Updated 1.2.26
as a home builder coach, most of the time when I talk to the builder, they’ve already purchased the land. And here’s what I would do is I would like some of my builders I’ve been working with for a long, long time. We had a conversation before they purchased the land, and would you want to do is try and reverse engineer into the piece of land.
Will often tell you what your size of your home sites will be, and therefore what the cost of the development will be, and which will tell you what the cost per lot is. Which, because the cost per lot going back up to this part right here, because the cost per lot will determine what your price of your homes are.
You can go what what I want to build here. Well home builder coach would like to build homes that are 350,000 or based on reverse engineering into what your lot price is going to be. That’s not going to be possible by buying this piece of land. Does that make sense? Yes. So those are like the conversations I have with Mike or with Casey or Doug, if they’re like, you know, looking at a piece of land, we did this with their that Buffalo property, Ty.
We kind of looked at that and started trying to reverse engineer into the math of it. And, you know, with Ashley with, CNA kind of the same thing. So it’s like, and Mike’s looking at another piece right now as well. So just kind of trying to reverse engineer into it. And so normally when you make an offer on a piece of land as a builder, developer, you make it where you have a 90 days due diligence period when you buy land where it’s like, I go make my offer and I say, I am not committed to this for the next 90 days, but you can’t sell it to anybody else because I need
to go see if home builder coach can make the piece of land work. And most people selling raw land understand that’s what’s going to happen anyway. So it’s kind of normal and it’s usually a negotiation over. You ask for 120 days. They want to give you 30 and you land somewhere in between. And then you go through the spending money on engineering to figure out what it actually is going to be so that you know what your lot price is going to be.
So, you know, if you can build the house price you want to build in that community frame, depending on what kind of like if you want to make it locally development, or if you want to make quote unquote for attainable housing that the city thinks is attainable. Yeah, exactly. So that’s kind of what that animal looks like, if that makes sense.
So, I think that, you know, like with your Teal Springs, for example, it’s like your competition there is definitely going to be Powderhorn. Yeah. So it’s like you kind of look at your market too, and you go, who else is doing this? And what is their absorption rate? And then how can I position my community different from theirs?
What am I going to have that they’re not going to have? So like if I was comparing Powderhorn to Teal Springs, you know, Powderhorn is like the prestige of the golf country club feeling right? Yeah. And it’s definitely the most prestigious feeling community in your in your area. And then Teal Springs I think is going to be the quiet enclave of luxury in Sheridan, close to everything.
Like if home builder coach was going to put like a phrase on it, that’s what it is. And kind of without some of the restrictions and swimming as a partner. Yeah. And I don’t want to like in the, in the middle of nowhere. In the middle of everything. Yeah. Is what Teal Springs feels like, like that to me. That would be some of the language I would probably use to talk about it.
It’s a hidden gem. Like. Like you would expect it to look like it is from where you enter it. Like you’re you’re not Brandon playing. You’re driving past the Home Depot, taking a left pass, a sports store, and then all of a sudden you’re like, am I even a town anymore? Yeah, it feels like you’re miles away, but you’re steps away.
Like these would be some of the phrases I would use to describe it. Like, I think you got to say things that are kind of pithy, catching phrases like that to term. It’s a place that’s miles away, but it’s actually only steps away. And you’ll feel that when you pull into the community and see right in that one there.
Yeah, I think it’s good. It’s Jordan came up with it just now. Jordan’s actually passed out over his. I don’t know what he’s going through. She’s still eating Thanksgiving leftovers today as well, though. He’s. He was home for several days with four children, and, he’s I don’t think he slept is what I think it is. So.
But that’s you have to, like, make a statement that distinguishes it from the country club. So the person who wants to be the golf country club guy, he wants to be in Powderhorn, right? That’s the guy who probably drives the sports car in the summertime. And, is going to get hair plugs and color his hair. And the guy is going to live in Teal Springs, probably eats granola, and he has a lot of money, but you wouldn’t know he has a lot of money.
Yeah. Cecil drives is 85 Jeep Wrangler or Toyota Forerunner? Yeah, he’s like the millionaire next door guy. He likes it because it’s close to the mountain to to to great trails. Yeah. Like of course. Yeah. That’s why he eats granola. Exactly. Granola. Yeah. So granola is delicious. Justin’s.
And she says, first of all, he makes his own, though he doesn’t. But home builder coach actually loves granola d. It’s good. And it’s better if you make it yourself. I’m just saying, guys are making their own granola kind of words. Buying it. They’re having it flown in. Non-GMO.
Okay, so, that is kind of the answer to those questions. I do have another meeting I gotta jump into. I actually just realized what time it is. So if you guys need something between now and next time. Okay. All right. Home builder coach appreciates you all. Have a great day, guys. To.
