Actual Second Financial Model
Our previous post discussed that we would need to develop a second model that more accurately described this real estate investment after we had received a revised design and more accurate contractor pricing. Our initial model was flat out wrong. Our bankers were willing to finance the increased investment. Was the risk […]
Our contractor did a good job pricing this new preliminary design discussed in our last post. He provided us with a 31 page estimate with the detail we needed to fully analyze this pricing. We couldn’t afford to get this wrong and have to go back to the bank a third time.
The Numbers
The contractor’s estimate […]
Meeting with the Bank
From our previous post on this development you will recall that we just found out we couldn’t build the building we wanted and keep it close to our 3,200 SF we had in our initial financial model. We decided that the first step in figuring out whether to build the bigger building […]
I remember when I landed my first job out of college. It was a good job with good pay. I thought I had it made. I was living away from my family in another state. Christmas was coming and I didn’t have any extra money for gifts and I just thought I would go down […]
Financial Plans Required
You always need to have a firm plan in place before you start a real estate development or investment. It is too easy to find out about a “great” deal and get committed before you actually run the numbers. You must know what you actually need to do to make a deal successful. […]
