The Meadows Townhome project, Boynton Beach, FL:
Dorine,
If you are able to have Jim funded $800,000.00 on or before May 31, 2008, your investor shall be given a first mortgage on the property at an interest rate of 20% and the interest shall accrue until paid off. In addition, if that investor shall either qualify and sign for a construction loan or personally fund the construction it its entirety they will receive a 40% equity/profit participation in the project. The 20% interest to your investor along with 10% interest to Jim's group on the $1,000,000.00 plus documented dollars in the deal to date shall both be treated as preferred returns. After the equity and loans are repaid to all parties the remaining profits shall be split 60/40. Proforma attached.
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MEADOWS-34 UNITS |
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5/8/2008 RG Draft |
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LAND |
$ 1,350,000.00 |
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SOFT COSTS |
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PERMITS |
$ - |
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ARCHITECT & ENGINEERING |
$ 100,000.00 |
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INSURANCE: |
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FLOOD |
$ 3,300.00 |
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LIABILITY |
$ 13,000.00 |
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BUILDERS RISK |
$ 95,000.00 |
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TOTAL |
$ 111,300.00 |
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CLOSING COSTS |
$ 50,000.00 |
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LEGAL FEES |
$ 10,000.00 |
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ADVERTISING & PROMOTION |
$ 50,000.00 |
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CONTINGENCY |
$ 50,000.00 |
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DEVELOPERS FEE 2% |
$ 100,000.00 |
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INTEREST RESERVE |
$ 400,000.00 |
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TOTAL SOFT COSTS |
$ 871,300.00 |
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HARD COSTS |
$ 5,880,000.00 |
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TOTAL COSTS |
$ 8,101,300.00 |
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SELLOUT |
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56000 @ 175 |
$ 9,800,000.00 |
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LESS: COMMISSION @ 7% |
$ (686,000.00) |
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SALES SUBTOTAL |
$ 9,114,000.00 |
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NET PROFIT |
$ 1,012,700.00 |
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PROFIT PERCENTAGE |
12.50% |
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Best regards,
Dorine Wollangk
RE/MAX Partners
4301 N. Federal Hwy.
Lighthouse Point, FL. 33064
0) 954-784-5200
F) 954-784-5237
C) 561-350-3838
EFax 954-337-3786
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