CRE underwriting consulting project- how much to charge?

I was wondering if anyone could provide guidance on pricing a consulting project involving underwriting and packaging a portfolio of ground up CRE development projects. I need to provide pricing for a multi-project commercial portfolio encompassing:
- Conducting all market research
- Develop underwriting models
- Creation of institutional-quality investment memos for each project

I would like to get a baseline price to charge per project. I've done this for deals I've sponsored and as an employee for development firms but not as a consultant. It's a lot of work and I want to make sure my price comes in competitive vs. what a large firm would charge. Thank you for your help!

Comments (5)

May 13, 2019

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  • More suggestions...

Fingers crossed that one of those helps you.

May 16, 2019

Don't do it myself but have thought about it and if I was, I think I'd be charging on the scale/complexity of the project. There would be a bit of a variance in prices between a market I am 100% familiar with, over a market that I'm only 75% familiar definition here being both asset class and geography. The higher price reflecting the time spent getting to terms with something a little more foreign to me. If I was a better person I'd charge the same amount and be happy with the additional knowledge gained through educating myself on the later market...but I'm not, so I'll take the money!

In my market the above would cost circa 20,000 - 30,000 from a larger firm, I'd probably do it for around 3,000 - 4,000. At the end of the day if someone is approaching a single consultant to do it then they do have budget on the brain. You could also break down your scope of service and apply a price to each; model 1,500, market research 750 etc. and let them have at it.

    • 1
May 22, 2019

Thanks for your input!

Jun 18, 2019

How much did you end up charging? I have a small developer asking me to build them a full model and memo templates for him.

Jun 18, 2019