The presence of builder deposits is an important land development component. Builder deposits are interest free and are recaptured as lots are purchased by the builder.
The model calculates the effect of builder deposits on interest payments and profitability. Scenario #1 includes builder deposits and Scenario #2 does not. Note the interest savings and increased profitability when builder deposits are present.
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Land Development Model, LLC
302 West Lafayette Road
Medina, OH 44256