The year 2016 was an eventful one for home building.
In November 2005, the Base Realignment and Closure (BRAC) commission approved 22 closures, recommended realignment for seven and left five bases open. What does this mean for builders? Those 22 closed bases will eventually appear on the market for sale. In a time of decreasing availability of developable real estate, bases closings can provide some of the largest expanses of undeveloped and valuable land in the country.
High-rise and mid-rise construction used to be a high stakes game for regional builders with plenty of coastline. Now, however, even the biggest national builders want a place at the table. Their timing -- always a staple of their success -- couldn't be better.
This month, we feature two Southern markets that rank among the 13 largest in the country.
Since the GIs came home from World War II, this country's high-production home builders have had one dominant product: single-family homes built in subdivisions at about four units to the acre. Repeating that product, over and over, allowed the biggest builders to evolve into mass-production machines.
Move over, metropolitan markets, the megapolitans are coming. Estimating housing needs for 83 million more U.S. residents by 2040, researchers at the Metropolitan Institute at Virginia Tech are predicting a $25-trillion housing boom. To account for this growth and development, they have created 10 super-sized market areas they call megapolitan areas, or simply megapolitans.
As you enter the lower 9th Ward of New Orleans, the smell hits you right away — the sick smell of death. Spend a few seconds inside one of these empty, desolate homes, filled with rotting couches, walls consumed by mold — and the smell will turn your stomach. A breeze carries a shard of aluminum flashing into the street.
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.
A mid-August poll published in USA Today indicated 71 percent of respondents would accept a tax hike to keep developers away from their property. I don't know who asked the survey question, nor do I know how it was asked, but I'd like to see the details. I know I could blow huge holes in it.
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.