Real Estate Development Proposal Sample

A real estate development proposal is a document prepared by a real estate developer or real estate company for the client who is interested in or is seeking such services. In this document, the developer presents all the relevant details, including the design of the project, feasibility, associated risks and challenges, duration, costs, expected inflation rates, etc.

When companies are interested in business ventures, they might want to outsource the development of their projects to the real estate developers, who can turn their idea into the actual property or a reality. For instance, an investment company may want to build a shopping mall but would search for an expert developer that can design and construct their project as per their demands.

To gain contracts from such companies, a real estate development company prepares a proposal and tries to use it as their marketing tool to get their proposal accepted. As this is a critical document, a developer would pay extra heed to its preparation and should consider that:

The proposal should be formal and needs to be prepared on the lines of comprehensiveness and professionalism.
The proposal should indicate that the developer company understands the needs and wants of the client properly.
The company should show that their strengths match the client’s requirements.
The company’s competitive advantage, skills, expertise, and experience should be emphasized.
Any misleading and incorrect information should be avoided.
The associated risks should be stated and the client should be informed about the probability of unforeseen circumstances as well.
The estimated costs need to be feasible and competitive.
The duration, as well as the timelines of milestones, need to be presented.
The services that would be provided should be clearly stated to avoid any confusions.
An attractive cover page would ensure the going through of the whole document by the client.
The terms and conditions should be practical.

A developer company prepares the proposal from scratch or uses an available template and customizes it as per its needs. The details that are to be included are based on what the company wants to include as well as what the client wants to know. Therefore, a customized proposal is prepared for every client with varying details. However, in all the proposals, the general details remain the same, which are:

Executive summary/introduction.
Company profile.
Service details, such as design services, feasibility, technologies employed, duration, risks, challenges, costs, inflation, government sanctions, material availability, unforeseen circumstances, etc.
Benefits to the client.
The competitive edge of the company.
Experience and expertise.
Costs and pricing structure.
Persuasive statements.
Terms and conditions.

If the client finds the proposal feasible, it would accept it and sign the contract to enjoy the services. However, if the proposal gets rejected, the developer company has to suffer, as proposal making is a costly process and all the time and resources invested in the preparation would be wasted.

Sample Proposal Template

Executive Summary

The ABC properties are glad to submit the proposal to XYZ Enterprises Limited for the development of a multistory movie theater. This real estate development will take place in the CDE community of Atlanta, Georgia. The selected land consists of 2 acres which would be developed into a state-of-the-art facility, having multiple movie halls, casual dining areas, lifts, and lavatories.

Company

ABC properties offer a combination of local and international expertise. It is one of America’s leading luxury real estate development companies since 2001. Over the years, the company has successfully delivered numerous residential, commercial, and leisure properties throughout the country. ABC properties have built 12 state-of-the-art movie theaters in the USA, to date.

Services

Our company provides the most comprehensive real estate services, including Procuring licenses and approvals, Construction and Development, Residential and Commercial Sales, Property management and Rentals, Mortgage Services, Appraisals, and Relocations.

Proposal for XYZ Enterprises Limited

Overview

Movie Theaters need inviting design and enjoyable facilities to attract the target audience. ABC properties will provide an unforgettable viewing experience with large 4K screens to view high-quality movies. The local community has shown great interest and support for a cinema, which provides further opportunities to meet their entertainment needs. Our mission is to offer our customers relaxed and comfortable entertainment near their homes.

Location Analysis

A detailed feasibility study has been conducted. The site is located at a prime location; adjacent properties include a Mall, Bowling alley, Park, and various restaurants. The closest movie theater is located 40 miles away from the community, which makes it difficult for the local residents to travel frequently because of the travel cost and time. Therefore, our project will provide an everyday entertainment facility for all the residents of the CDE community at walking distance.

Risk Assessment

The risk assessment report shows that the economic profile of this community is very lucrative and suitable for such a facility. The building is expected to break even within the first 2 years, which makes this a highly sustainable and profitable project.

Timeline

The whole project will be delivered within 6 months, starting from the approval date until the handover of the complete facility. The key milestones of the project delivery are as follows:

First milestone: Securing permits and government approvals.
Second milestone: Ground Breaking and constructing the horizontal infrastructure.
Third milestone: Reviewing midway construction and Alterations (If Any).
Fourth milestone: Resuming construction. Rebuilding if any changes are required.
Fifth milestone: Testing of the facilities and completing the project.
Sixth milestone: Grand Opening and handing over the project.

Cost

Permits and Government Approvals -$30,000/-
Construction Materials -$150,000/-
Labor/Construction Cost -$200,000/-
Test and Completion approval -10,000/-

Total Cost: $390,000/-