If the first real estate project taught me one thing - it was to be prepared. You have to be ready to pull the trigger immediately when you come across a good deal. That means having everything in place so you are ready to go. See one of my previous posts that discusses what this […]
The Offer
We received our first offer. Finally! The person found out about our property through one of our metropolitan area newspaper advertisements. The property was originally listed for $2.375 million. The offer came in at $2.1 million. This was an 11.6% discount from list. What would you do?
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We were nearing completion on the property and still hadn’t received an offer. This had us worried. The monthly carrying costs were approaching $11,000 per month! This was the highest priced lake home ever done on speculation on this lake. It was time to re-evaluate the asking price of $2.375 million dollars. If we had […]
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 […]
