Craft Your Real Estate Invoice Template for Planning with Ease

Real estate invoice template for Planning

if you're looking to create a set of financial projections for a real estate agency whether it's a startup or an existing agency that you're looking to expand and you need some projections maybe for potential investors or lenders or just really for internal cash flow planning then you've come to the right place because we have built a financial projection spreadsheet template built specifically for real estate broker Jes agencies and I'm going to walk you through how the template Works how to use it to to create a set of income statement cash flow and balance sheet projections for up to 5 years for your business so before I jump into the template just a little bit background my name is Adam HMA I'm the co-founder of projection hub and over the last decade we've helped thousands of entrepreneurs create Financial projections for all sorts of different Industries and today we're specifically focused on this real estate industry and I'm going to put a link to the template in the description of the video below so you can go grab the template and follow along there and then of course if you have any questions along the way just leave a comment in the comment section we'll be sure to to help out all right with that let's go ahead and dive in okay so I'm starting on the add a glance tab here and uh what we want to see here is kind of a high level some key data points and summary data so you've got your profit and loss at a glance for the next five years you have some number a number of key data points like the average number of Realtors you have the total sales sales per realtor average purchase price of properties average realer commission per property and so on right so you're also going to get a income statement summary a 5-year income statement summary fiveyear cash flow summary a five-year balance sheet summary and then the income statement cash flow and balance sheet all broken down by month for each of the five years so you get that monthly level detail as well as the high level annualized numbers now in order to produce these reports though we have a little bit of work to do so we're going to go through our various input tabs here in blue so we're going to start with our input assumptions tab here and we're saying hey we're going to put in $25,000 of initial investment so let's assume this is kind of your initial personal investment that you put into the business and you can also set a starting cash balance for the start of the projections can put accounts receivable and accounts payable terms so this basically just means you get paid when the sale of the house happens right so you're not waiting to get paid later accounts payable this just means you're paying most of your bills or saying 80% of your bills you're paying in a month that the expense was incurred 20% with a one month delay now you could adjust this if for some reason you know you think you you have terms with your suppliers or agents or something where you have more of a delay on your expenses you could change those percentages there we also have the ability to and fixed assets so if you own perhaps you own your own office you could actually put in a building in this example we have leasehold improvements so we're kind of assuming you're renting an office and then have put in $60,000 worth of leasehold improvements here with a life expect expectancy of 10 years and we're going to spend $10,000 on furniture for the office here as well and then we are also assuming we're going to get a SBA loan to help us with with the business so 150,000 we probably better raise these interest rates much higher these days and so that's that's what we're going to do on the input assumptions tab now we're going to move over to the input Realtors tab now here you have the ability to input individual agents and you can put you know projected start date whether that's currently or in the past or I should say in the future or in the past a starting annual base salary the percent commission that the agent is going to get so you know your agency might get let's say 6% or 3% of a deal or you know whatever that might be and then this is what what percentage commission the agent is going to actually receive and then we also have a breakdown of what percentage of the leads that the agent is getting are buyers versus Sellers and then we can put in these number of referrals per month by year for each agent so this is kind of how many how many referrals or leads are they getting each month so then this will kind of give you that breakdown of the total buyer leads and total seller leads and we can actually then break that down this is in total but if you wanted to see this by agent you could see that by agent so we see this agent is not starting until month 9 2023 so September of 2023 so we see that when we selected agent two we have no leads for the first eight months but then in month nine we see those leads start to come in right so that's how that works and then we can just see some additional calculations here on then what the average commission rate the commissions paid out would be based on those assumptions and your if you plan to give a raise on the base salaries for those agents you can do that here and you also have your employer paid taxes and benefits here per realtor all right so let's go to our input Revenue tab now here is where we're going to going to work on the agency as a whole right so we're saying we're going to spend you know some amount on monthly ad spend to try to drive leads to the business the agency itself is paying for leads the agents individual agents might also be gting referrals of their own right so you have kind of leads from different sources here so we have these total paid leads but then o leads that are are coming directly from the agent Network and so then we can break down percentage of leads that are buyers vers sellers now we have our paid buyer leads and our agent buyer leads so again these are those leads that are coming from the agents referral Network that theyve built on their own right so that gives us our total number of leads and we'll say what percentage of buyer leads end up actually purchasing a home okay we've said that as 10% of our our leads in this particular month are going to end up actually closing the transaction with an average property price here of 600,000 and then the total commission earned and this is the the entire commission right so the agency might earn 3% and then have to pay out the agent's individual commission there as well right so on that example right we've got 105,000 in in commissions coming to the agency but then 70,000 of that is going to be paid up to the agents all right now on the seller side again we have have paid sellers total leads and conversion rate of leads into listings and then you know those listings actually being sold we can see the same calculations here right and and just to clarify we should say total number of listings sold and number of leads converted into sold listings because you're only going to get paid if it Sals right so just to clarify that all right so moving on to our input other expenses tab here we can put in just general operating expenses so things like accounting general liability insurance and rent and utilities various operating expenses for the business and then we'll have the ability to add in salary positions so this would be you know receptionist maybe for the office any back office admin you can add in this scaling labor here and what happens here is if we we need to expand this column just a little bit so basically as the business grows you may need to add additional employees so assistants or back office admin that you can start in future months here and then what you would do here is you'd say the maximum sales per month per employee so essentially what's going to happen is for every 20 transactions you'll add another realtor assistant for every 30 transactions you'll add another admin and so that's the way this is set up so it kind of automatically add in these these positions as the agency grows and you can set the number of sales per month per employee that you want to half here you don't have to use this section you could always just zero this out as well if if it's too complex for your situation and then this is where you can just enter in an owner draw so if you as the owner maybe not taking a salary but you want to take a some sort of owner draw have that reflected in the model you can do that here all right and so that brings us all the way back to where we started on our ad gland Tab and will give us the full picture here so you know this is what should hopefully be helpful to you as you're you're trying to raise Capital whether that's from lenders or investors these are the types of reports and the the performa financials that they're going to want to see so again if you have any need for customization or just help trying to get this filled out for your unique scenario don't hesitate to reach out to us at support projection hub.com we can try to help walk through that you can also leave a comment in the comment section of the video below and again we've put a link to this template in the description of the video below so you can go grab that there we'll also put a link to a form where you can fill the form out to get a discount on this particular template as a thank you for making it here to the end of the video so we appreciate that and hope you'll be able to take advantage of that all right I think that's all we've got for you today so if you have any questions just let us know thanks [Applause]