don’t forget to add to the cost (i.e. reduce your profit number) the following:
Permits
school fees
architecture
engineering
carry/interest costs of capital
sale commissions (i.e. sale staff/office)
marketing
corporate overhead
Now it appears they will do great, however, people in general seem to overestimate the net takehome margin of projects…its a lot more costly than we all think.
You can also thank most of that extra cost of permits, school fees, etc to government intervention as well.
