Pennsylvania College of Technology_2017 RCMC_4Year

Pennsylvania College of Technology
2017 RCMC Four Year Program 1
2017 RCMC Four Year Program
Presented By:
P
D
enn
evelopers
Welcome Home

Table of Contents
TCProject Overview
Market Analysis
Competition
Land Development
Product Description
Construction Management
Marketing & Sales Strategy
Financial & Risk Analysis
Bibliography
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2017 RCMC Four Year Program 32017 RCMC Four Year Program
3
1
Project Overview

Robert Jackson
Senior Project Manager
Nicholas Gieger
Chief Estimator
Casey Grim
Lead Architect
Carlos Rojas
Construction Manager
Chad Hawkins
Site Manager
Hanna Williams
Business Manager
Development Team
Project
Overview
1

Assumptions
Project
Overview
1- Penn Developers is a well-established production home builder in the Atlanta area.
- All existing retaining walls are in good structural condition.
- Water and sewer line layouts will meet all required conditions and will be approved by the city.
- Closing costs are a part of the land purchase cost.
- The pool and clubhouse are functional.
- The existing street lighting is functional and in working order.
- The cost of surveying and the creation of a geotechnical report is included in the land
purchase price.
- Construction materials will be available and shipped to our new development site.
- All construction fees and permits will remain standard for the duration of the project.
- All waste from demolition and construction will be handled and disposed properly.
- We are able to use existing roads as construction roads and entrances.
- We will be approved for all necessary financial loans for the duration of the project.

Project
Overview
1Executive Summary
Dear Penn Developers Executives,
The research and development team has located a tract of property, ten miles outside of
Atlanta, Georgia. The property is approximately 32 acres in the growing community of North
Druid Hills, DeKalb County. The sale price is $45,800,000 and we are closing on February 1, 2017.
The property is zoned for single family and multifamily homes. As it stands, there are 51
apartment buildings on the property. After research was completed, the research and
development team concluded that demolition of all existing apartment buildings and
construction of a combination of single family and multifamily homes will yield maximum profit.
We expect at least an 18% internal rate of return on this new development.
The scope of work will include demolition of all 51 existing apartment structures. We will make
the necessary changes to the utility and road structures. Penn Developers will construct 31 single
family homes and 269 three-story townhomes. We will also make land improvements to green
spaces and the existing pool and club house. The research and development team expects
gross sales of $120,000,000+. The project is anticipated to take four and half years to be
completed.
Penn Developers Research and Development Team is confident that this will be a high profit/
low risk project. This proposal breaks down and outlines the steps needed to ensure a successful
development.
Sincerely,
Robert Jackson
Penn Developers
P
D
enn
evelopers

7
2
Market Analysis

Market
Analysis
2About Druid Hills
Druid Hills was found and developed by
Joel Hurt and Asa Candler, the
founder of the Coca-Cola Company.
The development began in the early
19th century and continued into the first
of the 20th century. The neighborhood
has continued to be one of Atlanta’s
wealthiest neighborhoods while
remaining a diverse tight-knit
community. Druid Hills is located about
10 miles northeast of downtown
Atlanta. Druid Hills has nine local parks,
many of which have walking trails and
playgrounds.
About Atlanta, GA
Atlanta is one of America’s fast growing cities and is a hot spot for the housing industry. A small
town that once was a railroad, linked between the south, west and north, has grown into a city
with a population growth over five million. Atlanta is comprised of 242 neighborhoods, many of
which are historical districts. In 1996, Atlanta hosted the Summer Olympics and is now known for
its sports. Atlanta is a diverse, growing city with something to offer to everyone who is looking to
call Atlanta a home.
Local Area
- Shopping Within Five Miles
- Toco Shopping Center (35 stores)
- North Dekalb Mall
- Several Hardware Stores
- Five Grocery Stores
- Airports
- Atlanta National Airport (20 miles)
- Two Municipal Airports
Attractions
- Outdoor Recreation Areas
- Allatoona Lake
- Lake Point Sports Center
- Lake Lanier
- Clarks Hill Lake
- Theatres and Art Museums
- Alliance Theatre
- Delta Flight Museum
- Jimmy Carter Presidential Library
- Children’s Museum
- Landmarks
- World of Coca-Cola Tour
- The Georgia Aquarium
- Olympic Park
- College Football Hall of Fame
- Pickett’s Mill Battlefield Historic Site
- Events and Nightlife
- Five Professional Sports Teams
- Opera Nightclub
- Uptown Comedy Corner

Market
Analysis
2Top Employers
Atlanta’s employment rate has increased 3.8% in 2016.
Dekalb County
- Dekalb County Government
- Emory University/Healthcare
- Decatur Board of Education
- Decatur Hospital
Atlanta, Georgia
- Delta Air Lines
- Emory University/Healthcare
- The Home Depot Headquarters
- AT&T Headquarters
- Center for Disease Control
Education
PreK - 12
- DeKalb Public County Schools System
- Student Population = 101,142
- Fernbank Elementary School (Druid Hills)
- Druid Hills Middle School
- Druid Hills High School
- The Pasideia Private School
- Student Population = 975
Higher Education
- Emory University
- Georgia Institute of Technology
- Georgia State University
Transportation
Druid Hills has many forms of
transportation. The Marta Passenger Train
stops near Druid Hills.  The Gold Line is
located nearby Lenox which is about 5
miles west of Druid Hills.  The nearby town
of Decatur has a passenger train station
(blue line) that is about 3.5 miles south. 
There is also a public bus system that runs
from Druid Hills and downtown Atlanta.
The nearest bus stop is located at the
corner of our development, North Druid
Hills and Clairmont.   
Druid Hills

Market
Analysis
2Demographics
Dekalb County
- Population 734,870
- Households 270,809
- Families 161,453
- Median Household Income $51,349
- Median Family Income $60,718
Atlanta, Georgia
- Population 5,700,000
- Households 224,573
- Families 181,681
North Druid Hills
- Population 18,947
- Households 9,760
- Families 3,790
37%
53%
3%
7%
34% 56%
5%
5%
82%
7%
7%4%
African American White Asian Other

Market
Analysis
2Housing Growth
According to the Building Permit
statistics, provided by the National
Association of Home Builders, as of July
31, 2016, there were 439.4 million
permits for single family homes and
242.3 million permits for multifamily
homes issued nationwide. The south
has 239.08M for single family homes
and 102.68M building permits for
multifamily as of July 31, 2016. The area
of Atlanta, Sandy Springs, and
Marietta, Georgia has issued 15,992
single family building permits, 9,199
multifamily, and a total of 25,191
building permits as of August 2016.
Building Permits Across the Country
Building
Multi-FamilySingle Family
50%
16%
9%
25%
West
North East
Mid West
South
54%
24%
15%
7%
42%
28%
13%
17%

Market
Analysis
2Target Market
Young Professionals: Age (25 - 35)
- Home Office
- High Tech Homes
- Located Near
Facilities or Parks
- Arts and Entertainment Nearby
- Modern Kitchen & Master Suites
- Outdoor Fitness Area
- Public Transportation
Needs In A Home Wants In A Home- May or May Not Have Children
- Career Focused
- Minimal Commute
- Enjoys Home Entertaining
- Work Carries Over to Home
- Nearby Shops and Restaurants
Characteristics
Young Families: Age (30 - 50)
- Married with 1-3 children
- Focused on well-being
of children
- Prefers to work from home
- Works mid-day when children
are at schools.
- Quality School District
Characteristics
- Home Office
- Safe Streets
- Nearby Parks
or Playgrounds
Needs In A Home
- Green Space
- Energy Efficiency
- Short Commute
- Pet Friendly
Wants In A Home
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
- Proximity to Downtown Atlanta
- Growing Neighborhood
- Community Diversity
- North Druid Hills & Atlanta is a
Growing Area
- Many Top Employers in Atlanta
- Initial Investment of $45,800,000
- Large cost before construction
- New Home Buyers
- North Druid Hills & Northern Atlanta
area are very diverse. Our
development relies on two target
markets.
- Re-development
- Demolition & Utility Work
- Surrounding Developments
- The Meadows at Druid Hills
selling price ≥ surrounding
developments
- Natural Disasters
- Earthquakes & Hurricanes

13
3
Competition

Competition
3D.R. Horton Inc.
Avg. Bedrooms Avg. Bathrooms Avg. Garage Square Footage Sales Price
4 3.5 2 2,000 $200,000
Home Design
and up
The Build
D.R. Horton stays true to their word by providing warranty plans for all newly built homes.
Marketing & Sales
D.R. Horton has been the #1 builder since 2002. They are able to achieve this high stantard
through effective marketing, advertising, and quality construction. D.R. Horton uses their
well-developed website to attract homebuyers. Information sessions are another great tool they
use to promote their nation-wide company. Most importantly, D.R. Horton takes annual income
into consideration. They build several different divisions of homes; each designed and priced
competively so everyone is able to afford a new home.
and up
Based on annual closings and gross revenue, D.R. Horton has been the #1
homebuilder in the United States since 2002. D.R. Horton was founded in 1978 to
create livable and affordable homes that are high in energy efficiency and quality.
Why Are They A Competitor?
- #1 Homebuilder Since 2002
- Delivered More Than 560,000 Homes to Homebuyers
- Delivered More Homes Than Any Other Homebuilder
- High Quality Materials & Craftsmanship

Competition
3PulteGroup, Inc.
4 3 2 2,000 $200,000
Home Design
and upand up
The Build
PulteGroup focuses on constructing their
homes with high quality materials. PulteGroup
strives to make home buyers feel safe and
secure in their new homes, by offering four
different warranty plans.
Warranties include:
- 1 YR: Workmanship & Materials
- 2 YR: Utilities
- 5 YR: Water Infiltration
- 10 YR: Structural Needs
Marketing & Sales
PulteGroup is another top builder in
the United States. They are known
for their name as they promote their
business through brochures and their
PulteGroup/PulteHomes website. To
attract their target markets, they host
information sessions all across the
nation.
With 65 years in the homebuilding industry, PulteGroup is known for high quality
homes, energy efficient features, and high brand materials. Being ranked as the #2
homebuilder in the United States, PulteGroup is building in 24 states across the nation.
- 2nd
Largest Homebuilder in the US
- Building All Across the Nation
- High Level of Craftsmanship

Competition
3CalAtlantic Group, Inc.
Ryland and Standard Pacific merged together to create CalAtlantic. They have nearly
100 years of combined homebuilding experience. They are the 4th
largest homebuilder
in the nation, operating in 41 major markets in 17 states across the US.
- 4th
Largest Homebuilder in the Nation
- High Energy Efficient Homes
- 2016 Builder of the Year
- High Quality with Designer Knowledge
4 3.5 2 2,000 $300,000
Home Design
and upand up
The Build
CalAtlantic Group uses warranty
plans to guarantee a safe,
sustainable home for their customers.
They are also known to use local
suppliers to help out with the
planning and construction of their
homes including, designers,
engineers, carpenters, etc.
Marketing & Sales
CalAtlantic Group stays committed to their
homebuyers every step of they way. CalAtlantic
uses brochures to attract their target market;
advertising all over the United States. They also
use their highly developed website for future
homebuyers to gather information about the
business. Once construction begins, CalAtlantic
builders stay in touch with their customers, letting
them know the status of their home.

Competition
3Ashton Woods Homes
The first Ashton Woods home was built in 1989. They are recognized as the nation’s 4th
largest private builder. Ashton Woods builds high quality homes in primary locations.
They are currently building in southeast Texas and Arizona.
- Build High Quality Homes
- 4th
Largest Private Builder in the US
- Ranked Among Top 3 Most Trusted Builders in America
- 95% of Their Homebuyers Would Recommend Them to Others
Home Design
The Build
4 2.5-3.5 2 3,000 $300,000
and upand up
Ashton Woods is ranked one of the top three for Most Trusted Builder in America. Ashton Woods
Homes is also known for energy effciency. Many homes are built with fresh air ventilation, interior
moisture management, and “right sized” HVAC equipment. With this advocacy, they want to be
a name you can trust by offering customers various warranty plans. The offered
warranty plans are as follows:
- 1 YR: Workmanship & Materials
- 2 YR: Delivery Portion of Utilities
- 10 YR: Major Structural Components
Marketing & Sales
Ashton Woods advertises through
informational brochures and their
well-designed website. They
attract their target market through
their high quality construction of
homes. Future homebuyers also love
to buy from Ashton Woods because
the designers take the time to sit
down with them and create the
home of a lifetime.

18
4
Land Development

Land
Development
4Phasing Map
2/1/2017 - 6/30/2017
Phases 1 & 2 Phases 3 & 4
3/1/2018 - 6/30/2018
Phase 5
4/1/2020 - 8/8/2020
Final Land Upgrades
8/1/2021- 8/20/2021

Land
Development
4Site Costs
Utilities Cost/Unit Unit Amount Total Phase 1 Phase 3 Phase 5
Water Main 6" 10.00$ LF 12000 120,000.00$ $64,800.00 $38,400.00 $16,800.00
Water Connection 3/4" 3.00$ LF 6000 18,000.00$ $9,720.00 $5,760.00 $2,520.00
Electric Line 5.00$ LF 9000 45,000.00$ $24,300.00 $14,400.00 $6,300.00
Electric Connection 1,000.00$ Lot 300 300,000.00$ $162,000.00 $96,000.00 $42,000.00
Sewer Main 8" 12.00$ LF 9000 108,000.00$ $58,320.00 $34,560.00 $15,120.00
Sewer Connection 4" 4.00$ LF 8000 32,000.00$ $17,280.00 $10,240.00 $4,480.00
Manhole 6,000.00$ Each 30 180,000.00$ $97,200.00 $57,600.00 $25,200.00
Stormwater
12" cmp 15.00$ LF 14000 210,000.00$ $113,400.00 $67,200.00 $29,400.00
36" cmp 40.00$ LF 31 1,240.00$ $669.60 $396.80 $173.60
Detention Outfall 7,000.00$ Each 4 28,000.00$ $15,120.00 $8,960.00 $3,920.00
Stormwater Inlet 5,000.00$ Each 30 150,000.00$ $81,000.00 $48,000.00 $21,000.00
Site development
Asphalt Road & Curbing 9.00$ SF 200000 1,800,000.00$ $972,000.00 $576,000.00 $252,000.00
Sidewalk 4.25$ SF 70000 297,500.00$ $160,650.00 $95,200.00 $41,650.00
Grading 2,000.00$ Lot 300 600,000.00$ $324,000.00 $192,000.00 $84,000.00
Geotextile 1.00$ SF 62000 62,000.00$ $33,480.00 $19,840.00 $8,680.00
Foundation 125.00$ CY 8000 1,000,000.00$ $540,000.00 $320,000.00 $140,000.00
Excavation 40.00$ CY 44000 1,760,000.00$ $950,400.00 $563,200.00 $246,400.00
Structural Fill 40.00$ CF 50000 2,000,000.00$ $1,080,000.00 $640,000.00 $280,000.00
Signs 75.00$ Each 40 3,000.00$ $1,620.00 $960.00 $420.00
Landscaping 3,000.00$ Lot 300 900,000.00$ $486,000.00 $288,000.00 $126,000.00
Driveway 4.25$ SF 75000 318,750.00$ $172,125.00 $102,000.00 $44,625.00
Permits 900,000.00$ LS 1 900,000.00$ $486,000.00 $288,000.00 $126,000.00
Mobilization 200,000.00$ LS 1 200,000.00$ $108,000.00 $64,000.00 $28,000.00
E&S $0.00 $0.00 $0.00
Compost Filter Sock 3.00$ LF 40000 120,000.00$ $64,800.00 $38,400.00 $16,800.00
Construction Entrance 3,000.00$ Each 6 18,000.00$ $9,720.00 $5,760.00 $2,520.00
Total 11,171,490.00$ $6,032,604.60 $3,574,876.80 $1,564,008.60
Avg./Lot 37,238.30$
Site Development: Site Costs

Land
Development
4Permit Fees
Permit Fees Cost Total
Water and Sewer Access Fee Schedule $1,811.93/house 541,767.07$
Site Plan Review $100 Flat Rate 100.00$
Engineering (more than 2 Acres)
Review $400+$15/Lot 4,885.00$
Inspection $400 + $100/acre 3,600.00$
Erosion Control (more than 2 Acres)
Inspection $300 Flat Rate 300.00$
Review $200 base + $50/acre 1,800.00$
Clearing & Grubbing Permit
$300 Flat Rate 300.00$
$50/Acre, Min $100 1,600.00$
Grading Permit
$300 Flat Rate 300.00$
$50/Acre, Min $100 1,600.00$
Certificate of Occupancy Fee
$50/Lot 14,950.00$
Building Permit
Townhouse 198,936.66$
Single Family 56,761.82$
Total 826,900.55$
Permit Fees

Land
Development
4Erosion & Sedimentation Control
Erosion and sedimentation will be controlled using permanent and temporary
(as necessary) seeding and mulching of all disturbed areas in conjunction with construction
entrances, filter fabric fencing, and compost filter socks. The permanent detention basins will be
modified during construction using a corrugated metal pipe riser on the outlet structure to
contain sediment.
Bag Used For Modified Outlet Structure
Earthwork
Soil Conditions
Site Grading
The anticipated cut and fills will be on the order of 5 to 10 feet for final finished grading to
achieve the planned first floor elevations. Little rough grading is anticipated due to the site being
previously developed. Topsoil that is removed during rough or final grading will be screened and
replaced. The grades of the road and the final grade will be approximately 4% with an
approximate cross slope of 2% to aid in the management of storm water runoff.
According to the geotechnical report, the typical subsurface soil is located within the site
boundary. It consists of relatively clean, moderately loose to moderately compacted fills, where
fills have been tested. Firm residual soils of the Piedmont are shown, except in the thirteen boring
locations noted in the report. Any exposed subgrade will be evaluated by a Geotechnical Engi-
neer prior to any construction or filling. Areas identified that contain soft/loose existing fill soils will
be reinforced with Tensar TX-140 geogrid. Any areas that require fill will be filled with compacted
structural fill. The proposed structures will be supported by conventional shallow spread
foundations as recommended.

Land
Development
4Storm Water Management
Existing Drainage
In its existing condition, the runoff from the site exits directly into the water ways surrounding and
flowing through the property. The site map indicates the existence of no detention ponds.
Proposed Drainage
Storm water inlets will be located on each side of every proposed roadway at regular
intervals and between townhouses that have rear yards against one another. The grading on
site is designed to allow water to naturally permeate the soil. Dry-detention ponds are planned
for the site to handle the difference between the pre-development conditions of the woods,
with soil of the B-hydrologic group and the calculated post development condition. The ponds
are located at the lowest elevations in each tract to work with the natural lay of the land. The
size of the retention ponds are designed to handle the volume of runoff that is generated by a
100 year storm event for the region while keeping the water elevation below three feet. The
volume has been calculated utilizing the Soil Conservation Service (SCS) hydrologic method.
The approximate runoff difference between the pre and post development conditions is
calculated to be approximately 1.4 million gallons. The outfalls of the detention ponds are
designed to release runoff at a rate not exceeding the pre-developed condition. BMP’s such
as grass channels and reforestation/revegetation will be employed in the many areas that are
open/park spaces and are accounted for in the pricing of landscaping grading. The total
volume of runoff calculated is not reduced by BMP’s in order to remain conservative. Due to
there being no proper management of the storm water prior to our development, the quality of
the surrounding water ways will be greatly improved. In the below image, the
detention ponds are located in blue.

Land
Development
4Tree Inventory
Minimizing tree removal, is a priority during
our development of the site plan. Twenty
trees any larger than 14 inches in diameter
have been selected for removal without
excess disruption of the existing site
conditions and without accruing significant
cost. Every tree that has been marked for
removal will be replaced by two smaller
trees in one of the designated green
spaces. There are an additional nine
smaller trees that pose an issue for
construction. These trees have been
designated to be moved with a tree spade
of an estimated cost; $200 per tree. In the
picture to the right, the green spaces are
located in green.
Landscaping
The hardiness zone for DeKalb County is located in zone 7b and 8a. The site is slated to be
landscaped with trees and shrubbery native to the area.
Native Tree and Shrub Species
Large & Medium Trees
Red Maple / Acer RubrumSugar Maple / Acer Saccharum

Land
Development
4Large & Medium Trees
River Birch / Betula Nigra
Sugarberry / Celtis Laevigata
Black Walnut / Juglans Nigra

Land
Development
4Small Trees
Flowering Dogwood / Cornus Florida
Mayhaw / Crataegus Aestivalis
Sassafras / Sassafras Albidum
Bigleaf Snowbell / Styrax Grandifolius

Land
Development
4Shrubs
Georgia Basil / Clinopodium Georgianum
(Syn. Satureja Georgiana)
Littlehip Hawthorn / Crataegus Spathulata
Yellow Anise-Tree / Illicium Parviflorum
Drooping Leucothoe / Leucothoe Fontanesiana

28
5
Product Description

Product
Description
5Single Family Homes
The Whitaker Home consists of 3 bedrooms, 3 full baths, and a 2 car garage with a total of
2,267 square feet. The exterior of the home is light brick with stucco applied around the gable
ends. This style gives a calming natural feel to the scenery with an open concept in the living
room and exterior views from all rooms of the house.
Whitaker Home

Product
Description
Hillsborough Home
Hillsborough is a 2,275 square foot home with a brick façade on the front of the home and
siding continuing on the sides. The Hillsborough exterior pursues a more rustic look than the
Whitaker Home. The home consists of 4 bedrooms, 3 full baths, a 2 car garage, and an optional
bonus room.

Product
Description
Adamsville Home
The Adamsville Home is our smallest home, with a total of 2,115 square feet. The Adamsville
consists of 4 bedrooms, 3 full baths, a 2 car garage and an optional bonus room. The feel of
the Adamsville gives a more classic look to the exterior with standard brick on the front façade
along with siding.

Product
Description
5Single Family Home Estimates
Phases WHITAKER HILLSBOROUGH ADAMSVILLE
The Meadows at Druid Hills SINGLE SINGLE SINGLE
SQUARE FOOTAGE 2267 2275 2115
MASONRY
CONCRETE FLAT WORK FIRST FLOOR 8,200.00$ 8,200.00$ 8,100.00$
COST OF CONSTRUCTION 8,200.00$ 8,200.00$ 8,100.00$
FRAMING
EXTERIOR WALLS FIRST FLOOR 5,850.00$ 5,850.00$ 5,800.00$
INTERIOR WALLS FIRST FLOOR 1,450.00$ 1,350.00$ 1,400.00$
FLOOR SYSTEMSECOND FLOOR 3,500.00$ 3,500.00$ 3,400.00$
EXTERIOR WALLS SECOND FLOOR 5,850.00$ 5,850.00$ 5,800.00$
INTERIOR WALLS SECOND FLOOR 1,150.00$ 1,250.00$ 1,400.00$
FLOOR FRAMING THIRD FLOOR
EXTERIOR WALLS THIRD FLOOR
INTERIOR WALLS THIRD FLOOR
TRUSS PACKAGE 11,000.00$ 11,000.00$ 11,000.00$
EXTERIOR FINISHES
ROOFING 8,850.00$ 8,900.00$ 8,850.00$
SIDING
STONE VENEER
BRICK VENEER 4,000.00$ 6,800.00$ 3,900.00$
FIBER CEMENT 12,500.00$ 9,500.00$ 12,500.00$
DOOR & WINDOWS
EXTERIOR DOOR 1,150.00$ 1,150.00$ 1,150.00$
INTERIOR DOOR 975.00$ 975.00$ 975.00$
GARAGE DOOR 765.00$ 765.00$ 765.00$
WINDOWS 4,225.00$ 4,225.00$ 4,225.00$
INTERIOR FINISHES
INSULATION 2,200.00$ 2,200.00$ 2,200.00$
SHEET ROCK 6,950.00$ 6,950.00$ 6,950.00$
FLOORING
TILE 3,600.00$ 3,750.00$ 3,750.00$
HARDWOOD 12,100.00$ 12,100.00$ 12,100.00$
TRIM 5,300.00$ 5,300.00$ 5,300.00$
PAINT 3,200.00$ 3,200.00$ 3,200.00$
APPLIANCES
FRIDGE 1,200.00$ 1,200.00$ 1,200.00$
RANGE 1,000.00$ 1,000.00$ 1,000.00$
WASHER & DRYER 950.00$ 950.00$ 950.00$
MECHANICALS
ELECTRICAL 7,100.00$ 7,100.00$ 7,100.00$
PLUMBING 14,500.00$ 14,500.00$ 14,500.00$
HVAC 10,500.00$ 10,500.00$ 10,500.00$
LANDSCAPING
DRIVEWAY 1,100.00$ 1,100.00$ 1,100.00$
LAND IMPROVEMENT 6,000.00$ 6,000.00$ 6,000.00$
TOTAL COST OF CONSTRUCTION 145,165.00$ 145,165.00$ 145,115.00$

Product
Description
5Single Family Home Estimates
$8,200.00
$28,800.00
$25,350.00
$7,115.00
$33,350.00
$3,150.00
$32,100.00
$7,100.00
Whitaker Home
Hillsborough Home
$8,200.00
$28,800.00
$25,200.00
$7,115.00
$33,500.00
$3,150.00
$32,100.00
$7,100.00
Adamsville Home
$8,100.00
$28,800.00
$25,250.00
$7,115.00
$33,500.00
$3,150.00
$32,100.00
$7,100.00
Masonry
Framing
Exterior Finishes
Doors & Windows
Interior Finishes
Appliances
Mechanicals
Landscaping

Product
Description
5Single Family Home Schedules
The Meadows at Druid Hills
MASONRY 1 2 3 4 5 6 7 DAYS ON SITE
CONCRETE FLAT WORK FIRST FLOOR 3
FRAMING
EXTERIOR WALLS FIRST FLOOR 5
INTERIOR WALLS FIRST FLOOR 2
FLOOR SYSTEMSECOND FLOOR 2
EXTERIOR WALLS SECOND FLOOR 6
INTERIOR WALLS SECOND FLOOR 2
TRUSS PACKAGE 1
EXTERIOR FINISHES
ROOFING 2
SIDING
BRICK VENEER 5
FIBER CEMENT 2
DOOR & WINDOWS 4
MECHANICALS
ELECTRICAL 5
PLUMBING 5
HVAC 3
INTERIOR FINISHES
INSULATION 2
SHEET ROCK 7
FLOORING
TILE 3
HARDWOOD 3
TRIM 3
PAINT 3
APPLIANCES 1
LANDSCAPING
DRIVEWAY 1
LAND 2
72
Schedule
WHITAKER
TOTAL DAYS ON SITE
Whitaker Home

FRAMING
TRUSS PACKAGE 1
EXTERIOR FINISHES
ROOFING 2
SIDING
BRICK VENEER 6
FIBER CEMENT 2
DOOR & WINDOWS 4
MECHANICALS
ELECTRICAL 5
PLUMBING 5
HVAC 3
INTERIOR FINISHES
INSULATION 2
SHEET ROCK 7
FLOORING
TILE 3
HARDWOOD 3
TRIM 3
PAINT 3
APPLIANCES 1
LANDSCAPING
DRIVEWAY 1
LAND 2
74
Schedule
HILLSBOROUGH
TOTAL DAYS ON SITE
Product
Description
Hillsborough Home

FRAMING
FLOOR SYSTEM SECOND FLOOR 2
TRUSS PACKAGE 1
EXTERIOR FINISHES
ROOFING 2
SIDING
BRICK VENEER 4
FIBER CEMENT 2
DOOR & WINDOWS 4
MECHANICALS
ELECTRICAL 5
PLUMBING 5
HVAC 3
INTERIOR FINISHES
INSULATION 2
SHEET ROCK 6
FLOORING
TILE 3
HARDWOOD 3
TRIM 3
PAINT 3
APPLIANCES 1
LANDSCAPING
DRIVEWAY 1
LAND 2
70
Schedule
ADAMSVILLE
TOTAL DAYS ON SITE
Product
Description
Adamsville Home

Product
Description
5Townhomes
Exterior Style
Our townhomes consist of 2,469 square feet. We have two types of
layouts for our townhomes, Wedgewood and Hazelton.
Interior Style
As the exterior of our townhomes are simple and modern, our interior embodies luxury;
withholding high quality flooring, cabinets, and fixtures.

Product
Description
5Townhomes
Wedgewood Home
Our Wedgewood Home consists of a 2 car garage and a bedroom or flex space on the
lower level. It also has an open and spacious second level consisting of the dining, kitchen, and
living. The third floor is comprised of 2 bedrooms, 2 full baths, and a laundry room.
Hazelton Home
The Hazelton Home is similar in size to our Wedgewood Home, consisting of a 2 car garage. This
home consists of 3 bedrooms, 3 ½ baths, as well as an entertainment room on the lower level.

Product
Description
5Townhome Estimates
Phases WEDGEWOOD HAZELTON
The Meadows at Druid Hills TOWNHOME TOWNHOME
SQUARE FOOTAGE 2469 2469
MASONRY
CONCRETE FLAT WORK FIRST FLOOR 4,350.00$ 4,350.00$
COST OF CONSTRUCTION 4,350.00$ 4,350.00$
FRAMING
EXTERIOR WALLS FIRST FLOOR 3,550.00$ 3,550.00$
INTERIOR WALLS FIRST FLOOR 940.00$ 940.00$
FLOOR SYSTEMSECOND FLOOR 1,500.00$ 1,500.00$
EXTERIOR WALLS SECOND FLOOR 3,550.00$ 3,550.00$
INTERIOR WALLS SECOND FLOOR 940.00$ 940.00$
FLOOR FRAMING THIRD FLOOR 1,500.00$ 1,500.00$
EXTERIOR WALLS THIRD FLOOR 3,550.00$ 3,550.00$
INTERIOR WALLS THIRD FLOOR 940.00$ 940.00$
TRUSS PACKAGE 5,550.00$ 5,550.00$
EXTERIOR FINISHES
ROOFING 4,200.00$ 4,200.00$
SIDING
STONE VENEER 4,000.00$
BRICK VENEER 3,900.00$
FIBER CEMENT 6,000.00$ 6,000.00$
DOOR & WINDOWS
EXTERIOR DOOR 1,150.00$ 1,150.00$
INTERIOR DOOR 650.00$ 650.00$
GARAGE DOOR 765.00$ 765.00$
WINDOWS 3,250.00$ 3,250.00$
INTERIOR FINISHES
INSULATION 2,850.00$ 2,850.00$
SHEET ROCK 7,950.00$ 7,950.00$
FLOORING
TILE 4,250.00$ 4,250.00$
HARDWOOD 11,100.00$ 11,100.00$
TRIM 5,800.00$ 5,800.00$
PAINT 3,600.00$ 3,600.00$
APPLIANCES
FRIDGE 1,200.00$ 1,200.00$
RANGE 1,000.00$ 1,000.00$
WASHER & DRYER 950.00$ 950.00$
MECHANICALS
ELECTRICAL 6,600.00$ 6,600.00$
PLUMBING 16,000.00$ 16,000.00$
HVAC 11,050.00$ 11,050.00$
LANDSCAPING
DRIVEWAY 1,100.00$ 1,100.00$
LAND IMPROVEMENT 8,500.00$ 8,500.00$
TOTAL COST OF CONSTRUCTION 128,335.00$ 128,235.00$

Product
Description
5Townhome Estimates
Masonry
Framing
Exterior Finishes
Doors & Windows
Interior Finishes
Appliances
Mechanicals
Landscaping
$4,350.00
$22,020.00
$14,200.00
$5,815.00$35,550.00$3,150.00
$33,650.00
$9,600.00
Wedgewood Home
$4,350.00
$22,020.00
$14,100.00
$5,815.00$35,550.00$3,150.00
$33,650.00
$9,600.00
Hazelton Home

Product
Description
5Townhome Schedules
Wedgewood Home
FRAMING
TRUSS PACKAGE 1
EXTERIOR FINISH
ROOFING 2
SIDING
BRICK VENEER 5
FIBER CEMENT 2
DOOR & WINDOWS 4
MACHENICALS
ELECTRICAL 5
PLUMBING 5
HVAC 3
INTERIOR FINISHES
INSULATION 2
SHEET ROCK 7
FLOORING
TILE 3
HARDWOOD 3
TRIM 3
PAINT 3
APPLIANCES 1
LANDSCAPING
DRIVEWAY 1
LAND 2
68
Schedule
WEDGEWOOD
TOTAL DAYS ON SITE

Product
Description
5Townhome Schedules
Hazelton Home
FRAMING
TRUSS PACKAGE 1
EXTERIOR FINISH
ROOFING 2
SIDING
BRICK VENEER 5
FIBER CEMENT 2
DOOR & WINDOWS 4
MACHENICALS
ELECTRICAL 5
PLUMBING 5
HVAC 3
INTERIOR FINISHES
INSULATION 2
SHEET ROCK 7
FLOORING
TILE 3
HARDWOOD 3
TRIM 3
PAINT 3
APPLIANCES 1
LANDSCAPING
DRIVEWAY 1
LAND 2
68
Schedule
HAZELTON
TOTAL DAYS ON SITE

Product
Description
5Building Methods
Standards
- Foundation: Slab on Grade
- Framing: Conventional Lumber Framing, TJI Floor Joists, & Engineered Trusses
- High Insulation R-Value (Fiberglass)
- Hardwood and Tile Flooring
- Granite Countertops
- Wolf Appliances
- Stainless Steel Kitchen Appliances
- Low Flow Fixtures
- Low-E Windows
- Two Tone Paint
Upgrade Package
Upgrade Package Additional Prices
Level 2 Granite Countertops
Level 2 Tile Flooring
Higher R-Value Insulation
Covered Patio
Hardwood Flooring & Trim
Smart Home Set-Up
$3,200
$1,900
$6,000
$8,500
$5,800
$2,260

Product
Description
5Green Building
Penn Developers Green Building Strategy is based from the ICC 700 National Green
Building Standard (NGBS). We strive to design homes that are not only atheistically
pleasing but also energy efficient. We want our customers to enjoy indoor air quality,
energy efficient appliances, sustainable lot design, and new acquired knowledge.
Lot Design, Preparation, & Development Resource Efficiency
During the design and construction
process, we strive to minimize our impact
on the environment. We do this by
purchasing bulk materials when they are
needed. Purchasing these materials this
way helps to minimize the waste that
could be generated.
Energy Efficiency
Improvements will be made to the entire
building envelope. HVAC systems,
appliances, lighting and performance
windows will increase in quality as well as
energy efficiency.
Indoor Environmental Quality
Water Efficiency
Water Efficient appliances will be
installed in the homes. Theses appliances
include, a dishwasher, a washing
machine, showerheads, faucets, and
water closets.
Homeowner Education
Homeowners will be receive a thorough
education using manuals, operating
guides, and our own green building
specialists.
The indoor air quality of the home will
consider many improvments including,
HVAC equipment, low-allergen materials,
and products with minimum off-gassing
and/or low volatile organic compounds.
Our construction site consists of both
residential and multifamily homes. As a
company, we strive to preserve the
environment. During construction, we will
maintain the existing trees as well as
establish a sustainable lot design while
planning for prepartion and development.

Product
Description
5Why Green Building Matters
Green Building is important to the housing industry and homeowners across the world.
It not only helps the consumers but it helps the environment too. For consumers, it
lowers total ownership costs through the increase of durability, utility savings, and the
overall environment of the home. It also improves the environment by creating an increase
of awareness for important resources that will be preserved for the future.
Benefits of Green Building
Environmental Benefits
- Reduce Wastage of Water
- Conserve Natural Resources
- Improve Air and Water Quality
- Protect Biodiversity and Ecosystems
Economic Benefits
- Reduce Operating Costs
- Improve Occupant Productivity
- Create Market for Green Product and Services
Social Benefits
- Improve Quality of Life
- Minimize Strain on Local Infrastructure
- Improve Occupant Health and Comfort

Product
Description
5Building Envelope
The Building Thermal Envelope UA is less than or equal to the total UA resulting
from the U-factors. DeKalb County, Georgia is rated a Climate Zone 3. The U-factor
requirements are listed below.
Table 703.2.1(a)
Equivalent U-Factors
Climate
Zone
Fenestration
U-Factor
Skylight
U-Factor
Ceiling
U-Factor
Frame
Wall
U-Factor
Mass
Wall
U-Factor
Floor
U-Factor
Basement
Wall
U-Factor
Crawlspace
Wall
U-Factor
3
0.35
0.55
0.030
0.060
0.098
0.047
0.091
0.136
Table 703.2.5.1
Fenestration Specifications
Climate
Zones
U-Factor SHGC
Windows & Exterior Doors
(Maximum Certified Ratings)
3 0.35 0.25
Climate Zone 3, Mixed-Humid
Radon Zone, Zone 1, High Potential
Termite Zone, Heavy

Product
Description
5Architect Appreciation
Shapiro & Company Architects, Inc.
Frank Betz Associates, Inc.
Frank Betz Associates, Inc. has been specializing in custom and stock home plans since 1976.
Located in Kennesaw, Georgia, Frank Betz Associates, Inc. has established an incomparable
reputation as one of the leading provider of home plans. Their team of design experts have
more than 100 years of experience combined. Their main goal is create plans for a home that is
always set to its highest standards in residential design. They have been awarded the American
Institute of Building Design, Grand ARDA Award for Best Model Home, Dream Home Source Best
Selling Designer, and Builders Magazine Designer of the Year four times in a row. Being one of the
nation’s leading designers of custom and predesigned house plans, their company is the perfect
blend of liability and trend-setting design.
Shapiro & Company Architects, Inc. specializes in residential architecture that captures and
enhances the vision, goals, and aspirations of every customer. Their main offices are located in
Memphis and Nashville, Tennessee. Shapiro & Company’s team consists of architects,
designers, and associates that are provided with a range of professional services. The firm serves
with custom residential, multifamily and traditional neighborhood developments. Shapiro &
Company Architects, Inc. have been given five stars from several sources of reviews. The firm
focuses on details and the design, making sure that customers are satisfied with their home.

48
6
Construction Management

Construction
Management
6
Management Structure
Penn Construction
Penn Construction is responsible for all
townhome and single family home
construction. At Penn Construction, our
mission is to build the best quality homes
that attract and satisfy everything the
client is looking for. Our company, which is
a subsidiary of Penn Developers, achieves
our goal by producing high quality homes
with durable materials, high quality
appliances, and dedication that is set to
produce a strong community.
Responsible for overseeing the entire jobsite and in
charge of the whole construction team. As the Senior
Project Manager, he/she will divide their time between all
of the jobsites that are active, ensure all finances are in
order, and take care of subcontractor acquisition.
Project Manager
Responsible for his/her assigned divisions, consisting of
mixed-use or residential development sites. The Project
Manager will report to the Senior Project Manager on a
daily and/or weekly basis. While the Project Managers
are on the jobsites, they will be responsible for keeping
track of costs including, budgets. They will make sure
that the schedules are accomplished on time, while also
managing the the jobsite.
Superintendents
Responsible for overseeing the fieldwork on the
jobsite. They will be in the field on a daily basis,
ensuring the accuracy of site drawings (blue-prints).
They will also ensure that the best quality is being put
forward while answering any questions that the
subcontractors might have.
Assistant Superintendents
Responsible for answering to the Superintendent.
He/she will be helping the Superintendents with daily
responsibilities; making sure everyone is on schedule,
reporting any issues that may occur and completing the
daily work log that will be handed to the Project
Manager at the end of the day.

Construction
Management
6Warranty Plan
At Penn Developers, we take care of our customers and take pride in the
homes that we build. We offer an outstanding warranty service that customers can
add to their home.
Penn Developers Limited Warranty Plans
1-YRCoverage
10-YRCoverage
Our policy responds to all claims within 48 business hours.
Structural Warranty
Covers the
structural needs of the
home.
Workmanship & Materials
Construction defects are
resolved with Service
Requests

Construction
Management
6Safety Plan
Penn Developers holds safety precautions to the highest of standards. Injuries commonly
occur on construction sites because of dangerous equipment and incompliance with
proper procedures. Accidental injuries on a construction job site put the company at risk
for being the subject of a lawsuit. To prevent any lawsuits and keeping our employees safe,
we have developed a safety plan. Penn Developers safety plan consists of the following:
- All Superintendents and Assistant Superintendents will be OSHA-30 certified.
- Mandatory Safety meetings, known as “Tool Box Talks,” will be held once a week at the
discretion of the Superintendents. The meetings will consist of all jobsite employees and
subcontractors. We will discuss safety topics/procedures to ensure that employees are
educated and up-to-date on current jobsite safety standards.
- Penn Developers will keep a record of serious work related injuries and illnesses to remain
compliant with OSHA’s employer safety standards. Minor injuries that only require first aid, will be
addressed by the Superintendent.
- A first aid kit will be available in the construction office along with a complete SDS portfolio that
will be updated by the Assistant Superintendent for the duration of the project.
- Daily site inspections will be conducted by the Superintendents to ensure that we are in
compliance with all of OSHA’s requirements, and immediate action will be taken to remedy
any safety hazards.
- All jobsite employees and subcontractors will be required to wear proper personal protective
equipment (PPE) at all times.

Construction
Management
6Work Log
In order to keep Penn Developers organized and moving forward, we will be using a
construction management software called ProCore. Each employee will have a
personal log-in to access their schedules, construction documents and digital time cards.
Subcontractors hired out by Penn Developers will also have a log-in to access their schedules
and time cards. Some advantages to ProCore is that we can track the progress of a job
individually or as a whole. This will allow us to make improvements to our schedule as well as
increase performance. ProCore works with Android, Windows and Apple platforms. It can be
accessed with mobile phones or through a desktop computer.
Project Use
- Daily Log In
- Inspection Reports
- Punch List
- Schedules
- Photo Recording
- Change Orders
Management Use
- Bidding
- Contracts
- Timecards
- Submittals

Construction
Management
6Quality Assurance
Precision/Accuracy
Penn Developers establishes rules for the quality of work that is pursued. Every Project
Manager and subcontractor is trained to understand what type of workmanship is acceptable
and unacceptable. Our company tolerances are set at high standards. The tolerances start from
the foundation and go all the way to the roof. If something does not go above and beyond the
codes/rules, our company will not accept it. We will continue to build upon our standards and
make sure everything is done completely and effectively.
Warranty
All work will be completed with the material warranty specifications. Likewise, all warranty
materials that are purchased by a subcontractor are handed to the jobsite supervisor. At the
conclusion of a house, all warranty information will be organized in a binder and given to the
new homeowner.
As a company, we think it is important that our homebuyer’s complete maintenance checks
throughout their home. Promoting this, we provide home care guides and seasonal
maintenance checklists on our website for homebuyers to print out and complete. These
checklists allow the customers to relay information back to our company to see if any of the
issues are covered by our material/quality warranties. Our customer service benefits our
customers with quick service action, commitment, and strong long-lasting relationships.

Construction
Management
6Quality Control
Before Construction
A meeting with the Project Manager and
the customer/homebuyer will take place
in orientation form. The Project
Manager will explain to the customer
what to expect and what processes will
occur as their house is under construction.
Customers can expect a weekly phone
call in regard to the progress or updates
on their future home. This gives customers
a chance to ask any questions they may
have regarding the progress, etc.
During Construction
During orientation, the homebuyers will be made aware of construction check points that they
will need to be a part of. Homebuyers will need to check-in during pre-drywall. This ensures that
they can see where all electrical fixtures are placed. A week before closing, the homebuyers will
have to check-in again and complete a conformation home walkthrough. This allows the
customer to point out anything that needs to be corrected or touched up.
After Construction
A final meeting will take place between the Project Manager and the new homeowners. The
homeowners will receive their new house keys and the Project Manager will inform them
everything that they can expect in their new home. This includes: appliance warranty
information, paint information, and a reminder about receiving a phone call in the up-coming
months about how they are enjoying their new home.

Construction
Management
6Material Purchasing
We understand the risk involved with purchasing
material. To eliminate the risk, the only materials that
will be pre-purchased will be bulk items used in every
home. This ensures that we will receive the lowest
prices and it eliminates the potential for delays. Penn
Developers will take the necessary steps to ensure
that all expenditures are done efficiently and
effectively. Custom materials and special orders will
be completed simultaneously to the job.
-Dimensional Lumber
-Sheet Goods
-Manufactured Lumber
-Hardware
-Fuel
Material Staging
Strategic material staging is crucial to maintaining a strict, fast pace schedule. These three
material staging areas are centrally located during construction in all five phases. When
choosing the staging site, Penn Developers considered the ease of access, the size and
capacity, material safety, quality and the effect on current residents. We will use these staging
areas for development materials such as pipe, basins, and heavy equipment. Once the home
construction starts, materials such as trusses and clear span joists will be kept in the staging areas.
Due to confined space, we feel this will be the best practice. The staging areas will be returned
to green space once construction for each phase is complete.
Stage A
Phases 1, 2 & 3
Stage B
Phase 4
Stage C
Phase 5
A
B
C

Construction
Management
6Home Owners Association (HOA)
All-In-One Community Management
Penn Developers will leave All-In-One Community
Management in charge of property management
after construction is complete. All-In-One offers
superior property management and maintenance.
They will set-up and organize a Home Owners
Association as well as a community financial
system.
Provided Services
Board Meeting Assistance
- Landscape Maintenance
- Common Area Management
- Pool Safety and Club House Management
- Parking Management and Enforcement
- Enforcement of Rules and Regulations
Management & Maintenance
- Assessment Collection
- Yearly Budgets
- Financial Statement Preparation
Financial Management
- Guidance on Meeting Procedure
- Annual Election Management

57
7
Marketing & Sales Strategy

Marketing Objectives
Marketing Mix
The Meadows at Druid Hills offers
both aesthetically pleasing
townhomes and single family
homes, with a choice for
homeowners to add their own
spark and opinions. The modern,
comfortable feeling of the
well-designed neighborhood also
values many hiking trails, as well as
a playground for children and an
all year-round swimming pool.
Our homes meet the needs of our
target market and provide
superior living at an affordable
price. Ensuring a highly
competitive, affordable home, we
will achieve our profit levels and
internal rate of return.
Located northeast of Atlanta, GA,
the neighborhood of Druid Hills,
is full of shops, restaurants, parks,
and schools. Public transportation
is provided to many citizens who
commute to the city. The
neighborhood of Druid Hills also
provides a safe and affluent
environment for many current and
future homeowners.
The young professionals and
families will be reached through
many marketing strategies. Social
Media, Internet, and Print
advertisements will be provided to
our target market. Support Media
including, Model Homes,
Development Site Signage and
New Development Launch Parties
will also attract our future
homeowners.
Product Price
Place Promotion
Marketing &
Sales Strategy
7Penn Developers will provide highly competitive homes within the 32-acre plot
of land in The Meadows at Druid Hills. To ensure competitive advantage, Penn
Developers has established the following key marketing objectives:
- Educate and motivate future homeowners in the Atlanta, Georgia area through
extensive advertisements.
- Guarantee that our townhomes and single family homes are meeting specific
requirements, including: safety, durability, energy efficiency and attractiveness.
- Uphold affordable, competitive prices for our homes everywhere.
- Provide substantial customer service to all current and future homeowners.
- Commit to solving customer needs, wants and desires.
- Maintain company values, missions, professional reputation and ethical conduct.
- Pursue strong, reliable customer relationships with homeowners.

Marketing &
Sales Strategy
7Methods of Advertising
Advertising will be an essential point for reaching out to our specified target markets. We will
market our quality homes through multiple advertising platforms including, social media, the
internet, in-home and out-of-home publications, as well as promotional selling models and
agencies. Our advertising will be coordinated by our Penn Developers, marketing associate,
who has had multiple years of notable experience. We will sell our homes not only as a dwelling,
but as a welcoming home investment to the current and future economic environment.
Social Media Advertising
As of 2016, there are 2.3 billion active social media users globally. Thus, social media users have
risen by approximately 176 million in the last year. Due to the quick increase in users, social
media sites are a prime marketing opportunity. Moreover, there are 1 million new active mobile
social media users every day. With all generations using social media sites and mobile phones, it
allows us to promote and appeal our affordable, quality homes to our specific market.
Facebook
Among today’s internet usage, statistics show that an average of 81% of people who use
Facebook are between the ages of 18-49. Statistics also show that 74% of Facebook users are
within urban settings and 78% earn ≥ $75,000 per year. With these statistics, Facebook will be our
number one social media advertising site, used to promote our homes in affluent neighborhoods
as well as reaching out to the young professionals and single families. A Facebook
Advertisement page will be set up to promote our business and homes. We will post insights on
our homes as well as initial renderings, site plans, construction, development, and finished home
photos. Prospects will be able to “like” different options within our Facebook page that will lead
to new insights on our current target market. Facebook also allows our company to advertise the
business, by choosing who and where we want to attract with just the click of a button.
All-in-all, marketing on Facebook will help our business build long lasting relationships with new
and current customers.
Pinterest
We will also advertise our homes through Pinterest, an online media site that
shares photos and ideas using “pinboards”. Today’s statistics show that an
average of 36.5% of internet users from the ages of 18-49 use Pinterest. This
percentage exceeds much of the other age groups. In this case, we will
post many home furnishing photos and/or ideas that will co-inside with the
furnishings in our homes. Once users start searching for home ideas, they will
be able to “pin” them to their boards. Users will also be able to find our Penn
Developers website, connected to the photo or idea to discover additional
information on our homes and/or homebuying.
Internet Advertising
The Internet will be great tool to attract our target market. We will highly advertise and sell our
company through our Penn Developers website and the new developments website, The
Meadows at Druid Hills. We will tie both of our websites to search engine optimization. This will
ensure that our websites appear high on the list results, when prospects are looking to buy a
home in our area. We will also hire outside realtors to attract our market through online real
estate listings such as Houzz.com and Homefinder.com as well as the realtor company websites.

Marketing &
Sales Strategy
7Print Advertising
In addition to marketing, we will advertise throughout local Atlanta magazines, newspapers,
billboards, and bus/train signage. We will use Marta to help advertise our company as well
as our new development on buses and in train stations. Penn Developers will also provide
development site signage and brochures on the outside proximity of the construction site.
Our development site signage will provide a basic layout of The Meadows at Druid Hills and
interested prospects will be able to take a free brochure for additional information.
Promotional Advertising
Promoting our business, we will provide a Spec Home/Model Home within the development.
Utilizing an end-townhome, we will allow future homebuyers to view and browse many options
that are offered. With an infinite amount of finishes and designs, customers will be able to work
with our engineers to make them feel at home. Our Spec Home/Model Home will also provide
prospects with the ability to perceive the highest quality construction of a Penn Developers
home. Physically viewing our Spec Home/Model Home will surround customers with confidence
and trust.
Welcome Home
P
D
enn
evelopers
Welcome Home

Marketing &
Sales Strategy
7Community Out-Reach
Penn Developers is proud to announce that we will be providing a community out-reach
program twice a year. We will put together a 5k Run/Walk in Druid Hills each spring and
fall. The 5k Run/Walk will be located through the hiking trails within the neighborhood. A
community out-reach program benefits people who are unable to help themselves and/or
educate people on certain subects. This community out-reach appeals to many of the
Millennials who we are targeting for our new home development. We will also provide more
information about our new housing development to get our name out into the crowd.
American Heart Association
The American Heart Association advertises ways
to give back. We will support the American Heart
Association and the American Stroke Association
by using their FUNraiser tool. The FUNraiser tool is a
great way to collect funds through an online
webpage using our 5K Run/Walk event. All
proceeds from our commnunity out-reach 5K Run/
Walk will go towards the American Heart
Association and the American Stroke Association.
Moreover, we are joining the fight against our
nation’s #1 and #4 killers; heart disease and stroke.
Our donations will support life-saving efforts
including, research, education, better health,
patient care, and populations at high risk.

Marketing &
Sales Strategy
7Marketing Break-Down
Social Media Internet
Print Promotional
30%
70%
Facebook
Pinterest
Real-Estate Listings
Search Engine Optimization
Penn Developers Website
New Development Website
50%
20%
15%
15%
50% 50%
Spec Home
Model Home
15%
15%
30%
30%
5%
5%
Magazines
Newspapers
Billboards
Bus/Train Stations
Development Site Signage
Brochures

Sales Objectives
Sales Incentives
Follow-Up
Penn Developers top priority is the customer. We love to build quality homes, while allowing the
customer to have a say too. During any construction of a home, we update the customer on
the current situation or status. Once the home is built and the customers have settled in, we do
check-ups. It is our responsibility to make sure the customer feels safe and comfortable in their
new home. We make friendly one-month and ten-month checkup calls. In addition to checkups,
we provide substantial customer service. Customers can schedule warranty checkups as well as
repairs. If any repairs are needed to be addressed, we send out hired vendors immediately. We
believe that committing and following up with our customers, builds long-lasting relationships.
Marketing &
Sales Strategy
7
Pre-sale
New Development Launch Parties
As a sales strategy, we will host new development launch parties at the development site. The
launch parties will begin as soon as the land is purchased. We will host our launch parties once
a month to attract our target markets. We encourage anyone to join if they are looking for a
safe, affordable home. This gathering will allow future homebuyers to look at photos, site layouts,
and home plans. As construction begins, future homebuyers will also be able to view our Spec
Homes/Model Homes.
Partner Discounts
Amid to performing our best quality work, we partner with other industries to provide excellence
in our homes. We, Penn Developers, push for innovation and quality products just as much as
today’s industry leaders do. It is important to incorporate today’s top industries into our homes to
provide a long-lasting, safe home for our buyers. We partner with the following industries:
Within the first half of 2017, we will promote a $10, 000 off sales incentive. In other words, new
homebuyers can receivce a home discount within the first 6 months of business at The Meadows
at Druid Hills. This sales incentive will only last during the first 6 months of the year 2017. We will not
start construction of the home until the second half of 2017, once the incentive is completed.
- Maintain company values, missions, professional reputation and ethical conduct.
- Guarantee that our homes meet specific requirements, including: safety, durability,
energy efficiency and attractiveness.
- Provide monthly development launch parties to attract new homebuyers.
- Strive to create strong business ties with local real estate agencies and independent realtors.
- Withstand good construction techniques and abilities (OSHA), while keeping the development
clean of waste.
- After homes are built, we will stay committed to fixing any issues that the homes may have in
the future.

64
8
Financial & Risk Analysis

Financial &
Risk Analysis
8Realistic Financial Analysis
Townhome
Single Family
Number of Units Total SalesSales Price
Total Sales
31
269 $470,000.00
$610,000.00 $18,910,000.00
$126,430,000.00
$145,340,000.00
Home Sales
Break-Even Analysis
The Realistic Pro Forma represents the most likely projection of revenues and
expenses over the entire project. Our home sale prices are based on the current
market values and trends. We will break-even during the beginning of the third period.
As a result, we will attain an internal rate of return of 20%.

Financial &
Risk Analysis
8First Second First Second First Second First Second First Second
-$ 8,540,000.00$ 9,760,000.00$ -$ -$ -$ -$ -$ -$ 610,000.00$ 18,910,000.00$
-$ 19,740,000.00$ 26,320,000.00$ 9,400,000.00$ 9,400,000.00$ 18,800,000.00$ 9,400,000.00$ 21,150,000.00$ 9,400,000.00$ 2,820,000.00$ 126,430,000.00$
-$ 28,280,000.00$ 36,080,000.00$ 9,400,000.00$ 9,400,000.00$ 18,800,000.00$ 9,400,000.00$ 21,150,000.00$ 9,400,000.00$ 3,430,000.00$ 145,340,000.00$
-$ 7,164,550.00$ 9,483,730.00$ 2,466,700.00$ 2,466,700.00$ 4,933,400.00$ 2,466,700.00$ 5,550,075.00$ 2,466,700.00$ 616,675.00$ 37,615,230.00$
Land Acquisition 46,800,000.00$
800,000.00$ -$ 1,100,000.00$ -$ -$ -$ 1,100,000.00$ -$ -$ -$ 3,000,000.00$
6,032,604.60$ -$ 3,574,876.80$ -$ -$ -$ 460,563.60$ 1,103,445.00$ -$ -$ 11,171,490.00$
53,632,604.60$ 7,164,550.00$ 14,158,606.80$ 2,466,700.00$ 2,466,700.00$ 4,933,400.00$ 4,027,263.60$ 6,653,520.00$ 2,466,700.00$ 616,675.00$ 98,586,720.00$
(53,632,604.60)$ 21,115,450.00$ 21,921,393.20$ 6,933,300.00$ 6,933,300.00$ 13,866,600.00$ 5,372,736.40$ 14,496,480.00$ 6,933,300.00$ 2,813,325.00$ 46,753,280.00$
Gross Profit Rate (% of Sales) N/A 75% 61% 74% 74% 74% 57% 69% 74% 82% 32%
60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 10,000.00$ 10,000.00$ 500,000.00$
(53,692,604.60)$ 21,055,450.00$ 21,861,393.20$ 6,873,300.00$ 6,873,300.00$ 13,806,600.00$ 5,312,736.40$ 14,436,480.00$ 6,923,300.00$ 2,803,325.00$ 46,253,280.00$
(22,013,967.89)$ 8,632,734.50$ 8,963,171.21$ 2,818,053.00$ 2,818,053.00$ 5,660,706.00$ 2,178,221.92$ 5,918,956.80$ 2,838,553.00$ 1,149,363.25$ 18,963,844.80$
(31,678,636.71)$ 12,422,715.50$ 12,898,221.99$ 4,055,247.00$ 4,055,247.00$ 8,145,894.00$ 3,134,514.48$ 8,517,523.20$ 4,084,747.00$ 1,653,961.75$ 27,289,435.20$
N/A 44% 36% 43% 43% 43% 33% 40% 43% 48% 19%
-$ 28,280,000.00$ 36,080,000.00$ 9,400,000.00$ 9,400,000.00$ 18,800,000.00$ 9,400,000.00$ 21,150,000.00$ 9,400,000.00$ 3,430,000.00$ 145,340,000.00$
-$ 7,164,550.00$ 9,483,730.00$ 2,466,700.00$ 2,466,700.00$ 4,933,400.00$ 2,466,700.00$ 5,550,075.00$ 2,466,700.00$ 616,675.00$ 37,615,230.00$
800,000.00$ -$ 1,100,000.00$ -$ -$ -$ 1,100,000.00$ -$ -$ -$ 3,000,000.00$
6,032,604.60$ -$ 3,574,876.80$ -$ -$ -$ 460,563.60$ 1,103,445.00$ -$ -$ 11,171,490.00$
46,800,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 46,800,000.00$
60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 10,000.00$ 550,000.00$
(53,692,604.60)$ 21,055,450.00$ 21,861,393.20$ 6,873,300.00$ 6,873,300.00$ 13,806,600.00$ 5,312,736.40$ 14,436,480.00$ 6,873,300.00$ 2,803,325.00$ 46,203,280.00$
-$ -$ -$ -$ -$ -$ 2,178,221.92$ 5,918,956.80$ 2,838,553.00$ 1,149,363.25$ 12,085,094.97$
(53,692,604.60)$ 21,055,450.00$ 21,861,393.20$ 6,873,300.00$ 6,873,300.00$ 13,806,600.00$ 3,134,514.48$ 8,517,523.20$ 4,034,747.00$ 1,653,961.75$ 34,118,185.03$
19,136,908.69$ 28,587,008.69$ 38,843,051.89$ 34,111,001.89$ 29,378,951.89$ 31,580,201.89$ 23,109,366.36$ 20,021,539.56$ 18,253,611.56$ 14,104,898.31$
53,632,604.60$ 44,999,870.10$ 36,036,698.88$ 33,218,645.88$ 30,400,592.89$ 24,739,886.89$ 24,739,886.89$ 24,739,886.89$ 24,789,886.89$ 24,789,886.88$
72,769,513.29$ 73,586,878.79$ 74,879,750.77$ 67,329,647.77$ 59,779,544.77$ 56,320,088.77$ 47,849,253.25$ 44,761,426.45$ 43,043,498.45$ 38,894,785.19$
46,800,000.00$ 41,600,000.00$ 36,400,000.00$ 31,200,000.00$ 26,000,000.00$ 20,800,000.00$ 15,600,000.00$ 10,400,000.00$ 7,800,000.00$ 5,200,000.00$
57,648,150.00$ 51,242,800.00$ 44,837,450.00$ 38,432,100.00$ 32,026,750.00$ 25,621,400.00$ 19,216,050.00$ 12,810,700.00$ 9,608,025.00$ 6,405,350.00$
104,448,150.00$ 92,842,800.00$ 81,237,450.00$ 69,632,100.00$ 58,026,750.00$ 46,421,400.00$ 34,816,050.00$ 23,210,700.00$ 17,408,025.00$ 11,605,350.00$
(31,678,636.71)$ (19,255,921.21)$ (6,357,699.23)$ (2,302,452.23)$ 1,752,794.77$ 9,898,688.77$ 13,033,203.25$ 21,550,726.45$ 25,635,473.45$ 27,289,435.20$
72,769,513.29$ 73,586,878.79$ 74,879,750.77$ 67,329,647.77$ 59,779,544.77$ 56,320,088.77$ 47,849,253.25$ 44,761,426.45$ 43,043,498.45$ 38,894,785.20$
-44% 17% 17% 6% 7% 14% 7% 19% 9% 4%
N/A -61% -14% -4% 3% 12% 14% 18% 19% 20%
Income
Cost of Construction
Gross Profit
Land Development
Retained Earnings
Balance Sheet
Cash Flows From Operations
Net Cash Flow
Home Building Costs
Land Development
Marketing
Less: Income Taxes
Marketing
Sales Revenues
Less: Cash Expenses
Earnings (Loss) Before Income Taxes
Project Internal Rate of Return (IRR)
Internal Rate of Return
Assets
Cash
Capitalized Costs
Total Assets
Liabilities
Note Payable: A & D Loan
Total Liabilities
Owner's Equity
Total Liabilities and Owners Equity
Return on Assets (ROA)
Note Payable: Construction Loan
Less: Income Tax
Land Acquisition
Net Income
Cash Flows
Profit Margin (% of Sales)
Demolition Costs
Total
Realistic Pro Forma
Demolition Costs
Revenues
Expenses
Single Family Home Sale Revenues
Total Revenues
Home Building Costs
2019 2020 2021Year
Semi-Year
2017 2018
Townhome Sale Revenues
66

Financial &
Risk Analysis
8Conservative Financial Analysis
Townhome
Single Family
Total Sales
31
269
$590,000.00
$460,000.00
$18,290,000.00
$123,740,000.00
$142,030,000.00
Home Sales
Break-Even Analysis
The Conservative Pro Forma represents any reasonable decreases that may occur
in the market value of our homes. We are prepared for a potential decline in the
market value, up to 3%. Anything exceeding 3%, we will activate our exit
strategy. As a company, we anticipate our break-even point during the middle of the
third period. The Conserative Pro Forma still achieves an 18% internal rate of return.

Financial &
Risk Analysis
-$ 8,260,000.00$ 9,440,000.00$ -$ -$ -$ -$ -$ -$ 590,000.00$ 18,290,000.00$
-$ 19,320,000.00$ 25,760,000.00$ 9,200,000.00$ 9,200,000.00$ 18,400,000.00$ 9,200,000.00$ 20,700,000.00$ 9,200,000.00$ 2,760,000.00$ 123,740,000.00$
-$ 27,580,000.00$ 35,200,000.00$ 9,200,000.00$ 9,200,000.00$ 18,400,000.00$ 9,200,000.00$ 20,700,000.00$ 9,200,000.00$ 3,350,000.00$ 142,030,000.00$
-$ 7,164,550.00$ 9,483,730.00$ 2,466,700.00$ 2,466,700.00$ 4,933,400.00$ 2,466,700.00$ 5,550,075.00$ 2,466,700.00$ 616,675.00$ 37,615,230.00$
800,000.00$ -$ 1,100,000.00$ -$ -$ -$ 1,100,000.00$ -$ -$ -$ 3,000,000.00$
6,032,604.60$ -$ 3,574,876.80$ -$ -$ -$ 460,563.60$ 1,103,445.00$ -$ -$ 11,171,490.00$
53,632,604.60$ 7,164,550.00$ 14,158,606.80$ 2,466,700.00$ 2,466,700.00$ 4,933,400.00$ 4,027,263.60$ 6,653,520.00$ 2,466,700.00$ 616,675.00$ 98,586,720.00$
(53,632,604.60)$ 20,415,450.00$ 21,041,393.20$ 6,733,300.00$ 6,733,300.00$ 13,466,600.00$ 5,172,736.40$ 14,046,480.00$ 6,733,300.00$ 2,733,325.00$ 43,443,280.00$
60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 10,000.00$ 10,000.00$ 500,000.00$
(53,692,604.60)$ 20,355,450.00$ 20,981,393.20$ 6,673,300.00$ 6,673,300.00$ 13,406,600.00$ 5,112,736.40$ 13,986,480.00$ 6,723,300.00$ 2,723,325.00$ 42,943,280.00$
(22,013,967.89)$ 8,345,734.50$ 8,602,371.21$ 2,736,053.00$ 2,736,053.00$ 5,496,706.00$ 2,096,221.92$ 5,734,456.80$ 2,756,553.00$ 1,116,563.25$ 17,606,744.80$
(31,678,636.71)$ 12,009,715.50$ 12,379,021.99$ 3,937,247.00$ 3,937,247.00$ 7,909,894.00$ 3,016,514.48$ 8,252,023.20$ 3,966,747.00$ 1,606,761.75$ 25,336,535.20$
N/A 44% 35% 43% 43% 43% 33% 40% 43% 48% 18%
-$ 27,580,000.00$ 35,200,000.00$ 9,200,000.00$ 9,200,000.00$ 18,400,000.00$ 9,200,000.00$ 20,700,000.00$ 9,200,000.00$ 3,350,000.00$ 142,030,000.00$
-$ 7,164,550.00$ 9,483,730.00$ 2,466,700.00$ 2,466,700.00$ 4,933,400.00$ 2,466,700.00$ 5,550,075.00$ 2,466,700.00$ 616,675.00$ 37,615,230.00$
800,000.00$ -$ 1,100,000.00$ -$ -$ -$ 1,100,000.00$ -$ -$ -$ 3,000,000.00$
6,032,604.60$ -$ 3,574,876.80$ -$ -$ -$ 460,563.60$ 1,103,445.00$ -$ -$ 11,171,490.00$
46,800,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 46,800,000.00$
60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 10,000.00$ 550,000.00$
(53,692,604.60)$ 20,355,450.00$ 20,981,393.20$ 6,673,300.00$ 6,673,300.00$ 13,406,600.00$ 5,112,736.40$ 13,986,480.00$ 6,673,300.00$ 2,723,325.00$ 42,893,280.00$
-$ -$ -$ -$ -$ -$ 2,096,221.92$ 5,734,456.80$ 2,756,553.00$ 1,116,563.25$ 11,703,794.97$
(53,692,604.60)$ 20,355,450.00$ 20,981,393.20$ 6,673,300.00$ 6,673,300.00$ 13,406,600.00$ 3,016,514.48$ 8,252,023.20$ 3,916,747.00$ 1,606,761.75$ 31,189,485.03$
19,136,908.69$ 27,887,008.69$ 37,263,051.89$ 32,331,001.89$ 27,398,951.89$ 29,200,201.89$ 20,611,366.36$ 17,258,039.56$ 15,372,111.56$ 11,176,198.31$
53,632,604.60$ 45,286,870.10$ 36,684,498.89$ 33,948,445.89$ 31,212,392.89$ 25,715,686.89$ 25,715,686.89$ 25,715,686.89$ 25,765,686.89$ 25,765,686.89$
72,769,513.29$ 73,173,878.79$ 73,947,550.77$ 66,279,447.77$ 58,611,344.77$ 54,915,888.78$ 46,327,053.25$ 42,973,726.45$ 41,137,798.45$ 36,941,885.20$
46,800,000.00$ 41,600,000.00$ 36,400,000.00$ 31,200,000.00$ 26,000,000.00$ 20,800,000.00$ 15,600,000.00$ 10,400,000.00$ 7,800,000.00$ 5,200,000.00$
57,648,150.00$ 51,242,800.00$ 44,837,450.00$ 38,432,100.00$ 32,026,750.00$ 25,621,400.00$ 19,216,050.00$ 12,810,700.00$ 9,608,025.00$ 6,405,350.00$
104,448,150.00$ 92,842,800.00$ 81,237,450.00$ 69,632,100.00$ 58,026,750.00$ 46,421,400.00$ 34,816,050.00$ 23,210,700.00$ 17,408,025.00$ 11,605,350.00$
(31,678,636.71)$ (19,668,921.21)$ (7,289,899.23)$ (3,352,652.23)$ 584,594.77$ 8,494,488.77$ 11,511,003.25$ 19,763,026.45$ 23,729,773.45$ 25,336,535.20$
72,769,513.29$ 73,173,878.79$ 73,947,550.77$ 66,279,447.77$ 58,611,344.77$ 54,915,888.77$ 46,327,053.25$ 42,973,726.45$ 41,137,798.45$ 36,941,885.20$
-44% 16% 17% 6% 7% 14% 7% 19% 10% 4%
N/A -62% -16% -6% 1% 10% 12% 17% 18% 18%Project Internal Rate of Return (IRR)
Capitalized Costs
Total Assets
Liabilities
Total Liabilities
Owner's Equity
Retained Earnings
Cash
Less: Cash Expenses
Home Building Costs
Demolition Costs
Land Development
Land Acquisition
Marketing
Less: Income Taxes
Net Cash Flow
Balance Sheet
Assets
Sales Revenues
Demolition Costs
Land Development
Gross Profit
Marketing
Income
Less: Income Tax
Net Income
Cash Flows
Home Building Costs
Conservative Pro Forma
Year 2017 2018 2019 2020 2021
Total
Semi-Year
Revenues
Total Revenues
Expenses
68

Financial &
Risk Analysis
8Optimistic Financial Analysis
Townhome
Single Family
Total Sales
31
269
$650,000.00
$480,000.00
$20,150,000.00
$129,120,000.00
$149,270,000.00
Home Sales
Break-Even Analysis
The Optimistic Pro Forma shows a potential increase of 3% in market value. We feel
this is possible based on rising market trends, location, and the local home building
growth rate. This financial analysis projects our company to break-even at the end
of the second period. The optimistic projection enables us to generate a 22% internal
rate of return.

Financial &
Risk Analysis
-$ 9,100,000.00$ 10,400,000.00$ -$ -$ -$ -$ -$ -$ 650,000.00$ 20,150,000.00$
-$ 20,160,000.00$ 26,880,000.00$ 9,600,000.00$ 9,600,000.00$ 19,200,000.00$ 9,600,000.00$ 21,600,000.00$ 9,600,000.00$ 2,880,000.00$ 129,120,000.00$
-$ 29,260,000.00$ 37,280,000.00$ 9,600,000.00$ 9,600,000.00$ 19,200,000.00$ 9,600,000.00$ 21,600,000.00$ 9,600,000.00$ 3,530,000.00$ 149,270,000.00$
-$ 7,164,550.00$ 9,483,730.00$ 2,466,700.00$ 2,466,700.00$ 4,933,400.00$ 2,466,700.00$ 5,550,075.00$ 2,466,700.00$ 616,675.00$ 37,615,230.00$
800,000.00$ -$ 1,100,000.00$ -$ -$ -$ 1,100,000.00$ -$ -$ -$ 3,000,000.00$
6,032,604.60$ -$ 3,574,876.80$ -$ -$ -$ 460,563.60$ 1,103,445.00$ -$ -$ 11,171,490.00$
53,632,604.60$ 7,164,550.00$ 14,158,606.80$ 2,466,700.00$ 2,466,700.00$ 4,933,400.00$ 4,027,263.60$ 6,653,520.00$ 2,466,700.00$ 616,675.00$ 98,586,720.00$
(53,632,604.60)$ 22,095,450.00$ 23,121,393.20$ 7,133,300.00$ 7,133,300.00$ 14,266,600.00$ 5,572,736.40$ 14,946,480.00$ 7,133,300.00$ 2,913,325.00$ 50,683,280.00$
60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 10,000.00$ 10,000.00$ 500,000.00$
(53,692,604.60)$ 22,035,450.00$ 23,061,393.20$ 7,073,300.00$ 7,073,300.00$ 14,206,600.00$ 5,512,736.40$ 14,886,480.00$ 7,123,300.00$ 2,903,325.00$ 50,183,280.00$
(22,013,967.89)$ 9,034,534.50$ 9,455,171.21$ 2,900,053.00$ 2,900,053.00$ 5,824,706.00$ 2,260,221.92$ 6,103,456.80$ 2,920,553.00$ 1,190,363.25$ 20,575,144.80$
(31,678,636.71)$ 13,000,915.50$ 13,606,221.99$ 4,173,247.00$ 4,173,247.00$ 8,381,894.00$ 3,252,514.48$ 8,783,023.20$ 4,202,747.00$ 1,712,961.75$ 29,608,135.20$
N/A 44% 36% 43% 43% 44% 34% 41% 44% 49% 20%
-$ 29,260,000.00$ 37,280,000.00$ 9,600,000.00$ 9,600,000.00$ 19,200,000.00$ 9,600,000.00$ 21,600,000.00$ 9,600,000.00$ 3,530,000.00$ 149,270,000.00$
-$ 7,164,550.00$ 9,483,730.00$ 2,466,700.00$ 2,466,700.00$ 4,933,400.00$ 2,466,700.00$ 5,550,075.00$ 2,466,700.00$ 616,675.00$ 37,615,230.00$
800,000.00$ -$ 1,100,000.00$ -$ -$ -$ 1,100,000.00$ -$ -$ -$ 3,000,000.00$
6,032,604.60$ -$ 3,574,876.80$ -$ -$ -$ 460,563.60$ 1,103,445.00$ -$ -$ 11,171,490.00$
46,800,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 46,800,000.00$
60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 10,000.00$ 550,000.00$
(53,692,604.60)$ 22,035,450.00$ 23,061,393.20$ 7,073,300.00$ 7,073,300.00$ 14,206,600.00$ 5,512,736.40$ 14,886,480.00$ 7,073,300.00$ 2,903,325.00$ 50,133,280.00$
-$ -$ -$ -$ -$ -$ 2,260,221.92$ 6,103,456.80$ 2,920,553.00$ 1,190,363.25$ 12,474,594.97$
(53,692,604.60)$ 22,035,450.00$ 23,061,393.20$ 7,073,300.00$ 7,073,300.00$ 14,206,600.00$ 3,252,514.48$ 8,783,023.20$ 4,152,747.00$ 1,712,961.75$ 37,658,685.03$
19,136,908.69$ 29,567,008.69$ 41,023,051.89$ 36,491,001.89$ 31,958,951.89$ 34,560,201.89$ 26,207,366.36$ 23,385,039.56$ 21,735,111.56$ 17,645,398.31$
53,632,604.60$ 44,598,070.10$ 35,142,898.89$ 32,242,845.89$ 29,342,792.89$ 23,518,086.89$ 23,518,086.89$ 23,518,086.89$ 23,568,086.89$ 23,568,086.89$
72,769,513.29$ 74,165,078.79$ 76,165,950.77$ 68,733,847.77$ 61,301,744.77$ 58,078,288.77$ 49,725,453.25$ 46,903,126.45$ 45,303,198.45$ 41,213,485.20$
46,800,000.00$ 41,600,000.00$ 36,400,000.00$ 31,200,000.00$ 26,000,000.00$ 20,800,000.00$ 15,600,000.00$ 10,400,000.00$ 7,800,000.00$ 5,200,000.00$
57,648,150.00$ 51,242,800.00$ 44,837,450.00$ 38,432,100.00$ 32,026,750.00$ 25,621,400.00$ 19,216,050.00$ 12,810,700.00$ 9,608,025.00$ 6,405,350.00$
104,448,150.00$ 92,842,800.00$ 81,237,450.00$ 69,632,100.00$ 58,026,750.00$ 46,421,400.00$ 34,816,050.00$ 23,210,700.00$ 17,408,025.00$ 11,605,350.00$
(31,678,636.71)$ (18,677,721.21)$ (5,071,499.23)$ (898,252.23)$ 3,274,994.77$ 11,656,888.77$ 14,909,403.25$ 23,692,426.45$ 27,895,173.45$ 29,608,135.20$
72,769,513.29$ 74,165,078.79$ 76,165,950.77$ 68,733,847.77$ 61,301,744.77$ 58,078,288.77$ 49,725,453.25$ 46,903,126.45$ 45,303,198.45$ 41,213,485.20$
-44% 18% 18% 6% 7% 14% 7% 19% 9% 4%
N/A -59% -11% -2% 5% 14% 16% 20% 21% 22%Project Internal Rate of Return (IRR)
Capitalized Costs
Total Assets
Liabilities
Total Liabilities
Owner's Equity
Retained Earnings
Cash
Less: Cash Expenses
Home Building Costs
Demolition Costs
Land Development
Land Acquisition
Marketing
Less: Income Taxes
Net Cash Flow
Balance Sheet
Assets
Sales Revenues
Demolition Costs
Land Development
Gross Profit
Marketing
Income
Less: Income Tax
Net Income
Cash Flows
Home Building Costs
Optimistic Pro Forma
Year 2017 2018 2019 2020 2021
Total
Semi-Year
Revenues
Total Revenues
Expenses
70

Financial &
Risk Analysis
8Reputation Risk
Establishing a reputation for quality home building is an event tried in the court of the
public opinion rather than the court of law. Reputation is valuable in the fiercely
competitive market of land development. We, Penn Developers, are continually
setting the expectations high in the areas of quality and craftsmanship.
Our top priority as a company is the satisfaction of our customers. In every situation, we strive to
meet the needs of the customer; no matter the cost. The satisfaction of the client and their
opinion of us as a business is far more valuable.
Penn Developers works tirelessly to maintain trust, especially within the community. We do this by
communicating efficiently with our customers, putting our best effort into meeting the needs of
the customers, and keeping our promises. Each time we provide a client with what we promised
them, we are able to establish another positive relationship within the community.
Our company is constantly researching new techniques and technology in order to improve our
market analysis. Improving our market analysis, we are able to remain current on existing trends,
demographics, and changes in the economy. Penn Developers understands that risks are
unavoidable, so plans and procedures are in place in order to manage any unplanned
situations that may arise.

Financial &
Risk Analysis
8Supply Shortages
Within the scope of this project, a risk that Penn Developers may face is supply
shortages and fluctuation of construction costs. The construction industry is still
recovering from the collapse of the housing market in 2008. Due to the collapse
of the housing market, many supply companies went out of business. In turn, there are
fewer suppliers competing for consumers in the industry. The lack of competition has created
higher material supply prices nationwide. Prices for local natural materials have also increased in
the Atlanta area. Materials such as cement, sand, and stone have been affected due to an
absence of supply and demand.
Since the collapse of the housing market in 2008, the population has risen by 1.18 percent, and
there has been an increasing demand for housing in the United States. According to RSMeans
Construction Cost Index (CCI), the construction costs in the Atlanta area have risen by 3.5
percent since the year 2011.
Penn Developers plans to work with local suppliers in order to maximize resources to keep
construction costs at a minimum. In order to keep construction costs low, Penn Developers will
be regularly negotiating prices of materials. Also, locking in prices of materials throughout the
duration of the project will allow us to keep our competitive advantage. This strategy will help
to aid our financial risks within our projections and to keep our construction schedule going as
planned.

Labor Risk
Financial &
Risk Analysis
8After the recession of 2008, many skilled laborers retired early and/or switched fields.
Currently, the construction industry is experiencing a shortage of skilled employees.
Since we are in the process of transitioning to a new president in our country, the labor
industry has come to an awkward moment in regards to immigrant workers on large
construction projects. During our presidential election, the president who was elected expressed
very strong views on immigrant labor, causing workers to be more susceptible to the types of
jobs that will expose them.
Penn Developers will make efforts to prevent labor shortages on this project, along with future
projects too. The following are strategies used to minimize labor risks:
- In order to prevent labor shortages, Penn Developers will take precautionary measures to
ensure that safety is our #1 priority for both the community and our employees.
- Penn Developers will make sure all jobsite employees are educated and trained on OSHA
standards and jobsite safety.
- By educating employees on safety precautions and by helping laborers educate themselves
on proper procedure, Penn Developers is cutting down on worker’s compensation claims.
- Construction Managers will supervise the jobsite carefully by making sure the subcontractors
are well-known and have good reputations by keeping a positive rapport with the
them and their employees.
- Penn Developers will maintain management accountability by holding weekly “Tool Box Talks”
to discuss safety and OSHA standards with all employees on the jobsite.

Financial &
Risk Analysis
8Exit Strategies
Sale After Demolition
Penn Developers has generated several risk management strategies that can be
implemented in the event of any external influences that will negatively impact the
continuation of construction. The following exit strategies are viable options that can
be used throughout the various stages of construction:
Selling the land after demolition is a strategy that can be enforced if Penn Developers becomes
financially unstable after acquiring ownership of the property. We believe that after the
demolition of all existing units on the property, we will be able to return it back to the market with
an increased property evaluation of 3% -5%.
Phasing
The land development process has been divided into five phases. Phase 1 will consist of
constructing 15 single family homes and 49 townhomes. Phase 2 will only begin after Penn
Developers has shown positive presales in Phase 1. By dividing the project into phases, we are
minimizing our financial risks associated with land development, and ensuring that we are
maintaining our financial projections. If a phase is showing less than adequate presales/sales
Penn Developers will implement our Change in Sales strategy.
Change in Sales
Change in Sales strategy will be implemented during each phase of construction. During this
time, Penn Developers, will conduct a sales evaluation. If sales are falling below our 65%
threshold, we will analyze the problem, re-evaluate sales prices, marketing strategies, and the
overall design of the product. This will allow us to mitigate the situation and make essential
alterations to improve performance and generate sales.
Rent to Own
Penn Developers will implement the Rent-to-Own strategy if presales fall short of meeting 65% of
the presale threshold. This strategy will be offered exclusively for the sale of townhomes.
Rent-to-Own will not be an option for single family homes. In a soft market, the Rent-to-Own
option can produce more cash flow, yield a higher sale price, and expand our target market.
Penn Developers will maintain 100% ownership of the property throughout the duration of the
Rent-to-Own process. The residents who choose to utilize the Rent-to-Own option will be subject
to a rigorous screening process. The following are stipulations for the Rent-to-Own agreement:
- 24-Month Term
- A 2.5% security deposit (non-refundable) due at signing.
- Monthly payments will be based on a Fair Rental Market Evaluation.
- A $300.00 additional premium, also non-refundable, will be escrowed and can be used in
addition to the original down payment toward the purchase of the townhome.
Maintenance and asset collection will be managed by All-In-One Community Management
Company.

75
9
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