Small scale homebuilder business how-to?

[Marshall Swatt]

Hello,

I'd love advice on how to start a small-scale homebuilder business, doing an initial 3 or so homes in the 450-700k price range. I'd like to be the GC on the project, though perhaps for the initial 1-2 builds perhaps I should find a GC I can shadow? Any advice in that regard?

My background is perhaps a bit unconventional. I've experience with residential investing and have managed 10 gut rehabs, have been hands-on for a few of the projects, and have assisted a developer with a couple new townhouse builds but still feel very green and unsure how to plan and manage a new construction project. I've not worked in the trades, but have a tech and business background with a partial degree in architecture.

If I want to focus small-scale homebuilding, are there certain things I should do to ensure success vs a larger builder?

How should I ensure quality of construction work on-site and conformance with the plans?

What should the capital structure be (owner capital, const lender, or other?)?

How much (profit) margin should I specify for a build, 18%, 25%, more?

Before purchasing land, should I speak with local govt (town/city/county) or other expert to ensure that the as-of-right zoning and setbacks allow for the build?

Any advice on structuring contracts with the subcontractors?

Any other advice welcome and much appreciated!