Ilan Leibovitch & Co.Lawyer and real estate developer
Language: EN
עבריתHEEnglishENRomânăROРусскийRUالعربيةع
Book an introductory call
Menu

Developer cash flow: how much equity at the peak?

The profit at the end of the project does not pay the bills in the middle. Enter land, construction, schedule, loan and off-plan sales, and set when buyer deposits become available to you. The calculator shows, quarter by quarter, how much equity you need and when exposure peaks.

The default values are examples only. Enter your own numbers.

1Land and construction
EUR

Paid in quarter 1, including its purchase costs.

Construction cost
EUR
EUR per sq m
sq m
% of construction

Design, permits, fees, supervision, advisers and marketing. Spread equally over all quarters.

2Schedule in quarters
quarters

After the land quarter and before construction starts.

quarters

Construction cost is spread equally over the construction quarters. Completion is at the end of the last quarter.

3Development loan
% of construction

Drawn in each construction quarter at the same percentage of that quarter's construction cost.

%

Paid from equity each quarter on the balance drawn. 0 if you do not want to include interest.

4Off-plan sales
EUR
% of revenue
% of the price

Deposits are received in equal parts during the construction quarters.

When deposits are available to the developer
% of each deposit

For example against a guarantee or insurance, if the law and the bank allow it.

The rules on releasing buyer funds differ from country to country. They also depend on the bank and the contract: in some places the money is held in an escrow account or against a guarantee until a certain stage, and in others there is no such protection. Check the rule that applies to your project before you build a cash flow on it.

Developer cash flow and off-plan sales Safe sale mechanism in Romania Project company, investor reporting and capital calls

Leibovitch & Co. · Developer cash flow

Equity at peak exposure

-

Total equity to completion
-
Loan peak
-
Costs to completion
-
Deposits received
-

Cumulative equity by quarter

Cash flow, quarter by quarter

Equity needed = the quarter's costs, minus the loan drawdown and minus deposits released to the developer. A negative number means a surplus in that quarter.

What does the calculation leave out?

The calculation stops at completion of construction. It does not include repaying the loan, the balances buyers pay on handover, the sale of units not sold off-plan, VAT and taxes, or bank fees. It does not calculate a return.

Assumptions

Next step: How much you can pay for the land Send a project brief

The information is general and is not legal or tax advice, and is no substitute for reviewing a specific deal. Calculation for illustration only, based on the assumptions entered. Not a business plan, and it does not check the law that applies to buyer funds.

The information is general and is not legal or tax advice, and is no substitute for reviewing a specific deal. The calculation is a general estimate for illustration only, based on the assumptions you entered. It is not a business plan, does not check the law that applies to buyer funds in the project's country, and does not include taxes, VAT or the bank's actual terms.

Disclosure: Adv. Ilan Leibovitch is also a real-estate developer and a partner in Compass Group, the developer of Compass on the Lake in Romania. The office does not represent buyers or investors in transactions with Compass Group or its projects, and refers them to independent counsel.

More tools

Want to check the cash flow against the contracts?

In an introductory call we will go over the project structure, the development loan and the rules on buyer funds in the country where you are building.

Book an introductory callWhatsApp

Not ready for a call yet? Deal readiness check · Get the monthly newsletter

Office
7 Hanafat HaDegel St., Ness Ziona, Israel
Romania
Meetings in Bucharest by prior arrangement
  • Hebrew · Romanian · English
  • Ness Ziona · Bucharest meetings by appointment
  • Online meetings