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As a team we presented our findings to a group of capital investors who reviewed our written project proposal and presentation to determine the viability of our proposed project.
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A product of The
UNIVERSITY OF NORTH TEXASConstruction Engineering
4yr program
BY
Brad TatumFahad Bin-RashidNathan WoodDavid OlsenNikhil MannanDavid Keane
Technology Driven
Rich historical roots
Southern traditionAdapt to the changing
society
Rated 17st best city for doing business by Forbes (2011)
Rated12th best city job growth by Forbes (2011)
Evolution of HuntsvilleUNIVERSITY OF NORTH TEXAS4yr program
Housing Market ForecastUNIVERSITY OF NORTH TEXAS
4yr program
Homes spend an average of 120 days on market
Median housing prices increases 2.64%
High Construction Earning
Forecasted DemandPopulation 223034Population 2015 250053New Citizens 27019Vacant Houses 5507Houses in Demand 7720New Houses in Demand 2213Home # by Denco 32Percent Market Share 1.45%Avg. Household Size 3.5
8.7 14.5
Land DevelopmentUNIVERSITY OF NORTH TEXAS4yr program
Land DevelopmentUNIVERSITY OF NORTH TEXAS4yr program
Land DevelopmentUNIVERSITY OF NORTH TEXAS4yr program
Analyzing Our Target MarketUNIVERSITY OF NORTH TEXAS4yr program
Double Income No
Kids
Married with Older
Children
Married with Younger Children
MarriedAge 30-45
Expected Salary Range Low High
Double Income No Kids $120,000 $160,000Married with Younger Children $110,000 $150,000Married with Older Children $120,000 $170,000
70% Homeowners
60% Married25% High Wage
Earners
Population Makeup
Matching Model to MarketUNIVERSITY OF NORTH TEXAS4yr program
Lafayette
Belmont
HuntingtonFairfield
Mattison
Double Income No Kids
Married WithYounger Children
Married WithOlder
Children
Huntington
Mattison
Belmont
FairfieldLafayette
Meadowbrook Home ModelsUNIVERSITY OF NORTH TEXAS4yr program
Lafayette
Belmont
Huntington
Fairfield
MattisonDenco Models
Lowest HighestSquare Footage 1950 3750Sales Price $388,530 $538,388
1. Home tour
Denco ProcessUNIVERSITY OF NORTH TEXAS4yr program
2. Design and create your floor plan
3. Budgeting and cost evaluation
4. 3-dimensional rendering5. Financing6. Completing the
paperwork7. Construction8. Move-
in
MarketingUNIVERSITY OF NORTH TEXAS4yr program
Total Budget: $83,650
Local Magazines and Newspapers
Design Consultant
Rural Lifestyle
Price ComparisonUNIVERSITY OF NORTH TEXAS4yr program
Competitor PricingName Low Cost High Cost
Denco Homes $388,530 $537,388
Steve Steele $300,000 $580,000
Pearson Homes $230,000 $340,000
Heritage Homes $190,000 $550,000
Mick Harris Homes $150,000 $375,000
Project ManagementUNIVERSITY OF NORTH TEXAS4yr program
Weekly Meetings
Online Monitoring
Design Consultant
Safety on the Jobsite
Benefits of Green BuildingUNIVERSITY OF NORTH TEXAS4yr program
Benefits of Green BuildingUNIVERSITY OF NORTH TEXAS4yr program
Lower Operating Costs
Quality Product
Marketability
Tax Incentives
Achieving the Gold StandardUNIVERSITY OF NORTH TEXAS4yr program
Green Building Cost per Square FootUNIVERSITY OF NORTH TEXAS4yr program
$0/GSF $100/GSF $200/GSF
$300/GSF
Cost per Green Square Foot of All Buildings
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 $(2,500,000.00)
$(2,000,000.00)
$(1,500,000.00)
$(1,000,000.00)
$(500,000.00)
$-
$500,000.00
$1,000,000.00 Conservative Net Income
PHASE II PHASE III
4 Months
5 Months
7 Months
PHASE I PHASE IV
Financial AnalysisUNIVERSITY OF NORTH TEXAS4yr program
8 Months
Phase I: Investment borne by owner ($3,663,000) Phase II: Future expenses for Phase II paid for by revenues made from this phase and 36% of Initial Investment Paid Phase III: Land Development Creates Additional Expense Phase IV: Final 7 months pay remaining 64% + Denco Home Fee + Return on Investment
$(4,000,000)
$(3,000,000)
$(2,000,000)
$(1,000,000)
$-
$1,000,000
$2,000,000 Conservative Cash Flow Analysis
• Positive Cash Flow 21 Months
• Return for Investor: $915,750
• Percent for ROI: 25%
Financial Analysis ContinuedUNIVERSITY OF NORTH TEXAS4yr program
Months
$(4,000,000)
$(3,000,000)
$(2,000,000)
$(1,000,000)
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000 Best: Cumulative Revenues (-) Expenses
Positive Cash Flow Month 19
ROI: 35%
ROI for Investor: $ 1,282,000
$(4,000,000)
$(3,500,000)
$(3,000,000)
$(2,500,000)
$(2,000,000)
$(1,500,000)
$(1,000,000)
$(500,000)
$-
$500,000
$1,000,000
Ultra Conservative: Cumulative Rev-enues (-) Expenses
Alternative Cash Flow ScenariosUNIVERSITY OF NORTH TEXAS4yr program
Positive Cash Flow Month 23
ROI: 18%
ROI for Investor: $ 672,000 Months
Months
Investing with DencoUNIVERSITY OF NORTH TEXAS4yr program
Investment Requires $3,663,000
Establishment of Denco Meadowbrook
Start Date April, 2012