All Forum Posts by: Chad Lubke

What about timing on paying the commission.  I am ok with the lot portion of the commission being paid up front, but the other $22,000 of commission, would that be paid at the end.

I met with an agent and her clients yesterday and today and a spec home we have for sale. They really liked the house but want to have a similar home built on another lot I own in the same community that has better views. The lot I own just has a sign on it with my logo and says "Coming Soon", no marketing, or MLS listing, etc. Total amount I have into the lot is $140k, the total package, house and lot will be around $850k. There has been nothing in writing yet, just a verbal discussion. I am wondering how do I craftfully get her to just get commission on the land, or is that implied since there is no listing...

Soft costs are going to vary greatly based on how you finance the project.  If you have experience you can get very good rates from a traditional bank.  If you have to use private money etc your costs are going to increase greatly.  I have been pushing more towards free social media for marketing.  We are doing value add informational content and softly marketing our product once we establish a relationship.  We are doing this in house, I typically work on my marketing stuff at night so the cost is your time.

I published a postlets page today and am going to do the Facebook page for the listing this weekend.  Thanks for the info, don't mind spending the time on social media, just haven't gotten any return on money in traditional advertising.  Social seems to be a good value add.

I wanted to see how people are marketing their spec homes outside of the MLS and signage. I have been using traditional open houses, brokers opens, newspaper adds, etc. I am just starting to use Twitter, Facebook, Youtube, and blogging. My idea is to provide more of a value add/ informational social media marketing approach. To target buyers I have some interviews scheduled with the local government officials, (small beach town) to talk about the area etc. I was also thinking of doing interviews and some sort of joint marketing with local restaurants, outdoor shops etc. Around 30 percent of the buyers are from Canada so wanted to try to reach them as well. We also do build to suits, about 50 percent of our business, so if people don't like the home they are doing a tour of there are other choices, basic 3 page flyer with features and floor plans. I feel like the social media aspect is important, just don't know how to execute getting the content out there.

I would try to pursue deals with higher margins.  For me it comes down to time value of money.  It takes me almost as long to finish a 1500sf home than a 3800sf home.  I have looked at doing smaller homes before and it is hard as a small builder to compete with the tract home builders.  These guys have corporate discounts and purchasing managers that are able to negotiate in scale .  I have marketed my niche to luxury home buyers and agents and have picked up more custom home builds along the way (margins are about half a spec build, but your not risking your capital).

Update:  I ended up buying (3) SF lots in this subdivision in Redington Shores, Fl and one just outside of it to build town homes on.  This is a picture of the spec house we just completed and are having a brokers open on tomorrow.  I bought the first lot cash and did owner financing on the others.  I didn't purchase any that I sent the direct mail to but did get a build to suit $800k construction contract on one of the owners and am pursuing a few others.

Correct, they have been purchased between 2010 and January of this year

I am looking at targeting a specific subdivision that was originally developed in 2005 and between 2010 and now 17 lots have been auctioned or sold by individual owners. Out of the 67 originally developed approximately 15 have been built, 5 are under construction, and 6 vacant lots are listed. I am planning on doing a handwritten letter to target the 17 lots that have been sold at a discount. I picked up 100 5.5”X8.5” blank invitation style pieces of paper and envelopes. My plan is to keep it basic, ask the following: Dear Mr Owner, My name is Chad Lubke, I am interested in buying the lot you recently purchased in Redington Shores. I am a cash buyer and can close quickly. Please contact me if you are interested in selling. Thanks, Chad Lubke Phone # etc. I am planning on doing 6 mailings, let me know what you think. Thanks

Key take away is as Nathan said meet with SENIOR lending officer, not the guy they give you when you walk through the front door. We have had luck working with small, local banks who know our market and have been able to work through some challenging situations using their portfolio program. If you establish a relationship with them, and have a good track record they may be able to stamp out a non conventional loan that works for you.