All Forum Posts by: Sophia Wang

 That is AMAZING! 10-15% is really low, do you mean that is the price you buy the unimproved land, and how much percentage you sell the lots for in the end? I have been seeing general guideline of 20% in this forum lately. 

And speaking of warranty and liabilities, if a builder only builds spec homes and sell when home is all built-out, i.e. no custom homes. What is the typical warranty builder/seller should provide? In our area, typical new home builders provide 1 year home warranty and 10 years structural warranty. 

Jim, in those JV deals, you pretty much worked on the land development, and sell off the lots to home builders, right? Is it common for an investor to do the land development and the home building? We are still exploring where we want to position ourselves, only working on land development, or getting into home building as well.

 Thanks Bryan for replying! We are just getting into land development and since this will be a small project, we are considering going through the entire land development process and the new home constructions. I know often times, land developers just develop the land and sell the lots to home builders. In our case, if we end up building homes ourselves, should we use a different business entity to separate the work and of course separate liabilities? 

We have been doing our own GC work so far on renovation and home building. I was going to hire a engineering firm to do all study and paper work for subdividing the parcel, and hire a site work company for all infrastructure. Is this the same as using GCs for development? Sorry I am very very new to this. 

Thanks again for your input! 

Do you use different business entities to buy/subdivide the land parcel and build new homes on the subdivided lots? 

about 40-50k for 20% for the year. 

Thanks @Steve Vaughan! They do like the interest, but they are both in their late 60's, and they really want to blow the money off on some travel and fun things they can do while they still can. So I have been trying to find new angles for the pitch.

So my confusion was that once the sale is complete, they will have to pay tax on the entire transaction amount, or they only need to pay how much they got in hands. 

I am working with a seller on a property he and his sister inherited many years ago. I want to ask the forum if there might be any tax benefit if they don't receive all the proceeds in one year, but stretch out and get paid over a 5 year period, with 20% payment yearly.

Amazing transformation! I saw this on facebook @J Scott last week, and couldn't believe the before turns into the after! Love all the finishes inside and out, and thank you so much @Todd Whiddon for sharing all the details on the finishes. 

Best wishes for a speedy sale, and can't wait to see the numbers then!