Business Plan for Apartment Home Rentals

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									This Business Plan for an Apartment Home Rental business allows entrepreneurs or
business owners to create a comprehensive and professional business plan. This
template form allows a business to outline the company's objectives and detail both
current company information as well as any past performance. Companies should
include a complete market analysis in their plan to help showcase why their business
strategy will be effective in the market. Future company plans, including production
targets, management strategy, and financial forecasting, should be used to demonstrate
and confirm that the company's short-term and long-term objective can and will be met.
This model plan can be customized to best fit the unique needs of any entrepreneur or
owner that is seeking to create a strong business plan.
                                       Confidentiality Agreement

The undersigned reader acknowledges that the information provided by [Company Name]in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of [Company Name].

It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader may cause serious harm or damage to
[Company Name].

Upon request, this document is to be immediately returned to [Company Name].




___________________
Signature




___________________
Name (typed or printed)




___________________
Date




                   This is a business plan. It does not imply an offering of securities.




© Copyright 2012 Docstoc Inc.                                                          1
                                                               Table of Contents



1.0 Executive Summary................................................................................................................ 1
    Chart: Highlights .......................................................................................................................... 2
  1.1 Objectives.................................................................................................................................... 2
  1.2 Mission .......................................................................................................................................... 2
  1.3 Keys to Success ........................................................................................................................ 2
2.0 Company Summary ................................................................................................................ 3
  2.1 Company Ownership ............................................................................................................... 3
  2.2 Company History ...................................................................................................................... 3
    Table: Past Performance ........................................................................................................... 4
    Chart: Past Performance ........................................................................................................... 5
3.0 Services ......................................................................................................................................... 5
4.0 Market Analysis Summary.................................................................................................. 5
  4.1 Market Segmentation ............................................................................................................. 6
  4.2 Target Market Segment Strategy ...................................................................................... 6
  4.3 Service Business Analysis ..................................................................................................... 6
    4.3.1 Competition and Buying Patterns .............................................................................. 7
5.0 Web Plan Summary ................................................................................................................ 7
  5.1 Website Marketing Strategy ................................................................................................. 7
  5.2 Development Requirements ................................................................................................. 7
6.0 Strategy and Implementation Summary ................................................................... 7
  6.1 SWOT Analysis .......................................................................................................................... 8
    6.1.1 Strengths ............................................................................................................................. 8
    6.1.2 Weaknesses ........................................................................................................................ 8
    6.1.3 Opportunities ..................................................................................................................... 8
    6.1.4 Threats ................................................................................................................................. 8
  6.2 Competitive Edge ..................................................................................................................... 9
  6.3 Marketing Strategy .................................................................................................................. 9
  6.4 Sales Strategy ........................................................................................................................... 9
    6.4.1 Sales Forecast.................................................................................................................. 10
      Table: Sales Forecast ........................................................................................................... 10
      Chart: Sales Monthly ............................................................................................................ 11
      Chart: Sales by Year ............................................................................................................. 11
  6.5 Milestones.................................................................................................................................. 12
    Table: Milestones ....................................................................................................................... 12
7.0 Management Summary ...................................................................................................... 12
  7.1 Personnel Plan ......................................................................................................................... 12
8.0 Financial Plan ........................................................................................................................... 12
  8.1 Important Assumptions ....................................................................................................... 13
  8.2 Break-even Analysis .............................................................................................................. 13
    Table: Break-even Analysis.................................................................................................... 13
    Chart: Break-even Analysis ................................................................................................... 13
  8.3 Projected Profit and Loss ..................................................................................................... 14
    Table: Profit and Loss ............................................................................................................... 14
    Chart: Profit Monthly ................................................................................................................ 15

                                                                                                                                                Page 1
                                                             Table of Contents



   Chart: Profit Yearly .................................................................................................................... 15
   Chart: Gross Margin Monthly................................................................................................. 16
   Chart: Gross Margin Yearly .................................................................................................... 16
 8.4 Projected Cash Flow .............................................................................................................. 17
   Table: Cash Flow ........................................................................................................................ 17
   Table: Cash Flow (Continued) ............................................................................................... 18
   Chart: Cash .................................................................................................................................. 18
 8.5 Projected Balance Sheet ...................................................................................................... 19
   Table: Balance Sheet ................................................................................................................ 19
 8.6 Business Ratios ....................................................................................................................... 20
   Table: Ratios ................................................................................................................................ 20
 8.7 Long-term Plan ........................................................................................................................ 21

APPENDIX
Table:    Sales Forecast ......................................................................................................................... 1
Table:    Profit and Loss ......................................................................................................................... 2
Table:    Cash Flow .................................................................................................................................. 3
Table:    Balance Sheet .......................................................................................................................... 5




                                                                                                                                              Page 2
                                                            [Company Name] 2010

1.0 Executive Summary

   Company: [Company Name]
   Contact: [Name]
   Address: [Address]
   Phone: XXX-XXX-XXXX
   Fax: XXX-XXX-XXXX
   Email: [Email Address]

   Introduction
   [Company Name] is very community oriented. The Company provides rental apartment units in
   the historic Fort Benton, MT. [Company Name]strives to be an asset; by providing quality,
   comfortable, energy efficient rental units, the Company is fulfilling the needs of residents within
   its community. Additionally, the Company also has a strong environmental focus, in which it will
   install new energy metal roofing with solar panels and new energy star windows in new units,
   as well as use ceramic paint for insulation of exterior brick walls on 6 units. With grant funding,
   [Company Name]will be able to improve its Company and continue to be a positive resource for
   its community. Furthermore, [Company Name]will be able to expand its exposure through
   effective marketing as well as introduce the area to market segments that have not yet
   discovered the Company.

   Location
   [Company Name]is located in Choteau County, which is near Great Falls, Montana.

   The Company
   [Company Name] provides affordable rentals in the rural community of Fort Benton, MT. The
   Company's current apartment building has 18 units; however the Company plans on increasing
   the number of units. The owners of the [Company Name]are [Name]and [Name], who have
   extensive knowledge of the real estate and general contracting industry.

   Our Services
   [Company Name] provides rental apartment homes. The Company offers an 18 unit apartment
   building. It is the only large apartment building in Fort Benton, MT.

   The Market
   [Company Name]'s target market strategy is based on becoming a destination for people who
   are looking for exceptional housing options in the Fort Benton, MT area.

   Financial Considerations
   The current financial plan for [Company Name]is to obtain grant funding in the amount of
   $1,200,000. The funding will be used to do remodeling/renovations of the apartment buildings
   as well as handle the installation of all the new Energy Star material.

   The major focus for grant funding is as follows:

   1.   The Company is located in an historic district
   2.   It will install energy star materials and implement environmentally friendly procedures
   3.   Provides new housing to Fort Benton, MT residents
   4.   Hire employees; the Company will look to hire veterans, minorities and the unemployed




                                               Page 1
[Name]                                                   XXX-XXX-XXXX
                                                           [Company Name] 2010

   Chart: Highlights




1.1 Objectives

   [Company Name] has four main objectives:

   1. Pay off construction loans which hinder renting on a more affordable basis.
   2. Upgrade and remodel apartments
   3. Install new energy metal roofing with solar panels and new energy star windows in new and
      remodeled units, as well as use ceramic paint for insulation of exterior brick walls on 6
      units. The Company wants the whole project to be environmentally friendly.
   4. Increase the number of units and reduce debt so the Company will be able to reduce
      monthly rent in an area impacted by the bad economy. There are no other rentals in Fort
      Benton that are of this quality or maintain its decent shape.

1.2 Mission

   [Company Name]provides quality, comfortable, energy efficient rental units in the historic Fort
   Benton, MT area. [Company Name]is dedicated to a hassle free living environment in which its
   tenants can enjoy all of the benefits of safe, attractive, and inviting units. Unlike many other
   realty companies that are solely concerned with turning profits, [Company Name]'s primary
   objective is to maintain the highest level of customer satisfaction that is achievable. Tenant
   safety, happiness, and comfort are the main goals.

1.3 Keys to Success

   [Company Name]'s keys to success are:

   1. Safe, quality housing that provides excellent amenities at competitive prices.

   2. Maintaining open communication between [COMPANY NAME] and its customers in order to
   ensure the highest level of customer satisfaction and long lasting reputation within the
   community.


                                              Page 2
[Name]                                                  XXX-XXX-XXXX
                                                           [Company Name] 2010

2.0 Company Summary

   Company: [Company Name]
   Contact: [Name]
   Address: [Address]
   Phone: XXX-XXX-XXXX
   Fax: XXX-XXX-XXXX
   Email: [Email Address]

   [Company Name]is in the business of providing affordable rentals in the rural community of
   Fort Benton, MT. The building at present has 18 apartments, which 3 are two bedrooms, 15
   are one bedrooms, and 2 are studio apartments (fully furnished and rent by the day-week).
   [COMPANY NAME] Rentals has coin operated washers and dryers in three locations in the
   building. This building is a 3 story building. The first two floors are brick exteriors. The third
   floor was recently added to the original building.

   The apartment complex qualifies for community development and economic development for
   the city of Fort Benton. The city has worked very well with [COMPANY NAME] Rentals and
   encourages the Company to enhance the city and improve the overall community.


2.1 Company Ownership

   [Company Name]was established in 2006 in Great Falls, MT. [COMPANY NAME] Rentals was
   originally an S Corporation converting to a partnership Limited Liability Corporation on
   1/10/10. The owners of the company are [Name]and [Name]. They have a 50/50 split of the
   Company.

2.2 Company History

   The following table and chart shows the past financials for [Company Name].

   Sales for 2007, 2008 and 2009 were $39,915, $68,533 and $48,047, respectively. The earnings
   for this period were ($57,645), ($66,172) and ($75,796), respectively.




                                              Page 3
[Name]                                                  XXX-XXX-XXXX
                                                            [Company Name] 2010

Table: Past Performance

Past Performance
                                                   2007             2008          2009
Sales                                            $39,915         $68,533       $48,047
Gross Margin                                     $39,915         $68,533       $48,047
Gross Margin %                                  100.00%         100.00%       100.00%
Operating Expenses                               $97,562        $134,705      $124,303

Balance Sheet
                                                     2007             2008        2009

Current Assets
Cash                                            ($3,852)           ($638)      ($3,633)
Other Current Assets                                  $0               $0            $0
Total Current Assets                            ($3,852)           ($638)      ($3,633)

Long-term Assets
Long-term Assets                                $140,415          $60,591       $61,642
Accumulated Depreciation                      ($805,516)       ($779,087)    ($747,438)
Total Long-term Assets                          $945,931         $839,678      $809,080

Total Assets                                   $942,079         $839,040      $805,447

Current Liabilities
Accounts Payable                                     $2            $168             $0
Current Borrowing                               $28,000          $28,000       $28,000
Other Current Liabilities (interest free)            $0               $0            $0
Total Current Liabilities                       $28,002          $28,168       $28,000

Long-term Liabilities                         $1,002,138        $968,672      $510,780
Loan from Shareholders                                                        $500,263
Total Liabilities                             $1,030,140        $996,840      $538,780

Paid-in Capital                                    $330             $330          $330
Retained Earnings                              ($30,746)        ($91,958)     $342,133
Earnings                                       ($57,645)        ($66,172)     ($75,796)
Total Capital                                  ($88,061)       ($157,800)     $266,667

Total Capital and Liabilities                  $942,079         $839,040      $805,447

Other Inputs
Payment Days                                            0                0           0




                                            Page 4
[Name]                                                 XXX-XXX-XXXX
                                                         [Company Name] 2010

   Chart: Past Performance




3.0 Services

   [Company Name]provides rental apartment homes in the Fort Benton, MT area. The Company
   offers an 18 unit apartment building. This building has 4 completely new apartments and 7
   remodeled apartments. 2 of the new apartments are elegant, furnished apartments; thus they
   can be rented on a daily, weekly or monthly basis, and are completely furnished. These units
   are extremely popular and are preferred over many of the hotels and motels in town. The
   apartment building is the only large apartment building in Fort Benton, MT.

   The company advertises the apartment building in local newspapers, as well as several places
   online.

4.0 Market Analysis Summary

   Fort Benton, MT was originally a fur trading post on the Missouri River. The fort became an
   important economic center. For 30 years, the port attracted steamboats carrying goods,
   merchants, gold miners and settlers, coming from New Orleans, Memphis, St. Louis, Hannibal,
   Bismarck, Kansas City, etc. The city's outpost played such a vital role in the expansion of the
   West, that it is now registered as a National Historic Landmark.

   The town's population was 1,594 in the 2000 census; 636 households, and 422 families residing
   in the city. The median income for a household in the city was $29,406, and the median income
   for a family was $32,072. Males had a median income of $22,813 versus $20,787 for females.
   The per capita income for the city was $14,861. About 11.6% of families and 13.4% of the
   population were below the poverty line.

   [Company Name]’s customers will be looking for a safe, quality environment. The
   housing/apartment industry does not have any seasonality that affects it. The Company has the
   amenities and professionalism necessary to flourish within its market. By delivering superior
   customer service, [Company Name]'s potential is excellent.


                                            Page 5
[Name]                                                XXX-XXX-XXXX
                                                        [Company Name] 2010

4.1 Market Segmentation

   [Company Name]'s target market strategy is based on becoming a destination for people who
   are looking for exceptional housing options in the Fort Benton, MT area. The
   Company's marketing strategy is based on superior performance in the following areas:

        Quality housing
        Knowledgeable staff
        Customer service
        Affordability

   Customers within the housing and general contracting industry want comfortable housing,
   exceptional customer service as well as affordability. [Company Name]'s customers
   appreciate the quality service, as well as the knowledgeable and experienced staff.
   These customers will have the option to get quality housing options in their area. [Company
   Name]is       beneficial    because the     Company will      deliver     the      dedication
   and dependability that customer’s desire.

4.2 Target Market Segment Strategy

   [Company Name]'s target market segments consist of anyone in the Fort Benton, MT area in
   need of housing/apartment services. The Company knows that satisfied customers aid the
   Company by referring its business to other clients who need these services.

   Currently, [Company Name]serves the rental housing market segment. [Company Name]'s
   choice of target markets is based on an in-depth understanding of the customer's needs.
   [Company Name]'s quality housing, prime location and affordability will allow the Company to
   effectively compete and establish a reputation within its area. However strengthening its
   marketing strategy will improve the Company's profitability levels as well as provide more
   business opportunities for the Company.

4.3 Service Business Analysis

   [Company Name]'s building was built in 3 segments (1896, 1912 and 1918). The Fort Benton
   community has formally recognized [Company Name]'s work on its apartment building. The
   community has been very supportive to local improvements. It has provided the Company with
   a $10,000 interest free loan for the installation of energy star windows (best windows on the
   market) in 11 units. [Company Name]'s apartment building is considered to be historic;
   however, the Company has not pursued historic designation.

   As simple as it may be, [Company Name]'s method of executing exceptional service while
   providing a comfortable living environment will have an important effect on the bottom line:
   People want to give their business to those who appreciate it. Skillful use of advertising,
   offering top-notch amenities, having a comfortable living environment and having affordable
   prices, as well as a practice of strong communication will bring the support the Company
   desires.




                                           Page 6
[Name]                                               XXX-XXX-XXXX
                                                            [Company Name] 2010

4.3.1 Competition and Buying Patterns

   The main competition [Company Name]will encounter will be average lower cost apartment
   units; however very few decent rentals are located in the Fort Benton area. The Company has
   taken an old run down building and renovated it to first class standards, but the Company was
   not able to finish due to lack of funds. Ultimately, it is [Company Name]'s goal to fulfill client's
   demands because it will aid the Company in generating future business. If clients are happy,
   they will recommend the Company to others who need the service. Furthermore, [Company
   Name]knows that the proper image and visibility will aid the Company in getting its name out.


5.0 Web Plan Summary

   [Company Name]is heavily entrenched in the internet. The Company's website is an
   opportunity to offer current information on service offerings, Company background, as well as
   overview of the property. The website is another method to generate business.

   [Company Name]plans to provide an Internet presence that will represent it through digital
   images and text and serve to more effectively market the Company and expand its market.

5.1 Website Marketing Strategy

   [Company Name] will have an effective website that informs customers about the specific
   information on the housing it provides. The Company will create alliances with other local
   businesses; thus [Company Name]will capitalize on using its marketing channels to promote
   the website.

   The website will also be promoted on all of its marketing materials. The Company will
   advertise its site on its business cards as well as in other industry related publications.
   Additionally, The Company plans to tie-into social media sites to expand its presence on the
   web and to reach its targeted customers.

5.2 Development Requirements

   [Company Name] will keep updated photos, calendars, sales details and information on the
   website so that it is helpful to customers searching the website and surfing the internet.
   The Company will create an advertising presence by promoting the site online.

   [Company Name]will have an attractive, simple and informative internet focused website. It will
   be a user friendly site from a dependable hosting company. The owners of [Company Name]will
   continue to keep the website current.


6.0 Strategy and Implementation Summary

   [Company Name] has clearly defined the target market and has differentiated itself by offering
   a solid solution to fulfilling its client’s needs. Reasonable sales targets have been established
   with an implementation plan designed to ensure the goals set forth below are achieved.




                                              Page 7
[Name]                                                   XXX-XXX-XXXX
                                                              [Company Name] 2010

6.1 SWOT Analysis



                      Strengths
                          Weaknesses
                               Opportunities
                                 Threats
6.1.1 Strengths

   [Company Name] has much notable strengths. These strengths include:

        Years of experience in the housing and general contracting industry
        Knowledgeable and friendly staff
        Being located in a historical area
        Environmentally friendly building methods

6.1.2 Weaknesses

   [Company Name] main weakness includes:

        Limited cash flow to grow business to its potential as well as handle needed renovations.

6.1.3 Opportunities

   Opportunities for [Company Name] include:

        Growing market with a significant percentage of its target market still not knowing the
         Company exists.
        Strategic alliances offering sources for referrals and joint marketing activities to extend the
         Company's reach.

6.1.4 Threats

   [Company Name]'s biggest threat involves operating in a bad economy.




                                                Page 8
[Name]                                                     XXX-XXX-XXXX
                                                         [Company Name] 2010

6.2 Competitive Edge

   [Company Name] has a major advantage because the apartments are built to top standards
   and built to last. [Company Name] will be using the best rated Energy Star windows and metal
   roofing in the market. Additionally, the Company uses ceramic paint to give better insulation.
   [Company Name] has an amazing in-town location. Its hardworking and dedicated staff
   definitely aids in the Company's overall success. By continuing to build a business based on
   long-standing relationships with satisfied clients, [Company Name] will simultaneously build
   defenses against future competition. The longer the relationship stands, the more the
   Company helps its customers understand what they offer them and why they need it.


6.3 Marketing Strategy

   [Company Name]'s marketing strategy involves heavy word-of-mouth advertising as well
   as placing local ads in the yellow pages or online to reach all the potential clients that it
   can. Additionally, the rental housing company has formed a good relationship with the
   community. The Company's goal is to provide exceptional service to its customers. [Company
   Name]knows what each customer needs and aims to satisfy them.

   [Company Name] has an advantage because the owners, [Name]and [Name]are a superior
   business team that has excellent work ethics, customer service and communication
   skills. The owners also offer in-depth knowledge of the apartment and general contracting
   industry. [Company Name]'s great location as well as the Company's dedicated owners aids it
   in building a strong reputation within its community.

6.4 Sales Strategy

   The owners of [Company Name] have excellent customer relations and work ethics. [Company
   Name]makes an effort to stay in line with rental housing industry in its area that are offering
   similar services; therefore paying attention to industry rates and amenities is
   important. Keeping customers happy is an implicit part of building a relationship that will
   encourage repeat business.




                                            Page 9
[Name]                                                XXX-XXX-XXXX
                                                         [Company Name] 2010

6.4.1 Sales Forecast

   The chart and table below shows [Company Name]'s projected Sales Forecast. Annual
   projections for five years are shown here, with first year monthly figures in the appendix.

   [Company Name]'s funding forecast includes: Apartment Rental Units in the historical Fort
   Benton, MT area. [Company Name]projections are based on a 20% increase each year. As time
   goes on, the monthly per-unit rental price will slowly ascend due to new available
   apartment units.

   The 2010, 2011, 2012, 2013 and 2014 sales forecast for [Company Name]are $63,415,
   $76,098, $91,318, $109,581 and $131,497.

Table: Sales Forecast


Sales Forecast
                                  2010         2011          2012        2013         2014
Sales
Apartment Rentals               $63,415      $76,098       $91,318    $109,581    $131,497

Total Sales                     $63,415      $76,098       $91,318    $109,581    $131,497




                                           Page 10
[Name]                                                 XXX-XXX-XXXX
                                      [Company Name] 2010

   Chart: Sales Monthly




   Chart: Sales by Year




                          Page 11
[Name]                              XXX-XXX-XXXX
                                                              [Company Name] 2010

6.5 Milestones

    In order to achieve the growth and marketing goals that have been outline in this business
    plan, [Company Name]has deadlines to meet and ideas to implement. Some of these are
    outlined below:

    1. Obtain grant funding in the amount of $1,200,000 to improve business
    2. Do remodeling/renovations as well as the installation of Energy Star material

Table: Milestones

Milestones

Milestone                         Budget           Manager
Obtain Grant Funding              $9,600   Richard Converse
Remodeling/Renovations        $1,200,000             [Name]
and Installation of Energy
Star Material

Totals                        $1,209,600

7.0 Management Summary

    The owners of [Company Name]are [Name]and [Name].

    [Name]owns 36 rentals (homes and apartment buildings). He also has 40 years of accounting
    experience. Mr. Converse designed, cut the lumber, and constructed the present 2 story office
    building. Mr. Converse previously operated Sawmill Operation and contracted farming services.
    He has owned rental properties since 1978, and he co-owns 9 rentals properties in Great Falls,
    MT with [Name]since April of 2005.

    [Name]is a general contractor, who specializes in building and remodeling. Mr. Brady is the
    owner of Brycon Corp. He has been a general contractor for 35 years and has done all types of
    construction including; roofing, new house, remodeling, commercial construction, design and
    drafting, concrete work, steel siding sales and installation, as well as miscellaneous specialty
    repair. Mr. Brady owns 27 rentals and also covers a four state region, doing in-store sales.

7.1 Personnel Plan

    [Name]and [Name]are the owners of [Company Name]. The small staff currently consists of the
    owners. Upon receipt of grant funding the owners will hire nine other workers to assist with the
    renovations and remodeling of the property. Additional personnel will be added as needed.

8.0 Financial Plan

    The current financial plan for [Company Name]is to obtain grant funding in the amount of
    $1,200,000. The grant will be used to do remodeling/renovations of the apartment buildings, as
    well as handle the installation of all the new Energy Star material.




                                              Page 12
[Name]                                                  XXX-XXX-XXXX
                                                            [Company Name] 2010

    The following sections of this plan will serve to describe [Company Name]'s financial plan in
    more detail:

            Important Assumptions
            Break-even Analysis
            Profit and Loss
            Cash Flow
            Balance Sheet
            Business Ratios

8.1 Important Assumptions

    The table below presents the assumptions used in the financial calculations of this
    grant plan. [Company Name]'s is a partnership LLC and is taxed accordingly. Insurance,
    utilities and all other expenses assume a 3% increase due to inflation & other cost variables.

8.2 Break-even Analysis

    For the break-even analysis, the monthly revenue needed to break-even is $3,593. The break-
    even analysis has been calculated on the "burn rate" of The Company. [Company Name]feels
    that this gives the investor a more accurate picture of the actual risk of the venture.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even                         $3,593

Assumptions:
Average Percent Variable Cost                         0%
Estimated Monthly Fixed Cost                       $3,593

    Chart: Break-even Analysis




                                             Page 13
[Name]                                                 XXX-XXX-XXXX
                                                             [Company Name] 2010

8.3 Projected Profit and Loss

    [Company Name]'s Pro Forma Profit and Loss statement was constructed from a conservative
    point-of-view, and is based in large part on past performance.

    The sales for 2010, 2011, 2012, 2013, and 2014 are $63,415, $76,098, $91,318,
    $109,581 and $131,497, respectively. The net profit for the same period is ($19,885),
    ($4,555), $10,646, $24,940 and $41,756, respectively. The percentages of the net profit sales
    for this period were -31.36%, -5.99%, 11.66%, 22.76% and 31.75%, respectively.

    The Company will be incorporating solar energy methods and implementing environmentally
    friendly procedures to help reduce its operating expenses. The miscellaneous expenses are
    20% of the operating cost.

Table: Profit and Loss

Pro Forma Profit and Loss
                                      2010          2011          2012         2013         2014
Sales                               $63,415       $76,098       $91,318    $109,581     $131,497
Direct Cost of Sales                     $0            $0            $0          $0           $0
Other Costs of Sales                     $0            $0            $0          $0           $0
Total Cost of Sales                      $0            $0            $0          $0           $0

Gross Margin                        $63,415        $76,098      $91,318    $109,581     $131,497
Gross Margin %                     100.00%        100.00%      100.00%     100.00%      100.00%


Expenses
Payroll                                  $0            $0            $0          $0            $0
Marketing/Promotion                   $300          $345          $397        $456          $525
Depreciation                             $0            $0            $0          $0            $0
Utilities                           $15,252       $15,557       $16,024     $16,504       $17,000
Property Taxes                       $1,860        $1,916        $1,973      $2,032        $2,093
Legal                                $6,396        $6,588        $6,786      $6,989        $7,199
Repairs                               $540          $610          $629        $647          $667
Insurance                            $6,084        $6,267        $6,455      $6,648        $6,848
Payroll Taxes                            $0            $0            $0          $0            $0
Other                               $12,683       $13,063       $13,455     $13,859       $14,275

Total Operating Expenses            $43,115       $44,346       $45,718     $47,137       $48,606

Profit Before Interest and Taxes    $20,300       $31,752       $45,600     $62,444       $82,892
EBITDA                              $20,300       $31,752       $45,600     $62,444       $82,892
 Interest Expense                   $40,185       $36,307       $30,391     $26,816       $23,240
 Taxes Incurred                          $0            $0        $4,563     $10,688       $17,895

Net Profit                         ($19,885)      ($4,555)      $10,646     $24,940       $41,756
Net Profit/Sales                    -31.36%        -5.99%       11.66%      22.76%        31.75%




                                               Page 14
[Name]                                                   XXX-XXX-XXXX
                                       [Company Name] 2010

   Chart: Profit Monthly




   Chart: Profit Yearly




                           Page 15
[Name]                               XXX-XXX-XXXX
                                             [Company Name] 2010

   Chart: Gross Margin Monthly




   Chart: Gross Margin Yearly




                                 Page 16
[Name]                                     XXX-XXX-XXXX
                                                             [Company Name] 2010

8.4 Projected Cash Flow

    [Company Name] has applied for a grant of $1,200,000. [Company Name]forecast that it
    will receive the grant during the first quarter of 2011. During this period, the Company will use
    the money to do remodeling/renovations of the apartment buildings as well as handle the
    installations of the Energy Star materials.

    The following table displays [Company Name]'s cash flow and the chart illustrates monthly cash
    flow in the first year. Monthly cash flow projections are also included in the appendix.

Table: Cash Flow

Pro Forma Cash Flow
                                      2010         2011          2012         2013          2014
Cash Received

Cash from Operations
Cash Sales                          $63,415     $76,098        $91,318     $109,581      $131,497
Subtotal Cash from Operations       $63,415     $76,098        $91,318     $109,581      $131,497

Additional Cash Received
Sales Tax, VAT, HST/GST                 $0           $0            $0            $0            $0
Received
New Current Borrowing               $50,000          $0            $0            $0            $0
New Other Liabilities (interest-         $0          $0            $0            $0            $0
free)
New Long-term Liabilities                $0           $0            $0           $0            $0
Sales of Other Current Assets            $0           $0            $0           $0            $0
Sales of Long-term Assets                $0           $0            $0           $0            $0
New Investment Received                  $0   $1,200,000            $0           $0            $0
Subtotal Cash Received             $113,415   $1,276,098       $91,318     $109,581      $131,497




                                               Page 17
[Name]                                                     XXX-XXX-XXXX
                                                           [Company Name] 2010

Table: Cash Flow (Continued)

Expenditures                        2010         2011           2012         2013          2014

Expenditures from Operations
Cash Spending                          $0          $0             $0           $0            $0
Bill Payments                     $76,512     $80,811        $80,670      $84,315       $89,322
Subtotal Spent on Operations      $76,512     $80,811        $80,670      $84,315       $89,322

Additional Cash Spent
Sales Tax, VAT, HST/GST               $0           $0             $0           $0            $0
Paid Out
Principal Repayment of                $0      $78,000             $0           $0            $0
Current Borrowing
Other Liabilities Principal           $0           $0             $0           $0            $0
Repayment
Long-term Liabilities Principal       $0      $51,078        $51,078      $51,078       $51,078
Repayment
Purchase Other Current                $0           $0             $0           $0            $0
Assets
Purchase Long-term Assets              $0          $0             $0           $0           $0
Dividends                              $0          $0             $0           $0           $0
Subtotal Cash Spent               $76,512    $209,889       $131,748     $135,393     $140,400

Net Cash Flow                     $36,903   $1,066,209      ($40,431)    ($25,812)      ($8,903)
Cash Balance                      $33,270   $1,099,479     $1,059,048   $1,033,236   $1,024,333

    Chart: Cash




                                             Page 18
[Name]                                                   XXX-XXX-XXXX
                                                           [Company Name] 2010

8.5 Projected Balance Sheet

    [Company Name]'s net worth is $246,782, $1,442,228, $1,452,874, $1,477,813 and
    $1,519,569 for 2010, 2011, 2012, 2013 and 2014, respectively.

Table: Balance Sheet

Pro Forma Balance Sheet
                                     2010          2011          2012         2013         2014
Assets

Current Assets
Cash                              $33,270    $1,099,479     $1,059,048   $1,033,236   $1,024,333
Other Current Assets                   $0            $0             $0           $0           $0
Total Current Assets              $33,270    $1,099,479     $1,059,048   $1,033,236   $1,024,333

Long-term Assets
Long-term Assets                   $61,642      $61,642        $61,642      $61,642      $61,642
Accumulated Depreciation        ($747,438)   ($747,438)     ($747,438)   ($747,438)   ($747,438)
Total Long-term Assets            $809,080     $809,080       $809,080     $809,080     $809,080
Total Assets                      $842,350   $1,908,559     $1,868,128   $1,842,316   $1,833,413

Liabilities and Capital              2010          2011          2012         2013         2014

Current Liabilities
Accounts Payable                   $6,787        $6,629        $6,631       $6,957       $7,376
Current Borrowing                 $78,000            $0            $0           $0           $0
Other Current Liabilities              $0            $0            $0           $0           $0
Subtotal Current Liabilities      $84,787        $6,629        $6,631       $6,957       $7,376

Long-term Liabilities            $510,780      $459,702      $408,624     $357,546     $306,468
Total Liabilities                $595,567      $466,331      $415,255     $364,503     $313,844

Paid-in Capital                      $330    $1,200,330     $1,200,330   $1,200,330   $1,200,330
Retained Earnings                $266,337     $246,452       $241,898      $252,544    $277,483
Earnings                         ($19,885)      ($4,555)       $10,646      $24,940      $41,756
Total Capital                    $246,782    $1,442,228     $1,452,874   $1,477,813   $1,519,569
Total Liabilities and Capital    $842,350    $1,908,559     $1,868,128   $1,842,316   $1,833,413

Net Worth                        $246,782    $1,442,228     $1,452,874   $1,477,813   $1,519,569




                                             Page 19
[Name]                                                 XXX-XXX-XXXX
                                                           [Company Name] 2010

8.6 Business Ratios

    The table below presents the projected business ratios from the real estate industry services as
    a reference with sales less than $500,000.

Table: Ratios

Ratio Analysis
                                  2010         2011        2012        2013        2014      Industry
                                                                                               Profile
Sales Growth                    31.99%      20.00%      20.00%      20.00%      20.00%        -8.02%

Percent of Total Assets
Other Current Assets             0.00%       0.00%        0.00%      0.00%       0.00%       68.41%
Total Current Assets             0.13%      56.18%       53.87%     51.91%      50.35%       72.28%
Long-term Assets                99.87%      43.82%       46.13%     48.09%      49.65%       27.72%
Total Assets                   100.00%     100.00%      100.00%    100.00%     100.00%      100.00%

Current Liabilities             10.81%       1.67%       1.42%       1.13%       0.85%       25.86%
Long-term Liabilities          124.80%      51.11%      49.96%      48.08%      45.50%       38.66%
Total Liabilities              135.61%      52.78%      51.38%      49.21%      46.35%       64.52%
Net Worth                      -35.61%      47.22%      48.62%      50.79%      53.65%       35.48%

Percent of Sales
Sales                          100.00%     100.00%      100.00%    100.00%     100.00%      100.00%
Gross Margin                   100.00%     100.00%      100.00%    100.00%     100.00%       83.91%
Selling, General &             186.58%     152.10%      121.04%     98.28%      84.99%       39.35%
Administrative Expenses
Advertising Expenses             0.47%       0.45%       0.43%       0.42%       0.40%        3.80%
Profit Before Interest and      32.01%      41.73%      49.94%      56.98%      63.04%       11.77%
Taxes

Main Ratios
Current                            0.01       33.56       37.96       45.84       59.51         1.99
Quick                              0.01       33.56       37.96       45.84       59.51         1.99
Total Debt to Total Assets     135.61%      52.78%      51.38%      49.21%      46.35%       64.52%
Pre-tax Return on Net Worth     19.03%      -4.55%      -2.25%       0.31%       3.22%      194.91%
Pre-tax Return on Assets        -6.78%      -2.15%      -1.10%       0.16%       1.73%       69.16%




                                              Page 20
[Name]                                                  XXX-XXX-XXXX
                                                          [Company Name] 2010

Table: Ratios (Continued)

Additional Ratios                2010         2011        2012        2013       2014
Net Profit Margin             -86.58%      -52.10%     -21.04%      1.72%      15.01%          n.a
Return on Equity                0.00%       -4.55%      -2.25%      0.22%       2.26%          n.a

Activity Ratios
Accounts Payable Turnover        12.31       12.17        12.17       12.17      12.17         n.a
Payment Days                        27          30           31          30         29         n.a
Total Asset Turnover              0.08        0.04         0.05        0.07       0.08         n.a

Debt Ratios
Debt to Net Worth                 0.00         1.12        1.06        0.97       0.86         n.a
Current Liab. to Liab.            0.08         0.03        0.03        0.02       0.02         n.a

Liquidity Ratios
Net Working Capital          ($86,536)   $1,006,417    $919,802   $854,280    $806,609         n.a
Interest Coverage                 0.27         0.44        0.70       1.04        1.52         n.a

Additional Ratios
Assets to Sales                  12.78       24.26        19.21       15.35      12.39         n.a
Current Debt/Total Assets         11%          2%           1%          1%         1%          n.a
Acid Test                         0.01       33.56        37.96       45.84      59.51         n.a
Sales/Net Worth                   0.00        0.09         0.11        0.13       0.15         n.a
Dividend Payout                   0.00        0.00         0.00        0.00       0.00         n.a


8.7 Long-term Plan

    [Company Name]'s long-term goals consist of paying off its previous debt as well as continuing
    to upgrade and remodel the apartment units. The Company also plans to install energy star
    material to the apartment units to make the building more environmentally friendly.
    Additionally, [Company Name]will increase the number of units it owns as well as reduce the
    monthly rent.




                                             Page 21
[Name]                                                 XXX-XXX-XXXX
                                                      Appendix

Table: Sales Forecast


Sales Forecast
                          Jan      Feb      Mar      Apr      May      Jun       Jul     Aug      Sep      Oct      Nov       Dec
Sales
Apartment Rentals       $5,000   $5,050   $5,100   $5,151   $5,203   $5,255   $5,308   $5,361   $5,415   $5,469   $5,524    $5,579

Total Sales             $5,000   $5,050   $5,100   $5,151   $5,203   $5,255   $5,308   $5,361   $5,415   $5,469   $5,524    $5,579




                                                                                                                           Page 1
                                                                               Appendix

Table: Profit and Loss

Pro Forma Profit and Loss
                                       Jan        Feb        Mar        Apr        May         Jun         Jul       Aug        Sep        Oct        Nov        Dec
Sales                               $5,000     $5,050     $5,100     $5,151      $5,203     $5,255     $5,308     $5,361     $5,415     $5,469     $5,524     $5,579
Direct Cost of Sales                    $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Other Costs of Sales                    $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Total Cost of Sales                     $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0

Gross Margin                         $5,000     $5,050     $5,100     $5,151      $5,203     $5,255     $5,308     $5,361     $5,415     $5,469     $5,524     $5,579
Gross Margin %                     100.00%    100.00%    100.00%    100.00%     100.00%    100.00%    100.00%    100.00%    100.00%    100.00%    100.00%    100.00%


Expenses
Payroll                                 $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Marketing/Promotion                    $25        $25        $25        $25         $25        $25        $25        $25        $25        $25        $25        $25
Depreciation                            $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Utilities                           $1,271     $1,271     $1,271     $1,271      $1,271     $1,271     $1,271     $1,271     $1,271     $1,271     $1,271     $1,271
Property Taxes                        $155       $155       $155       $155        $155       $155       $155       $155       $155       $155       $155       $155
Legal                                 $533       $533       $533       $533        $533       $533       $533       $533       $533       $533       $533       $533
Repairs                                $45        $45        $45        $45         $45        $45        $45        $45        $45        $45        $45        $45
Insurance                             $507       $507       $507       $507        $507       $507       $507       $507       $507       $507       $507       $507
Payroll Taxes                15%        $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Other                        20%    $1,000     $1,010     $1,020     $1,030      $1,041     $1,051     $1,062     $1,072     $1,083     $1,094     $1,105     $1,116

Total Operating                     $3,536     $3,546     $3,556     $3,566      $3,577     $3,587     $3,598     $3,608     $3,619     $3,630     $3,641     $3,652
Expenses

Profit Before Interest and          $1,464     $1,504     $1,544     $1,585      $1,626     $1,668     $1,710     $1,753     $1,796     $1,839     $1,883     $1,927
Taxes
EBITDA                              $1,464     $1,504     $1,544     $1,585      $1,626     $1,668     $1,710     $1,753     $1,796     $1,839     $1,883     $1,927
 Interest Expense                   $3,120     $3,370     $3,370     $3,370      $3,370     $3,370     $3,370     $3,370     $3,370     $3,370     $3,370     $3,370
 Taxes Incurred                         $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0

Net Profit                         ($1,656)   ($1,866)   ($1,826)   ($1,785)    ($1,743)   ($1,702)   ($1,659)   ($1,617)   ($1,574)   ($1,530)   ($1,486)   ($1,442)
Net Profit/Sales                   -33.11%    -36.94%    -35.80%    -34.65%     -33.50%    -32.38%    -31.26%    -30.16%    -29.06%    -27.98%    -26.91%    -25.85%




                                                                                                                                                             Page 2
                                                                          Appendix

Table: Cash Flow

Pro Forma Cash Flow
                                             Jan       Feb      Mar      Apr      May       Jun       Jul     Aug      Sep      Oct      Nov       Dec
Cash Received

Cash from Operations
Cash Sales                                 $5,000    $5,050   $5,100   $5,151   $5,203    $5,255   $5,308   $5,361   $5,415   $5,469   $5,524    $5,579
Subtotal Cash from Operations              $5,000    $5,050   $5,100   $5,151   $5,203    $5,255   $5,308   $5,361   $5,415   $5,469   $5,524    $5,579

Additional Cash Received
Sales Tax, VAT, HST/GST            0.00%      $0        $0       $0       $0         $0      $0       $0       $0       $0       $0       $0        $0
Received
New Current Borrowing                         $0    $50,000      $0       $0         $0      $0       $0       $0       $0       $0       $0        $0
New Other Liabilities (interest-              $0         $0      $0       $0         $0      $0       $0       $0       $0       $0       $0        $0
free)
New Long-term Liabilities                      $0        $0       $0       $0       $0        $0       $0       $0       $0       $0       $0        $0
Sales of Other Current Assets                  $0        $0       $0       $0       $0        $0       $0       $0       $0       $0       $0        $0
Sales of Long-term Assets                      $0        $0       $0       $0       $0        $0       $0       $0       $0       $0       $0        $0
New Investment Received                        $0        $0       $0       $0       $0        $0       $0       $0       $0       $0       $0        $0
Subtotal Cash Received                     $5,000   $55,050   $5,100   $5,151   $5,203    $5,255   $5,308   $5,361   $5,415   $5,469   $5,524    $5,579




                                                                                                                                                Page 3
                                                                    Appendix

Table: Cash Flow (Continued)

Expenditures                        Jan       Feb        Mar        Apr       May         Jun        Jul       Aug         Sep        Oct       Nov         Dec

Expenditures from Operations
Cash Spending                        $0         $0        $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Bill Payments                      $222     $6,664    $6,916     $6,926     $6,936     $6,946     $6,957     $6,968     $6,978     $6,989     $7,000     $7,011
Subtotal Spent on Operations       $222     $6,664    $6,916     $6,926     $6,936     $6,946     $6,957     $6,968     $6,978     $6,989     $7,000     $7,011

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid         $0        $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Out
Principal Repayment of Current       $0        $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Borrowing
Other Liabilities Principal          $0        $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Repayment
Long-term Liabilities Principal      $0        $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Repayment
Purchase Other Current Assets        $0         $0        $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Purchase Long-term Assets            $0         $0        $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Dividends                            $0         $0        $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Subtotal Cash Spent                $222     $6,664    $6,916     $6,926     $6,936     $6,946     $6,957     $6,968     $6,978     $6,989     $7,000     $7,011

Net Cash Flow                     $4,778   $48,386   ($1,816)   ($1,775)   ($1,733)   ($1,691)   ($1,649)   ($1,607)   ($1,563)   ($1,520)   ($1,476)   ($1,432)
Cash Balance                      $1,145   $49,531   $47,715    $45,940    $44,207    $42,516    $40,867    $39,260    $37,697    $36,177    $34,701    $33,270




                                                                                                                                                        Page 4
                                                                                      Appendix

Table: Balance Sheet

Pro Forma Balance Sheet
                                      Jan          Feb          Mar          Apr          May          Jun           Jul         Aug          Sep          Oct          Nov          Dec
Assets            Starting
                  Balances

Current Assets
Cash                 ($3,633)      $1,145      $49,531      $47,715      $45,940      $44,207      $42,516      $40,867      $39,260      $37,697      $36,177      $34,701      $33,270
Other Current              $0          $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0
Assets
Total Current        ($3,633)      $1,145      $49,531      $47,715      $45,940      $44,207      $42,516      $40,867      $39,260      $37,697      $36,177      $34,701      $33,270
Assets

Long-term
Assets
Long-term            $61,642      $61,642      $61,642      $61,642      $61,642      $61,642      $61,642      $61,642      $61,642      $61,642      $61,642      $61,642      $61,642
Assets
Accumulated       ($747,438)    ($747,438)   ($747,438)   ($747,438)   ($747,438)   ($747,438)   ($747,438)   ($747,438)   ($747,438)   ($747,438)   ($747,438)   ($747,438)   ($747,438)
Depreciation
Total Long-term     $809,080     $809,080     $809,080     $809,080     $809,080     $809,080     $809,080     $809,080     $809,080     $809,080     $809,080     $809,080     $809,080
Assets
Total Assets        $805,447     $810,225     $858,611     $856,795     $855,020     $853,287     $851,596     $849,947     $848,340     $846,777     $845,257     $843,781     $842,350




                                                                                                                                                                                Page 5
                                                                                  Appendix

Table: Balance Sheet (Continued)

Liabilities and Capital               Jan         Feb         Mar         Apr        May          Jun         Jul        Aug          Sep         Oct         Nov         Dec

Current
Liabilities
Accounts                   $0      $6,434      $6,685      $6,695      $6,705      $6,715      $6,725      $6,735      $6,745      $6,756      $6,766      $6,777      $6,787
Payable
Current               $28,000     $28,000     $78,000     $78,000     $78,000     $78,000     $78,000     $78,000     $78,000     $78,000     $78,000     $78,000     $78,000
Borrowing
Other Current              $0          $0          $0          $0          $0          $0          $0          $0          $0          $0          $0          $0          $0
Liabilities
Subtotal Current      $28,000     $34,434     $84,685     $84,695     $84,705     $84,715     $84,725     $84,735     $84,745     $84,756     $84,766     $84,777     $84,787
Liabilities

Long-term            $510,780    $510,780    $510,780    $510,780    $510,780    $510,780    $510,780    $510,780    $510,780    $510,780    $510,780    $510,780    $510,780
Liabilities
Total Liabilities    $538,780    $545,214    $595,465    $595,475    $595,485    $595,495    $595,505    $595,515    $595,525    $595,536    $595,546    $595,557    $595,567

Paid-in Capital          $330        $330        $330        $330        $330        $330        $330        $330        $330        $330        $330        $330        $330
Retained             $342,133    $266,337    $266,337    $266,337    $266,337    $266,337    $266,337    $266,337    $266,337    $266,337    $266,337    $266,337    $266,337
Earnings
Earnings             ($75,796)    ($1,656)    ($3,521)    ($5,347)    ($7,131)    ($8,875)   ($10,576)   ($12,235)   ($13,852)   ($15,426)   ($16,956)   ($18,442)   ($19,885)
Total Capital        $266,667    $265,011    $263,146    $261,320    $259,536    $257,792    $256,091    $254,432    $252,815    $251,241    $249,711    $248,225    $246,782
Total Liabilities    $805,447    $810,225    $858,611    $856,795    $855,020    $853,287    $851,596    $849,947    $848,340    $846,777    $845,257    $843,781    $842,350
and Capital

Net Worth            $266,667    $265,011    $263,146    $261,320    $259,536    $257,792    $256,091    $254,432    $252,815    $251,241    $249,711    $248,225    $246,782




                                                                                                                                                                     Page 6
                                                               Appendix


								
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