Posted by Paul Macdonald on December 11, 1998 at 06:48:00:
In my area, Northern Virginia, the average builder margin (at least as much as they admit) is right around 20%. As a private builder you’ll make a greater margin by having lower overhead but you’ll lose points because of the power of buying in quantity… so to get to the point, by building Modular (not HUD modular) in my area up to 25% “net” margin. Stick built drop that down to about 18%.
And Eagles Nest I think has you do a lot of the work yourself, that will help you increase you profit margin.
If you are expecting to pull cash out when financing a construction unit right when they issue the permanent financing don’t hold your breath. You find the lender that does that PLEASE send me the name and phone number.