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REFHW_7Fall2007 - Real Estate Finance Homework#7 Land...

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05/07/2009 Real Estate Finance Homework #6 File: REFHW#7Fall2007 Real Estate Finance Homework #7 - Land Development Financing Schedule 1 - Summary of Assumptions Acreage 80acres Timing Construction period 12months Absorption period 5years Sales Assumtions Average sales price per acre $100,000 per acre Selling cost 3%gross sales revenues Land Absorption Schedule: Acres Sold Year 2 15 Acres Sold Year 3 20 Acres Sold Year 4 20 Acres Sold Year 5 20 Acres Sold Year 6 5 Financing Land Value $8,000,000 Land Loan $5,600,000 max Loan per Acre $70,000 Loan Release price $94,500 Coverage factor 1.35 Interest rate Prime +1.5 % Prime 7.75% Margin 1.50% Rate 9.25% Costs Land value unimproved $40,000 per acre Site preparation costs $20,000 per acre Soft costs $8,000 per acre Land Acquisition Cost $30,000 Equity $800,000 funded up front
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05/07/2009 Real Estate Finance Homework #6 File: REFHW#7Fall2007 Real Estate Finance Homework #7 - Land Development Financing Schedule 2 - Interest Calculation and Capitalization Schedule (Land Loan) Construction Land Sales (Absorption) Totals Closing Q1 Q2 Q3 Q4 Year 2 Year 3 Year 4 Year 5
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