Builder

“One Single Family”

A Version of Project Predict®

Builder,

If you have ever lost a job opportunity, it might have been turned down because the Lender was not familiar with your contractor’s statement or you were not aware of the Soft Costs attributed to a Construction Loan, or worse, the overall costs were not supportable by an Appraisal.

“One Single Family” A Version of Project Predict® is designed to assist you and provide a document in the form of a Pro Forma for presentation to the Lender and your Customer assuming the following:

A critical component of underwriting the Economics of a Construction Loan is the Appraised Project Value when completed and submitted by a qualified Appraiser. That Value or “Sellout” should never be artificially increased just to offset the Purchase Price or current market value of the Vacant Land/Structure along with the Hard and Soft expenses of the Project.

When using the Project Predict® version “One Single Family” the “Sellout” or Value of the Project when completed, once entered, is not modifiable during the process available to the user. All other line item values, except General and Administrative (G & A) and Indirect line items, are designed to allow individual change and recalculation and with multiple changes.

“One Single Family” is designed to quickly Underwrite the Economics of any proposed “Tear Down” of an existing single family residence or major improvements such as additions and interior and exterior improvements using industry accepted standards and percentages of the required categories.

Because most projects require financing from outside sources such as a Construction Lender, it is necessary to present to the Lender an accepted breakdown of all costs including Current Value, Common and Finish Hard Cost (direct), all Soft Costs, Term, (construction time) Loan to Cost, Loan to Value and the Exit Strategy.

HOW IT WORKS!

“One Single Family” Pro Forma is calculated by entering the Current Value of the Residence or Vacant Lot, the anticipated Appraised Value when completed, and the estimated number of months of construction.

The following is very important!

“One Single Family” Pro Forma is initially calculated without Equity in order to determine the viability of the project when financed 100%, including a Lenders Loan Fee and a Construction Loan Interest Rate. The purpose of this calculation is to determine if an acceptable margin or profit is achievable.

Equity is entered later to meet the Lender’s Policy regarding Loan to Cost and Loan to Value.

Project Predict®
Project Predict, Inc.

WELCOME TO “ONE SINGLE FAMILY”

THE CONTRACTORS COST AND LOAN REQUEST SOFTWARE

Project Predict® is a unique construction lending tool designed to underwrite the economics of construction loan opportunities for “One Single Family”… for a tear down, the expansion and rehabbing of an existing single family residence, or rehabbing a town house, duplex or a condo!

How it Works

This version of Project Predict® allows you to initiate underwriting the economics of any single unit construction loan opportunity by entering the following 3 values:

  • Purchase Price or Value of the Property
  • The Projected Value When Completed
  • Estimated Time of Construction in Months

 

Undoubtedly you have seen as many formatted economic presentations as there have been borrowers, but with the “One Single Family” version of Project Predict® you will document a Standardized Loan Presentation including the initial results (the budget) displayed by entering the 3 Values listed above.

Although this version of Project Predict® is a tremendous time saver, most important is the inclusiveness of the required projections of expenditures for Land/Vacant, Hard Costs (Direct) and Soft Costs.

Use Project Predict® and quickly determines a project’s feasibility and define the solutions when purchasing or bidding a job. Establish the equity you or your customer will require based on the display of Loan to Cost and Loan to Values in the Project Recap. Those Value percentages are based initially on 100% financing (without equity) including the percentage of profit. If the proposed project doesn’t project an acceptable profit @ 100% financed, equity and net worth are not the answer!

Note that the economic results displayed in the Pro Forma are based on Industry proven standards indicating, for example, if the Purchase Price is high based on the Land/Vacant and Hard Costs (direct). If so, a revised value in the Purchase Price will display an increase in the profit projecting the acceptance of the project if said reduction becomes is achievable.

The Pro Forma Display:

The following Line Items are displayed in the Pro Forma and noting the allowable changes.

Land and Improvements:
Equity Allowed
Value Change Allowed
Purchase Price or Value
X
X
Onsite Improvements
X
X
Offsite Improvements
X
X
Recaptures Expense
X
X

Hard Cost (Direct):
Common
X
X
Finish
X
X

Professional and Fees:
Architect
X
X
Building Permit
X
X
Survey
X
X
Impact Fees
X
X

Soft Cost:
Supervision
NO
X
G & A
NO
Auto Calculation
Indirect
NO
Auto Calculation
Condominium Assessment
NO
X
Marketing
NO
X
Insurance
NO
X
Real Estate Taxes
NO
X
Inspections
NO
X
Soil Test
NO
X
Environmental
NO
X
Legal
NO
X
Loan Fee
NO
X
Underwriting Fee
NO
X
Appraisal
NO
X

Additional Project Cost:

If necessary you can add Line Items such as a security fence or a security service. You have a choice of payment at Initial Funding or Divided and Disbursed Monthly.

Recapping Critical Information:

Sellout
Land %
Exit Strategy
Cost
Direct %
Sales Price
$
Margin
Professional/Fees %
Margin
$
Disbursed Loan
Soft %
Reduced Price
$
Loan to Cost
Interest as a of the Cost %
Equity
$
Loan to Value
Margin %
Net Reduced
$

Contractor, save time and effectively increase your business opportunities.

Project Predict® increases Professional Skill Levels for any user.