@TexasDoughnut_ I’ve been trying to convince many friends of this for years.
Another point I always raise is timing - the smaller, local project is more likely to complete its project life cycle in a fraction of the larger, institutional project.
@JohnPetersonFW@TateHorsford Or if you have the means you can do both.
Go ahead and take the time to seek entitlements and plat it as aggressively (as many lots) as possible then do nothing and sit on it. When you’re ready to move on you’ve already created massive value for yourself.
Net margin of 13% that includes a third party GC fee seems extremely healthy in the current operating environment.
Most Builders in DF/W are happy right now with a 8 - 10% net margin and they self manage the project.
GC fee is probably another 5 - 8% of the sales price? So actual net margins of high-teens?
What am I missing here?
@bgurley@BlackLabelAdvsr Not my cup of tea but agreed to each their own. There’s a cohort that wants a low(er) maintenance house with lots of space. Makes sense.
Well known spin off of Lennar with (relatively) cheap cost of capital for large production builders. Usually require something like 15% earnest money and 12% interest.
It's all so the large public production builders can continue to be 'asset light' while maintaining control of a lot pipeline. Anything above 20% invested of the final lot price and they have to consolidate on their books.
So this allows them to maintain control of a lot of lots and it doesn't show up on their balance sheet. In theory they could walk away from their earnest money and these lots if things got bad, but obviously would be blowing up relationships.
@PerrySolem@mhp_guy That is basically the area that filters into Plano High West. Certainly a nice area and a great location but neither of these things is true. Property tax rate is low 2.00%. Property values range from $700k up five or take.
@MarkAllenMulti Are LPs looking at the stabilized gas on cash and they’re taking on the brain damage for long term holds? Or just looking at the value add opportunity to step into broken properties, turn them, and dispose in 3 - 5?
Saw a woman stranded on the service road 50 yards from a gas station… out of gas. Before I could park and jog her way to help push, THREE people beat me to it and already had it handled.
A little faith in humanity restored. Only in Texas.
@JesseTayRiver@steffenjade I have no idea how this came across my algo, but 6 - 10 yogurts a day?! Just a way to hit the sweet tooth? Or something more behind that?
@The_Dug_0ut@akm515 This has to be engagement farming because actual full-time daycare expense is close to 50% higher. Perhaps part-time, a few days a week is closer to that number.
That also isn't a Frisco-specific issue. Childcare is expensive. Yet we all make it work.
1. First team with 3 Top 10 wins since 2019 LSU.
2. Losses against #1, #2, and Florida - ALL away.
3. By far the strongest SOS for anyone ranked.
If you're going to hold Texas back because of a loss to Florida then you should use the same logic on Alabama for a loss to Florida State - who Florida beat.
Texas over Alabama in the playoffs just makes sense.
Texas with losses to the #1 and #2 teams in the country and are being unfairly punished for their schedule.