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:
1. 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?
2. 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?
3. Do firms have an established feasibility process? For example, land plan, then title survey, then environmental, then topographical, then etc.
4. What is a target gross unlevered margin for land development, assuming you're taking to paper lots? Finished lots?
5. 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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