In this video, I go over some of the questions I'm asking builders that are potential buyers of a project of ours.
I go through this exercise each time we go into a new market.
1. Do you Self Develop (develop land for the Finished Lots)?
2. How many homes do you build a year?
3. What do you think my Lots are worth Finished?
4. How do you calculate what Lots are worth at Land Use Approval (Paper Lots, Preliminary Plat)?
5. What contingency % do you use for land development?
6. What Earnest Money % will you put up (non-refundable after Feasibility Period/ Due Diligence Period “DD”)?
7. How long of a DD do you need?
8. How soon will you close after Land Use Approval?
These questions have been very helpful in discovering who the best buyers are for our projects!