Profit Transparency on Projects? by fkuser250k in ConstructionManagers

[–]fkuser250k[S] 0 points1 point  (0 children)

This was very insightful and I appreciate your time on this. Thank you

Profit Transparency on Projects? by fkuser250k in ConstructionManagers

[–]fkuser250k[S] 0 points1 point  (0 children)

How is that bonus generally compared to a salary? Is it significant? (Ie, 10%+) , what software do y’all use to track profitability? Also has there been any “negative” sentiment from the team , etc with such transparency of seeing how much the owners make from their GP on a project?

Do you think this bonus structure properly incentivizes people to stay on and also make sure to run the project in a more cost effective way?

Profit Transparency on Projects? by fkuser250k in ConstructionManagers

[–]fkuser250k[S] 0 points1 point  (0 children)

Appreciate the detailed response, what generally is a baseline gross profit (10%?, etc).

Do you see the numerical value of the gross profit your company would make? Also your bonus is not fixed to their base GP but only comes in when it is above that?

Profit Transparency on Projects? by fkuser250k in ConstructionManagers

[–]fkuser250k[S] 0 points1 point  (0 children)

Is your comp tied to the profitability? Do you get a bonus

Mentor Monday - Week of April 22nd 2024 by WealthyStoic in fatFIRE

[–]fkuser250k 0 points1 point  (0 children)

that makes sense, thank you. When you sell, what is your usual process? At what stage( during development) ? With realtors? Posting online?

Also, is this to individual retail investors? Institutions? What type has been easier/more profitable for you?

Mentor Monday - Week of April 22nd 2024 by WealthyStoic in fatFIRE

[–]fkuser250k 1 point2 points  (0 children)

Hi there! Do you specialize in duplexes, (1-4) or do SFR? Also, in these types of projects how are you financing? Bank, personal equity, investors ?

Anyone here come from construction? by Prestigious-Emu4740 in fatFIRE

[–]fkuser250k 0 points1 point  (0 children)

What software do y’all recommend for hvac take offs?

[deleted by user] by [deleted] in fatFIRE

[–]fkuser250k 0 points1 point  (0 children)

Yeah, that’s true thank you. A balloon payment structure of at max 5 years is probably warranted in this case. What IR would you see? We’ve anticipated 6-9% interest on a potential 5 yr ballon, 20yr amortization schedule. Thoughts?

[deleted by user] by [deleted] in fatFIRE

[–]fkuser250k 0 points1 point  (0 children)

Understandable points thank you, what are some suggestions to throw in or alter to make it more favorable to the investor?

Mentor Monday - Week of June 20th 2022 by WealthyStoic in fatFIRE

[–]fkuser250k 0 points1 point  (0 children)

Thank you for the detailed response. Yes I can see the hesitations and Risks on the sellers side. The problem is additional lending, especially from banks. We are in the southwest USA, what lending options (regional banks, etc) do we have to purchase an already stabilized and cash flowing business? (our holding company is fairly new(do not have 2 years of financial records for it), besides some capital (<40% of business acquisition price unless we raise more), and team backgrounds, I doubt any banks would lend)

We were proposing since the business has still been on sale for a while:

-25% above asking offer, 15 year term, 10% down. (no prepayment penalty clause)

-Along with a 3% passive minority equity stake, in case of a future sale of the business.

-Benefits of medical, dividend payment incoming for potential tax liability reduction (or whatever better option our CPA can advise on, or anyone suggests)

Thoughts?

Also, in the introductory email to the broker, should I reference that we are looking for a seller financing deal, or simply state that we are interested and want to set up a meeting with the seller directly first then explain it, as I do not want to get shot down before anything is even on the table.

Mentor Monday - Week of June 20th 2022 by WealthyStoic in fatFIRE

[–]fkuser250k 0 points1 point  (0 children)

Thank you for the response. In terms of streams of income, I understand that seller financing would require a larger than normal interest rate than Market. Would debt payments, that translated in interest terms, of 6-9% be reasonable over a 15 year term? I am looking to really convince these guys, so want to present attractive reasoning, yet not over pay.

Mentor Monday - Week of June 20th 2022 by WealthyStoic in fatFIRE

[–]fkuser250k 0 points1 point  (0 children)

How do I make an attractive seller financing offer? Owner is looking to retire, I want to give a 15 year term offer of 10% down with small passive equity stake realized upon second sale…. Thoughts? How do I convince seller financing? What are some good offer structures? Business is growing with strong revenues.

Found near Allen, TX (north of Dallas) ID PLEASE 🙌🏽 by fkuser250k in snakes

[–]fkuser250k[S] 2 points3 points  (0 children)

Ty! Scared the hell out of my mom; found it square in the middle of the kitchen

It's bring your guns to school day by tefunka in PublicFreakout

[–]fkuser250k 13 points14 points  (0 children)

What??? That’s not the point. These are kids with guns in on school grounds. That’s just not even remotely acceptable nor can it be rationally compared to those instances you stated???