I am increasingly interested in better understanding fundamentals around land development. Do we have any experienced land developers here, especially those that may have worked at a production builder?
Some initial questions I've been thinking about:
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What percent of land opportunities are sourced off market? Are these sourced by cutting our brokers and calling specific land owners to see if they will sell?
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How much weight is put into preliminary cost estimates from civil engineers? Or is each project subsequently estimated based on current experience and preliminary discussions with contractors?
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Do firms have an established feasibility process? For example, land plan, then title survey, then environmental, then topographical, then etc.
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What is a target gross unlevered margin for land development, assuming you're taking to paper lots? Finished lots?
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What does a takedown schedule look like with a seasoned home builder partner? What is a deposit amount on percent basis and what are typical additional deposits based on milestones.
Any help or thoughts?
Hi KingEsque, hope I can help. Do any of these links cover what you're looking for:
More suggestions...
Fingers crossed that one of those helps you.
I'd like to hear this too, bump
Interested as well.
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