All Forum Posts by: Michael Arnold

Thanks Jay Hinrichs. By chance, can you point me anywhere where I can find a download/excel format deal sheet template that I can use with a hard money source showing all the calcs/totals on one sheet that is clean looking? 

You really think that is the norm to charge 13% and 3 points on a 400K loan over 8 months? I'd be curious to hear what others have seen for rates on a deal like this. Those terms would make more sense on fix and flip or BRRRR.

I see where you're going, and don't disagree. Everything gets better if the net profit is 15%+, but that's not something I want to guarantee. How much do you think I need to contribute? How could I sweeten the deal for the cash provider?  

I have a potential hard money cash provider to fund the acquisition of land and fund new construction build. I'm a licensed GC and would handle everything project/construction related. Site selection, estimating/detailed budgeting, all labor/material/soft costs are an open book with no markup/GC fee, and i own all site management from groundbreaking to closing.

- Total cost of these projects would range between $390k-$550K. Projects will take 5-7.5 months to complete.

I assume a conservative net profit at closing between 13% and 15%. A home run between 15% and 20% and, if above 20%, a grand slam (as long as the market holds).

Is it fair to assume 50/50 split of net profit at closing? How would you structure this deal? The goal is to try and do 2-3 of these projects/year.

I'm reading some responses that seem pretty dumb. You funded the spec build, and GC agreed to a cost + % fee arrangement. You took all the risk, and he profits no matter what because it cost + % fee. So now YOU close your deal and do very well, which should be the goal for everyone involved so you can repeat the process/deal. ...but GC is sour because you made a bunch of net profit????, which is the entire point of building a spec! good grief. Pigs get fat; hogs go to slaughter. 

I'm curious if any of you have a spec home construction cost and profit calculator that you would recommend? 

There are tons of BRRR calculators. You're right that one could probably be modified to align with the hard money deal structure. I fear something will go wrong if I try to do that myself. I hope to find someone with the document/excel calc sheet for this. I get that all calculators need to be vetted. The nice thing about excel is you can check all the formulas.

I'm struggling to find a good deal sheet calculator that I can use with my hard money lender. I have found many websites, but they are for fix and flix situations or a calc sheet to get approved/join their lending services. I would like to find an Excel sheet calculator to use with my hard money cash provider to review the metrics of a deal and something we can both contribute to reviewing the calculations and terms. I looked over this forum but did not find what I was looking for. I would really appreciate help/resources on this topic. If i can't find an Excel calculation template, I would still love to find a good website that specializes in hard money calculators for BRRRR. Google seems to be saturated with websites trying to get you to join their lending program (hard to trust).

You already knew the answer to this. Builder doesn’t give a crap about your development strategy. It’s all the same amount of work for builder along with labor and materials (you know this). Your margin later doesn’t matter to him now.

Sure you could try and negotiate a lower fee for repeat business but you’re not there right now.