All buyers want to live comfortably, whether they're feeling cramped in a current home or are looking for more space in their investment.
In this article, we will discuss organization business structures and selecting a lender. Business Structures After determining the goals of the project and the approximate amount of financing needed, you must decide on the legal structure of your business. You should make your decision based on the impact of the legal structure on your liability, initial cost, government control, impact on inc...
The majority of real estate developers look to increase their potential investment return by using other people's money. Assuming that the rate of return for the project is greater than the interest rate for the debt, the more debt placed on a property, the higher the potential return. The use of borrowed capital to make an investment, called leveraging, does not always guarantee a return.
In last month's article, we discussed the process of finding land to develop as well as how to conduct the preliminary investigation and financial analysis. This article will discuss tying up the land, due diligence and financing. Tying Up Land Once you've identified a parcel of land and completed the preliminary investigation, you'll need to tie up the land until you are ready to acquire it.
In the first part of the Land Acquisition and Development Financial series (August PB), we discussed a market analysis that serves as the foundation for your land acquisition and development financial decisions. This, the second article in the series, will discuss finding the land and the preliminary investigation and financial analysis.
Mold has had its 15 minutes of fame over the last few years. Though the hype has died down, mold is still an important issue. Customer complaints require home builders to have a fast action plan; both to clean up the mold problem and to show customers a quality home builder is looking out for their health and safety and the durability of their home.
Land development is both an art and a science. It is an art that builds on creativity, instincts and vision to transform an idea from concept into reality. As a science, it systematically progresses through a series of activities to accomplish a successful outcome — a new development. In this article, we will discuss the land acquisition and development finance process, which includes: Th...
Part 5 of the Financial Management series will show how a disciplined approach to financial management can save time and improve margins. What is a system? A system contains the following four items: Each of the four components can work individually; however, it takes all four working in conjunction to make a system.
The list of the 101 Best Companies to Work For 2003
While many builders lack the resources to duplicate the human resources programs of companies such as Microsoft and Johnson & Johnson, all home builders, regardless of company size, can and should practice the following.