We felt pretty good about the final outcome of our presentation and we felt we had it down. Then Brant and Scott presented theirs and I started having second thoughts. They had a very good and detailed presentation and since they went first it set the bar pretty high. Oh well, we couldn’t make any changes at this point so we had to wing it with our good looks and personality!!! Too bad Forgey wasn’t a female instructor b/c I don’t get the impression he thinks we are all that good looking, personalities’ maybe? So the presentation was going pretty good until Dr. Forgey identified a flaw in our calculations. We had included the build out dollars in the sale proceeds numbers but we had left them out in our construction numbers…oops!! So basically, at first glance Forgey says our deal is a bust. We had to admit we made a crucial mistake and just take our lumps. Dam it!!! So during the 3rd presentation, I took out our spreadsheet and backed out the $40 psf of the sale price of the office condo’s and recalculated the ROI’s and IRR’s and fortunately they were still positive but not as good as they were and made the deal a little skinny. We didn’t make any money on just our profit split. So I showed Dr. Forgey the new numbers and begged for a D instead of an F. Then I remembered we actually had developer fees and commissions included so I showed him that instead of not making any money we still made $85,000 and begged for a C instead of a D. Maybe our awesome personalities’ will work b/c our brains sure weren’t working Friday night.
Then Dr. Forgey wanted us to go over blogs in class and so I thought maybe since I was fairly up to date and had a little fun with my blogs maybe a brother could get a little redemption. We’ll see???
Dr. Forgey asked us to give our take aways from the class and as much as I wanted patronage Dr. Forgey to try for a better grade, I figured that would not work so I just told the truth. I actually had many take aways but mainly I had a greater appreciation for the time it takes to get deals done and the creativity you have to have for financing a deal in today’s economic times. Time is a developer’s enemy. Also, the balance one has to have when dealing with Architects was a big take away! Finally, actually doing the project vs. reading about how to do a project gave me a better understanding of what it really takes to get a deal done. Overall, I thought it was a great class and I am not just saying that to get a better grade.
Class dismissed!! Off to Cowtown Café for lunch with the class. Thanks for lunch Dr. Forgey.
One more class completed and on my way to a Masters Degree!!
Makan Martini time!!
J2M out.
Minus the small flaw, I thought your presentation and project were great!
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