Professional Documents
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Business Proposal of Real Estate: Done by Ishwor Chettri
Business Proposal of Real Estate: Done by Ishwor Chettri
OPOSAL
REAL
ATE
by Ishwor
ri
Table of Contents
Background of the project..................................................................................................................2
Executive Summary.............................................................................................................................2
Company Background........................................................................................................................3
Mission.................................................................................................................................................3
Vision....................................................................................................................................................3
Vision statement..................................................................................................................................4
Goal......................................................................................................................................................5
Core Values..........................................................................................................................................5
1. Uprightness..............................................................................................................................5
2. Capability.................................................................................................................................5
3. Quality Client/Customer administration...............................................................................5
4. Collaboration...........................................................................................................................6
5. Brief conveyance......................................................................................................................6
6. Adaptability..............................................................................................................................6
Services.................................................................................................................................................6
SWOT Analysis....................................................................................................................................7
A. Strengths...................................................................................................................................7
B. Weaknesses...............................................................................................................................8
C. Opportunities...........................................................................................................................9
D. Threats....................................................................................................................................10
Swot Analysis Conclusion.............................................................................................................11
Target Market....................................................................................................................................11
Marketing Mix...................................................................................................................................12
1) Price........................................................................................................................................12
2) Product...................................................................................................................................13
3) Promotion...............................................................................................................................13
4) Location or Placement...........................................................................................................13
PESTEL ANALYSIS.........................................................................................................................13
Political Factors:............................................................................................................................13
Economic Factors:.........................................................................................................................14
Social Factors:................................................................................................................................14
Technological Factors:..................................................................................................................14
Environmental Factors:................................................................................................................15
Legal Factors:................................................................................................................................15
Market Analysis Summary...............................................................................................................15
Market Segmentation........................................................................................................................16
Financial Budgeting...........................................................................................................................16
Risk Assessment.................................................................................................................................20
Strategy and Implementation Summary..........................................................................................21
Competitive Edge...............................................................................................................................22
Sales Strategy.....................................................................................................................................22
Why Choose Us?................................................................................................................................23
Executive Summary
Pride and Property (P&P) Real Estate aims to be the number one choice when it comes to real
estate (especially housing) . P&P will be operating its business at Gokarana, Kathmandu. Our
main objective is to provide land, building or to the people inside Kathmandu valley, that
provides a positive atmosphere and the desired amenities. Our start-up company will
buy one to 2 residential properties p.a., over the following 10-15 years. The aim is to make a
portfolio of assets, that when rented, will provide a positive monthly stream of income. The
investment goal is to supply an unleveraged cash-on-cash return between 6%-7%. The
acquisition strategy is to acquire properties at a great discount whose values are reduced
below its value, thanks to foreclosure or short sale. Additionally, homes are going to
be acquired at values which might be significantly increased through renovation or
rehabilitation. The first investment criterion is that the properties purchased must be capable
of renting and producing a positive income.
Company Background
Pride and Property will be occupied with the residential real estate speculation and the
executives business and will go about as the Acquisition and Restoration Manager, Property
Manager, and Portfolio Asset Manager. The organization's attention will be on securing
underestimated residential properties, improving, and exchanging, or then again holding and
leasing at an alluring cost. This strategy will involve the following nine key segments:
1. Plan of action
3. Speculation/Investment Criteria
4. Budgetary arrangement
8. Risk Assessment
Mission
The mission of Pride and Property Real Estate, Company is to give an exceptional degree of
administration and mastery in the real estate market that is imaginative and driven. The P&P
Real estate Company is devoted to the best expectations, frameworks and execution
important to satisfy the entirety of your real estate dreams.
Vision
The vision P&P Real estate Company is to accomplish the most noteworthy potential
principles of the real estate market while setting up our organization as the head and favoured
real estate company at Gokarana and encompassing zones.
Vision statement
Goal
Our fundamental goal is to make a positive real estate experience while addressing client’s
needs. We work in the offer of single family and multifamily properties for venture or
proprietor tenant purposes. In the event that you are keen on selling your home, we will give
your home everything of the consideration it requires to be advanced for the most noteworthy
worth conceivable in our marketplace. In the event that you are keen on purchasing a home,
we will do all that we can to give you the devices expected to assist you with finding your
dream home.
Core Values
We exist for keeping our clients fulfilled; our associates/colleagues cheerful; our staffs
satisfied and spurred; our administration pleased and praised; our brand’s serious competition
and reformist.
To accomplish the abovementioned, we have our own unique set of core values and they are
as follows:
1. Uprightness
2. Capability
- We give dependable data that help our clients settle on the correct choices
3. Quality Client/Customer administration
- Our clients are the main impetus of our reality; keeping them fulfilled is the key
purpose behind our reality
4. Collaboration
5. Brief conveyance.
6. Adaptability
We ought to be a full-administration real estate company offering the most complete real
estate services in the market. Our outcomes arranged methodology gives our customers ideal
arrangements. The following will be the services provided by us:
Movement Services
Title Assistance
Renting Services
SWOT Analysis
SWOT Analysis is a technique for assessing the four aspects of a business, and they are
Strengths, Weaknesses, Opportunities and Threats. It is a very powerful tool for developing
one’s business strategy. The Strength and Weakness are controllable as they are internal to
the company whereas Opportunities and Threats are beyond our control as they are external
to the company.
P&P Real Estate Company has organized its top Strengths, Weaknesses, Opportunities and
Threats in a brief list and they are as follows:
A. Strengths
The interest in the real estate property is one such resource, where the value of your
speculation increments with time. On the off chance that another lodging society,
Fundamental Street, or a railroad line is associated with your property, at that point its value
increases a lot of time more.
Safer Investment
In contrast to interest in the securities and offers; where we lose practically the entirety of our
cash if the stock doesn't go up in the market. Then again, interest in real estate property is
probably the most secure speculation. Its value doesn't tumble from the sky and we would
lose everything.
Indeed, even its value does fall, and afterward we can utilize your property for different
purposes like rents, crops, structures, and so forth. All things considered, we won't fail simply
like it occurs with the venture of bonds and offers.
When we have responsibility/ownership for property, at that point we can would whatever we
like to do with your territory. Regardless of whether we need to develop a few yields or
fields, drill down the land for the oil and gas, or set up some structure for the lease or
different purposes. We would have total authority over the utilization of the land. No other
resource would give us such independence over its utilization.
Expansion Hedge
An expansion fence is a monetary term and it implies when the money of a nation begins
getting cheapening either due to the large scale financial components or swelling. At that
point we will contribute our cash-flow to ensure expansion and investors' inclinations.
Resources like real estate property, gold, or silver fall in the class of good swelling support
that would spare the nation from expansion as well as the investor also.
Utilized as Collateral
At the point when we apply for a credit from the money related establishment, at that point
the bank would require real estate property to give us the advance. Indeed, even the land isn't
giving a lot of value in the open market, yet we can at present utilize it as a security to
purchase an advance from the bank or some other personal entrepreneur.
B. Weaknesses
With regards to moving the responsibility for real estate property, at that point it includes
endless individuals and different establishments. Some of the time it takes a long time to
move the possession from one age to straightaway. The more relatives and family members
are included, the more it would take since you would need to welcome everybody in the same
spot.
The money is a fluid resource that you can purchase anything from anybody anyplace. The
real estate property is definitely not a fluid resource; it implies that we need to offer it to
make it fluid so as to make buyers like it. Now and again, with regards to melting our real
estate resource, the market doesn't give the rate that we need. We need to sell our advantage
at a lower rate if there should arise an occurrence of a crisis.
With regards to possessing a real estate property, at that point it is difficult. It requires
tremendous capital and something entirely important to purchase the land. Once in a while
people work their whole lives and they can't fabricate one place they had always wanted.
Restricted Supply
The flexibly of land in a nation or a locale is restricted; you can't extend it for additional
individuals. On the off chance that the land turns out to be less for us in a nation, at that point
you can move out to different nations. The laws and guidelines of different nations don't
permit you to possess a property without any problem. We have conquered numerous
obstacles to claim land in case of a customary individual.
C. Opportunities
Global Demand
If not for the land, at that point no nation in the planet would have attacked different nations.
The fertile wonderful landscape is in incredible interest over the world since we can utilize it
for creation and the travel industry also.
Quickly Growing
The manner in which technology/innovation and the mechanical business is creating new
instruments and machinery, the development and efficiency of the rich land are expanding
quickly. Individuals could achieve and do many things without the land in the past period,
however now it implies benefit. In this manner, everybody is in the race of getting a bit of it.
The construction and development hardware and material have made a wide range of
planners and real estate plans conceivable. Nonetheless, present day structures have an
incredible breadth of drawing in new investors and organizations into your nation.
D. Threats
Economic/Monetary Recession
At the point when the economy of the nation is in downturn, at that point individuals begin
spending less. At the point when individuals spend less, at that point it influences seriously
the general offer of organizations. Subsequently, nobody would spend in the real estate
property on account of the dubious conditions. Financial downturn is out of the control of
anybody, it takes a ton of effort for a nation to receive in return.
Real estate isn't just a strong resource in the market. There are different resources also that
are significantly more important than real estate. Like gold, silver, oil and gas, wheat, and so
on. The most significant preferred position of such resources is that they are moveable, and
one can condense it in a market where they're in extraordinary demand. Development in the
other resource implies that individuals won't pay attention to real estate resources.
The market of the real estate business is exceptionally dubious. At the point when more
individuals are interested in the property, at that point its value increases. At the point when
individuals quit indicating interest, at that point its value tumbles from the sky. For example,
on the off chance that one needs cash in a split second and the real estate market is down,
hence, we need to sell it at a very price in such conditions.
After analysing the swot analysis, we have reasoned the various factors for the real estate to
be an exceptionally profitable industry. Yet, it relies upon numerous other external
components. Along these lines, it is essential to be acquainted with all other variable
components before settling on any buy choice.
Target Market
When attempting to decide the specific target market, there are just three alternatives that one
has. The first is purchasing homes in lower pay community. The second is purchasing homes
in working class community (alluded to as "bread and margarine" homes). The last
alternative is purchasing in upper-end community. With these alternatives now it will rely
upon what the speculation objective is and how much danger one is willing to take. Here are
the preferences and detriments of purchasing in each unique land target market.
Benefits of Buying in Lower-Income community:
- Houses are modest
- There is a high abandonment rate
- Individuals need to lease homes in the community
- There are a great deal of relinquished homes in the community
- Better income
Marketing Mix
Today, real estate specialists/companies or agents need to realize that simply like any untitled
other industry, being effective in real estate industry requires procedure such as a technique
than can separate one from others and give you a practical upper hand. To assist with
building and supporting our upper hand, I am portraying the 4 P's of P&P real estate
marketing.
1) Price
Pricing the property deliberately is critical. While mental pricing, which utilizes odd
numbers, for example, Rs. 19.99 rather than Rs. 20.00, may work in the retail industry, it
neglects to discover buyers looking for properties online by break focuses. For instance, if the
property is worth Rs. 30, 00, 000 and one deliberately prices it at $29, 99, 999, you may lose
buyers who utilize the break purpose of $30, 00, 000 or more. Accordingly, at Pride &
Property Real Estate, I generally price my properties in a strategic way to locate the greatest
number of customers.
2) Product
Real estate is our product. While it is critical to take into account the requirements of
countless clients so as to get effective, we ought to set our-self up to do trade-offs as
competitive advantage is worked through trade-offs. We know our specialty and we will be
serving our clients the absolute best in that specific specialty. As we will be dealing in high-
end properties, we will offer the most exceptional properties to our customers to separate
ourselves from others.
3) Promotion
This P of real estate marketing is about how one advances its product. To prevail in P&P real
estate industry, we will utilize all potential methods for real estate marketing. From arranging
open houses to advancing the product on the web, we will utilize all potential methods for
marketing to arrive at the greatest number of customers and to locate the best purchaser for
our property.
4) Location or Placement
To draw in greatest number of planned buyers we will situate our promotions in the correct
manner at the correct spots. We will choose few high-traffic real estate sites to distribute our
promotions. We will focus on the portrayal of our postings and accordingly feature the
highlights of our property in an alluring yet unpretentious manner. We will avoid utilizing
solid salesy phrases, rather we will take a stab at revelling our client by utilizing phrases that
can assist them with interfacing sincerely to the property we are attempting to sell.
PESTEL ANALYSIS
PESTEL is a mental aide which in its extended structure means P for Political, E for
Economic, S for Social, T for Technological, L for Legal, and E for Environmental. It gives
an elevated perspective all in all climate from a wide range of points that one needs to check
and monitor while contemplating over a specific thought/plan. The PESTEL Analysis for
P&P Real estate is as follows:
Political Factors:
- Political steadiness and significance of Real Estate area in the nation's economy
- Organization and impedance in Real Estate industry by government
- Legal structure for contract implementation
- Licensed innovation security
- Exchange guidelines and duties identified with Real Estate
- Supported exchanging accomplices
- Against trust laws identified with Real Estate
- Estimating guidelines – Are there any evaluating administrative system for Real
Estate
- Taxation - tax rates and impetuses
- Pay enactment - the lowest pay permitted by law and extra time
- Work week guidelines in Real Estate
- Compulsory worker benefits
- Modern safety guidelines in the Real Estate area.
- Item marking and different necessities in Real Estate
Economic Factors:
- Types of financial framework in nations of activity – what sort of monetary
framework there is and how stable it is.
- Government intercession in the free market and related Real Estate
- Trade rates and steadiness of host nation cash.
- Framework quality in Real Estate industry
- Relative points of interest of host nation and Real Estate area in the specific nation.
- Ability level of workforce in Real Estate industry.
- Training level in the economy
- Work expenses and profitability in the economy
- Business cycle stage (for example thriving, downturn, recuperation)
- Financial development rate
- Optional salary
- Unemployment rate
- Expansion rate
- Loan fees
Social Factors:
- Culture (gender roles, social shows )
- Socioeconomics and ability level of the populace
- Innovative soul and more extensive nature of the general public. A few social orders
empower business while some don't.
- Mentalities (wellbeing, environmental cognizance, and so forth)
- Relaxation interests
Technological Factors:
- Late mechanical advancements by Ante Real Estate Trust contenders
- Innovation's effect on item offering
- Effect on cost structure in Real Estate industry
- Effect on esteem chain structure in Real Estate area
- Pace of innovative dissemination
Environmental Factors:
- Weather
- Climate change
- Laws controlling climate contamination
- Air and water contamination guidelines in Real Estate industry
- Reusing
Legal Factors:
- Copyright, licenses/Intellectual property law
- Customer insurance and internet business
- Business law
- Wellbeing and safety law
- Information Protection
P&P real estate will focus on providing homebuyers and home sellers demonstrable skill and
ability in arriving at an effective sale or potentially purchase in their real estate needs. Our
fixation likewise lies with our in-house operators. We feel by giving our in-house operators
the help program they need, our efficiency ought to dominate at a fast movement. Because of
the reinforcing of the economy in Kathmandu territory, more homebuyers today are hoping to
purchase homes. These adjustments in perspectives of homebuyers are a colossal lift to real
estate firms.
We are ready to exploit these changes, and hope to turn into a perceived name and profitable
element in the Kathmandu real estate market. We decided to find our office in the region of
most income potential. Our target market area, the Gokarana area, shows dependability and
development. We have an excellent office focused in that territory. This area will empower
our sales partners to work in a region that will permit them to get more cash-flow in a shorter
timeframe. The principal quarter home estimations were up 8.8% from a similar period in
2000, according to research and analysis, many published sources have announced that the
addition mirrors an expansion from the past quarter, when private real estate esteems saw
year-over-year development of 8.1%.
As expressed in the Objectives area we layout the profits to be picked up with every specialist
making progress toward one seller and one buyer every month. We additionally express the
broad marketing plans, objective setting and preparing gave by this company to help every
operator in arriving at this objective. As expressed in the Services segment we diagram the
administrations we will gracefully the specialists, sellers and buyers (all of which this
company considers to be our client). Research and analysis shows that our operators will
acquire top commissions, be provided with the most recent in marketing and promoting help,
and have nearby agent help consistently. This combined with the collaboration and superb
marketing programs gave, we believe we have a formula for progress.
Market Segmentation
1. Our most significant market portion is the home seller. The seller will call upon P&P
Real estate Company for our astounding marketing methodologies and procedures,
and our capacity to convey individual counselling, polished skill and a subsequent
framework.
2. As significant would be the homebuyer. These buyers will P&P real estate Company
to "coordinate" their rules choices. This organization will see coordinating standards
homes for the buyer, consequently furnishing the buyer with on location seeing
capacities without really visiting the home site.
4. While alluding a customer outside our ability go, we would look for a legitimate and
educated operator to help them at their objective. At the point when this enterprise is
the beneficiary of a referral–we would coordinate the buyer to homes meeting his/her
models details.
5. Last, yet not least, would be the organization in-house operators. We see every one as
a client and are touchy to their requirements. Instruments, preparing, marketing
procedures and techniques, and direction required is accessible consistently. Every
operator will have the chance to be helped with planning a work routine that holds
fast to their work style, henceforth permitting more noteworthy efficiency. All
operators will get nearby direction in all territories required.
Financial Budgeting
Start-up funding
Assets
Liabilities
Current borrowing 0
Legal/Incorporating 117000
Insurance 46800
Brochures 8000
Advertising 65000
Stationery 11700
Accounting 117000
Planned Investment
Investor 1 1000000
Investor 2 1000000
Other 500000
Risk Assessment
The different dangers related with this marketable strategy can be assembled into three
classifications: Business Risk, Property Investment Risk, and Market Risks.
Business Risk could be seen as the issues related with the presumptions made for P&P
Real Estate. These may incorporate the accompanying:
Market Risk could be seen as issues identified with lodging market as a rule or
explicit to the district. These dangers may include:
- Interest rates increment, in this way making financing cost more noteworthy than
anticipated and either lessening income or making bargains ridiculous.
- Supply of rental lodging builds, which could prompt lower rents.
- Government strategy activities that upgrades open door for homeownership and bait
away would-be leaseholders.
The dangers recognized could influence P&P Real Estate exhibition or capacity to meet its
money related commitments or focused on return; notwithstanding, that the drawn out
advantages of land venture joined with the administrators' skill lessen these dangers also, will
create the extended returns and meet the commitments of P&P real estate.
P&P Real estate Company will focus on the real estate needs at Gokarana and encompassing
zones. Our targeted client and our fixation will prioritize and focus on the portrayal of home
sellers, homebuyers, migration clientele.
To be the achievement we are endeavouring to turn into this enterprise realizes it must place
an enormous focus on its in-house authorized specialists. The operators with this firm will be
upheld and helped as well as could be expected.
Competitive Edge
The corporate representative of the real estate firm, known as The Realtors Nepal Private
Limited had distributed real estate book and various other publications. This book and the
going with hierarchical projects, are dispersed all through the province of Kathmandu in real
estate book shops and affiliations. This book was composed for the beginner operator which
will be given to approaching specialists as a source of perspective instrument, subsequently,
permitting a quick beginning project.
This firm permits "Top Commissions" to the specialists considering more operator
advertising and marketing advancements. This firm is profoundly strong to the operator it
supports in the regard of consistence with specialist posting assignments. All of which free
the specialist's an ideal opportunity to do what the operator is prepared to do and that is to sell
and addition clients. This firm has a marketing plan set up for operators to use. The
organization will help all specialists in objective setting/arranging and in their marketing
methods/techniques. Despite the fact that the specialists are self-employed entities, this firm
will run as a group. The open entryway strategy will be set up consistently welcoming novel
thoughts and recommendations.
We have mentioned all the services segment for a framework of our administrations offered
to in-house specialists, our sellers and our buyers. All administrations offered to each furnish
this enterprise with a serious edge, for we are aware of no other firm contribution the broad
administrations we give.
Sales Strategy
Sales in our business is picking up property postings and using a marketing plan that
works best for the client.
We find and match homes to buyers as per the rules presented by the buyer.
We help with moving clients to their new objections or potentially help clients
migrating to our territory in their home inquiry. We offer a fantastic referral
administration anyplace in Kathmandu.
We look for rent properties for individuals wishing to rent as opposed to buying.
We permit above-standard commission rate rates, at that point give amazing
marketing and advertising programs.
We furnish our selling specialists with a magnificent help program just as guidance.
The core of our mastery is the private Real Estate market all through Kathmandu and
particularly in the best zones of Gokarana. On the business market as a "buyer's broker" P&P
represents in the purchasing cycle, a wide scope of customers, from unfamiliar buyer to first
time homeowner. As a "vender's broker" the company carries its ability and experience to
guarantee our merchant to get the most exorbitant cost for his property. Our group is huge
and incorporates contract brokers, Insurers, inside architects and temporary workers.
It's a state of honour for the company to offer exceptional support of its customers and to
catch up intently as a group all through the exchange. P&P Real Estate Company will be
extremely glad to assist you with any of your Real Estate needs in Kathmandu.