As discussed in a previous post, the development we were building in has its own dedicated sales team. It made sense to have them represent us for a number of reasons:
They ran both a national and regional advertising campaign
They typically showed all available properties to potential customers no matter how them became interested in the […]
With the decision to move forward with this real estate development, we quickly pushed the start of construction. The site was cleared, the septic system installed, foundations placed and framing started. Here’s some photos of the actual construction:
Foundation Wall from the Lake
Aerial Photo of Foundation Walls
Framing Underway
Other than a number of framing issues because of the […]
Revised Financial Model
Our last post walked through our revised financial model. In running the numbers, we had a dilemma. The highest priced spec luxury home sold to date on this lake went for $1,700,000. In our latest financial model, we would have over $1.9 million in costs! The model we put together had us selling […]
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 […]
In a previous post, we discussed how all of the conceptual floor plans were around 4,500 SF, which greatly exceeded our initial financial model which was based upon 3,200 SF of heated space. We had made some changes to various room sizes and layouts and had sent the architect back to clean up the drawings […]
