The land acquisition business plan must clearly spell out the deal terms that are being proposed for the purchase of the land. If you have a specific financing source in mind, or are working with several capital backers, you need to ensure that your presentation takes into account any deal-specific capital criteria they intend for the proposal. As far as the content of the business plan goes, you will have to spell out your intended use of the land, the development costs, the construction firms you'll partner with, and other key metrics like traffic counts (for a consumer-oriented building), presence of new businesses (for a commercial office space engineered to be Class A), and so forth. Answer these:
• Where is the parcel and how large is it?
• What is the prevailing tax rate?
• What permits and licensing issues do you face?
• What approvals do you need?
• What is the timeline to close, break ground, etc.?
A land acquisition business plan has to do much more than just describe the plot of land. It should talk about the use it will be put to, the target market for the development, and the proximity of competing establishments. You should also evaluate alternatives in case the parcel you have in mind falls through. Ultimately, you will want to include a pro forma financial model that gauges your costs and revenues over a start-up period of some defined length; from there, showing a five-year model is important, though the underlying assumptions will be highly dependent on your project. Need assistance here? Call the business plan writing experts at MasterPlans. Our experience team of writers, modelers, and market analysts has worked on hundreds of real estate plans: 877-453-2011.
