Urban Residential Developer Needs A Better Investment Model
Active real estate developers of two-unit family homes in the northeast US. Projects include long-term holds, ground-up builds, and significant remodels.
The client was requesting a re-usable underwriting model to accommodate (1) development and hold, (2) development and sale and (3) purchase and holds of residential single-family and duplex properties.
The client was an experienced real estate professional who understood his business and had an existing “back of the envelope” model that was used for analyzing deals. However, the model lacked the necessary functionality needed to better implement industry standards and best-practices.
Pink Lion LLC utilzied a “ready-made” Multifamily / Apartment Model and it was quickly re-purposed to suite the clients need, with moderate revisions.
In under one week, the client had an institutional-quality model that utilized best practices and may be used to consistently underwrite their real estate investment business. The model was in a recognizable format, MS Excel, that required no additional technical or proprietary knowledge. As a percent of project costs and business overhead; the solution is an amazing value.