440 |
Utilities Start Up | $250 |
Rent | $3,000 |
Expensed equipment/Computer/Copier | $3,000 |
Office Furnishings/Lease or Used | $4,000 |
Office Supplies | $1,000 |
Other/Miscellaneous | $1,000 |
Business Software | $1,000 |
Total Start-up Expenses | $23,244 |
Start-up Assets | |
Cash Required | $9,756 |
Other Current Assets | $20,000 |
Long-term Assets | $7,000 |
Total Assets | $36,756 |
Total Requirements | $60,000 |
At RJ Wagner & Associates Realty, Inc., our principal service consists of selling residential real estate in a targeted market area. Our services provide our clients with an international network of buyers and sellers through the multiple listing service (MLS). Because of our capabilities to network with other brokers, we will sell homes faster than our clients could if they tried to market their home without the assistance of a licensed real estate agent.
In addition, our customers will list their homes with our agency because of our aggressive and highly-skilled professionals. We will continuously have an above-average sales force to generate and close residential listings.
The owner and broker of RJ Wagner & Associates Realty, Inc., is committed to success in the real estate market and adheres to the strict rules handed down by the Texas Real Estate Commission. Our high level of commitment will enable the company to attract top professionals as sales associates and clients looking to buy and sell residential real estate.
Agents with this firm will be provided with the following services:
Sellers will be provided with the following services:
Buyers will be provided with the following services:
RJ Wagner & Associates Realty, Inc., will be focusing on supplying homebuyers and homesellers professionalism and expertise in reaching a successful sale and/or purchase in their real estate needs. Our concentration also lies with our in-house agents. We feel by providing our in-house agents the support program they need our productivity should excel at a rapid pace.
Due to the strengthening of the economy in Houston area, more homebuyers today are looking to purchase homes. These changes in attitudes of homebuyers are a tremendous boost to real estate firms.
We are poised to take advantage of these changes, and expect to become a recognized name and profitable entity in the Houston real estate market. We chose to locate our office in the area of most revenue potential. Our targeted market area, the Champions area, shows stability and growth. We have a beautiful office, centered in the Champions area. This location will enable our sales associates to work in an area that will allow them to make more money in a shorter period of time.
The first quarter home values were up 8.8% from the same period in 2000, the Office of Federal Housing Enterprise Oversight says. The gain reflects an increase from the previous quarter, when residential real estate values saw year-over-year growth of 8.1%.
As stated in the Objectives section–we outline the profits to be gained with each agent striving for one seller and one buyer each month. We also state the extensive marketing plans, goal setting and training provided by this corporation to assist each agent in reaching this goal.
As the outline following will indicate–our agents will earn top commissions, be supplied with the latest in marketing and advertising assistance, and have on-site broker assistance at all times. This coupled with the teamwork and excellent marketing programs provided, we feel we have a recipe for success.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Home Sellers | 3% | 153,819 | 158,434 | 163,187 | 168,083 | 173,125 | 3.00% |
Home Buyers | 3% | 145,412 | 149,774 | 154,267 | 158,895 | 163,662 | 3.00% |
Property Photography | 3% | 48,334 | 49,784 | 51,278 | 52,816 | 54,400 | 3.00% |
Total | 3.00% | 347,565 | 357,992 | 368,732 | 379,794 | 391,187 | 3.00% |
We cannot survive just waiting for the customer to come to us. Instead, we must get better at focusing on the specific market segments whose needs match our offerings. Focusing on targeted segments is the key to our future.
Therefore, we need to focus our marketing message and our services offered. We need to develop our message, communicate it, and make good on it.
RJ Wagner & Associates Realty, Inc., will focus on the real estate needs in the Houston and surrounding areas. Our target customer will be, and our concentration will focus on the representation of, homesellers, homebuyers, relocation clientele.
To be the success we are striving to become this corporation realizes it must place a tremendous concentration on its in-house licensed agents. The agents with this firm will be supported and assisted to the best of our ability.
The corporate broker of this firm has a published real estate book (Texas Real Estate/The Mobile Mentor). This book and the accompanying organizational programs, are distributed throughout the state of Texas in real estate book stores and associations. This book was written for the novice agent which will be provided to oncoming agents as a reference tool, therefore, allowing a fast start program.
This firm allows “Top Commissions” to the agents allowing for more agent advertising and marketing promotions. This firm is highly supportive to the agent it sponsors in the respect of compliance with agent listing tasks. All of which free the agent’s time to do what the agent is trained to do and that is to sell and gain clients.
This firm has a marketing plan in place for agents to utilize. The company will be assisting all agents in goal setting/planning and in their marketing techniques/strategies. Even though the agents are independent contractors, this firm will run as a team. The open door policy will be in place at all times inviting new ideas and suggestions.
In addition, please reference the Services section for an outline of our services offered to in-house agents, our sellers and our buyers. All services offered to each provide this corporation with a competitive edge, for we know of no other firm offering the extensive services we provide.
Each potential seller listing or buyer representation we receive should be treated as an individual mission. Each client and client property must be analyzed to ensure our marketing program supplied fits their particular property and promotes it in the best possible way.
The following table and chart give a run-down on forecasted sales. We expect sales to be slowest during September through December, building between January through March and the most growth during the months of March through August.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Agent Sales – 25% To Company | $83,625 | $205,000 | $405,000 |
Broker Sales – 100% To Company | $44,245 | $45,000 | $45,000 |
Photo Service – 100% To Company | $5,280 | $5,760 | $5,760 |
Referrals – 25% Agent/25% Company | $2,244 | $3,750 | $3,750 |
Total Sales | $135,394 | $259,510 | $459,510 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Agent Sales – 25% To Company | $8,363 | $67,650 | $187,500 |
Broker Sales – 100% To Company | $10,837 | $40,500 | $40,500 |
Photo Service – 100% To Company | $440 | $440 | $440 |
Referrals – 25% Agent/25% Company | $330 | $400 | $400 |
Subtotal Direct Cost of Sales | $19,970 | $108,990 | $228,840 |
The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
What the table doesn’t show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss the variance and course corrections.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business Plan | 6/1/2001 | 6/15/2001 | $2,000 | RJW | Owner |
Logo Design | 6/1/2001 | 6/15/2001 | $500 | RJW | Owner |
Website Design/Placement | 6/1/2001 | 6/15/2001 | $500 | RJW | Owner |
Company Stationary Design/Print | 6/1/2001 | 6/15/2001 | $2,000 | RJW | Owner |
Co.Docs (CD-Rom/Disk) Agent Distribution | 6/1/2001 | 6/15/2001 | $500 | RJW | Owner |
Company Signs/Advertising | 5/15/2001 | 6/15/2001 | $1,300 | RJW | Owner |
BBB Membership/Yearly | 1/1/2001 | 6/15/2001 | $390 | RJW | Owner |
Photo Merchant Account Charge | 5/15/2001 | 6/15/2001 | $200 | RJW | Owner |
Incorporating Charges | 3/15/2001 | 6/15/2001 | $930 | RJW | Owner |
Nat’l Realtor Assoc. Membership/Yearly | 1/1/2001 | 12/31/2002 | $300 | RJW | Owner |
TX Realtor Assoc. Membership/Yearly | 1/1/2001 | 12/31/2002 | $300 | RJW | Owner |
Houston Assoc.Corp. MLS/Yearly | 1/1/2001 | 12/31/2002 | $1,080 | RJW | Owner |
Montgomery Assoc. Membership/Yearly | 1/1/2001 | 12/31/2001 | $300 | RJW | Owner |
Purchased Office Equipment/Computer,etc. | 5/30/2001 | 7/1/2001 | $3,000 | RJW | Owner |
Office Utilities | 6/15/2001 | 7/30/2001 | $200 | ABC | Department |
Commercial Office Lease | 6/15/2001 | 7/30/2001 | $3,000 | RJW | Owner |
Answering Service | 6/15/2001 | 7/30/2001 | $200 | ABC | Department |
Commercial Phone Lease | 6/15/2001 | 7/30/2001 | $200 | ABC | Department |
Lease Copy Machines | 6/15/2001 | 7/30/2001 | $1,150 | RJW | Owner |
Totals | $18,050 |
At this time, this broker is an active listing broker. Recruiting licensed agents is now in process in the Houston and surrounding areas. This firm estimates to add a total of three licensed agents in 2001, with a minimum of 12 agents to be added throughout the year of 2002. (A minimum of one agent per month gain in 2002). This firm strives to obtain a minimum total of 15 licensed real estate agents contracting under this sponsored broker. Agents with this firm have the option to work in-house or out of a home-based office.
In addition to the real estate services provided by this corporation to homesellers and to homebuyers, this firm offers inside/outside photography services in-house as well as to other broker firms. This service is free to in-house agents and a service fee is charged to other broker sites and agents utilizing this service.
As RJ Wagner is a sole proprietorship, the principal’s personal net worth is given below.
Personal Net Worth | ||
Assets | ||
Current Assets | Notes: | Balance |
Checking | $1,500 | |
Savings | $6,000 | |
Investment | $58,000 | |
Household Goods | $24,000 | |
Auto | $6,300 | |
Auto | $0 | |
All Other | $0 | |
Total Current Assets | $95,800 | |
Long-term Assets | ||
Main Residence | $150,000 | |
Improvements | $0 | |
Account | $0 | |
All Other | $20,000 | |
Total Long-term Assets | $170,000 | |
Total Assets | $265,800 | |
Liabilities | ||
Current Borrowing | Balance | |
Credit Card | $3,000 | |
Credit Card | $350 | |
Credit Card | $58 | |
Auto Loan | $3,681 | |
Other Current Debt | $1,500 | |
Other Current Debt | $0 | |
All Other | $0 | |
Subtotal Current Borrowing | $8,589 | |
Long-term Borrowing | ||
Mortgage | $64,000 | |
Other Long-term Loans | $0 | |
All Other | $0 | |
Subtotal Long-term Borrowing | $64,000 | |
Total Liabilities | $72,589 | |
Net Worth | $193,211 |
This firm will not have employees but rather independent contractors. Therefore, the firm will not be issuing payroll to employees. Payroll will be issued to the broker of the corporation alone. All reception/secretarial needs will be complied with by the on-site/on duty agents on any given day. There will be two licensed agents on duty at all times.
Licensed agents will receive 3% commission on “one” side (seller or buyer side) of the sale spectrum. Of that 3% commission earned, 25% is awarded to the company. If an agent performs the act of the selling agent and also the buyer agent of the same property sale, then this agent would gain the full 6% commission (both sides of the agency), therefore, the corporation would be awarded 25% from each agency side.
We believe this plan is a fair compromise between fairness and expedience, and meets the commitment of our mission statement. The detailed monthly personnel plan for the first year is included in the appendix.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Wagner | $36,000 | $60,000 | $100,000 |
Other | $0 | $0 | $0 |
Total People | 0 | 0 | 0 |
Total Payroll | $36,000 | $60,000 | $100,000 |
The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendix. From the beginning, we recognize that collection days are critical, but not a factor we can influence easily. At least we are planning on the problem, and dealing with it. Interest rates, tax rates, and personnel burden are based on conservative assumptions.
Some of the more important underlying assumptions are:
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
Our projected profit and loss is shown in the following table.
As with the break-even, we are projecting very conservatively regarding cost of sales and gross margin. Initially, we will depend on our associates for most fulfillment, which is why costs should be lower than shown. We prefer to project conservatively so that we make sure we have enough cash.
We are spending less on marketing expenses due to our paid memberships with the associations. This broker has a published real estate book and organizational programs placed in the Houston Association of Realtors and also the Dallas Association of Realtors. The associations advertise these marketing tools free to this broker.
The detailed monthly projections are included in the appendix.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $135,394 | $259,510 | $459,510 |
Direct Cost of Sales | $19,970 | $108,990 | $228,840 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $19,970 | $108,990 | $228,840 |
Gross Margin | $115,425 | $150,520 | $230,670 |
Gross Margin % | 85.25% | 58.00% | 50.20% |
Expenses | |||
Payroll | $36,000 | $60,000 | $100,000 |
Marketing/Promotion | $8,100 | $1,000 | $1,000 |
Depreciation | $1,270 | $970 | $970 |
Utilities | $1,800 | $1,950 | $1,950 |
Rent | $15,600 | $15,600 | $15,600 |
Insurance | $1,800 | $1,800 | $1,800 |
Office Supplies | $3,000 | $3,200 | $3,200 |
Business Software | $1,000 | $1,000 | $1,000 |
Leased Equipment | $3,000 | $3,000 | $3,000 |
Payroll Taxes | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $71,570 | $88,520 | $128,520 |
Profit Before Interest and Taxes | $43,855 | $62,000 | $102,150 |
EBITDA | $45,125 | $62,970 | $103,120 |
Interest Expense | $325 | $831 | $1,220 |
Taxes Incurred | $10,779 | $15,292 | $25,653 |
Net Profit | $32,750 | $45,877 | $75,277 |
Net Profit/Sales | 24.19% | 17.68% | 16.38% |
The following table and chart will summarize our break-even analysis. Most of our cost of fulfillment is actually the sales of the agents as well as the sales of the active broker. We don’t expect to reach break-even until a few months into the business operation.
Break-even Analysis | |
Monthly Revenue Break-even | $6,996 |
Assumptions: | |
Average Percent Variable Cost | 15% |
Estimated Monthly Fixed Cost | $5,964 |
Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $121,855 | $233,559 | $413,559 |
Cash from Receivables | $8,983 | $21,774 | $39,221 |
Subtotal Cash from Operations | $130,838 | $255,333 | $452,780 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $6,000 | $4,620 | $3,150 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $136,838 | $259,953 | $455,930 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $36,000 | $60,000 | $100,000 |
Bill Payments | $66,091 | $149,398 | $272,528 |
Subtotal Spent on Operations | $102,091 | $209,398 | $372,528 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $102,091 | $209,398 | $372,528 |
Net Cash Flow | $34,747 | $50,555 | $83,401 |
Cash Balance | $44,503 | $95,058 | $178,459 |
The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendix.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $44,503 | $95,058 | $178,459 |
Accounts Receivable | $4,556 | $8,733 | $15,463 |
Other Current Assets | $20,000 | $20,000 | $20,000 |
Total Current Assets | $69,059 | $123,791 | $213,922 |
Long-term Assets | |||
Long-term Assets | $7,000 | $7,000 | $7,000 |
Accumulated Depreciation | $1,270 | $2,240 | $3,210 |
Total Long-term Assets | $5,730 | $4,760 | $3,790 |
Total Assets | $74,789 | $128,551 | $217,712 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $9,282 | $12,548 | $23,282 |
Current Borrowing | $6,000 | $10,620 | $13,770 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $15,282 | $23,168 | $37,052 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $15,282 | $23,168 | $37,052 |
Paid-in Capital | $50,000 | $50,000 | $50,000 |
Retained Earnings | ($23,244) | $9,506 | $55,383 |
Earnings | $32,750 | $45,877 | $75,277 |
Total Capital | $59,506 | $105,383 | $180,661 |
Total Liabilities and Capital | $74,789 | $128,551 | $217,712 |
Net Worth | $59,506 | $105,383 | $180,661 |
The following table outlines some of the more important ratios from the Offices of Real Estate Agents and Brokers industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 6531.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 91.67% | 77.07% | -1.90% |
Percent of Total Assets | ||||
Accounts Receivable | 6.09% | 6.79% | 7.10% | 6.84% |
Other Current Assets | 26.74% | 15.56% | 9.19% | 61.44% |
Total Current Assets | 92.34% | 96.30% | 98.26% | 68.41% |
Long-term Assets | 7.66% | 3.70% | 1.74% | 31.59% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 20.43% | 18.02% | 17.02% | 16.11% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 22.30% |
Total Liabilities | 20.43% | 18.02% | 17.02% | 38.41% |
Net Worth | 79.57% | 81.98% | 82.98% | 61.59% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 85.25% | 58.00% | 50.20% | 100.00% |
Selling, General & Administrative Expenses | 60.09% | 39.80% | 33.43% | 70.37% |
Advertising Expenses | 3.47% | 0.00% | 0.00% | 3.86% |
Profit Before Interest and Taxes | 32.39% | 23.89% | 22.23% | 2.28% |
Main Ratios | ||||
Current | 4.52 | 5.34 | 5.77 | 2.18 |
Quick | 4.52 | 5.34 | 5.77 | 1.24 |
Total Debt to Total Assets | 20.43% | 18.02% | 17.02% | 58.00% |
Pre-tax Return on Net Worth | 73.15% | 58.04% | 55.87% | 2.56% |
Pre-tax Return on Assets | 58.20% | 47.58% | 46.36% | 6.11% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 24.19% | 17.68% | 16.38% | n.a |
Return on Equity | 55.04% | 43.53% | 41.67% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 2.97 | 2.97 | 2.97 | n.a |
Collection Days | 55 | 93 | 96 | n.a |
Accounts Payable Turnover | 7.04 | 12.17 | 12.17 | n.a |
Payment Days | 31 | 26 | 23 | n.a |
Total Asset Turnover | 1.81 | 2.02 | 2.11 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.26 | 0.22 | 0.21 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $53,776 | $100,623 | $176,871 | n.a |
Interest Coverage | 134.94 | 74.61 | 83.76 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.55 | 0.50 | 0.47 | n.a |
Current Debt/Total Assets | 20% | 18% | 17% | n.a |
Acid Test | 4.22 | 4.97 | 5.36 | n.a |
Sales/Net Worth | 2.28 | 2.46 | 2.54 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Agent Sales – 25% To Company | 0% | $0 | $2,375 | $8,125 | $11,250 | $4,500 | $4,500 | $4,500 | $3,375 | $3,375 | $12,375 | $14,625 | $14,625 |
Broker Sales – 100% To Company | 0% | $3,389 | $3,731 | $6,750 | $0 | $3,375 | $3,375 | $3,375 | $0 | $0 | $4,500 | $7,875 | $7,875 |
Photo Service – 100% To Company | 0% | $0 | $480 | $480 | $480 | $480 | $480 | $480 | $480 | $480 | $480 | $480 | $480 |
Referrals – 25% Agent/25% Company | 0% | $187 | $187 | $187 | $187 | $187 | $187 | $187 | $187 | $187 | $187 | $187 | $187 |
Total Sales | $3,576 | $6,773 | $15,542 | $11,917 | $8,542 | $8,542 | $8,542 | $4,042 | $4,042 | $17,542 | $23,167 | $23,167 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Agent Sales – 25% To Company | $0 | $238 | $813 | $1,125 | $450 | $450 | $450 | $338 | $338 | $1,238 | $1,463 | $1,463 | |
Broker Sales – 100% To Company | $339 | $373 | $675 | $1,350 | $675 | $1,350 | $675 | $1,350 | $1,350 | $1,350 | $675 | $675 | |
Photo Service – 100% To Company | $0 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | $40 | |
Referrals – 25% Agent/25% Company | $0 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | |
Subtotal Direct Cost of Sales | $339 | $681 | $1,558 | $2,545 | $1,195 | $1,870 | $1,195 | $1,758 | $1,758 | $2,658 | $2,208 | $2,208 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Wagner | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total Payroll | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $3,576 | $6,773 | $15,542 | $11,917 | $8,542 | $8,542 | $8,542 | $4,042 | $4,042 | $17,542 | $23,167 | $23,167 | |
Direct Cost of Sales | $339 | $681 | $1,558 | $2,545 | $1,195 | $1,870 | $1,195 | $1,758 | $1,758 | $2,658 | $2,208 | $2,208 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $339 | $681 | $1,558 | $2,545 | $1,195 | $1,870 | $1,195 | $1,758 | $1,758 | $2,658 | $2,208 | $2,208 | |
Gross Margin | $3,237 | $6,093 | $13,985 | $9,372 | $7,347 | $6,672 | $7,347 | $2,285 | $2,285 | $14,885 | $20,960 | $20,960 | |
Gross Margin % | 90.52% | 89.95% | 89.98% | 78.64% | 86.01% | 78.11% | 86.01% | 56.52% | 56.52% | 84.85% | 90.47% | 90.47% | |
Expenses | |||||||||||||
Payroll | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
Marketing/Promotion | $200 | $200 | $600 | $700 | $1,000 | $700 | $700 | $900 | $700 | $700 | $1,000 | $700 | |
Depreciation | $150 | $150 | $150 | $150 | $125 | $90 | $75 | $75 | $75 | $75 | $75 | $80 | |
Utilities | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Rent | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | |
Insurance | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Office Supplies | $100 | $100 | $200 | $200 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Business Software | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,000 | |
Leased Equipment | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $5,300 | $5,300 | $5,800 | $5,900 | $6,275 | $5,940 | $5,925 | $6,125 | $5,925 | $5,925 | $6,225 | $6,930 | |
Profit Before Interest and Taxes | ($2,063) | $793 | $8,185 | $3,472 | $1,072 | $732 | $1,422 | ($3,841) | ($3,641) | $8,960 | $14,735 | $14,030 | |
EBITDA | ($1,913) | $943 | $8,335 | $3,622 | $1,197 | $822 | $1,497 | ($3,766) | ($3,566) | $9,035 | $14,810 | $14,110 | |
Interest Expense | $4 | $8 | $13 | $17 | $21 | $25 | $29 | $33 | $38 | $42 | $46 | $50 | |
Taxes Incurred | ($620) | $196 | $2,043 | $864 | $263 | $177 | $348 | ($968) | ($920) | $2,229 | $3,672 | $3,495 | |
Net Profit | ($1,447) | $588 | $6,129 | $2,592 | $788 | $530 | $1,045 | ($2,905) | ($2,759) | $6,688 | $11,017 | $10,485 | |
Net Profit/Sales | -40.46% | 8.68% | 39.44% | 21.75% | 9.23% | 6.21% | 12.23% | -71.88% | -68.25% | 38.13% | 47.55% | 45.26% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $3,218 | $6,096 | $13,988 | $10,725 | $7,688 | $7,688 | $7,688 | $3,638 | $3,638 | $15,788 | $20,850 | $20,850 | |
Cash from Receivables | $0 | $12 | $368 | $707 | $1,542 | $1,180 | $854 | $854 | $839 | $404 | $449 | $1,773 | |
Subtotal Cash from Operations | $3,218 | $6,108 | $14,356 | $11,432 | $9,230 | $8,868 | $8,542 | $4,492 | $4,477 | $16,192 | $21,300 | $22,623 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $3,718 | $6,608 | $14,856 | $11,932 | $9,730 | $9,368 | $9,042 | $4,992 | $4,977 | $16,692 | $21,800 | $23,123 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
Bill Payments | $10,062 | $1,912 | $3,142 | $6,260 | $6,124 | $4,638 | $4,905 | $4,404 | $3,867 | $3,861 | $7,822 | $9,093 | |
Subtotal Spent on Operations | $13,062 | $4,912 | $6,142 | $9,260 | $9,124 | $7,638 | $7,905 | $7,404 | $6,867 | $6,861 | $10,822 | $12,093 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $13,062 | $4,912 | $6,142 | $9,260 | $9,124 | $7,638 | $7,905 | $7,404 | $6,867 | $6,861 | $10,822 | $12,093 | |
Net Cash Flow | ($9,344) | $1,696 | $8,714 | $2,672 | $606 | $1,730 | $1,137 | ($2,412) | ($1,890) | $9,831 | $10,978 | $11,030 | |
Cash Balance | $412 | $2,108 | $10,821 | $13,493 | $14,099 | $15,829 | $16,966 | $14,554 | $12,663 | $22,495 | $33,472 | $44,503 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $9,756 | $412 | $2,108 | $10,821 | $13,493 | $14,099 | $15,829 | $16,966 | $14,554 | $12,663 | $22,495 | $33,472 | $44,503 |
Accounts Receivable | $0 | $358 | $1,023 | $2,209 | $2,694 | $2,006 | $1,680 | $1,680 | $1,230 | $795 | $2,145 | $4,012 | $4,556 |
Other Current Assets | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 |
Total Current Assets | $29,756 | $20,770 | $23,131 | $33,030 | $36,187 | $36,105 | $37,509 | $38,646 | $35,784 | $33,458 | $44,640 | $57,485 | $69,059 |
Long-term Assets | |||||||||||||
Long-term Assets | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
Accumulated Depreciation | $0 | $150 | $300 | $450 | $600 | $725 | $815 | $890 | $965 | $1,040 | $1,115 | $1,190 | $1,270 |
Total Long-term Assets | $7,000 | $6,850 | $6,700 | $6,550 | $6,400 | $6,275 | $6,185 | $6,110 | $6,035 | $5,960 | $5,885 | $5,810 | $5,730 |
Total Assets | $36,756 | $27,620 | $29,831 | $39,580 | $42,587 | $42,380 | $43,694 | $44,756 | $41,819 | $39,418 | $50,525 | $63,295 | $74,789 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $10,000 | $1,811 | $2,934 | $6,054 | $5,970 | $4,474 | $4,758 | $4,275 | $3,743 | $3,601 | $7,519 | $8,773 | $9,282 |
Current Borrowing | $0 | $500 | $1,000 | $1,500 | $2,000 | $2,500 | $3,000 | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | $6,000 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $10,000 | $2,311 | $3,934 | $7,554 | $7,970 | $6,974 | $7,758 | $7,775 | $7,743 | $8,101 | $12,519 | $14,273 | $15,282 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $10,000 | $2,311 | $3,934 | $7,554 | $7,970 | $6,974 | $7,758 | $7,775 | $7,743 | $8,101 | $12,519 | $14,273 | $15,282 |
Paid-in Capital | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 |
Retained Earnings | ($23,244) | ($23,244) | ($23,244) | ($23,244) | ($23,244) | ($23,244) | ($23,244) | ($23,244) | ($23,244) | ($23,244) | ($23,244) | ($23,244) | ($23,244) |
Earnings | $0 | ($1,447) | ($859) | $5,270 | $7,862 | $8,650 | $9,180 | $10,225 | $7,319 | $4,561 | $11,249 | $22,266 | $32,750 |
Total Capital | $26,756 | $25,309 | $25,897 | $32,026 | $34,618 | $35,406 | $35,936 | $36,981 | $34,075 | $31,317 | $38,005 | $49,022 | $59,506 |
Total Liabilities and Capital | $36,756 | $27,620 | $29,831 | $39,580 | $42,587 | $42,380 | $43,694 | $44,756 | $41,819 | $39,418 | $50,525 | $63,295 | $74,789 |
Net Worth | $26,756 | $25,309 | $25,897 | $32,026 | $34,618 | $35,406 | $35,936 | $36,981 | $34,075 | $31,317 | $38,005 | $49,022 | $59,506 |
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Starting a real estate business may sound like an easy thing to do. However, it's not the case since starting such a business involves a lot of things to settle. In general, there's so much more to starting a real estate business that you need to have a business plan to be successful. Otherwise, you will end up being overwhelmed with so many things.
Now, if you're wondering about a business plan and how it's essential as you start your real estate business, you've come to the right place!
A business plan for a real estate business generally illustrates your goals, financial strategies, research, and everything else involved with your business. It contains the strategy for guiding and helping you start and run your business.
In this article, we'll talk more about the business plan for a real estate business and every concern you may ask about, mainly how to write one.
Without further ado, let's get into it!
A real estate business plan is a document that defines (in detail) a real estate business' objectives and how it plans to achieve its goals.
For instance, a real estate business typically needs an initial investment. As such, you need to include the said amount in your plan and how you can acquire such, either from your pocket or through a business loan or any other financing option (learn more about a real estate business financing .
Profit and goal are other examples. It is also included in your business plan as a goal to achieve within a set period, usually within months.
Overall, the business plan is the document that lays out a written road map for the real estate business from a marketing, financial, and operational standpoint. You should also have a basic idea about a real estate business profitability .
Business plans are essential for startups and established businesses, and the real estate business is no exception. Every business, regardless of the type, should have one.
Further, business plans are critical documents for internal and external audiences. For instance, you may use these plans to attract investors before establishing a track record. It can also help you secure loans from financial institutions.
Business plans can also help keep your real estate business' leadership team on track for meeting established goals and on track with strategic action items.
Overall, business plans are particularly helpful for new businesses, including the real estate business. Ideally, goals should be reviewed and updated periodically to reflect achievements or changes. When an established business changes direction, a new business plan is created.
You need a real estate business plan for several reasons. However, the main reasons are to help you establish your company, set the goals you want to achieve, and evaluate your real estate business’ status after a specific timeframe.
As a general rule, your business plan serves as a guide. Revising and adjusting this plan may also be necessary as circumstances change throughout your actions.
You should know that if you plan to apply for a business loan (which any knowledgeable entrepreneur should do), lenders want to see a business plan.
For your real estate business to succeed and meet your goals, you need a precise and robust business plan.
Learn more about starting a real estate business :
Where to start?
-> How to start a real estate business? -> How to finance a real estate business? -> How much does it cost to start a real estate business? -> Pros and cons of a real estate business
Need inspiration?
-> Other real estate business success stories -> Marketing ideas for a real estate business -> Real estate business slogans -> Real estate business names -> Real estate business Instagram bios -> Real estate business Instagram captions
Other resources
-> Profitability of a real estate business -> Real estate business tips -> Email templates for a real estate business -> Blog post ideas for a real estate business -> Real estate business quotes
When creating a business plan, you need to include more than just the steps on how you start. It also includes how you will sustain it and how you can develop it even further as you move forward. Simply put, it should include everything related to your real estate business.
If you’re wondering how to write a business plan for your real estate business, here are the things you need to include:
The executive summary in a business plan includes a gist of your entire real estate business. Further, it includes the general reason why it will turn out successful.
The company description details every information about your real estate business. As such, it includes your advantages over your potential competitors and the things that make your business stand out above other similar companies.
The organization and management are the part of your business plan that states the structure of your real estate business.
It includes the entire staff, especially the ones who will run your real estate business, whether you’re solo, with a partner, or with a group of people. Simply put, it shows what type of business you run and who is responsible for it.
The market analysis is the part of your business plan that shows your perspective on the industry where your real estate business belongs.
Since it’s about marketing, it includes your target market or customers. Further, it includes your potential competitors since they can take away your potential customers.
The financial plan is the part that concerns everything related to your real estate business finances. This document consists of a detailed financial statement and an analysis of your finances and the required funds .
The marketing strategy outlines the concerns about reaching out to potential customers . Moreover, it demonstrates how to expose the products and services your real estate business offers.
Besides attracting customers, it also includes strategies for gaining new customers and keeping the regular ones from leaving. Finally, it outlines strategies for increasing sales for your real estate business to grow.
A good real estate business plan serves as a roadmap that outlines the strategies and actions required to achieve the goals and objectives of a business. It typically includes information about the business's products or services, target market, competition, marketing and sales strategies, operations, financial projections, and management team.
Here are some key elements that make up a good business plan:
Overall, a good real estate business plan should be well-researched, realistic, and focused on achieving specific goals and objectives. It should also be adaptable and able to evolve as the business grows and changes over time.
Can i write a real estate business plan myself.
Yes, you can write a real estate business plan yourself. It requires a clear understanding of your goals, target audience, competition, financial projections, and marketing strategy. Research successful plans and use templates. Ensure it's comprehensive, realistic and seek help if needed. Ultimately, a good business plan sets you up for success.
There is no standard length for a real estate business plan. It can range from a one-page summary to a comprehensive document of 50+ pages. The length depends on the complexity of the business, audience, and purpose. A concise plan that covers key elements is often more effective than a lengthy one.
In a nutshell, creating a business plan for a real estate business is a bit complicated, but you still need to do it.
Overall, a business plan will help you make the right calls, obtain the funding you need, and strongly start your new real estate business. As such, you must make a robust and precise one.
The six parts we included above should be handy throughout this process. With this information, you can begin writing your business plan and see what it takes to become a professional entrepreneur.
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This story appears in the June 30, 2019 issue of Forbes Magazine. Subscribe
I t’s getting late, and Felix Sater—a onetime Trump partner, two-time convicted felon and longtime government cooperator—sits in the back of a New York City restaurant, ready for a drink. “A very dirty martini, Russian vodka,” he tells the waiter. “A collusion martini.”
No one outside of the Trump Organization has more firsthand knowledge of Donald Trump's connections to Russia than Felix Sater. In 2006, he scouted a potential deal in Moscow with the president's children Don Jr. and Ivanka. In 2007, he stood alongside Trump at a launch party for a hotel Sater had helped get built, Trump SoHo, which marketed partially to Russian buyers. And during the 2016 presidential campaign, Sater helped plan a giant Trump tower in Moscow.
"Here's to fun times," he says, hoisting his martini glass in the air.
Fun times indeed. Special Counsel Robert Mueller's 448-page report highlights three separate proposals to develop a Trump property in Moscow around the time of the election. Yet key details have remained vague. Forbes got in touch with the people at the center of all three—and uncovered concrete answers to fundamental questions about Trump's plans in Russia.
Three years ago, Michael Cohen was working on a potential Trump tower in Moscow. Today he is in prison for crimes that include lying to Congress about the project.
Such as who was actually going to pay for the project. Trump, now more of a licensor than builder, certainly wasn't planning on putting in much of his own money. And according to Sater, who brokered the proposal that extended furthest into the campaign, nor was Trump's official partner, Andrey Rozov. Instead, Sater says, he was cooking up a plan to raise huge sums from additional investors, including two of Vladimir Putin's closest cronies, Boris and Arkady Rotenberg . "We would have gone to them and asked them for four or five hundred million dollars cash," Sater says.
Another big, previously unsettled question: How much money could Trump have made in all of this? Both Mueller and former Trump attorney Michael Cohen have suggested, vaguely, "hundreds of millions." After mining business agreements and surveying real estate experts in Moscow, however, Forbes believes that's almost impossible. It seems more likely that Trump would have walked away with roughly $35 million up front and $2.6 million or so in annual fees, if everything went according to plan. In the rosiest of scenarios, Sater says, Trump could have gotten about $50 million. A lot of money to most people but less than 2% of the president's net worth ( estimated at $3.1 billion ).
Taken together, these revelations paint a new picture of Trump's plans in Russia and the president's way of doing business. His deal came with far greater risk—and far less reward—than previously understood. In short, candidate Trump jeopardized his eventual presidency on a middling deal and one that would have had Vladimir Putin's fingerprints all over it.
P art of the reason the Trump Tower Moscow narrative confuses people: There were three different attempts to attach the president's name to a Russian property in recent years. The first one emanates from the infamous 2013 Miss Universe contest, where 86 women strutted through a Moscow concert hall. Donald Trump, the co-owner of the pageant, took home the money, collecting an estimated $3 million from the local hosts: billionaire real estate tycoon Aras Agalarov and his son Emin, a pop singer. "I had a great weekend with you and your family," Trump tweeted afterward, tagging the elder Agalarov. "You have done a FANTASTIC job. TRUMP TOWER-MOSCOW is next."
One month later, in December 2013, the Trump Organization signed an agreement to brand an Agalarov property in Moscow, according to the Mueller report. The plan eventually called for 800 apartments near the concert venue that hosted the Miss Universe event, with 3.5% of sales going to Trump. If the whole building sold out, Emin Agalarov estimates Trump would have come away with $17 million or so.
2013 Miss Universe Pageant. Miss Venezuela took home the crown, but Donald Trump took home the money, collecting an estimated $3 million for bringing the pageant to Russia
Trump's daughter Ivanka toured the site in February 2014. That same month, though, the geopolitical landscape was shifting. Crowds were in the streets of Kiev, protesting Ukraine's Russia-friendly president, Viktor Yanukovych. He ultimately fled Ukraine, reportedly with the help of Putin. Within weeks, Putin sent soldiers into Crimea, a Ukrainian region neighboring Russia, effectively taking over. The landgrab sparked outrage in the international community, and the United States retaliated with economic sanctions.
Those measures, combined with falling oil prices, crippled the Russian economy—including the Moscow real estate market. The average price of new apartments plummeted an estimated 30% in 2014. Condos were selling for less than the cost of construction. Even in the unlikely event that the Agalarovs managed to build something amid all the turmoil, Emin Agalarov tells Forbes that Trump's payout would have been cut in half. Communications between the Trumps and the Agalarovs began to fade in the fall of 2014, according to the Mueller report. Donald Trump Jr. later told the Senate Judiciary Committee the project died because of "deal fatigue." A more likely cause of death: U.S. sanctions.
With donald trump on one end and vladimir putin on the other, the web of people involved in trump's plans for moscow included members of the first family, oligarchs and russian officials..
In November 2015, Donald Trump, by then a presidential candidate, sat down with former Fox News host Bill O'Reilly, who challenged him over his accommodating stance toward Russia. "[Putin] doesn't make deals," O'Reilly reasoned. "He just rolls soldiers in to cause destruction and shoots down airplanes."
"Well," Trump replied, "he does what he has to do."
Unbeknownst to the American public, the Trump Organization, which did not respond to requests for comment on this story, was secretly communicating about a second potential deal in Russia around the same time. In September 2015, nearly a year after the Agalarov partnership dropped off, and with Trump now leading the Republican primary race, his lawyer Michael Cohen traded messages with a man named Giorgi Rtskhiladze, according to the Mueller report. Cohen and Rtskhiladze had previously worked together on business in the former Soviet states of Georgia and Kazakhstan.
Rtskhiladze sent Cohen a draft of a letter ultimately intended for the mayor of Moscow, which pitched a Trump development as a symbol of strengthening ties between the United States and Russia, according to the Mueller report. "[The mayor] is aware of the potential project and will pledge his support," the note said, according to the report.
Today Rtskhiladze says he was just passing along the message on behalf of a longtime friend and that friend's acquaintance. He claims the letter never made it to the mayor. And he suggests he's not even sure if what he sent Cohen was accurate. "I don't know if it's true or not if [the] mayor's office was ever notified, okay."
That's how it goes in Russia, a place where trust is in short supply and outsiders can suddenly find themselves in unnerving situations. Rtskhiladze says he had previously warned Cohen of the risks: "You have to be careful who you get involved with."
C aution, however, is not the Trump way. Cohen dismissed the Rtskhiladze plan and chose to pursue a third proposal, brokered by a man with a checkered past: Sater. Moscow-born, Brooklyn-bred, Sater started a career on Wall Street, until a bar fight—he stabbed a man in the face with a margarita glass—led to 15 months in prison. Three years after his release, he pleaded guilty to racketeering in a mob-connected pump-and-dump stock scheme. He stayed out of prison this time by working with the feds, ultimately supplying information about the Mafia, North Korea, Russian cybercriminals, even Osama bin Laden. At Sater's sentencing, about a decade after he began cooperating with the government, FBI agent Leo Taddeo, one of Sater's handlers at the bureau, credited him with helping pave the way for law enforcement to "basically eliminate" the mob from Wall Street's penny stock business. Former FBI official Ray Kerr adds: "There was nothing he wouldn't do or wouldn't try."
At the same time that he was serving as a government cooperator, Sater reinvented himself as a real estate dealmaker. It was in that role that he ended up working with the Trump Organization, on projects in Arizona, Florida, New York and, ultimately, Russia. For the Moscow effort, Sater served as both broker and dealmaker. His friend Andrey Rozov, who did not respond to our request for comment, was officially the local developer in Russia, but Sater says he expected a cut for himself as well. Trump signed the letter of intent, dated October 28, 2015, the same day as the third Republican presidential debate.
Felix Sater (right) stands alongside Donald Trump and Tevfik Arif at the Trump Soho Launch Party on September 19, 2007 in New York.
The tower was meant to be the tallest building in Europe, featuring a few floors of prime shopping, a high-end hotel and new office space, topped with 250 luxury residences, homes for the Russian elite. According to the terms, Rozov was on the hook for construction while Trump would simply lend his name and help manage the place once it opened. In exchange, according to the Mueller report, the presidential contender would get a cut of condo sales, beginning with 5% of the first $100 million and gradually stepping down to 1% of everything over $1 billion. Sater says each unit would have been about 2,500 square feet, far larger than the typical luxury condo in Moscow. They were targeting a price of about $1,500 a square foot, about 30% above the average for luxury apartments in town. If all went well, Trump would have walked away with an estimated $34 million from condo sales and upfront fees. Big money, sure, but nothing life changing for a guy worth $3.1 billion.
To juice the numbers, Sater says, he wanted to give away a penthouse to Putin. On top of the terrible optics, this could have put the Trump Organization in danger of violating the Foreign Corrupt Practices Act, which bans American companies from bribing foreign officials. Sater says the plan was not meant to entice the Russian president. "You've got to have a billion dollars for [Putin] to take you seriously," he says. "It's good for Congressman [Nancy] Pelosi or [Adam] Schiff to say that, but in the real world, Vladimir Putin ain't getting bought with a penthouse." When contacted, a representative of Putin deflected questions, saying, "We believe that you should address to relevant authorities, not to the press office of the president of Russia."
To Trump small amounts of money matter—the tower agreement details the slices he could shave off every year, including hotel management fees (an estimated $1.3 million), office rents (est. $240,000), residential management fees (est. $225,000), spa operations (est. $75,000) and so on. Add everything up and Forbes figures Trump could have gotten an additional $2.6 million annually—math verified by Sater, who confirmed an Excel spreadsheet that details the projected payments line by line.
Count enough years and it's theoretically possible to get to any number: $13 million over 5 years, $67 million over 25, $94 million over 35. Regardless, even with the condo deals, it wasn't really close to the "hundreds of millions" Cohen and Mueller cited.
R obert Mueller did not find collusion to steal the 2016 election—but he did find evidence of collusion to try to make money. Sater and Cohen did the work on the ground, rubbing elbows with oligarchs and Russian-government entities.
In sworn testimony before Congress, Cohen left no doubt about who was ultimately in charge: "To be clear, Mr. Trump knew of and directed the Trump Moscow negotiations throughout the campaign and lied about it."
There was good reason to lie, given the cast of characters involved. On October 9, 2015, before Trump had even signed the letter of intent, Sater wrote that he was meeting with Andrey Molchanov , a former member of the Russian senate who controlled a plot of land that could work for the tower. Three days later, Sater claimed the chairman of VTB, a Kremlin-controlled bank on which the U.S. imposed sanctions, was "on board" with the project. A spokesperson for VTB said the bank never dealt with Sater or his affiliates in Russia. Ultimately, Sater secured an invitation to Russia from a different bank, days after it had also landed on the U.S. sanctions list.
“You've got to have a billion dollars for [Putin] to take you seriously. It's good for Congressman [Nancy] Pelosi or [Adam] Schiff to say that, but in the real world, Vladimir Putin ain't getting bought with a penthouse.” Felix Sater
Then there was Sater's plan to get billionaire brothers Arkady and Boris Rotenberg to invest hundreds of millions in the project. From a political standpoint, it would be hard to think of a more problematic pair to bring into a deal with a U.S. presidential candidate. Arkady Rotenberg has known Vladimir Putin since childhood, when they were judo partners. He and his brother are now among Russia's richest people, worth an estimated $3.7 billion combined, with interests in banking and construction. Arkady Rotenberg's companies got $7.4 billion in government contracts for the 2014 Olympic Games in Sochi, over $5 billion for the 2018 World Cup (which Russia hosted) and more to build a bridge connecting Russia and Crimea. In 2014, the U.S. Treasury Department sanctioned both brothers, identifying them as members of Putin's "inner circle." The Rotenbergs did not respond to our request for comment.
The same thing that made the Rotenbergs targets of the U.S. government—their ties to Putin—made them appealing to Sater. In his mind, if he could get Putin's associates to invest $400 million or $500 million, then the Russian president would surely greenlight the project—a key step in a country where the government calls the shots on major real estate developments. Trump would have theoretically had to sign off on bringing in the Rotenbergs or anyone else who wanted a piece of the action. "Everybody was going to make money on this," Sater says. "And at the end of the day, some schmuck from Vladivostok with a lot of money would have put up all the money."
It is not clear whether Trump knew about the plans to give Putin a penthouse or his cronies a chunk of the deal. Which is remarkable in itself. A presidential candidate delegated a radioactive deal, in a hostile foreign country, to a former convict (Sater) and a soon-to-be convict (Cohen).
Virtually every part of their plan involved Putin or someone close to him. The equity? Putin's boys. The debt? Kremlin-connected banks. The land? A Putin ally. The approvals? Government entities. The marketing? Putin himself. Look at Trump Moscow long enough and it gives the impression it was less of a deal between Trump and a random Russian and more of a deal between Trump and Putin.
I t also came with a lot of bluster. By December 2015, Trump's men still had not locked in a plot of land. Or financing. Or investors. And Cohen was waiting on an official invitation to Russia. "I will not let you f--- with my job and playing point person," Cohen texted Sater between Christmas and New Year's, according to correspondence first released by Buzzfeed and confirmed by Forbes . "I still have no numbers from anyone who is allegedly involved in this deal, other than the fact I will have whatever invite I need within 48 hours. Not you or anyone you know will embarrass me in front of Mr. T when he asks me what is happening."
Cohen told Sater he was done working with him, and the text stream devolved into something like a souring love affair. "Please don't do this, Michael," Sater wrote.
"We're done," Cohen responded. "Enough. I told you last week that you thinking you are running point in this is inaccurate. You are putting my job in jeopardy and making me look incompetent. I gave you two months and then best you send me is some bull---- f------ garbage invite by some no name clerk at a third-tier bank. So I am telling you enough as of right now. Enough! I will handle this myself."
Kiev Protests. Political turmoil in Ukraine led to a Russian takeover of Crimea, which in turn prompted U.S. sanctions against Putin’s regime. Those measures put a dent in Moscow’s real estate market—and Trump’s potential windfall.
Cohen, who did not respond to a request for comment on this article, reached out to the office of Putin's press secretary, Dmitry Peskov. On January 20, 2016, he heard back from Peskov's assistant. They talked for 20 minutes about a tower in Moscow, and Cohen came away impressed, according to the Mueller report. Cohen updated Trump, remarking that it would be nice if the Trump Organization had assistants who were as good as the Kremlin's, the report says.
Sater texted Cohen the next day. "Call me when you have a few minutes to chat," he wrote. "It's about Putin. They called today."
Money has a way of repairing relationships. Cohen and Sater eventually sketched out plans to travel to Russia. Cohen talked to Trump about it, and the candidate said he would be willing to go as well, so long as Cohen could "lock and load" on the deal, according to the Mueller report. Cohen settled on a rough timeline: "My trip before Cleveland," he texted Sater, referencing the Republican National Convention. "Trump once he becomes the nominee."
On May 5, 2016, Sater followed up with Cohen, offering promising news. "Peskov would like to invite you as his guest to the St. Petersburg Forum, which is Russia's Davos. It's June 16-19. He wants to meet there with you and possibly introduce you to either Putin or [Russian prime minister Dmitry] Medvedev."
But Sater was apparently bluffing. He now says he never actually had an invitation from Peskov, although he was confident he would meet some heavy hitters at the conference. When the Peskov invitation failed to materialize, Cohen called off the trip, according to the Mueller report, and checked in with Trump. But he did not tell the boss the deal was off, since there still seemed to be a chance it could come back to life in the closing months of the campaign. Or possibly afterward, when Trump would return to just being Donald Trump, private citizen.
What ultimately killed Trump Moscow was not all the bluster, nor the ties to Russian oligarchs, nor even the limited financial upside. When asked why the deal ended, in a sworn congressional hearing, Cohen pointed to one part of the plan that went awry: "He won the presidency."
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Mutual funds.
Venkatesh gopalakrishnan, who heads the new entity as its managing director and chief executive, said that this plan is in line with the company’s aim to streamline operations and enhance value creation..
The Shapoorji Pallonji Group, in order to consolidate its expansive real estate holdings, has formed a new holding company, Shapoorji Pallonji Real Estate (SPRE). The company reportedly plans to monetise the assets by taking it public soon.
According to a report in the Economic Times, this would not only unlock value but also streamline operations and pave the way for monetisation of a portfolio that comprises land parcels spread over 2,000 acres. The value of the land is estimated to be around $6 billion or Rs 50,000 crore.
Venkatesh Gopalakrishnan, who heads the new entity as its managing director and chief executive, told the daily that this plan is in line with the company’s aim to streamline operations and enhance value creation. They aim to position SPRE to leverage its scale and bring their diverse real estate portfolio together.
There are 45 land parcels and projects under this holding company, with a development potential of 140 million sq ft. Projects of 22 million sq ft are currently under development.
According to Gopalakrishnan, the portfolio has a total revenue potential of up to Rs 2 lakh crore after development. The group is considering taking the new company public in 2 years.
In the first phase, the company aims to raise around $800-900 million through an initial public offering of an about 10-12 per cent stake. Further dilutions could follow, the report added, taking the total fundraising to around $2 billion.
The real estate company caters to affordable as well as luxury housing, and has around Rs 6,500 crore of debt.
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Anything that has to do with real estate, specifically as a purchaser has always been convoluted and annoying. The constant push from the sellers, nagging from the middlemen, lack of fluid communication, and running helter-skelter to get the paperwork done are some of the common horrors in the world of real estate. Was it meant to be this way?
Yes, many of us have pondered on the scene on several occasions but without any outcome. Akhil Gupta, Amit Agarwal, and Saurabh Garg also thought of improving this gloomy scenario and found a solution in the form of NoBroker. Founded in 2014, NoBroker is a Bangalore-based startup in the real estate search domain, that connects flat and property owners with tenants and buyers directly through their platform , thereby making buying , selling , and renting properties simpler , transparent , and affordable .
NoBroker claims to handle around $2 billion worth of transactions on its platform each year and saves INR 130 crores of brokerage monthly. The platform helped Indian real estate customers save around INR 1,100 crores worth of brokerage in 2020 itself. The company further strives to help the Indians usher in a new era of smooth and easy real estate transactions minus the "brokers." The startup became a unicorn on November 23, 2021.
StartupTalky interviewed Mr. Saurabh Garg, Co-Founder & CBO of NoBroker to get insights on the Startup Journey and the Growth Story of NoBroker. Read on to learn about NoBroker, its owner, business model, revenue model, competitors, founders, revenue, funding & more.
Startup Name | NoBroker |
---|---|
Headquarters | Bangalore |
Founders | Amit Kumar Agarwal, Saurabh Garg, Akhil Gupta |
Founded | 2014 |
Sector | Proptech, Real Estate |
Total Funding | $430.9 million (March 2023) |
Website | nobroker.in |
Registered Entity Name | NoBroker Technologies Solutions Private Limited |
NoBroker - About and Vision NoBroker - Real Estate Industry Details NoBroker - Founders and Team NoBroker - History and Startup Story NoBroker - Products and Services NoBroker - Name and Logo NoBroker - Business Model and Revenue Model NoBroker - Startup Challenges Faced NoBroker - Funding and Investors NoBroker - Growth and Revenue NoBroker - ESOP NoBroker - Acquisitions NoBroker - Competitors NoBroker - Awards and Recognition NoBroker - Future Plans
NoBroker is a disruptive force in the real estate sector that uses innovative technologies to connect property owners, buyers, and renters with the help of a single platform.
Here's what NoBroker has to say about their mission:
Our mission is to lead India’s real estate industry towards an era of doing real estate transactions in a convenient and brokerage-free manner.
Indian real estate market, which was valued at INR 12,000 crore ($1.63 billion) in 2019 is expected to have steady growth and will be reaching INR 65,000 crores ($8.83 bn) by the year 2040, as per IBEF estimates. Furthermore, the market size of the real estate sector in India, which was estimated to be around US$ 120 billion in 2017, will be expected to grow to US$ 1 trillion by 2030 and will contribute nearly 13% to the country’s GDP by 2025.
In FY23, India's residential real estate market experienced unprecedented growth, with home sales reaching a record high of INR 3.47 lakh crore ($42 billion), marking a substantial 48% year-on-year increase. This surge underscores the sector's potential, with forecasts suggesting its contribution to India's GDP could rise to 15.5% by 2047, expanding the real estate sector to a projected $5.8 trillion.
Besides, Indian firms are also expected to raise more than $48 billion with the help of infrastructure and real estate investment trusts in 2022 when compared to raised funds, which are worth $29 billion to date, according to ICRA.
The growth of the real estate sector across residential and commercial spaces will be chiefly driven by the growing urbanization of the tier-II and tier-III regions, an increase in the average household income levels, and the rise of nuclear families. Another factor driving this growth will be the increasing shift towards homeownership in the wake of the pandemic. The COVID-19 outbreak made people realize the importance of owning a home and the financial security that comes with a valuable physical asset like a house. This changing consumer sentiment will contribute hugely towards changing the market trends.
NoBroker was founded by Amit Kumar Agarwal, Akhil Gupta, and Saurabh Garg.
"I first met Akhil when we were studying at IIT Bombay and Amit at IIM Ahmedabad. Convincing them was not tough, as we all had our fair share of hassle when looking for properties" says Saurabh Garg, Co-founder & CBO, NoBroker .
NoBroker currently operates with a team of 1000+ highly motivated individuals consistently working to offer better services to over 30 million registered users across Bangalore, Mumbai , Pune , Chennai , Hyderabad , and Delhi-NCR .
Amit Agarwal is a banking and finance veteran, with over 15 years of experience in the banking and finance sector in management consulting and strategy. He had previously worked with leading global entities like PricewaterhouseCoopers, where he collaborated with numerous renowned Indian and foreign banks. Besides, he also garnered considerable experience of working with the top CXOs on several critical aspects, including the formulation of business strategy and the enhancement of on-ground profitability. He also displays a successful track record of guiding entry and portfolio strategy along with large-scale policy implementation and has won several industry accolades for his accomplishments.
In his role as the CEO of NoBroker.in , Amit spearheads the organization’s overall vision and direction and is responsible for defining and gilding its corporate strategies. Amit is an alumnus of the Indian Institute of Technology, Kanpur, and IIM, Ahmedabad.
Akhil is the Co-founder and Chief Tech and Product Officer of NoBroker and has been instrumental in building the foundation for NoBroker’s spectacular growth. Akhil holds a dual degree (B.Tech & M.Tech) from the Indian Institute of Technology, Bombay.
He leads the entire tech vertical of the company and is responsible for building, scaling, and managing teams along with overseeing the business growth of NoBroker to promise a heightened customer experience . His commitment to efficiency and finding disruptive solutions to the most crucial business challenges has helped NoBroker offer some ground-breaking features like the AMP/PWA , WhatsApp chat feature , along with the use of AI and ML to provide rent prediction and recommendations. These were some of the firsts in its league. Many of the products built at NoBroker are serve as successful case studies at Google and Facebook .
Furthermore, Akhil also monitors the products of the company and continuously engaged in making necessary amendments and improvements to them. Akhil had over a decade worth of experience before setting forth with NoBroker. He had previously worked with Oracle , where he had led several products in Siebel, Oracle Ebiz, and Oracle Sales Cloud , and was also responsible for filing a couple of patents for the same . He is currently associated with the world’s largest customer-to-customer real estate portal and is anticipating massive growth in the upcoming years.
Saurabh Garg was also a student of IIT Bombay and IIM Ahmedabad and as soon as he finished his studies, he set out with Hindustan Unilever Limited as a fresh graduate. Saurabh worked for the Sales and Marketing team of HUL and left the company after 3 years. Next, he founded Four Fountains De-Stress Spa, which was his first entrepreneurial leap. Saurabh is still serving as the Co-founder and Director of the Four Fountains Spa, which he founded back in May 2007.
His experience with Hindustan Unilever and as an entrepreneur helped him gain considerable experience. This has further benefitted him in his role as the Chief Business Officer at NoBroker.in. Saurabh's role in the revolutionary real-estate platform is mainly to pursue strategic alliances with real estate developers and corporates to bring high-quality supply and demand at a low cost, thereby expanding the revenue stream. Saurabh contributed largely to building the marketing team from scratch and empowered them to take on new challenges and try new and disruptive solutions without fearing failure. This freedom to experiment is one of the reasons why NoBroker.in has achieved over 1 million app downloads within the first 3 years with surprisingly less marketing costs. The platform also has the lowest customer acquisition costs in the competitive Indian real estate sector.
Amid mounting social media criticism from dissatisfied customers, Saurabh Garg stated that the company is actively addressing concerns and harnessing artificial intelligence to resolve issues efficiently.
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Reminiscing the startup journey of NoBroker.in, Saurabh Garg (Co-founder & CBO of NoBroker) says:
"We established NoBroker.in when we realized that the real estate search and discovery process was fragmented, opaque, inefficient, and full of hassles for the customer. The idea first germinated after the awful experiences that we personally had with brokers while looking for a property. All the other online platforms are also marketing platforms for brokers and it is very difficult to contact owner/seller directly. This dependence on the broker made the experience horrible for the customer. Brokers subject customers to biases, pressures, and manipulations"
He continued -
"Through NoBroker.in, we wanted to empower Indian home-seekers to find a home of their choice in a hassle free manner without paying a hefty brokerage. We did not have a prototype or a model to copy from as this was a solution built for a problem unique to Indian real estate. Brokerage has been an accepted norm for generations and therefore, penetrating the market with as disruptive a solution was not easy. The idea was simple yet bold but we knew that there was a huge scope for it. We launched the website in March 2014. Once the customer understood the unique proposition, there was no turning back for us".
NoBroker.in addresses the gap of information asymmetry that the Indian homebuyers face in its real estate market. Its disruptive solution connects property seekers with property owners, a process that earlier used to cost as much as 1-2 months of rent or 4% of the transaction amount as brokerage. The platform also provides personalized recommendations and assists with decision-making based on real-time data.
"We are the only platform in the C2C space that directly connects tenants and buyers with owners and sellers" Saurabh mentioned.
The platform offers end-to-end one-stop solution for property seekers including services such as rental agreements, movers & packers services , home loans, interiors, special packages for NRIs, relocation services for corporates, remote property management services, etc. It also facilitates online rent payment via credit cards, debit cards, net banking, and UPI wallets.
NoBroker also promises to be a one-stop-shop for processing the paperwork and documentation, associated with the lease agreement registration, bank franking, police verification, and society approvals.
NoBroker Home Services - Along with serving as an excellent solution for home buyers and renters, NoBroker also extends a list of useful services for homes, which are:
NoBroker Furniture - NoBroker also offers a wide range of furniture to buy/rent and ease the process online. It helps in installing and free relocation of furniture, swapping old ones with new ones and maintaining them.
The platform’s visitor and community management super app- NoBrokerHood is currently optimizing society living across 11,000 societies in Bangalore, Mumbai, Pune, Hyderabad, Chennai, Delhi-NCR, Kolkata , Ahmedabad , Nagpur, Jaipur , and Kochi.
CallZen, a platform for conversational AI, has been introduced by NoBroker on October 12, 2023. The Bengaluru-based company has already ventured into other verticals, such as apartment management software, home services, and beauty, so this is an entirely new business line for NoBroker.
"The name had to be simple, self-explanatory and direct. So, when I saw that name NoBroker.in is available I booked it immediately back in 2007" says Saurabh.
The business model of NoBroker acts as a digital peer-to-peer platform that allows homeowners/sellers and prospective tenants/buyers to connect directly without the involvement of a broker. It provides a subscription business model to customers who are looking to buy, sell or rent a property.
NoBroker has 3 revenue models:
Apart from that, NoBroker also offers an array of home services like packers and movers, home cleaning, home painting, interiors, and a lot more. These are also among the notable sources of revenue for NoBroker.
Real estate is a huge sector and a vastly unorganized one. For generations, it had relied on traditional processes, which involved a third party. The history of brokerage services can also be traced down to the earliest establishments of real estate. The team, therefore, focused on the most fundamental challenge faced by real estate customers: the service they were receiving was not commensurate with what the customer paid for it.
As there was information asymmetry, people had no option but to rely on broker services. Real estate platforms have been around for decades and have tried to solve the issue of information asymmetry. However, they couldn’t keep brokers away from the system. This led brokers to exploit the system to their benefit.
"When I – along with my Co-founders Amit and Akhil – formed NoBroker.in, we were determined to use technology to address the gaps in the property discovery creating a platform that was 100% brokerage free " Saurabh added.
Their approach differed from the other online real estate platforms in that they were essentially tying up with property brokers and getting them to list properties on their platforms . On the other hand, the team connected owners with sellers and tenants with buyers directly. Because of this approach, NoBroker's value proposition found a favorable reception with the customers. NoBroker has the highest number of owner-listed properties.
It bootstrapped for quite a few months . Getting investors to believe in its proposition was a challenge because the team did not have an existing successful model to convince them back them.
"But we were sure of our resolve and our solution, and the needle moved when we raised our first $20 million", Saurabh exclaims proudly.
The pandemic ironically offered a shot in the arm as people could not use offline services and relied heavily on online platforms to search and finalize a house. One way or the other, the value-conscious Indian customer has realized and appreciated NoBroker's unique proposition and helped it grow.
NoBroker has raised a total funding of $430.9 million to date. The company raised INR 400M from its Series-E funding led by Google, dated March 1, 2023. This has shot the valuation of the startup to over a billion dollars, thereby making it India's first proptech (property tech) unicorn startup and the 38th Indian startup to be a unicorn in 2021.
It also raised $210 mn from its Series E funding led by General Atlantic and Tiger Global Management , dated November 23, 2021 , where the US-based Moore Strategic Ventures also joined later on.
Paytm’s Vijay Shekhar Sharma and Anand Chandrashekharan, ex-Facebook are among the angel investors in the company. Google, Tiger Global, General Atlantic and BEENEXT are some of the popular investors fueling the brand.
With the successful completion of the upcoming round, the company is estimated to be valued at over $1 billion. However, the startup managed to raise more than that and eventually emerged as a unicorn.
The Funding and Investors' details of NoBroker is as follows -
Date | Amount | Stage | Investors |
---|---|---|---|
March 1, 2023 | INR 400 million | Series E | |
November 23, 2021 | INR 15.8 billion | Series E | General Atlantic, Tiger Global Management |
April 16, 2020 | $30 million | Series D | General Atlantic |
November 5, 2019 | $10 million | Venture Round | General Atlantic |
October 1, 2019 | $50 million | Series D | Tiger Global |
September 11, 2019 | $51 million | Venture Round | Tiger Global Management |
June 5, 2019 | $51 million | Series C | General Atlantic |
June 4, 2019 | $2.5 million | Debt Financing | Trifecta Capital Advisors |
December 19, 2016 | $7 million | Series B | KTB Ventures |
February 24, 2016 | $10 million | Series B | BEENEXT |
February 23, 2015 | $3 million | Series A | Fulcrum Ventures India, SAIF Partners |
March 1, 2014 | - | Angel Round | - |
NoBroker Financials | FY22 | FY23 |
---|---|---|
Operating Revenue | INR 326 crore | INR 609 crore |
Total Expenses | INR 679 crore | INR 1190 crore |
Loss/Profit | INR -309 crore | INR -506 crore |
NoBroker, demonstrated remarkable growth in FY22, achieving 96% year-on-year revenue growth. The company's revenue soared to INR 325.88 crore in FY22, a significant leap from INR 166 crore in FY21.
For FY22, NoBroker reported an operating revenue of INR 326 crore. This figure saw a significant increase the following year, reaching INR 609 crore in FY23. Despite the revenue growth, the company's total expenses also grew, from INR 679 crore in FY22 to INR 1190 crore in FY23. Consequently, NoBroker's losses increased from INR 309 crore in FY22 to INR 506 crore in FY23. The company aims for INR 1000 crore revenue in FY24.
NoBroker helped Indian real estate customers save over INR 130 crore brokerage monthly. The platform continues to witness 30 lakh customers connected monthly. It has a total of 30 million registered users across Bangalore, Mumbai, Pune, Hyderabad, Chennai, and Delhi-NCR, making it the world’s largest P2P real estate platform. These users collectively saved INR 15,000 crore in brokerages. The platform also caters to the commercial property segment.
NoBroker has opened its first-ever experience center in Bengaluru, as per reports dated March 31, 2022. This marked the proptech unicorn's entry into the home interiors market. The Bengaluru-based company has planned an investment of INR 100 crore now on this new venture, which would invest the amount in marketing and hiring. As per the latest news, the home interiors arm of NoBroker has already onboarded 50+ design partners and served over 100 customers in the city to date.
Its visitor and community management app, NoBrokerHood , currently caters to residents in more than 11,000 societies across Bangalore, Mumbai, Pune, Hyderabad, Chennai, Delhi – NCR, Kolkata, Ahmedabad, Nagpur, Jaipur, and Kochi.
NoBroker had witnessed quite a funding, which amounted to around $430.9 million in a total of 13 rounds till March 2023. Google has recently led the latest funding round, with a INR 400 million investment. Some other growth statistics of the company follows below:
NoBroker announced the completion of its employee buyback worth INR 32.2 crore in a report dated March 15, 2022. The buyback program of the proptech unicorn promises to allow 95 former and current employees of the company to liquidate their stock options, which makes up for 57% of total employees with ESOPs.
NoBrokerHood acquired Society Connect in February 11, 2020 to integrate the financial module with its services on one single platform and make society living easy and hassle-free.
"As mentioned above, what differentiates us from other online real estate platforms is that ours is the only platform that is 100% brokerage free . We are not just enabling property discovery. We are a transaction platform and provide end to end solution. In that sense, we don’t have competition" says Saurabh.
NoBroker.in is a market leader in customer-to-customer real estate transactions and leading third-party endorsements have recognized the same,
We’re thrilled to announce that #NoBroker has been #awarded the Emerging Awards by Tracxn and has been recognized as one of the topmost companies in Real Estate Tech from across the globe. @AmitKumarA @Sgarg2408 @akhil10s #realestate #awards #proudmoment pic.twitter.com/fctwPCt1T1 — NoBroker.com (@nobrokercom) March 17, 2020
NoBroker aims INR 1,000 cr revenue in FY24. The company’s short-term plans also involve expanding within India. It aims to expand to 50 cities across the country within the next 2-3 years.
What is nobroker.
NoBroker is a Bangalore-based real estate search portal, which helps connect flat owners with tenants/buyers directly and makes the buying-selling of real estate simpler . NoBroker removes the need for brokers in real estate-related dealings.
How does nobroker makes money.
Around 70% of NoBroker's revenue comes from the subscription plans it offers on various packages. Advertisements from furniture start-ups also contribute significantly as NoBroker claims over 2.5 million user visits on its website per month. NoBroker also earns revenue by offering services, such as connecting tenants with movers and packers, drafting rental agreements and extending a wide range of home services.
In today’s fast-paced digital environment, startups often rely on cloud-based solutions to deploy and scale their applications quickly. With limited resources and tight budgets, selecting the right cloud infrastructure is critical to ensuring both performance and cost efficiency. Amazon Lightsail is one such option that has gained popularity among
Welcome to StartupTalky's Indian startup funding updates for 2024! As we move into the second half of the year, we’re here to provide you with a clear and simple overview of the latest funding news. Our monthly tables, updated weekly, will track how much each company has
Krishnan Vishwanathan, Founder & ED of Kissht discusses his entrepreneurial journey, building s solution-oriented business and trends in the FinTech Industry with host Gautam Srinivasan. Entrepreneurship is in the air! India has witnessed a surge in the number of startups over the last decade with an increasing tech-savvy population. The
Former head of enterprise software and AI investments at Venture Highway (now part of US-based General Catalyst) Aviral Bhatnagar has established an INR 100 crore fund to support early-stage Indian companies. He told a media outlet that the newly formed venture capital (VC) business AJVC's fund would be
Arabian Business: Latest News on the Middle East, Real Estate, Finance, and More
By Staff Writer
The Dubai real estate sector is showing signs of stabilising says Cushman & Wakefield Core
The Dubai real estate sector continues to thrive, but there are signs of a slowdown said Cushman & Wakefield Core in its Q2 2024 market update.
The real estate agency said that while Dubai’s market continues to perform steadily across most indicators, signs of stabilisation are emerging and the pace of growth is slowing, especially in the secondary residential market, which is gradually transitioning into a stabilisation phase.
In the second quarter of 2024 the number of properties handed over to buyers fell markedly, although the number is expected to surge in the second half of the year.
The price of property in Dubai has increased for the 16 th consecutive quarter, with a 21 per cent annual increase.
Ultra-prime properties are performing well, with more than 300 homes sold for AED20m ($5.4m) and above in Dubai between April and June.
Despite this, signs of a steadying of growth are emerging said Cushman & Wakefield Core.
During Q2 2024, a lower rate of handovers was observed with just 5,391 units delivered compared to more than 8,350 units in Q1 2024.
A total of 24,300 residential units are anticipated over the remainder of 2024, bringing the annual total to nearly 39,000 units, which is similar to the number of handovers in 2023 and in line with market demand.
Prathyusha Gurrapu, Head of Research and Consulting at Cushman & Wakefield Core , said: “Growing from a high base, new project launch volumes continue to see record numbers with a 42 per cent y-o-y increase, as demand and absorption remain buoyant.
“We have also seen developers with large landbanks initiating projects and smaller private developers aggressively acquiring land, which continues to be a challenge to source.”
Prathyusha said: “Until the end of 2021, the differential between off-plan transactions and secondary market transactions was limited, however, over the last two to three years, off-plan transactions have sharply increased, underpinned by the rise in new project launches.
“While secondary market transactions have shown a moderate growth of 5 per cent, off-plan transactions saw a substantial spike of 61 per cent.
“In Q2 2024, off-plan transactions accounted for more than double the number of secondary market transactions, indicating that the off-plan market has a higher share of investors compared to end-users.”
Prathyusha said: “Primary off-plan sales prices (inventory sold by developers) are higher than secondary off-plan prices (resales by individuals) across most Dubai districts and off-plan projects.
“Although the percentage difference is still in single digits, it suggests that sellers are struggling to match original prices and selling slightly below market value to exit.
“This trend is worth monitoring, as it may grow in the coming quarters with more off-plan supply entering the market.”
Other indicators of market stabilisation include a higher number of sales listings witnessing no change in listed prices in H1 2024, while a much lower number of listings saw prices increase compared to the same period.
Furthermore, since Q3 2023, the median residential listing price has declined at an average of 7 per cent q-o-q, further indicating market adjustment.
While city-wide sales prices continue upward trajectories for the 16th consecutive quarter with a 21 per cent year-on-year increase, Cushman & Wakefield Core said prime districts have seen relatively modest sales price increases while mainstream and affordable districts are witnessing steep increases albeit significantly impacting their affordability.
Dubai remains a strong global ultra-prime market with more than 305 residential properties sold above AED20m ($5.4m) in Dubai in Q2 2024, marking a 12 per cent y-o-y increase.
However there has been a marked slowdown in off-plan transaction volumes over the past two quarters, said the real estate experts.
Prathyusha said: “This is mainly due to the lower off-plan inventory available in the market for these ticket sizes. That said, secondary market ultra-prime transactions have retained their steady activity levels with 135 transactions – the highest ever number of secondary market ultra-prime transactions registered in Q2 2024.
Cushman & Wakefield Core said: “We saw a relative stabilisation in city-wide villa rents, which have risen by 13 per cent year-on-year, whereas apartment rents are up by 22 per cent compared to the same period last year.
“Household incomes are not keeping pace with rising rents, which is further contracting disposable incomes. We have seen a higher percentage of tenants continuing to renew, with the number of renewals in Q2 2024 seeing a 14 per cent increase.
“Similar to the trends seen in the sales market, rents in the mid-market apartment districts saw the steepest rise in rents, whereas prime districts saw lower levels of increase”.
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By regularly assessing performance and goal progress, businesses can ensure that they are making the most of their resources and achieving their desired results. Ultimately, a sound monitoring and evaluation plan are crucial for any real estate business that wants to stay ahead of the competition. 8. Risk Management.
How To Implement Your Business Plan Objectives (The Balance, Aug. 19, 2022) The Bottom Line. Creating a business plan may seem daunting, but by understanding your business and market fully, you can create a plan that generates success (however you choose to define it). Real Estate Business Plans - Samples, Instructional Guides, and Templates
Community: Building strong, vibrant communities and giving back. Clearly defining your mission, vision, and values lays the foundation for a strong and purposeful real estate business that will help you positively impact your clients' lives and your community. 2. Analyze Your Real Estate Market.
Major Goals and Objectives. Outline your business's short-term and long-term goals. These very smart goals should be SMART (Specific, Measurable, Achievable, Realistic, and Time-bound) goals. ... In this section, outline how your real estate business plan will implement your business strategies and define milestones and timelines based on ...
A real estate business plan is a strategic document that outlines the objectives, strategies and tactics a person or a team will employ when starting a business in the real estate industry. This comprehensive and clear plan not only defines the business' mission, vision and goals but also delineates the steps necessary to achieve them.
CUSTOMIZE THIS REAL ESTATE BUSINESS PLAN Creating a business plan for real estate investment is a critical step for any investor, regardless of their experience level Typically, these plans span one to five years, offering a detailed strategy for future company objectives and the steps required to achieve them.
A common technique for establishing your goals is through the "SMART" method, ensuring your goals are Specific, Measurable, Achievable, Relevant, and Time-bound. Objectives that might cover the course of a five-year plan include: Rebrand the company website in 30 days. Establish a social media presence in 90 days.
In this article, I'll share my insights on the seven key elements that should be included in any real estate business plan, based on my own experiences and industry knowledge. 1. Executive Summary. The executive summary is the first section of your real estate business plan, and it should provide a high-level overview of your entire plan.
A killer real estate business plan isn't just about setting a goal to hit 1 million in sales next year. (It would be a lot easier if it were!) A truly great real estate business plan defines exactly what drives your business, where you're headed, and how you'll navigate the market's unpredictable currents. It should be a razor-sharp action plan to scale your real estate empire.
A well-thought-out financial plan will provide you with the clarity and confidence to make sound financial decisions in the real estate market. 6. Create a Marketing Plan. In the competitive world of real estate, a solid marketing plan is essential to stand out. Consider the marketing channels you will use to promote your properties.
Real Estate Business Plan Template. A real estate business plan is a blueprint for the operations and objectives of a real estate agency. The plan can be used to inform prospective investors and business partners, as well as guide internal processes and day-to-day business conduct. The real estate industry is often highly competitive; therefore ...
The first step in creating your real estate business plan is defining your mission statement and setting goals and objectives. Your mission statement encapsulates the purpose and values of your business. It should be concise, inspiring, and reflective of your vision. Once you have a clear mission statement, you can proceed to set SMART goals ...
Best of all — you can get started today! Just download our free real estate business plan template and add your own goals, projections, expenses and data. Don't forget to update it regularly to accurately track your progress, evolve with the market and stay current with your target client's needs. Download. All agent tools.
The market size, measured by revenue, of the Real Estate Sales and brokerage industry, is $156.2bn in 2021, and the industry is expected to increase by 0.4% in 2021. Also, the market is changing at a rapid rate and the way people use spaces is changing at a rapid rate too. Hence, to get on or stay on the higher end of the spectrum you'll need ...
May 25, 2021. A real estate agent business plan is a document that outlines your comprehensive strategy to grow your real estate business. It outlines important milestones of your approach, identifying what your goals are and how you will achieve them. Because of the nature of the real estate business, you can construct plans as a broker, agent ...
A real estate agent business plan is essential for success in today's competitive market. It helps you set clear goals, define your vision, and outline the steps to achieve short-term and long-term objectives. As a real estate professional, having a well-crafted business plan can be the difference between being a top producer and struggling to...
Check out our blog on the Top 7 real-estate business plan templates. Additionally, discover powerful resources to create impactful real-estate-KPI and establish a ... Ultimately, the objectives of real estate management are to maximize returns for property owners and investors while maintaining the long-term viability and sustainability of the ...
Explore a real-world real estate brokerage business plan example and download a free template with this information to start writing your own business plan. ... Following is a summary of the main points of this plan. The objectives of RJ Wagner & Associates Realty, Inc., are to generate a profit, grow at a challenging and manageable rate, and ...
A good real estate business plan serves as a roadmap that outlines the strategies and actions required to achieve the goals and objectives of a business. It typically includes information about the business's products or services, target market, competition, marketing and sales strategies, operations, financial projections, and management team.
After mining business agreements and surveying real estate experts ... The plan eventually called for 800 apartments near the concert venue that hosted the Miss Universe event, with 3.5% of sales ...
The real estate company caters to affordable as well as luxury housing, and has around Rs 6,500 crore of debt. Published on: Aug 20, 2024, 10:05 AM IST Follow Us on Channel
Our mission is to lead India's real estate industry towards an era of doing real estate transactions in a convenient and brokerage-free manner. NoBroker - Real Estate Industry Details Indian real estate market, which was valued at INR 12,000 crore ($1.63 billion) in 2019 is expected to have steady growth and will be reaching INR 65,000 crores ...
Dubai real estate stabilisation. The price of property in Dubai has increased for the 16 th consecutive quarter, with a 21 per cent annual increase.. Ultra-prime properties are performing well, with more than 300 homes sold for AED20m ($5.4m) and above in Dubai between April and June.
In Russia, the first mutual investment fund of real estate Concordia asset management appeared in 2003. By 2013, Russia had 657 real estate funds and 77 rent funds already listed (Antonec, 2013). Vandell (2003) analysed the commercial real estate market from positions of macroeconomic models (demand, supply, market equilibrium, as well as the
Country real estate market report Moscow 2 Key Events • In 2012, the suburban real estate market was influenced by changes within the Gov - ernment of Moscow region. Sergey Shoygu, who served as the Governor of Moscow re - gion since May 2012, was appointed Minister of Defence in November, with Andrei Voro - byov becoming the Acting Governor ...