Land subdivision financial model

Discussion in 'Development' started by Mgs4, 23rd Dec, 2019.

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  1. Mgs4

    Mgs4 Active Member

    Joined:
    11th Jul, 2015
    Posts:
    25
    Location:
    Sydney
    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.
     
  2. Thomacino

    Thomacino Well-Known Member

    Joined:
    9th Nov, 2018
    Posts:
    172
    Location:
    NSW - Sydney
    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..
     
    lixas4 and ellejay like this.
  3. lixas4

    lixas4 Well-Known Member

    Joined:
    24th Jan, 2016
    Posts:
    624
    Location:
    Melbourne
    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.
     
    Last edited: 23rd Dec, 2019
    ellejay likes this.
  4. MattMc

    MattMc Member

    Joined:
    20th Feb, 2018
    Posts:
    24
    Location:
    Brisbane, QLD
    Which State are you in?
     
  5. Mgs4

    Mgs4 Active Member

    Joined:
    11th Jul, 2015
    Posts:
    25
    Location:
    Sydney
    I’m in Sydney but have been looking at sites in Melbourne
     

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