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

Experienced developers, could you tell me how the process/financing works?

we need our own forum for this concept. I'd argue that there are very select zip codes where this strategy works. You need to find a zip code where land values are 10% of less of after built value. You have to find a ...

Tagged as a developer, surely, you'd want there to be more development projects.

They should also have proposed or preliminary site plans approved for the remainder of the development.

To create a rural development offering affordable acreages homes, each with multiple acres, where owner’s may have animals and space to grow their own food.

To create a rural development offering affordable acreages homes, each with multiple acres, where owner’s may have animals and space to grow their own food.

We sold a wonderful two unit STR in Depoe Bay in 2024, which generally is a no-go zone but has neighborhoods with specific commercial zoning that allows for vacation rental usages as well as a brand new development of luxury homes that allows STR usages similar to Olivia Beach in nearby Lincoln City. 

Another interesting factor to California is global warming.

Out of these areas, Franklinton and Linden are seeing some of the most developments.