Design-build and pro forma

Both pages start from the estimate. Turn them on under Also work out in the left column.

The design fee #

Both pages carry a design fee. When either is on, the left column shows Design fee:

• Type it, or
• click Link a Fees estimate from this project… and pick one. Cost reads that estimate's proposal total and locks the box. When the Fees estimate changes, Cost says so and offers Update from source; nothing changes by itself. Unlink (keep the copy) keeps the number and unlocks it. Your estimate has to be in a project first.

Design-build #

The Design-build tab prices the whole contract:

• Construction cost basis: Low, Mid, High or Actual (the owner's budget; with none typed, the mid).
• General conditions, Contingency, Overhead, Profit and Bonds & insurance: percents. Each is added on top of the running subtotal, in that order.

The top shows the Contract price, the Construction price, the Design fee and Your gross margin (fee, overhead and profit). Where the contract goes breaks the contract price into its parts.

Pro forma #

The Pro forma tab runs the project month by month from the construction start. It works for ground-up development and for buying, renovating and selling. The top shows Profit, IRR (equity), Total cost and Cash required (what goes in before the loan, with the loan and its peak).

Costs:

• Land / purchase price and Closing & acquisition (a percent of the price).
• Hard cost from the estimate (Low, Mid, High or Actual), or type it in …or type it.
• Other soft costs: a percent of hard cost, for permits, consultants and legal.
• Design fee in soft costs: tick Include to add the design fee.
• Monthly carry: taxes, insurance, utilities and the like.

Schedule, loan and exit:

• Construction and Lease-up / sale, in months.
• Draws: S-curve or Straight, how spending spreads over construction.
• Loan-to-cost and Loan fee. Your cash goes in first, then the loan.
• Exit: Sale price (or the after-repair value), or NOI ÷ cap rate with Stabilized NOI and Cap rate.
• Selling costs: a percent of the value at exit.

Interest is added to the loan balance each month, and the loan is paid off at the exit.

Interest rate path #

The loan's rate follows an index you expect to move, plus a spread:

• Index: its name, like fed funds.
• Spread: points over the index.
• The table: a Date and an Index % per point; Loan % is the index plus the spread. Between points the rate moves in a straight line.
• + Point adds a point. Fed projections fills the path with the Federal Reserve's published rate and projections as of a fixed date.

Those defaults go out of date. The card links to the current published rates: check them and type them in.

Draws and the loan balance charts the spending and the loan balance; open Month by month for the table.

The pro forma is a planning estimate. Check it with your lender and accountant before you rely on it.

Related #

• The estimate
• Cost overview
• Fees overview