How much should I charge? Freelance question

I worked in REPE for 14 years and recently started my own group with a few partners. While we really get off the ground and can fully sustain ourselves, we started to do freelance. What should we charge for a from scratch model, a full deck, and DD help… 

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Based on the most helpful WSO content, pricing for freelance work in Real Estate Private Equity (REPE) can vary depending on the complexity of the task, your expertise, and the market demand. Here’s a breakdown of what you might consider charging:

  1. From-Scratch Model:

    • For a fully customized underwriting or financial model, rates can range from $2,000 to $10,000+ depending on the complexity, level of detail, and the time required.
    • If the model includes advanced features like scenario analysis, sensitivity tables, or integration with other tools, you can charge on the higher end.
  2. Full Deck (e.g., Investment Memo or Pitch Deck):

    • A professional-grade deck tailored for investors or stakeholders can range from $1,500 to $5,000+.
    • The price depends on the depth of research, design quality, and whether you’re including detailed financials or market analysis.
  3. Due Diligence (DD) Support:

    • For DD assistance, hourly rates are common, ranging from $150 to $500/hour, depending on your expertise and the scope of work.
    • Alternatively, you could charge a flat fee for specific tasks, such as reviewing contracts, analyzing financials, or site visits, which could range from $5,000 to $20,000+ for larger projects.

Additional Tips:

  • Market Positioning: Highlight your 14 years of REPE experience to justify premium pricing. Clients value expertise and reliability.
  • Scope Clarity: Clearly define deliverables to avoid scope creep, especially for complex models or DD tasks.
  • Benchmarking: Research what other REPE professionals or boutique firms charge for similar services in your region.

If you’re just starting out, you might consider slightly lower rates to build a client base but ensure you don’t undervalue your expertise.

Sources: Real Estate Private Equity - Underwriting Template | Development | REPE | Credit |, Do you think it's justifiable to ask for 25% of the GP for being the fund raiser for the projects?, https://www.wallstreetoasis.com/forum/investment-banking/breaking-into-private-equity-from-banking?customgpt=1, Would I get hired after graduation?, Starting a Private Equity Fund/Firm

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

I mean... what kind of model?  Diligence for what?  The answer is probably "not much" since anyone who can't do that themselves and can't afford to hire someone to do it for them, probably also can't afford to pay much to outsource the work to a consultant.  Especially when generative AI feels like it's going to get people 75% of the way there.

You'd probably be better served offering to run an entire deal process, rather than these discrete parts

 
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I've done some freelance work and have some thoughts:

  1. you should charge as much as you can while still getting decent workflow.  For me I found this to typically land around $100/hour.  If you go much higher you won't get many offers.
  2. If you can, try to estimate how many hours a project will take a charge a flat fee instead.  You may sometimes end up under charging (i.e. you think it will take 10 hours so you set a flat fee of $1,000 but then it ends up taking 14 hours) but it makes everything way easier.  I hated having to turn a clock on and track minutes, feel like I have to be 100% focused while the clock is running, etc... It's a lot more chill to just work on a flat fee and get the work done when you can at whatever pace is comfortable.
  3. Freelance CRE work generally sucks.  If you find a quality client you enjoy working with, I'd be willing to charge a discounted rate for repeat work from them that actually feels meaningful.
 

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