Free Property Development Business Plan Template



Once you've grabbed your free property development business plan template by completing the form above, you should read through this page for guidance in completing it.

If you are looking for finance for your development project, these guys have years of experience providing specialist solutions to property developers.

Don't forget to drop me a note telling me about your project in the comments at the bottom!

Executive Summary

This section of your plan should be a bulleted list summarising the main points of the plan.  It is intended to give a reader -- be it a potential investor or a bank manager -- an overview of your proposed project at a glance.

Make it sound attractive but don’t hype your project.  If you feel you have to do that to make it sound attractive then you should ask yourself whether the project is worth doing!

Property Development Business Plan

It may be best to write the rest of the plan and do this bit last.

Your executive summary should contain the following:

  • Project type: refurbishment / new build / conversion etc.
  • Property type: villa / block of flats / semi etc.
  • Finance: Joint Venture partner / mortgage / bank loan etc.
  • Project length: 6 months / 1 year etc.
  • Exit strategy: let property / sell on lease option / sell at auction etc.
  • Any other important points of your project.

Introduction

This is your chance to sell the project to your investor.  Remember that your potential investor is interested in what is in it for them.  

  • Does your project have local resident / neighbour support
  • have you had success with similar projects in the past?  
  • do you have environmental reports / land use studies?
  • how do local demographics support your proposition?

Include all relevant facts and supporting information, photos, plans and schematics.

Description of Development

A detailed description of your project from a practical point of view.  Include the following:

  • Location
  • current state of property in question (unless of course it’s a new build)
  • scope of proposed works
  • photos of site / property, if available.

Planning Permits

Will planning permission or any licences be required, if so have they been applied for?  If planning an HMO / multi-let, will you require a licence?

What permits are already in place and which ones need to be applied for?

Architects

Will architects be required for the project?  If so has an appropriate one been sourced?  Have they done similar previous projects?  What will they add to the project?

Contractors

What contractors and / or suppliers will be required?  Have quotes / costings been solicited?

Time Scales

What is the realistic schedule for the project.  Include relevant project milestones.

Exit Strategy

How will the profit be realised?  Will you...

  • Let the property?
  • Refinance?
  • Sell on open market?

What is the back-up exit strategy.  All smart developers have a plan B, in case the market changes.

Risk Analysis

What are the potential risks to your project?  How will you manage them if they occur?

Financials

A full financial analysis for your project.  You may want to attach a separate spreadsheet.  Be sure to include the following costs:

  • Licences
  • engineers
  • architects
  • builders
  • tradesmen
  • mortgage application fees & carry costs
  • solicitor fees
  • surveyor fees
  • auction fees
  • letting agent fees
  • estate agent fees
  • contingency
  • finder fees
  • capital gains and any other applicable taxes
  • sales projections
  • income projections
  • projected returns
  • balance sheet
  • cashflow statement.

How often and in what manner (report / meeting / spreadsheet?) will your investor be updated on your progress?

Conclusion

When you’re done, be sure to get your advisors to review your plan for you.

I'd love to hear about your project -- drop me a note in the comments below!

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Image credits: Pam Brophy, The Enthoven Family




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