Development Inputs
Land Costs
Land costs refer to the expenses associated with acquiring the land for a development project. When creating a development budget, it is crucial to account for the purchase price or acquisition cost of the land.
Hard Costs
Hard costs refer to the direct expenses associated with the construction or physical development of a project. These costs typically include materials, labor, equipment, and other tangible elements required to complete the construction process. Hard costs are a crucial component of the development budget and are carefully estimated to determine the total project cost and evaluate the financial feasibility of the development.
Soft Costs
Soft costs refer to the indirect expenses associated with a development project that are not directly tied to the physical construction or materials. These costs are typically incurred during the pre-construction and post-construction phases and are necessary for the successful completion of the project.
Financing Costs
There are several other financing costs that may be included in the development budget during the underwriting process. These costs can vary depending on the specific circumstances of the project and the financing arrangements. Here are some other financing costs to consider:
- Loan Fees
- Appraisal Costs
- Credit Report Fees
- Survey Costs
- Title Insurance
- Escrow and Closing Agent Fees
- Prepayment Penalties
- Guarantor Fees
- Tax-Related Costs
- Construction Loan Administration Fees
Properties
Within the U-Rite, Land Costs, Hard Costs, Soft Costs and Other Financing Costs all possess following columns:
| Name | Options | Description |
|---|---|---|
| Name | Enter the name of development cost entry. | |
| Method | Amount/Unit Amount % of Line | Enter the method. Click here to learn more about development cost methods. |
| Unit | Enter unit area. Unit Profile can be used. | |
| Amount | Enter an amount. | |
| Forecast Method | Straight S-Curve | Choose a forecast method. Click here to learn more about forecast methods. |
| Slope | Flat Moderately Flat Moderate Moderately Steep Steep | Choose a slope. Click here to learn more about slopes. |
| Alignment | Enter a % amount for the entry. | |
| Date Method | Month Date | Chose either a Month or a Date as the start and end date inputs of the entry. |
Term
| Name | Options | Description |
|---|---|---|
| Start Month | Enter the analysis start month. | |
| Start Date | Enter a start date in YYYY-MM format. | |
| Duration (mo) | Enter a duration in months. | |
| End Month | Enter an analysis end month. | |
| End Date | Enter an end date in YYYY-MM format. |
Actuals
The Actuals fields will appear based on the total development period duration.
| Name | Options | Description |
|---|---|---|
| Actual Method | Amount Percent | Select the actuals method. |
| Month (mo) | Enter your actuals amount in the selected method for each month. |