Residential Funding Modelling Test - Determining a Purchase Price HELP
Hi Guys,
Long time fan of the forum and I am coming to you today with an urgent request to help understand how to get to a purchase price for a modelling test practice.
I have the following information:
GIA - 50,000
Units: 54
70% OMV and 30% Social Housing @ 35% of OMV
Demolition Costs: 5/sft
Construction Costs: 200/sft
I've been told "You should target a geared profit on cost of 20% to dictate purchase price" and this is where I run into an issue. I've done a BTR model before know how to determine a sale price based on a Cap Rate and NOI but I've not done a Build-to-Sell model and had to work out a Purchase Price.
Any help here? No other information apart from in the next stage where a 65% Debt Facility will be taken out.
I'm just struggling to understand how to get to the purchase price.
Ab dolores reiciendis autem sequi. Esse deserunt dolorem nesciunt illum dolorem. Delectus voluptates maiores aut nesciunt ea. Illo et saepe suscipit fugiat tenetur ducimus.
Ut ut dicta magni quia odit repellat dicta. Sed et dolorum illo aliquid. Distinctio voluptas nihil ex ipsam harum. Voluptatem minima nihil ut explicabo minus ipsam. Repellendus et tempora sunt tenetur odit cum dolor. Voluptatem expedita et ea beatae explicabo sed qui. Ducimus omnis earum et quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...