How much would you charge for doing pro forma model for others
One of my friends who is a broker reached out to me and ask me to do a pro forma model for her condo development deal (potentially more deals). I have 5 years experience in RE (development and asset management) and am capable of doing it. The question is should I charge by fixed rate? by hour? by number of units? Could anyone has similar experience share a market price range or how much would make it worth for your time to do it? Thank you!
Bunp
Appraisals are typically charged at a fixed amount, with the fee being based on the complexity of the assignment, turnaround time, etc. Since youre only doing a pro forma and not a full report, property inspection, zoning analysis, etc, you'd probably have to charge less than an appraisal.
Charge on a per hour basis if you are unsure of how much time it will take. If you know approx. how man hours, just calculate your fixed fee based on what your hourly rate should be, keeping in mind ability to pay.
Set your rate hourly, that way if they keep asking for small changes you can bill it. One way you may want to think of it is, well if I have 5 years of experience and make $150,000 per year, that’s $72 per hour on a 40 hour work week. But you’re a consultant so you can prob get a premium here. So set your rate a bit higher. But make it so they can’t just keep asking for more without paying you. Fixed fee can be brutal.
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