Castle Guerdon

This vision targets favorable land lots to build new homes from the ground up at a lower after-build rent or resell cost than others in the market.  Target projects will key in on the demographics income at moderately low to moderate levels leveraging quantity to compensate for maximizing rent potential without severely compromising quality.  The end result will be a favorable and balanced portfolio of sellable and rentable properties, depending on market area and future prospect.

Utilizing ground up construction with modular buildings will thrive directly off of several issues that plague flipping existing units.  First and foremost vacant land usually has low traction in MLS.  Some properties will have HOA, existing out buildings or utilities that will need to be brought in from the property line.  Finding the right balance will be instrumental in locating the best possible lots.  Secondly, build cost analysis and projections will be far more stable than accounting for unforeseen (sometimes severe/multiple) issues and modular construction have overall significantly lower cost per square foot.   Additionally, targeting for build cost ratio vs end value minimizes or eliminates PMI results in lower mortgage cost for rental units maximizing net operating income while still maintaining desired moderately low to moderate income demographics.

The sellable properties will have minimal amenities (A/C, patios, grass, garage, fencing, etc.) that new homeowners can add themselves to increase their own equity while maintaining a lower mortgage.  This will impact overall sell price, however; that will translate to lower closing costs and decent profit margin that can be settled back into the business growth.  The rentable units will cross benefit from the lower build, higher profit margin of the sellable properties by leveraging the amenities not included in sellable properties.  This boost in amenities will maximize rental scalability margins especially in markets with a struggling need for housing for moderate income requirements.