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Willow Creek Park 45
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DescriptionTotalComments
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Equity Contribution
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Lot Cost $ 24,667.00
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Soft Costs per townhome $ 4,650.00
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Infrastructure Costs per townhome $ 21,965.00
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Amenities Costs per townhome $ 5,000.00
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Equity Investors' Contribution per Townhome $ 56,282.00
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Total Number of Townhomes45
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Total Equity Investors' Contribution for Townhomes $ 2,532,690.00
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Construction Financing
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Construction Cost per townhome $ 159,790.00 1,350+ sq ft 3 br, 2.5 baths
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Interest $ 10,000.00 *Interest is estimated. Dependent on financing terms
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Construction Loan w/ Interest $ 169,790.00
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Estimated Appraised Value $ 295,000.00
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Construction Loan LTV57.56%
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Estimated Project Profits
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Lot Cost per townhome $ 24,667.00
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Soft Cost, Infrastructure Cost & Amenities per townhome $ 31,615.00
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Construction Cost w/ interest per townhome $ 169,790.00
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Total Expenses per townhome $ 226,072.00
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Townhome Sales Price $ 295,000.00
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3% RE Commission (1% list, 2% buyer average)3%
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RE Commission Cost $ 8,850.00
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Profit Per Townhome (before partners' 14% interest earnings) $ 60,078.00
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Total Number of Townhomes45
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Net proceeds from all townhome sales $ 2,703,510.00
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Less: Equity Partners' Interest Earned from Contribution $ 758,793.92 Partners' 14% annual interest earnings
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Grand Total: Net Profit for Entire Project $ 1,944,716.08
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Total Number of Townhomes45
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Total Profit Per Townhome $ 43,215.91
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Return on Investment
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Total Profits to Equity Partners40%
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Total Contribution Required from Equity Partners $ 2,532,690
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Partner's Contribution $ 100,000 Input amount partner is investing
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Partner's Percentage of Contribution3.9%
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Partner's Percentage of Total Project's Net Profits1.5793%(Partner's total ownership in the company)
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Partner's Profit Share before accrued interest earnings $ 30,713.84
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Plus: Partner's 14% Annual Accrued Interest $ 29,960.00 14% guaranteed interest annually, 24 months total
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Partner's Net Profit on Investment $ 60,673.84
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Total Partner's Earnings and Principal Returned from Project: $ 160,673.84
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Translated Annual Interest Rate30.34%Partner's principal, interest, and profit share will be returned within 24 months
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14% Interest Calculator:
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Equity Investors' Contribution $ 2,532,690.00
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Guaranteed Interest Rate (aside from profit sharing)14%
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Compounding Periods Per Year1
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Project Time (years)2.00
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End Value of Investment on initial 14% interest rate only $ 3,291,483.92
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Total Interest Earned with 14% interest after 24 months $ 758,793.92
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