You learn the analysis from the perspective of extending credit so understand analysis backwards and front.

It is best for figuring out how the competition is doing, and the minimum price you should be charging.The backwards approach is the same method I use.

But a conversation with one of my investors got me thinking that I may be doing it backwards.

That is backwards, you should use your profit to determine what your offer should be.

Think about what you want and work backwards from there.Plus if you go where everyone else is going, now you are just competing. 

In this case, you move slowly backward, eroding your cash value.

Then work backwards from there.

Now work backwards.

Just like any real estate purchase, you need to go backward: Resale value- costs of construction-profit margin=value of finished lotsIf you are talking about undeveloped lots, you also need to talk out all the engineering costs, entitlement costs, attorney fees, proffers, any risk premium, etc.

@Jay Hinrichs, a wine club subscription is a great option in certain parts of the country.Unfortunately, the backwards PA liquor laws don't allow shipping into the state from most vineyards.