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APPENDIX
Estimated
Retail Price Period 1 Period 2 Period 3 Totals
INCOME
Number of lots sold $170,000.00 38 37 37 112
Gross proceeds from lot sales Appreciation rate =12% $6,460,000.00 $7,044,800.00 $7,890,176.00 $2 1,394,976.00
EXPENSES
Cost to complete roads 2,350,000.00 1,880,000.00 470,000.00 2,350,000.00
Sewer lift/pump station cost 820,000.00 820,000.00 820,000.00
Real estate taxes (per lot) 500.00 56,000.00 37,000.00 18,500.00 111,500.00
Legal expenses/closing costs (per lot) 700.00 26,600.00 25,900.00 25,900.00 78,400.00
Engineering (per lot) 1,500.00 57,000.00 55,500.00 55,500.00 168,000.00
Marketing 5.00% 323,000.00 352,240.00 394,508.80 1,069,748.80
Total expenses 3,162,600.00 940,640.00 494,408.80 4,597,648.80
Development proceeds 3,297,400.00 6,104,160.00 7,395,767.20 16,797,327.20
Developer's overhead and profit 15.00% 969,000.00 1,056,720.00 1,183,526.40 3,209,246.40
Net development proceeds 2,328,400.00 5,047,440.00 6,212,240.80 13,588,080.80
Present worth of net proceeds 11.00% 2,328,400.00 4,096,613.35 4,542,334.56 10,967,347.91
Rounded total $10,970,000.00
Note: In Period 1 no adjustments are made for appreciation or
discount value; these two factors nearly cancel each other out,
and it is difficult to determine precisely when in this period
sales would occur or income would be received.
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