So we met with a custom home builder today. We’re researching options for our clients who could build homes and flip them for a profit. Here’s the bottom line on the turnkey situation this builder has:

  • Find an acre lot, max price for the land that will yield a good profit is about $125k
  • Finance the lot with the construction costs - they have M&I bank on deck with a streamlined cookie cutter program
  • $50k down
  • Nothing to do until the house is about 80% finished
  • At that point start to market it
  • Split the profits 60% to builder, 40% to you


The builder says all his homes have been sold before completion. The profit the investor can expect is about $50k in 7-8 month’s time. So it’s a 100% return on your money.

Acre lots are super high in demand here, especially if horses are allowed. The better strategy is to buy as many acres as you can and subdivide. Large acreage is hard to find, since large builders and developers buy it all up many years before the growth reaches it. You can occassionally find a relatively affordable 4-5 acre piece.

We know the in-law of this builder and he’s built several of these homes already and the results have all been as expected. I’ve been to one of the homes when it was completed and the quality is slightly above what you would see in a production home. Of course you could design it any way you want, but he has a few successful floor plans so I wouldn’t mess with it.

So you double your money in 8 months, which is a 133% annualized return. Not bad.