Cost Tracking & Projecting
There is a famous quote by business author Peter Drucker that states 'You can't manage what you don't measure.' Taking this saying to heart, I spent much of this past weekend channeling my inner accountant by creating and modifying a series spreadsheets dedicated to tracking all past and projected expenses as they relate to both the Oakley Home 2.0 @ 3874 Isabella project and Starter Home 2.0: Pleasant Ridge project. The primary reason for doing this exercise was that it provided me with accurate cost data to plug into the updated pro forma that I will be sharing with prospective construction lenders. This data includes both paid and deferred expenses (separate from the bank loan) that can be counted towards owner equity in the project, as well as projections for carrying cost during construction such as taxes, legal fees and construction loan interest payments based on adjustments to the SH2.0 Pleasant Ridge numbers for those items. Below is a screenshot showing a portion of the cost event log for the Site Acquisition and Pre-Development Phases of the Starter Home 2.0 Pleasant Ridge project to give everyone a taste for what this exercise entailed.
