ADVICE on Building Single Family Residences

[EMarie Windham]

Hello all, I have the option to purchase 4 lots to build Single fam homes (2200-2500sf). Looking to get a construction loan to fund or maybe hard money financing. I want to keep the home sale price at a price that will pre-sell quickly. Right now the existing homes ranging from $260k to $285k price point is selling very fast. Look to price them at $280-300k. Any tips on maximizing profits in new construction.

[Greg Dickerson]

Originally posted by @EMarie Windham:

Hello all, I have the option to purchase 4 lots to build Single fam homes (2200-2500sf). Looking to get a construction loan to fund or maybe hard money financing. I want to keep the home sale price at a price that will pre-sell quickly. Right now the existing homes ranging from $260k to $285k price point is selling very fast. Look to price them at $280-300k. Any tips on maximizing profits in new construction.

You should start with talking to a qualified experienced GC that has a solid track record for building the types of houses you want to build. They will be able to tell you current costs, permit requirements and fees etc.  The lender will require contracts, permits, plans and specs when you apply for a loan. The best thing to do is to check out what types of new construction houses are selling in your area and duplicate them. You will be able to see the floor plans, colors and finishes that are selling right now. Don't try to get crazy with design or go against what's popular. Stick with delivering what the market is already looking for.