Why is he claiming he may only make 100k? To negotiate down your piece? Not your issue.
You have the basics, so I'm of the same mind: $4M may not be realistic, so the investor may make less than the pipe dream price.
Thanks for the response DaveR!
Yeah that sort of my guess, not going to work but that's my guess. The 800K isn't near as profitable as he thinks it is anyway; so it's not budging without serious scope/selection changes. there are a lot of allowances (flooring, cabinets, appliances, windows, etc.) so knowing his taste and the high end market he could certainly go over though I did my best to figure them high. But they could easily eat away the 50K misc.
Yeah he was originally saying 3.5 so not sure how confident he is on his sudden jump to 4 mill. though to be fair he did expand scope/end product a good bit.
I'm still pretty confident that even if it lands say in the middle at 3.75 he'll make plenty and certainly more than us (which is fine, he's the investor)
Based on the last one he did in the area and what the realtor said who works in the area a good bit I don't think it will sit too long. Old high end 1930's highly sought neighborhood without much inventory for souped up modern places.