How capital is deployed, how returns are generated, and how investors exit. Written like a financial report — because that is what this is.
Capital is allocated across four buckets on every project. The relative weight shifts by lot size, site complexity, and unit configuration — but the framework is consistent.
Single-lot, 3BR/2BA, Southeast US market. All figures are illustrative estimates. Actual results vary.
| Category | Line Item | Notes | Amount |
|---|---|---|---|
| ACQUISITION | |||
| Lot Purchase Price | Entitled infill | $65,000 | |
| Closing Costs | Title, legal | $2,500 | |
| CONSTRUCTION | |||
| Site Preparation | Grading, utilities, foundation | $28,000 | |
| Modular Unit — Clayton Homes | Institutional pricing, 3BR/2BA 1,440 sf | $95,000 | |
| Delivery & Placement | Transport + set crew | $12,000 | |
| Finish Work | Connections, landscaping, driveway | $15,000 | |
| Contingency (5%) | Site + finish only | $2,750 | |
| CARRYING COSTS | |||
| Financing (7.5%, 8 months) | On modular + land basis | $6,500 | |
| Insurance & Taxes | 8-month carry | $1,800 | |
| Overhead Allocation | Project management | $1,200 | |
| Total Project Cost | $229,750 | ||
| EXIT | |||
| Appraised Value (ARV) | Based on comparable sales | $310,000 | |
| Selling Costs | Agent (5%), title, misc. | ($19,500) | |
| Net Sale Proceeds | $290,500 | ||
| Net Project Profit | $60,750 | ||
| RETURNS | |||
| Return on Cost | 26.4% | ||
| Annualized Return (8 months) | ~39.6% | ||
| Investor Cash-on-Cash (est.) | After sponsor carry | 22–27% | |
| Investor IRR (est.) | Full annualized basis | 18–28% | |
Illustrative only. Not a guarantee. Site-specific costs, permitting timing, and market conditions vary by project. Consult a qualified financial advisor.
Enter your equity position and project assumptions. The calculator models your estimated cash-on-cash return, IRR, and equity multiple.
Results are estimates based on your inputs. Actual returns depend on project execution, market conditions, and exit timing. Not financial advice.
We underwrite every project against at least two exit scenarios. The primary exit is selected at the project level based on market conditions and investor preferences.
Home listed on the open market to a retail buyer. Vanderbilt Mortgage infrastructure provides end-loan financing options for buyers, supporting ARV achievement and faster close. Typical timeline: 30–60 days on market.
Home transferred to a BTR operator or held in a rental portfolio. Returns generated via stabilized cash yield. Investors in BTR structures may receive ongoing distributions plus a terminal sale at a future date.
For multi-lot projects, completed homes may be sold as a portfolio to an institutional buyer, MHC operator, or family office. Portfolio buyers often pay a premium for stabilized, turn-key assets at scale.
We build a custom pro forma for each opportunity. Tell us your target position size and preferred market and we will run the numbers.
IMPORTANT DISCLOSURE: Projected returns are estimates based on modeled assumptions and are not guarantees of future performance. Investing involves risk including loss of principal. Tax benefits described may not apply to all investors. This website does not constitute an offer or solicitation to buy or sell any security. Consult a licensed financial, legal, and tax advisor before investing.