Some of our customers are participating in the fix and flip program we offer. Like all of our programs, the focus is being light on cash from the builder. As the housing market continues to slowly increase towards historical norms, some markets are offering good opportunities to professionals. Here are two thoughts as to [...]
Many people have been weighing in on this subject over the last month. I am not a tax accountant, but here are my thoughts: 1) The most important change is that most LLC businesses which have employees (not counting the owner), have a lower tax rate (by 20%) than what we have been paying. [...]
Many builders have reached out to us about housing prices rising slower than lot prices. This has been lowering the gross profit percentage builders are able to realize. I have two thoughts on this topic: 1) During the down turn (2007-2011) many communities modified their approval process which has made it take longer to get [...]
Housing continues to rise. Many contractors are building more than they did in 2005, and some think we are on the verge of a collapse. Two thoughts on that: Nobody knows and they could be right; and I think we are only recovered in most markets, not being over built. There are fewer builders [...]
Many people I meet ask me about my thoughts about the housing market under the new administration. I think we always need to keep in mind that our country's housing market is really made up of hundreds of different housing markets. Some of those today are super hot and well beyond "normal" (normal meaning the average for [...]
While lumber and labor costs remain high, fix and flips may be a way for builders who do some of their own finish work to maximize profit until prices drop. While we anticipate lumber yards dropping lumber prices soon, in the mean time, some potential construction projects that had nice margins last year seem [...]
We realized there was a market niche where banks had pretty much abandoned the small builder, and we had the ability to fill the need. The large builder has the ability to build spec houses and has inventory, whereas the small builder can't compete with that because they either don't have any spec inventory [...]
Mike Schultz, retired builder, shared these thoughts on rehab projects: While rehab (fix and flips) is a great way to make money, be careful to not fall into these traps: 1) Don't overpay for the property you are buying. It will always cost you more than you think to rehab, so pay less than [...]
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