Free Landlord Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $400,000 for the acquisition of a residential property while showcasing the expected financials and operations over the next three years. Landlord, Inc. (“the Company”) is a New York based corporation that intends to acquire a small residential property which will be rented to tenants. The Company was founded by John Doe.
1.1 Products and Services
The business will generate revenues from the ongoing rental income paid to Landlord, Inc. The business will also earn secondary revenues from late fees and other fees associated with the ongoing usage of properties owned by the business. The Company will also recognized capital appreciation on a yearly basis from the holding of residential properties. The anticipated yearly growth of the Landlord, Inc.’s portfolio is 4% to 6% per year. The third section of the business plan will further document the residential rental services offered by the business.
1.2 The Financing
Mr. Doe is seeking to raise $400,000 via a 30 year mortgage loan. The terms, interest rate, and loan covenants are to be determined at the time of negotiation. However, this business plan assumes that the business will receive a fixed 30 year loan with a 6% interest rate due on the outstanding principal balance. The financing will be used for the following: • Financing to acquire the initial residential property. • Financing for the first six months of operation. • Capital to purchase a company vehicle. Mr. Doe will contribute $100,000 to the venture.
1.3 Mission Statement
Mr. Doe’s mission, through properties held by the business, is to provide high quality living spaces for tenants within the target market of the New York metropolitan area.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the real estate industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. As the real estate market returns to normal conditions, Landlord, Inc. will be an excellent position to recognize profits from the sale of properties. In the future, the business may seek to acquire additional capital for the acquisition of additional residential properties. The business will also continually recognize increased rent rolls on a yearly basis that are on par with the general inflation rate of the United States.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Landlord, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Landlord requires $400,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
At this time, Mr. Doe is not seeking an outside equity investment.
2.4 Management Equity
Mr. Doe will retain a 100% equity interest in the business.
2.5 Exit Strategy
In all likeliness, Landlord, Inc. will not be sold to a third party. Should Mr. Doe decide to leave the property acquisition and rental business, he will hire a real estate brokerage to divest the property (properties) held by the business while concurrently dissolving the corporation.
3.0 Products and Services
Below is a description of the real estate services offered by the Landlord, Inc.
3.1 Rental of Acquired Residential Properties
The acquisition and rental of residential properties will be the sole revenue center for the business. The Company intends to acquire duplex, triplex, and quadplex properties that will be rented out to individuals and families throughout the Company’s targeted market. Typically, most real estate investment firms shy away from acquiring these types of properties because they are too small to render an appropriate return on investment in regards to their real estate investment operations. As discussed in the executive summary, the business will also earn secondary revenues and income at the time that the business makes divestitures of properties held by the business. The Company will always hold properties for more than one year unless there is an unforeseen circumstance or windfall increase in the value of a property. On a tertiary basis, Landlord, Inc. will generate income from usage of onsite laundry machines, drying machines, and vending machines that will be placed at each property that has been acquire and managed by the Company.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
Management is developing a very complex pricing method to ensure that the Company can continue to provide its units at profit despite possible drawbacks in the overall economic market. The Company’s two prong approach to real estate will allow the business to grow successfully in the rapidly changing real estate market. More importantly, this strategy will allow the Company to offset the risks from each business unit so that there is a diversified balance in the Company’s real estate portfolio. This is especially important as the business uses leverage to finance the acquisition of its properties.
4.2 Industry Analysis
In the United States, there are 19,000 companies that operate in a real estate investment capacity by sourcing funds from private investors/banks with the intent to engage in real estate related activities including acquisition, rental, construction, and rehabilitation. Each year, these companies aggregately generate $22.8 billion dollars per year and provide jobs for more than 20,000 Americans. Payrolls for these employees have exceeded $1.3 billion dollars year during the last five years. During the next six months to two years, Management expects that the number of agents in this market will remain stable. Certainly some market agents will close (due to poor investments during the boom cycle), but others will enter the market with fresh cash to acquire undervalued properties.
4.3 Customer Profile
As the Company intends to operate among several different investment and operating units, it is hard to characterize any specific tenant that will occupy the Company’s residential property. However, Management will enact strict tenant quality and credit review procedures to ensure the Company’s revenues will not be interrupted by tenant default.
4.4 Competitive Analysis
Since real estate is effectually one of the most free market oriented businesses in the country, competition can not be accurately categorized. Landlord, Inc. anticipates that there will be a sizable amount of competition from both single owner investment firms to large construction companies that are seeking to gain from the unusually high real estate prices throughout the New York metropolitan area.
5.0 Marketing Plan
Landlord, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the acquired units in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Implement a local campaign that will showcase available properties through real estate circulars that are distributed by real estate brokerages within the target market.
• Develop an online presence by acquiring accounts for major online real estate portals in which Landlord, Inc. can showcase its available properties to the general public.
• Establish relationships with real estate brokers and agents within the targeted market.
5.2 Marketing Strategies
Property renter marketing will be the most difficult portion of the marketing strategy. This task will be accomplished through the business’s broad marketing campaign throughout its targeted market. Primarily, Mr. Doe intends to use local real estate brokerage firms to place tenants with the Company’s properties. In addition to using a real estate broker, Mr. Doe intends to develop his own marketing strategies that will further increase the visibility of the business’s units. This is especially important with the current real estate market environment. Landlord, Inc. will also use an internet based strategy. This is very important as many people seeking real estate for purchase or rent use the Internet to conduct their preliminary searches. Mr. Doe will register Company and its initial residential property and subsequent properties with these online portals so that potential renters can easily reach the business. The Company will also develop its own online website. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the properties that the Company is renting. The Company will also maintain its own online website (www.mysite.com) that will effectively showcase the properties that the Company has currently available for rent to the general public throughout the target market. This is of immense importance as it relates to the Landlord, Inc.’s ability to renter vacant units to the general public on an ongoing basis as they become vacant.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Landlord will have an annual revenue growth rate of 6% per year.
• The Owner will acquire $400,000 of debt funds.
• Mr. Doe will contribute $100,000 towards the acquisition of the Company’s first property.
7.2 Sensitivity Analysis
The Company’s revenues can change depending on the general economic climate of the real estate industry. In times of economic recession, the Company may have issues with its top line income and rental income may decrease. However, the highly recurring nature of the Company’s rental income streams will ensure that the business is able to maintain profitability and a positive cash flow at all times. This is especially true given the fact that the business is focusing on small scale residential real estate.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis