Land subdivision financial model

Hi All,

I’m looking at a land subdivision, purchase price $1.5m, to do a 20 lot subdivision and sell the lots car, GRV around $5m, will source about 65% from a private lender. Will use a project manager for much of the work.

i want to put together a financial model that I can do a sensitivity analysis from and really stress test all the variables. Would anyone know a good course, source or service provider that could help me with this? Happy to pay money for it, particularly if it’s something I can learn and use again.

 

A top down, Excel hypos are not that hard to make, if you have developed in that past or know the figures off hand.
Estate master, you can purchase a license, but I have found the software very sensitive and prefer an Excel top down as I can make variables along the way.. golden rule with Estate master is 'GIGO'... Garbage in garbage out.. Referring to any garbage data you put in, will result in garbage data output giving miscalculations..

 

Estate master is pretty amazing, but its a learning curve and quite expensive.

I used to use excel, which was great until i wanted to make offers under different acquisition methods, with different funding options, stage the subdivisions, account for the time value of money etc. In the end i was chopping and changing the spreadsheet to much and it was taking to much time. So i bit the bullet and got estate master. Its fantastic. But as @Thomacino said, its only good if you put in the correct numbers. There are a lot of costs in land development. A project manager is a very good idea, and they can help build your feasibility.

 

Which State are you in?

 

I’m in Sydney but have been looking at sites in Melbourne