Spec Home Pro Forma Template

What’s inside the spec home pro forma template

I use this to give a yes or no to a deal in a hurry, and I share it with investors and banks so they can see the deal economics in one place.

The inputs

You fill in the blue cells. Everything else calculates.

• Land cost, heated square feet, and sale price per foot

• Soft and hard construction cost per foot

• Cost of sale and holding period in months

• Debt origination fee and closing costs, interest rate, loan to cost ratio, and average percentage of loan drawn

• Property tax reserve and builder management fee

• Investor preferred return and split of excess cash

What it calculates

• Pro forma profit and loss: sale price, land, soft and hard costs, gross profit, cost of sale, financing, management fee, and net profit before taxes, each as a dollar amount and a percent of sale price

• Distribution waterfall: debt repayment, investor preferred return, return of investor capital, and excess cash available

• Investor return analysis: total return and XIRR

• Sources and uses of funds: debt and equity against land, construction, financing, and management fee

Instructions built in

The sheet opens with a short read-first block, and cell comments explain the inputs. Blue text marks the cells you change and black text marks the formulas.

Format

One Excel file (.xlsx) and a one-page example pro forma in PDF, delivered as an instant download. The model uses iterative calculation.

What it is and isn’t

This is a one-page, single-project model driven by cost per square foot. It is built for a fast first decision and a clean summary for your capital partners. It is not a line-item construction budget or a monthly cash flow, and it is not investment advice.

Learn the method

Read Spec Home Pro Forma: How to Analyze a Deal in Minutes, spec home profit margin, and how to find investors for spec homes.