Other Liabilities 0 0 0 Total Liabilities 1200000 1500000 2200000 Equity

Other liabilities 0 0 0 total liabilities 1200000

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Other Liabilities $0 $0 $0 Total Liabilities $1,200,000 $1,500,000 $2,200,000 Equity $2,077,000 $2,081,000 $1,777,000
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: 17 2019 2020 2021 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 Total Assets Total Liabilities Equity Conclusion This business plan will be used to fully satisfy the objectives of the New Home real-estate investment concerning the business of real estates. The fact that it is a start-up company it will employ the projected income for the two principals. It is also aiming at providing cheaper rental services to the clients that are mainly students from the University of Houston as well as from other institutions where our apartments are located. With the calculations on the finances, we are expecting cash return interest rate that is ranging from 5%-7%. The organization will provide 24- hour customer service whenever any client is in need of help. We are also expecting to outdo our competitors due to the services that we are planning to provide to our clients such as conducive living environment and internet access in their living units. The firm will also ensure that the lives of the renters are taken care of whenever there is an emergency. This will be done by providing an ambulance to every apartment. Appendices a) Start-up
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: 18 Requirements Start-up Expenses Legal Architect cost Stationeries Brochures Consultants Insurance Rent Construction Equipment Others $6,000 $3,000 $300 $300 $2,000 $1,300 $1,500 $350,000 $1,000 $800 Total start-up expenses $366,200 Start-up Assets Needed Opening valuation Other assets Total current assets $3,500,000 $50,000 $3,550,000 Long term assets $410,000 Total requirements $3,960,000 Funding Investment Partners Silent investors $700,000 $300,000 Total Investment $1,000,000 Current liabilities Account payable Current borrowing Other current liabilities $2,000 $1,200 $0 current liabilities $3,200 Long term liabilities $1,200,000 Total liabilities $1,203,200
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: 19 Loss at start-up $12,000 Total capital $633800 Total capital and liabilities $1,837,000 a Personnel plan Personnel plan 2019 2020 2021 CFO CEO Administration Manager Brokerage Manager Development Manager Others $17,000 $17,000 $12,000 $14,000 $15,500 $90,000 $21,000 $21,000 $13,400 $17,000 $19,500 $185,000 $27,000 $27,000 $18,000 $21,000 $23,500 $430,000 Total People 180 1600 3000 Total Payroll $165,500 $276,900 $546,500 a) a Assumptions General assumptions 2019 2020 2021 Plan Month Current Interest Rates Long-term Interest Rates Tax Rate Others 1 12% 8% 21% 0% 2 12% 8% 21% 0% 3 12% 8% 21% 0% Calculated Totals New account payable $823,961 $1,372,085 $3,027,921 a Sources of fund Finance for first property
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: 20 Equity contribution Management investment $430,000 Total equity financing $430,000 Banks and Lenders Banks and Lenders $1,720,000 Total Debt $1,720,000 Total financing $2,150,000 b) a Profit and Loss Statements Profit and Loss Statements Proforma Year 2019 2020 2021 Revenue $15,000 $52,800 $89,772 Operating income $15,000 $52,800 $89,772 Operating Expenses Payrolls $0 $0 Insurance $150 $1,200 $2,100 Utilities $80 $500 $1,500 HOA $400 $2,000 $4,000 Property taxes $900 $7,000 $13,000 Professional fees $300 $1,800 $3,000 Maint allowances $800 $2,800 $5,000 Leasing comm. $500 $3,200 $6,200 P&I $4,000 $20,000 $56,000 Total Expenses $7,130 $38,500 $90,800
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: 21 EBITDA $700 $5,800 $12,000 Federal Taxes $100 $1,000 $1,200 State Taxes $12 $150 $200 Net Income $588 $4,650 $10,600 Profit margin 5% 6% 6.5% Cash-on-Cash Return of $80,000 0.3% 4.2% 6.0%
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