How much does it cost to start a home building business?

• $500 - For a Website and Entity Formation

• $20,000 - Local, Online, and Print Marketing

• $10,000 - Home Blueprints

• $5,000 a Year for Insurance - If you need insurance, reach out to Wexford Insurance, they work with a lot of Home Builders. wexfordins.com

• TOTAL COST TO START: $35,500

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How much money can you make starting an home building business?

• $840,000 a year!

• Average Gross Profit of a Home Builder: 20%

• Average Net Income of a Home Builder: 10%

• Average Custom Home Purchase Price: $700,000

• Average Custom Home Profit: $140,000 ($70,000 Net Income)

• 6 Houses a Year: $840,000 Gross Profit and $420,000 Net Income.

• $840,000 a year!

 

Are Home Building Businesses Profitable?​​

• Yes, as long as your pricing is efficient and profitable based on your time spent, this business will always be profitable. 

• The challenge with this business is scaling past the local level and finding trusted sub-contractors and employees. 

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Types of Home Builder Businesses:

• Custom Home Builder

• Tract Home Builder

• Tiny Home Builder

• Mobile Home Builder 

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Positives of a Home Builder Business

• This business is in a niche. There are not a lot of home builders, therefore you have less competition.

• This business is always needed. People do not know how nor want to builder their own houses. 

• This business is clerical since most of the work will be subcontracted out. 

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How to Start a Home Building Business 

1. ​Save up money for start up costs

2. Form your LLC with the Federal Government and Local Government

3. Create your website and social media pages

4. Purchase Insurance

5. Find a Lawyer to draft your customer service contract

6. Make connections with local realtors, contractors, property managers, and homeowners.

7. Implement local marketing. ​