SFR New Construction DFW Questions

[Chris C.]

I'm looking to start building single family homes in the Dallas area. My strategy is simple find a builder, find a lot or tear down, finance the deal at the lowest cost possible and split the profit with the builder.

I want to build property at the lowest price-point while creating the most value to the customer therefore allowing for the largest pool of buyers so it is sold quickly.

What I'm finding is 3 bedroom 2/2.5 bath 2000-2500 sqft seems to be a nice point to aim for however I want to start looking at lots and start pricing everything out. Depending on the area something could sell for $250-$500k and up..

How can I determine the lot size I need to look for? 

Also I've been looking for lots mainly on the MLS. I've done a lot of reading on BP and from what I've read finding lots on the MLS is like once they hit the MLS they are already overpriced so I believe the real money to be made is in the negotiation or finding other areas besides MLS to get good deals on lots?

Someone once told me the money that is made in real estate is all done once you buy or build the property not when you sell it.

I'm trying to make the best decisions here to start if someone has any advice I'm all ears.

Thanks,

Christopher