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Step up strategy confusion


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Thomas's Forum Posts: 3
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By Thomas in Clayton, NY on 1/16/2007


Looking at all the tables in the step up strategy spreadsheets I am confused about a few things.

 1. How is the number figured in the column titled (PROJECTED MONTHLY PAYMENT)

2.  And the column (ACTUAL MONTHLY PAYMENT)

Any help would be appreciated

Tom


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By Mark in Provo, UT on 1/31/2007


Tom:

    In the download gallery the template is called Step-up Strategies 2006.xls and the cells you are referencing have formulas in them that explain the calculations. The "projected monthly payment" is 1% of the builder's estimate to build your project minus any equity you have. The "actual monthly payment" for an owner-builder is figured as 1% of the owner-built cost of the project. The owner-built cost is conservatively figured at 20% less than builder cost. In my case, owner-built cost was about 45% less than builder cost. In our owner-builder survey, the owner-built cost of respondents is about 65% of "builder cost".

Mark

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