A townhome business plan will depend on whether the townhome condominiums have been built and need to be marketed for sale or whether your project starts “from the ground up.†Are there townhomes already developed that you need a plan to help advertise and sell, or do you hope to take control of a parcel of land and build the units from scratch? If the latter is your case, identifying the construction costs and impediments is vital. Prove that you have the permitting, licensing, and timelines all “in hand†and show that you can have the buildings ready for occupancy on schedule. No matter what your exact needs, the business plan for a townhome should answer these questions:
• How many units do you intend to sell?
• What is the average per-unit cost and the average cost per square foot?
• What are your profit margins and are they in line with industry averages?
• What builders or townhome companies are you in competition with?
• Is the industry stable?
You should look closely at the market opportunity you will find in the selected location. Rates of homeownership and the demographic and income data on the current inhabitants of the area are meaningful numbers that you should obtain and publicize in the document. What else can you offer in support of your vision here? Management team bios showing your experience in real estate, a section assessing the market need, and an implementation strategy for construction and sales are all a good idea. Finally, a 5-year sales forecast that gives your ultimate profit points is essential and will be requested by all investors. Need help here? MasterPlans has been working on business plans for residential developments since 2002 and we can deliver on your townhome project. Call today: 877-453-2011.
