Palisades Development Comparison: Lot Sale vs Joint Venture Program

Project Parameters

Enter your lot's details and see estimated returns for selling your Lot vs the Joint Venture Program!

days
square feet
$per square foot
$per square foot
House Size × Sale Price per sq ft
House Size × Build Cost per sq ft
Transaction Costs (Fixed)
Listing Commission: 2.0% of sale
Buyer's Commission: 2.0% of sale
Carrying Cost Rates
Interest Rate: 10% per year
Insurance: 1.0% per year
Property Tax: 1.25% per year

Note: This analysis assumes both scenarios result in a completed home sale. Actual returns may vary based on market conditions and construction timeline.

Lot Sale

Revenue Breakdown

Resale Price: $6,000,000

Deductions

Listing Agent Commission: ($120,000)
Buyers' Agent Commission: ($120,000)
Escrow/Title: ($24,000)
Transfer Taxes: ($60,000)
Renovation Budget: ($2,400,000)
Carrying Cost - Interest Expense: ($333,333)
Carrying Cost - Insurance: ($33,333)
Carrying Cost - Property Tax: ($41,667)
Developer Profit Margin (25%): ($1,500,000)
What you would net selling to investor:

JV Program

Revenue Breakdown

Resale Price: $6,000,000

Deductions

Listing Agent Commission: ($120,000)
Buyers' Agent Commission: ($120,000)
Escrow/Title: ($24,000)
Transfer Taxes: ($60,000)
Renovation Budget: ($2,400,000)
Carrying Cost - Interest Expense: ($333,333)
Carrying Cost - Insurance: ($33,333)
Carrying Cost - Property Tax: ($41,667)
JV Participation Profit (10%): ($600,000)
What you would net with JV program: $0

Using the Joint Venture Program, you could net more than selling your lot as-is to a developer.

If you're interested and want to learn more, click here!

Disclaimer: This program calculator is for discussion and understanding purposes only. All figures within are only estimates and are subject to change without notice. » Terms and conditions apply. Not all properties will qualify. This is not a commitment to purchase or sell your property. » This disclaimer does not constitute legal or financial advice; consult a qualified professional for guidance specific to your situation.