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