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EXPLAIN HOW TO FIND 8,000 FROM THE SOLUTION. THANK YOU! INFO GIVEN- Building size: 90,000 square feet. Land Costs 3,000,000; Total Hard Costs 9,000,000; Soft
EXPLAIN HOW TO FIND 8,000 FROM THE SOLUTION. THANK YOU!
INFO GIVEN- Building size: 90,000 square feet. Land Costs 3,000,000; Total Hard Costs 9,000,000; Soft Costs 1,500,000; Developer Fee is 6% of hard costs; Equity Return 14%. Construction Loan Amount 8,000,000
What is the total project cost, including return to equity? 13,500,000+ 0.14*(13,500,000-8,000) = 14,270,000
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