Introduction
My family in the last three years has been contemplating about entering into the property market business. As a result, we have been saving for purposes of developing a rental house so that we can increase our sources of income. Rental house business is one of the most profitable businesses in the country. Currently, my family is developing a four floor rental building. The rental house is under construction, and is expected to be completed in the next one year. The house has forty rooms and once is completed the constructor contracted by the family will hand over the building to use. The house will be managed by the family in terms of determining its occupants. The main target of our rental house will be families as the building is being developed in an area that is conducive for families to live.
Statement of Needs
The goal of any family is to have financial stability. In my family, we are three siblings. Currently, my father is almost nearing retirement while my mother is working at part-time jobs. The three of us are in college and the demand for meeting our college education, in terms of tuition fees, basic needs and accommodation has not been an easy thing for my family. The cost of education in the recent years has been on the rise, making families with more than two kids in college to struggle a lot in meeting their costs of education. Our family has not been left behind as my parents have been struggling to ensure that we complete education. The family total annual income is $ 60,000 and our annual expenses exceed the income by $20,000. In order to meet the deficit, my father has decided to develop one of his properties that he inherited from his parents three years ago.
The rental house business is expected to generate around $ 100,000 annually, and this will be a great boost to our family. Given that our dad is going to retire soon, the rental house business will generate alternative income for the family that will ensure that all family needs are met. In order to have a stable financial future for my siblings and me, the extra income generated from our business will be saved through mutual funds so that it can generate more income for the family.
Project Definition
My family is developing a rental house with four floors and forty rooms to be rented out to families with a need of a place to live. The rental house business is expected to help the family generate an extra income. The main goal of engaging in the business is to ensure that the family has a stable source of income in the future, so that all family financial needs can be met without struggling. In addition, the business will form the basis for the family to venture into other real estate projects in the future, such as building houses and selling them at a profit.
Approaches to Developing the Paper
One of the steps aimed at ensuring that our rental house business is fully developed is acquiring extra financing from a financial institution that will be repaid in the next five years. The loan will help in getting the funds needed to complete the building so that it can be marketed to the target customers. Secondly, the family will have to develop a management plan of how the business and finances generated from the business will be used, in terms of repaying the loan, saving and meeting other expenses associated with running the rental house business.
