Case Study: Wright Homes minimizes financial risk and generates risk-adjusted offers with Palisade’s @RISK

Developing Affordable Residential Homes with Palisade’s @RISK

Wright Homes, a small real estate development and property management company focused on affordable single‑family housing, needed a way to select and price distressed and rehab properties without exposing itself to excessive financial risk. To generate risk‑adjusted offer amounts and make informed cost/risk trade‑offs, Wright Homes adopted Palisade’s @RISK.

Using Palisade’s @RISK, Wright Homes modeled line‑item redevelopment costs, vacancy and maintenance allowances, future rental income, taxes and incentives, and ran Monte Carlo simulations to produce distributions of total redevelopment costs that guided offers based on target ROI. The Palisade solution helped Wright Homes restore multiple properties in Des Moines (including the McKinley project), avoid overexposure to risk, and is now planned for use on all future redevelopment projects.

Wright Homes

Jim Goebel

Principal Developer