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Buying Stabilized, C/O, Using Fee Builders or Self-Performing Construction: Which Strategy is Best?
March 20, 2024
Track A
Session
- How do yields compare across the spectrum?
- How do you view lease up across the spectrum?
- How important is future rent growth in each of these strategies?
- What are the financing structures available based on the acquisition structure? Bridge or Agency?
- Are you seeing opportunities for forward purchasing in this market?
- What happens if things go wrong with the builder?
- If you purchase the land, how are you getting the development work done? Is there cost risk associated? How does that translate into yield requirements?
- How competitive is the land/finished lot market? Once you have lots, how are you getting the homes built?
- If you self perform, how do you account for the overhead of designing, estimating, purchasing and constructing without scale or relationships in the business? Is it harder than you expected? How much is your overhead per unit?
- If you use a fee builder, which structure makes the most sense to you: sell lots and buy back finished product at a fixed price; cost plus % or fee; short term Guaranteed Price; or Long term Guaranteed Price with an inflation adjustment mechanism?
