What statistics do home building companies look at?

General Real Estate Investing
1

Home builders like Mercedes Homes, etc.

What statistics do they look at to decide where to build their next neighborhood?

2

Hi,

Home builders look at every statistic available as school district, shopping, services, accessibility, community, city services, police force, fire department, rescue and ambulance, utility services, crime rates, employment, entertainment, etc.


      GR
3

If I limited it to future projected population, do you think that would be enough for me to determine where I should build homes?

That and average home prices?

4

Hi,

 You have a whole lot to learn!


      GR
5

Why?

Like what?

6

But what about on a national level?

Before I get very detailed about a specific area to see what it’s police force and schools are like…

What statistics would lead me to choose one area over another?

Home values, population growth, average days for a house on market?

7

This information you seek is important, yet you do not appear to have the resources to build, based upon your other posting questions. However, I would look for a low cost cash outlay like a lease purchase or ‘subject to’ deal and then select a neighborhood near thriving elementary school districts. I invest in rural areas that are one small town away from a Walmart…been doing this since 1991 and have done over 400 successful deals.

Hope this helps.

Rob

8

In about a month, I will have a blueprint with bids from contractors to build in Naples, FL.

Would you like to invest? I’ll do all the work and we could build it under an LLC that we own 50/50.

Average time for a house on market in Naples metro area is about 4 months.

9

A couple of coaching comments…this is not the proper forum, in my opinion, to request a reader or blogger to invest in a project you are working on, especially one whom you have never spoken with or met…this truly is not the venue for such a request.

Also, what would be my incentive to invest in your project? What resource to you bring to the table that I do not already possess? When you offer a split to an investor, you would typically have incentive; such as investor does not know how to put deals together or does not have the time, but only has the money/credit. Then, you find a symbiotic partnership! That assumes you know how to put a successful deal together.

Thanks for offer but a blind investment with the offering party not demonstrating his abilities or experience does not sound enticing! Perhaps start with building personal relationships with locals, who can see you and your property and your plans…then you can have the potential for a YES to your question, do you want to invest.

Hope this helps.

Rob

10

How would you suggest finding investors then?

11

You might start with finding a local REI Club or investors group. They will have a better understanding of your area and it’s merits.