Edward check this spreadsheet out made by J Scott in the Filesplace:I use it to analyze all my deals.http://www.biggerpockets.com/files/user/JasonScott/file/20-sfh-rental-analysisHope that helps

They will need to work with the concept of economies to scale.

Hey Joe Edwards-Hoff - my first thought is that it might be really tough to refi the first house since you are underwater.

That said, certainly the document should touch on key concepts like investment, investment term and return expectations.

That developer is going to have his Civil Engineer look at it, and they will want to develop their own concept plan.

It's a purely purely financial concept applied to real estate.Example:You put up 5000$ to buy a 30 000$ property.

The issue to this concept, IMO, is that you are saying the business plan, which includes knowing the market and having a realistic plan, is better than knowing the numbers for the deal.

The concept of payment or performance is really simply.

I think you'll find being in the dealership business and having flipped a few cars is actually pretty good grounding for real estate concepts such as making money when you buy (right), flipping wholesale and retail deals and keeping on top of the market.

Great advice Edward Powell, Shirley Dufrenne, I'm looking forward to you negotiating and getting this one locked under contract.