Ground-Up Construction · Build & Sell
Untitled build
2,000 SF new construction · Build & Sell
Projected Profit
$29,934
5.0% margin on $600,000 sale
Return on Invested Cash
30.7%
28.3% simple annualized · 13-month project
Total Development Cost
$531,066
$266/SF all-in · on the 2,000 SF new build
Projected IRR
35.6%
time-weighted on monthly cash flows
Sources & Uses
75% land advance, $325,500 construction holdback, and a $30,000 interest reserve · Full Dutch interest — accrues on the entire note, including undrawn construction funds, from day one.
Sources
| Land advance (75%) | $67,500 |
| Construction holdback | $325,500 |
| Interest reserve | $30,000 |
| Financed points + fees | $10,460 |
| Contractual note | $433,460 |
| Total equity contributed | $97,606 |
Uses
| Land + closing | $93,000 |
| Soft costs | $45,000 |
| Hard costs + contingency (5%) | $325,500 |
| Points (2.0%) | $8,460 |
| Lender fees | $2,000 |
| Interest ($30,000 reserve-funded · $19,306 cash) | $49,306 |
| Carrying costs | $7,800 |
| Total development cost | $531,066 |
Construction Timeline
10 months of construction plus 3 months of marketing and sale. Hover for month-by-month detail.
Where the Money Goes
Equity & Loan by Month
Cumulative equity inLoan drawn
Sale & Profit
Disposition
| Expected sale price | $600,000 |
| Commission + seller closing | − $39,000 |
| Loan payoff | − $433,460 |
| Net sale proceeds | $127,540 |
Profit Reconciliation
| Net sale proceeds | $127,540 |
| Total equity contributed | − $97,606 |
| Project profit | $29,934 |
| Peak cumulative equity | $97,606 |
13-Month Schedule
| Month | Build spend | Draw | Interest | From reserve | Cash interest | Carrying | Equity out | Loan drawn |
|---|---|---|---|---|---|---|---|---|
| M1 | $32,550 | $32,550 | $3,793 | $3,793 | $0 | $600 | $600 | $114,303 |
| M2 | $32,550 | $32,550 | $3,793 | $3,793 | $0 | $600 | $600 | $150,646 |
| M3 | $32,550 | $32,550 | $3,793 | $3,793 | $0 | $600 | $600 | $186,988 |
| M4 | $32,550 | $32,550 | $3,793 | $3,793 | $0 | $600 | $600 | $223,331 |
| M5 | $32,550 | $32,550 | $3,793 | $3,793 | $0 | $600 | $600 | $259,674 |
| M6 | $32,550 | $32,550 | $3,793 | $3,793 | $0 | $600 | $600 | $296,017 |
| M7 | $32,550 | $32,550 | $3,793 | $3,793 | $0 | $600 | $600 | $332,359 |
| M8 | $32,550 | $32,550 | $3,793 | $3,451 | $342 | $600 | $942 | $368,360 |
| M9 | $32,550 | $32,550 | $3,793 | $0 | $3,793 | $600 | $4,393 | $400,910 |
| M10 | $32,550 | $32,550 | $3,793 | $0 | $3,793 | $600 | $4,393 | $433,460 |
| M11 | $0 | $0 | $3,793 | $0 | $3,793 | $600 | $4,393 | $433,460 |
| M12 | $0 | $0 | $3,793 | $0 | $3,793 | $600 | $4,393 | $433,460 |
| M13 | $0 | $0 | $3,793 | $0 | $3,793 | $600 | $4,393 | $433,460 |
Monthly figures are rounded to whole dollars for display; totals elsewhere in this report are computed on unrounded values, so sums of this table may differ by a few dollars.