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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Sept. 30

Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2020

Business Startup Guides
Checkout our new sister site!

Free Mortgage Brokerage 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.

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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
  • Loan Amortization and ROI Tools
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $100,000 for the development of a mortgage brokerage (with minor mortgage banking operations) while showcasing the expected financials and operations over the next three years. The Mortgage Brokerage, Inc. (“the Company”) is a New York based corporation that will provide mortgage brokering and mortgage banking services to customers in its targeted market. The Company was founded by John Doe.

1.1 Products and Services

The Company provides standard and sophisticated lending services to people of varying credit qualities and incomes. The Company will also maintain a base of corporate and institutional clients that seek the expertise of the team to finance the acquisition of mortgages and real estate investments. Regardless of the credit quality or income of a client, the Company seeks to provide residential and commercial mortgage financing to clients.

1.2 The Financing

Mr. Doe is seeking to raise $100,000 from an investor. The terms, dividend payouts, and aspects of the deal are to be determined at negotiation. This business plan assumes that an investor will receive 50% of the Company’s stock, a regular stream of dividends, and a seat on the board of directors.

1.3 Mission Statement

The Mortgage Brokerage’s mission is to become the recognized leader in its targeted market for mortgage brokering services.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the mortgage 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, the Mortgage Brokerage will be an excellent position to capture a significant portion of its targeted market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Mortgage Brokerage, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Mortgage Brokerage requires $100,000 of investor funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

John Doe intends to sell 50% of the Mortgage Brokerage in exchange for the capital.

2.4 Management Equity

John Doe will retain 50% of the business once the capital is raised.

2.5 Exit Strategy

If the Mortgage Brokerage is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Mortgage Brokerage. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

Below is a description of the mortgage brokering and mortgage banking services offered by the Mortgage Brokerage.

3.1 Mortgage Brokering and Banking Operations

The business of the Company is to assist homebuyers and investors in the acquisition and financing of real estate assets. These services will include mortgage brokering, and investment banking operations that will allow investors and homebuyers access to the capital markets. To some extent, this business will have a more erratic revenue stream as this business is dependent on deal flow and not guaranteed payments by debtors or tenants. The Company will operate an affinity mortgage banking facility (in association with its associated lenders) that may include a warehouse line of credit for our financing transactions. Mr. Doe expects that each financing deal made by the Company will yield approximately 5.2% of the face value of any transaction. The risks associated with this business are low as the Company does not plan on holding long term debt instruments unless the credit quality of the mortgagee is excellent.



4.0 Strategic and Market Analysis

4.1 Economic Outlook

Mortgage brokerages have exploded with growth over the last ten years. As interest rates decreased, and the overall value of properties skyrocketed, the number of agents in this market has more than tripled. However, the industry has been pummeled in the last two years with the fallout of the mortgage market. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period.

4.2 Industry Analysis

The market for real estate is one of the largest economic markets in the world. In the United States, the market for mortgages is the largest consumer and commercial finance market. For most people, a purchase of real estate (for both primary residence or investment purposes) is the largest financial transactions that they will ever conduct. Any standing structure has monetary value and can be used as an investment. Offices and homes are a necessity for all people and businesses. The overall market for real estate will continue to grow as the population continues to grow despite the current economic conditions. Additionally, there has been a shift in taste among Americans such that people now desire to have more than one home. While this concept has been a dream among many people, the ability for a middle income family to purchase a second home has become a reality with the change in how lending works. However, recent changes in the credit market, namely the sub prime mortgage meltdown, have resulted in difficulty for middle and upper middle income borrowers to refinance and acquire second mortgages. As such, the business may have issues with top line income generation at the onset of operations.

4.3 Customer Profile

In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

4.4 Competitive Analysis

There is a tremendous amount of competition among lending companies to acquire, finance, and sell mortgages. However, there are not many investment banking firms that specialize solely on small and medium sized real estate transactions. Mr. Doe feels that the Mortgage Brokerage can use its lending, investment, and advisory service for each client so that they receive more than just the financing they need. Management will seek to essentially partner with clients in their real estate endeavors, rather than just provide a one time financing. By allowing clients services beyond traditional lending, Mr. Doe hopes to ensure that the will have repeat business from previous clients.

5.0 Marketing Plan

The Mortgage Brokerage intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Mortgage Brokerage.

5.1 Marketing Objectives

  • • Develop an online presence by acquiring accounts for major online real estate portals.

  • • Establish relationships with real estate brokers and agents within the targeted market.


5.2 Marketing Strategies

Mortgage marketing will be the most difficult portion of the marketing strategy. This is because one of the essential elements to reaching this audience is that the Company must build a brand affinity with the customer. This task will be accomplished through the business’s broad marketing campaign throughout its targeted market. The Mortgage Brokerage will also use an internet based strategy. This is very important as many people seeking mortgages use the Internet to conduct their preliminary searches. Mr. Doe will register the Mortgage Brokerage and its agents with these online portals so that potential buyers can easily reach the business. The Company will also develop its own online website showcasing current interest rates, the Management Team, and the mortgage brokering and mortgage banking services offered by the business. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the mortgage services that the Company is selling.

5.3 Pricing

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

  • • The Mortgage Brokerage will have an annual revenue growth rate of 18% per year.

  • • Mr. Doe will acquire $100,000 of investor funds to develop the business.

  • • The business will not seek debt financing in the first three years of operations.

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 Mortgage Brokerage may have issues with its top line income as fewer sales will be made.

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