Land Development - Questions
I am increasingly interested in better understanding fundamentals around land development. Do we have any experienced land developers here, especially those that may have worked at a production builder?
Some initial questions I've been thinking about:
-
What percent of land opportunities are sourced off market? Are these sourced by cutting our brokers and calling specific land owners to see if they will sell?
-
How much weight is put into preliminary cost estimates from civil engineers? Or is each project subsequently estimated based on current experience and preliminary discussions with contractors?
-
Do firms have an established feasibility process? For example, land plan, then title survey, then environmental, then topographical, then etc.
-
What is a target gross unlevered margin for land development, assuming you're taking to paper lots? Finished lots?
-
What does a takedown schedule look like with a seasoned home builder partner? What is a deposit amount on percent basis and what are typical additional deposits based on milestones.
Any help or thoughts?
Hi KingEsque, hope I can help. Do any of these links cover what you're looking for:
More suggestions...
Fingers crossed that one of those helps you.
I'd like to hear this too, bump
Interested as well.
Natus odio esse occaecati. Porro voluptatem et et molestiae qui quibusdam est. Mollitia facilis nam reiciendis quasi. Eum eos error laudantium laudantium quis. Repudiandae quasi veniam natus aut voluptas fugit in a. Est suscipit qui nisi odio.
Nihil natus magnam voluptate non. Praesentium quaerat soluta magnam et. Sit asperiores ut architecto mollitia aut id.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...