Real Estate Brokerage Financial Model 10 Years

Description
Real Estate Brokerage Financial Model 


• Reporting metrics and general business information
• The homes portfolio, which includes both current properties and strategies for acquiring new ones through real estate agents and paid and organic marketing
• Demand Assumptions and Prices for Home Sales and Rentals


• Assumptions regarding commissions and transactions (transactions carried out by the firm and agents, commission split, etc.)
• Assumptions about Real Estate Agents and Direct and Indirect Staff (new hires, salary, etc.)
• Assumptions for OpEx and CapEx
• Capital structure and financing: applications and sources of cash analysis (debt and equity financing)
• Scenario for Exit Year and Valuation Multiples


INPUTS


Sales 


Commission on sales transactions
Referral fees
Rental income from property management services
Commissions on leasing transactions
Advertising and marketing fees
License and compliance fees
Commission splits with agents and brokers
Transaction coordination fees
Training and education fees
Technology and software fees
Administrative fees
Franchise fees (if applicable)
Title and escrow fees
Notary fees
Consulting fees


Selling and general expense


Rent or lease expenses for office space
Salaries and commissions for real estate agents and support staff
Marketing and advertising expenses
Membership fees for real estate associations and boards
Insurance expenses, including liability and errors and omissions insurance
Office supplies and equipment expenses
Utilities and maintenance expenses for the office space
Software and technology expenses
Training and development expenses for staff
Legal and accounting expenses
Travel and transportation expenses for agents
Taxes and licensing fees for the brokerage.


Capital Expenditures


Office building or rental space
Furniture and office equipment
Computer hardware and software
Phone rental
Signage for office building and listings
Company vehicles
Marketing materials and signage
Security system subscription
Printers and copiers
Cameras for property photos and virtual tours
Property management software
Client database and CRM software
Website and online marketing tools
Training materials and resources
Miscellaneous office supplies


Project Performance w/o Terminal Value
DCFF
NPV
IRR


Project Performance with Terminal Value - Perpetuity
Terminal Cash Flow
Total Free Cash Flow To Firm
DCFF
NPV
IRR


Project Performance with Terminal Value - EBITDA Multiples
Terminal Cash Flow
Total Free Cash Flow To Firm
DCFF
NPV
IRR


Includes


Working Capital
CapEx
SGA Expenses
Salary Assumptions
Marketing Assumptions
Investment Performance


This financial model is adaptable, and its metrics should align with your Real Estate Brokerage's strategic goals, whether focused on scaling the user base, maximizing profitability, or securing investment.