Trending Content - Real Estate Forum
| +47 | What Is Your Backup Plan? | 21 | 1d |
| +39 | Where are free agents signing? | 21 | 2d |
| +36 | AvalonBay Equity Residential Merger discussion | 16 | 2d |
| +34 | Future of Real Estate | 9 | 2d |
| +28 | Extremely Slow Ramp Up | 5 | 1d |
| +21 | In RE, what is the ONE software tool you couldn’t survive without? | 8 | 2h |
| +20 | CRE Banking @ Top 3 Bank or Asset Management at Public REIT | 12 | 1h |
| +17 | Most Correct Way to Grow Rents in MF Development Underwriting | 1 | 1d |
| +10 | Dynex | 5 | 2d |
| +9 | PGIM investment analyst low pay | 9 | 39m |
Career Resources
Big money in single family is in land development and it is not unusual to see 30%+ IRRs. Looking at vertical construction, when I used to underwrite builders I would see net profit margins anywhere from 5% (builders that would contract out most of the work) all the way up to high teens (GCed their own work and sold high-margin “custom” upgrades). Land development is analyzed similar to other real estate development projects - IRR, EMx, etc. whereas home building is more akin to manufacturing and you’re looking at inventory, margins, turnaround, etc. Homebuilders that have the expertise to develop their own lots can make money hand over fist.
New home sales have definitely slowed but we’re not seeing huge discounts yet.
If I understand things right a lot of land developers are able to sell all of their lots to homebuilders before ever deploying capital too
Nobis placeat eligendi non. Fuga dolor dignissimos adipisci. Ad earum id non rerum maiores magnam qui deleniti.
Ipsum esse et officiis harum pariatur eos est. Animi fuga eos dolorem dolorem quia nihil. Sit vitae reiciendis non eum sunt exercitationem qui necessitatibus. Ducimus praesentium maxime quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...