Quote:
Originally Posted by Brian Carlton
I simply don't understand the logic of risking $360K with the potential to make $40K on a $400K sale.
Anything goes awry, including the vagaries of the market, and you're sitting on an elephant that needs food every month.
Like I said:
Good luck with that.
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The trick is to have plenty of capital and sell many homes in a favorable market you can sell them pre-build but when it goes cold the taxes, utilities, debt service eat you alive.
Most residential builders do it because they like the lifestyle, decent hours, winters off and they simply like to build things I guess that is enough incentive for some. Personally I think the best route is to take the construction management route I think they almost always do best in the long run.