Quote from @Devin James: Gross Margin is an important calculation for developers/builders.Gross Margin = Gross Profit / RevenueWe shoot for a 20% gross margin on our New Construction HomesReal #’s:Home Sales Price: $374KClosing Cost: $18,700Cost of Construction: $258KLand Cost: $30KGross Profit = $67K$67K/$374K = 17.9% Gross MarginCame slightly short of our goal of 20%Homes Values and Build Costs are constantly fluctuatingI wish we had a crystal ball build larger homes. average new build in our market is 2200 square feet, 4 beds, 3 baths, 2 car garage and sells for 515k. construction costs lower if design is good and find the median or average home sale price and push that up. my guess is you built too small. 347k is cheap. we target 429-479k price range in columbus ohio for single family homes and also only purchase close to urban core where premiums are 20% higher and we build smaller like 1500 sq ft where price per square foot goes up. 

Purchase price: $137,000 Cash invested: $90,000 Sale price: $285,000 This was a single family home in Bates Hendricks.

In Central Jersey where the majority of our sales activity is, the towns vary widely in enforcement of this. 

It’s awesome to see your excitement for real estate investing, and congrats on your first land sale, that’s a great milestone!

The purchase and sale of a business requires a lot more personal involvement than the purchase and sale of real property.  

This is not uncommon and actual more typical as it is based on sales price and even though the first appraisal was $130k the new one gets reset based on its recent sale and home prices are not up 10% over a few months.You are going to have a hard time getting a lender to use other comps compared to this home as it recently sold.

Paid $50k down took out an owner financing note for $112,000 and a mortgage for $743/mn Front home rented out for $1,200/mn and back home rented out for $900/mn (currently on the market for sale).I wanted to give some feedback of our deals prior to digging in.

The National Association of Realtors says that the average profit on a flip is is $15,000 and takes 6 months from start to sale.  

Hey @Scott Trench unfortunately real estate losses (active or passive) will not offset portfolio income from stock sale gains. 

Is it better to have a willing seller and buyer before sending the initial purchase/sale agreement?