All Forum Posts by: Kelley Smith

I am working with a builder on doing several Spec Homes in my area. I am looking for an excel template or software that I can use to track the deal. I can create a basic spreadsheet but I wasn't sure if anyone already had a template I could work off of. We are doing the deal 50/50. He's doing the work and I am buying the land and getting a construction loan thru my local banker. This is my first time doing this and I want to be as organized as possible. The builder is using quickbooks on his end with a detailed project tracking spreadsheet. I am looking for something to use on my end that could track the investment cost, loan costs and profit. 

Andrew - Thanks for the reply. He found the deal, and his wife, who is the real estate agent,  found the prospective buyers. The GC Fee just caught me off guard and I wanted to know the standard practice when it comes to this. When we talked about it, everything was 50/50, then this was added in the contract and he pointed it out to me. 

I will let him know that I expect the fee to come out of his profits when the deal closes. I am buying the lots and taking out the loan, he's doing the construction. We each have an equal share in the process, so 50/50 seems fair. We agreed to do open books so the deal was transparent throughout the whole process. 

I am working with a building friend of mine on building two spec homes on two lots in a highly desirable area. I have a quick question on the deal structure. I am going to purchase the land and my banker is going to loan me the construction costs to build the homes. We have the land under contract and we are doing our due diligence right now. When we first talked about the deal, we discussed it would be 50/50 partnership after all costs and fees were paid off to the bank, realtors, etc. We also have two interested buyers who are going over plans now and we expect to have them under contract before our due diligence period is over. When my friend, the builder, sent over the contract, I noticed in the contact a $10,000 developer fee to be drawn up to $2,000 per month during the construction period. When I asked him about it, he said it was a developer draw/fee. Is this a normal practice/fee? If so, is it fair to tell him that the $10,000 comes out of the 50% profit that he makes when we sell? We are working on an open book with regards to paying all subs, etc. 

I am working with a building friend of mine on building two spec homes on two lots in a highly desirable area. I have a quick question on the deal structure. I am going to purchase the land and my banker is going to loan me the construction costs to build the homes. We have the land under contract and we are doing our due diligence right now. When we first talked about the deal, we discussed it would be 50/50 partnership after all costs and fees were paid off to the bank, realtors, etc. We also have two interested buyers who are going over plans now and we expect to have them under contract before our due diligence period is over. When my friend, the builder, sent over the contract, I noticed in the contact a $10,000 developer fee to be drawn up to $2,000 per month during the construction period. When I asked him about it, he said it was a developer draw/fee. Is this a normal practice/fee? If so, is it fair to tell him that the $10,000 comes out of the 50% profit that he makes when we sell? We are working on an open book with regards to paying all subs, etc.