Conservative underwriting. Cited assumptions. Real numbers.
| Uses of Funds | Amount |
|---|---|
| Land Acquisition | $408,000 |
| Hard Costs (Construction) | $2,238,600 |
| Soft Costs (A/E, Legal, Permits) | $426,000 |
| Financing Costs | $140,100 |
| Developer Fees | $184,465 |
| Contingency (5%) | $133,230 |
| Total Project Cost | $3,530,395 |
Sources: MAXX Builders 2025-2026, JDJ Consulting, City of Buda Fee Schedule
| Line Item | Base ($16/sf) | Adjusted ($17.50) |
|---|---|---|
| Gross Potential Rent | $230,400 | $252,000 |
| Less: Vacancy (5%) | ($11,520) | ($12,600) |
| Effective Gross Income | $218,880 | $239,400 |
| Less: Operating Expenses | ($28,944) | ($28,944) |
| Net Operating Income | $189,936 | $210,456 |
| Less: Debt Service | ($184,092) | ($169,902) |
| Cash Flow After Debt | $5,844 | $40,554 |
Investors are paid first. The sponsor only participates in profits after investors receive their capital back plus an 8% annual preferred return.
| Scenario | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Conservative ($15.50/sf) | ($84K) | ($1.4K) | $4,700 | $10,800 | $17,100 |
| Base Case ($16/sf) | ($89K) | $5,844 | $11,542 | $17,411 | $23,456 |
| Adjusted ($17.50/sf) | ($65K) | $40,554 | $46,868 | $53,371 | $60,069 |
Year 1 reflects 6-month lease-up period. 3% annual rent escalation, 2% expense growth.
| Metric | Conservative | Base | Aggressive |
|---|---|---|---|
| Starting Rent (NNN) | $15.50/sf | $16.00/sf | $18.50/sf |
| Vacancy Assumption | 7% | 5% | 3% |
| Exit Cap Rate | 7.5% | 7.0% | 6.5% |
| Equity Multiple | 1.55x | 1.77x | 2.25x |
| Estimated IRR | ~9% | ~12% | ~18% |
This financial summary is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any such offer will only be made pursuant to a Private Placement Memorandum (PPM) and related subscription documents. Investment involves risk, including the potential loss of principal. Past performance is not indicative of future results. Projected returns are estimates based on current market conditions and assumptions that may not materialize. Prospective investors should consult with their own legal, tax, and financial advisors before making any investment decision.