A real estate business plan may be formulated in order to help guide and direct a real estate business. This is usually necessary starting a real estate-oriented business, such as a brokerage, listing service, or other type of business. One of the main reasons for business failure is a lack of a clearly written business plan.
Therefore, a real estate business plan can provide guidelines for the operations of the real estate business. Also, following a business plan can help to ensure that the organization is in compliance with real estate and property laws.
A properly-written real estate business plan should include information such as:
- Summary of the business goals/mission plan
- Identification of potential target market and possible home sellers
- Parties involved (i.e., potential managers, agents, brokers, etc.)
- Delineation of each party’s skills, contributions, etc.
- Summary of daily business operations
- Financial details, including projected expenses and profit
- References for additional documents
Also, the business plan should include guidelines for what should happen in the event of a dispute. For instance, the plan might indicate what steps need to be taken if there is a breach of a real estate contract or other similar issue (i.e. when a lawsuit should be filed, whether mediation should be used first, etc.).
Many business plan disputes occur because a worker or manager is going against some of the terms or principles outlined in the business plan. In such cases, legal action may be necessary, especially if:
- The dispute results in lost profits, wages, or other economic consequences
- The dispute results in a breach of contract or a violation of sound business principles
- There has been a major violation of the law, such as wrongful termination
Thus, it is important for a business clan to be well-written and clearly organized. This can help avoid major legal conflicts in the future.
Business plans are important for any organization, especially for real estate projects. You may need to hire a real estate lawyer if you need help drafting, reviewing, or enforcing a business plan. A qualified attorney in your area can help you with any legal documents to ensure that they are clear and precisely written. Also, if you need to litigate any particular issues, your attorney can provide you with representation in court.