– Market Analysis
We will identify the indicators such as job growth, population growth, transportation infrastructure, demographics, absorption studies, rent rates, and a comparable housing analysis
– Land Controlling Numbers
Ratio between price of the developed lot and the market value of the home after it is built. We want this ration to be around 20%. Variables in this formula will be cost of land, cost to develop land, and comparable home sales.
– Build Controlling Numbers
We will identify a target after-construction value per square foot cost for the homes we build. Our after-construction home’s sale price per square foot will match the comparable homes sale price per square foot in the market. We will be careful to ensure the properties we are comparing to are matches in type of house, features, number of bedrooms, baths, amenities, and age.
– Rental Controlling Numbers
Rental rates.