BiggerPockets

I was recently approached by a builder/developer which happens to be one of the largest in the Atlanta area. Apparently they have found it necessary to become as creative as possible (Atlanta's new home starts have practically stopped).

This is what they pitched: I buy the lots directly from their banks at 50 - 60 cents on the dollar. They build a home on the lot and my return on the lot is 50%
They also pitched that I invest in the construction of the home (in a proven community) and my return is 30%.
The risk is, I will not get a return until the house closes by owner occupant.

What do you think?

Thanks Will. I haven't done spec building before. I do have a construction division that could certainly handle it. I'm just not sure the numbers work and although investment properties are flying off the shelf here I don't know if general public is able to obtain financing.
Most of our investors are coming from California and out west states. The concensus from my competition agree that even though the market is getting very busy for us the buyers are investor groups and not owner occupants.
That being said, I can lease new construction 100% faster than I can a rehab. Hmmm, need to look at the numbers again.