Message-ID: <353335.1075855714823.JavaMail.evans@thyme> Date: Thu, 29 Mar 2001 03:59:00 -0800 (PST) From: phillip.allen@enron.com To: rlehmann@yahoo.com Subject: Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Phillip K Allen X-To: rlehmann@yahoo.com X-cc: X-bcc: X-Folder: \Phillip_Allen_June2001\Notes Folders\Sent X-Origin: Allen-P X-FileName: pallen.nsf Reagan, I am still reviewing the numbers but here are some initial thoughts. Are you proposing a cost plus contract with no cap? What role would you play in obtaining financing? Any experience with FHA 221(d) loans? Although your fees are lower than George and Larry I am still getting market quotes lower yet. I have received estimates structured as follows: 5% - onsite expenses, supervision, clean up, equipment 2%- overhead 4%- profit I just wanted to give you this initial feedback. I have also attached an extremely primitive spreadsheet to outline the project. As you can see even reducing the builders fees to the numbers above the project would only generate $219,194 of cash flow for a return of 21%. I am not thrilled about such a low return. I think I need to find a way to get the total cost down to $10,500,000 which would boost the return to 31%. Any ideas? I realize that you are offering significant development experience plus you local connections. I am not discounting those services. I will be out of the office for the rest of the week, but I will call you early next week. Phillip