Brad Tatum A product of Fahad Bin-Rashid The Nathan WoodUNIVERSITY OF NORTH TEX...
UNIVERSITY OF NORTH TEXAS 4yr program Evolution of Huntsville  Rated 17st best city f...
UNIVERSITY OF NORTH TEXAS 4yr program Housing Market Forecast Forecasted Dem...
UNIVERSITY OF NORTH TEXAS 4yr program Land Development 8.7 ...
UNIVERSITY OF NORTH TEXAS 4yr program Land Development
UNIVERSITY OF NORTH TEXAS 4yr program Land Development
UNIVERSITY OF NORTH TEXAS 4yr program Analyzing Our Target Market ...
UNIVERSITY OF NORTH TEXAS 4yr program Matching Model to Market ...
UNIVERSITY OF NORTH TEXAS 4yr program Meadowbrook Home Models ...
UNIVERSITY OF NORTH TEXAS 4yr program Denco Process 1. Home tour 2....
UNIVERSITY OF NORTH TEXAS 4yr program Marketing  Total Budget: $83,650  Lo...
UNIVERSITY OF NORTH TEXAS 4yr program Price Comparison ...
UNIVERSITY OF NORTH TEXAS 4yr program Project Management  Weekly Mee...
UNIVERSITY OF NORTH TEXAS 4yr program Benefits of Green Building
UNIVERSITY OF NORTH TEXAS 4yr program Benefits of Green Building
UNIVERSITY OF NORTH TEXAS 4yr program Achieving the Gold Standard
UNIVERSITY OF NORTH TEXAS 4yr program Green Building Cost per Square Foot ...
UNIVERSITY OF NORTH TEXAS 4yr program Financial Analysis $1,000,000.00 ...
UNIVERSITY OF NORTH TEXAS 4yr program Financial Analysis Continued ...
UNIVERSITY OF NORTH TEXAS 4yr program Alternative Cash Flow Scenarios ...
UNIVERSITY OF NORTH TEXAS 4yr program Investing with Denco  Investment Requ...
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2012 NAHB RCMC Presentation

As a team we presented our findings to a group of capital investors who reviewed our written project proposal and presentation to determine the viability of our proposed project.
Published on: Mar 3, 2016
Source: www.slideshare.net


Transcripts - 2012 NAHB RCMC Presentation

  • 1. Brad Tatum A product of Fahad Bin-Rashid The Nathan WoodUNIVERSITY OF NORTH TEXAS David Olsen Construction Engineering Nikhil Mannan 4yr program David Keane
  • 2. UNIVERSITY OF NORTH TEXAS 4yr program Evolution of Huntsville  Rated 17st best city for doing  Technology Driven business by Forbes (2011)  Rich historical roots  Rated12th best city job growth  Southern tradition by Forbes (2011)  Adapt to the changing society
  • 3. UNIVERSITY OF NORTH TEXAS 4yr program Housing Market Forecast Forecasted Demand  Homes spend an average of 120 Population 223034 days on market Population 2015 250053  Median housing prices increases New Citizens 27019 2.64% Vacant Houses 5507 Houses in Demand 7720  High Construction Earning New Houses in Demand 2213 Home # by Denco 32 Percent Market Share 1.45% Avg. Household Size 3.5
  • 4. UNIVERSITY OF NORTH TEXAS 4yr program Land Development 8.7 14.5
  • 5. UNIVERSITY OF NORTH TEXAS 4yr program Land Development
  • 6. UNIVERSITY OF NORTH TEXAS 4yr program Land Development
  • 7. UNIVERSITY OF NORTH TEXAS 4yr program Analyzing Our Target Market Double Income No Kids  70% Homeowners  60% Married  25% High Wage Earners Married Age 30-45 Married with Married with Younger Children Older Children Expected Salary Range Low High Double Income No Kids $120,000 $160,000 Married with Younger Children $110,000 $150,000 Married with Older Children $120,000 $170,000
  • 8. UNIVERSITY OF NORTH TEXAS 4yr program Matching Model to Market Double Income No Kids Mattison Lafayette Lafayette Fairfield Belmont Mattison Fairfield Married With Huntington Married With Younger Older Children Children Belmont Huntington
  • 9. UNIVERSITY OF NORTH TEXAS 4yr program Meadowbrook Home Models Mattison Denco Models Lowest Highest Square Footage 1950 3750 Sales Price $388,530 $538,388 Fairfield Lafayette Huntington Belmont
  • 10. UNIVERSITY OF NORTH TEXAS 4yr program Denco Process 1. Home tour 2. Design and create your floor plan 3. Budgeting and cost evaluation 4. 3-dimensional rendering 5. Financing 6. Completing the paperwork 7. Construction 8. Move-in
  • 11. UNIVERSITY OF NORTH TEXAS 4yr program Marketing  Total Budget: $83,650  Local Magazines and Newspapers  Design Consultant  Rural Lifestyle
  • 12. UNIVERSITY OF NORTH TEXAS 4yr program Price Comparison Competitor Pricing Name Low Cost High Cost Denco Homes $388,530 $537,388 Steve Steele $300,000 $580,000 Pearson Homes $230,000 $340,000 Heritage Homes $190,000 $550,000 Mick Harris Homes $150,000 $375,000
  • 13. UNIVERSITY OF NORTH TEXAS 4yr program Project Management  Weekly Meetings  Online Monitoring  Design Consultant  Safety on the Jobsite
  • 14. UNIVERSITY OF NORTH TEXAS 4yr program Benefits of Green Building
  • 15. UNIVERSITY OF NORTH TEXAS 4yr program Benefits of Green Building
  • 16. UNIVERSITY OF NORTH TEXAS 4yr program Achieving the Gold Standard
  • 17. UNIVERSITY OF NORTH TEXAS 4yr program Green Building Cost per Square Foot Cost per Green Square Foot of All Buildings $0/GSF $100/GSF $200/GSF $300/GSF
  • 18. UNIVERSITY OF NORTH TEXAS 4yr program Financial Analysis $1,000,000.00 Conservative Net Income $500,000.00 $- $(500,000.00) $(1,000,000.00) $(1,500,000.00) $(2,000,000.00) PHASE I PHASE II PHASE III PHASE IV $(2,500,000.00) 8 Months 4 Months 5 Months 7 Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Phase I: Investment borne by owner ($3,663,000) Phase II: Future expenses for Phase II paid for by revenues made from this phase and 36% of Initial Investment Paid Phase III: Final 7 months pay remaining 64% + Denco IV: Land Development Creates Additional Expense Home Fee + Return on Investment
  • 19. UNIVERSITY OF NORTH TEXAS 4yr program Financial Analysis Continued Conservative Cash Flow Analysis $2,000,000 $1,000,000 $- $(1,000,000) $(2,000,000) $(3,000,000) $(4,000,000) 1 4 7 10 13 16 19 22 Months • Return for Investor: $915,750 • Positive Cash Flow 21 Months • Percent for ROI: 25%
  • 20. UNIVERSITY OF NORTH TEXAS 4yr program Alternative Cash Flow Scenarios Best: Cumulative Revenues (-) Expenses $4,000,000 $3,000,000 Positive Cash Flow Month 19 $2,000,000 $1,000,000 $- ROI: 35% $(1,000,000) $(2,000,000) $(3,000,000) ROI for Investor: $ 1,282,000 $(4,000,000) Months Ultra Conservative: Cumulative Revenues (-) Expenses $1,000,000 Positive Cash Flow Month 23 $500,000 $- $(500,000) ROI: 18% $(1,000,000) $(1,500,000) $(2,000,000) ROI for Investor: $ 672,000 $(2,500,000) $(3,000,000) $(3,500,000) $(4,000,000) Months
  • 21. UNIVERSITY OF NORTH TEXAS 4yr program Investing with Denco  Investment Requires $3,663,000  Establishment of Denco Meadowbrook  Start Date April, 2012

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