Modular Homes
Has anyone had experience developing single lots w/ a modular (not manufactured) and then selling? We are exploring the building aspect of real estate after years of owning multis and wonder if this is a good way to get our feet wet. Is it cheaper/easier to go this route? Also, what is better, duplexes or single family? Thank you for any feedback on this subject.
[ Edited by Union on Date 06/05/2006 ]
Did 3 specs about 10 years ago. I bought the lots cheap, otherwise there would have been little profit. They were all detached SFRs. The mods were good quality. (Nationwide Homes). The problem was economy of scale, from what I gathered from builders you need to do about a dozen to make it truly profitable due to the expense of the crane. There were minor financing hurdles when they went under contract and some market resistance for being "modular" construction even though the quality was better than most site built in the same price range. In MLS it has to be entered under a separate category which limits exposure. All in all it was a modest profit, but a learning experieince.
I used to know where to find that site. Tried search engines, but no luck. We are developing in N Florida and seems people are coming out of the woodwork to invest. I never thought that raising private funds in the the developing and building side of the business would be the "easiest" part of it.
KGHutson
The advise given to me was search the big developers in the area you want to buy & to ask the them about their future products to get in the preconstruction stage. Nina
Hey Jenny. Some work with investors & some dont... that should be one of your first questions to ask. Anyone know of a site or developer that wants investors to buy preconstruction? Nina