The NAHB Business Management team is compiling the Financial Management Builder Business Guide for 2009. We’re looking for one- to two-paragraph submissions from members with suggestions or tips on handling the current economic condition. More specifically, insight into what has helped you, the HBA members, in the following areas:
-Increased efficiency
-Cultivating new resources or partnerships
-Developing a new branding
-Time and money savers
-Business development
The Guide will be published for IBS 2008 and we will attribute your submission accordingly. This project is time sensitive. Feel free to contact me directly if you have any questions or need more information. Your time is much appreciated. See below for an example submission.
“I survived the 17% mortgage market and 21% construction loans as well as credit tightening of the early 1980’s by changing my operation from purely speculative to purely custom. In other words, every home I started had a written commitment to lend money to my client with the only condition in the commitment was that I build the home as designed and appraised. I required a deposit from the client sufficient to close the sale, ie. their down payment and closing costs. This removed all contingencies except me performing on the construction of the home. Every lender was willing to lend money with a known take out. What it also required was a higher margin to deal with the customer who was closely watching the construction and almost never completely understood from the plans and specifications exactly what they would receive in the home. The major learning curve was dealing with the customer during and after construction. Further, 95% of the time I purchased the lot and obtained the construction loan thus giving me control of the property and not having to fight for my final draw. Customers will sign anything at the execution of the purchase agreement and most everything to get to an act of sale or own the home. Once they are in the home they will sign very little. Their highest motivation is to occupy the home. The longer I operated in this method, the more I was able to anticipate the customer’s reactions and prepared them in writing of what to expect. Controlling their expectations requires brutal honesty in the beginning. The worst words you will hear are ‘I thought I got …’. Try to cover every possibility in writing as early as possible.”
Thank you in advance for your help — send submissions directly to me via fax (number below) or email: jnester@nahb.com
Joshua Nester
Communications Manager
Business Management
National Association of Home Builders
1201 15th Street, NW
Washington, DC 20005-2800
(202) 266-8461 (direct)
(800) 368-5242 x8461 (toll free)
(202) 266-8195(Fax)
For builder business resources, go to http://www.nahb.org/biztools and also http://www.nahb.org/bmitc