Frequently Asked Questions

Learn how you can grow your own home building business with support from the National Builder Group.

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Why don’t most homebuilding executives start their own companies?

Starting a homebuilding company is capital intensive, requires land acquisition and construction financing, and takes time.  Many executives are uncomfortable leaving their salaries and benefits behind to start a business, plus utilizing their savings as initial capital is risky.  Furthermore, traditional acquisition and development financing options require personal guarantees, which doesn’t appeal to many.  The National Builder Group owner operator program resolves all of these issues and more by providing compensation, benefits, and non-recourse financing from the start.

How involved will the NBG team be in the day-to-day operations of our joint company?

We leave the day-to-day management of the business to you.  We help guide the strategy and planning for the business, we handle the accounting, and provide national vendor programs.  In the future we will provide marketing support.

How many finished lots should I have?

To start you only need 2 – 3 lots per month.  This allows you time to organize your business, learn BuilderTrend software, buy-out the initial jobs, handle the permitting process, and build a few homes before advancing to scale the business.  We can provide an example production schedule for the first year.

As you grow your business the need for more developed lots will grow.  The amount will be dependent upon your goals.  If you intend to build 50 homes the needed number of lots will be much less than if you plan to build more than 100.

Does the National Builder Group really do all of the accounting?

Yes, our central accounting team handles all aspects of accounting, including paying trade partners on a weekly basis. This allows owner operators to focus on local market activities that will earn them profitability.

Will I really get paid while I’m starting the company?

Yes! The guaranteed payments commence upon the start of construction of your first home. We encourage you to quickly identify lots, select existing plans and submit for permit before the first lot closing. This reduces time and interest carry, and allows the guaranteed payment process to begin.

How much money can I make as an owner operator?

That depends on how good of an operator you are.  Other operators have scaled their companies quickly and achieved high six figure and even seven figure earnings.  The potential is excellent for good operators who follow the business model.

Why don’t we put homes on the market until drywall phase?

There are five primary reasons for waiting until drywall to offer these homes for sale.

1

1. In most markets up to 80% or more of the homes sold are likely existing homes. We follow a standard-feature approach with limited or no options and prefer to start the majority of our homes as inventory or spec homes, without customers. A brand new home with nice finishes offers a more energy efficient and compelling alternative to existing homes.
2

Most buyers can’t read construction drawings. Waiting improves the process by helping buyers to visualize exactly what their home will look like. Setting proper expectations improves customer satisfaction.
3

Contracting early for homes can lead to customer change requests. We are not custom builders and change orders slow the process and are not allowed. Eliminating change orders improves both efficiency and customer satisfaction.
4

When you go under contract on a home early, inexperienced homebuyers may slow down your process and/or decrease efficiency. Focusing on construction until the drywall phase allows for uninterrupted efficiency and allows you to create more value for your homebuyer and your company. It also greatly improves trade partner operating efficiency.
5

Despite efforts to control costs, prices for lumber and other building materials can fluctuate rapidly during construction. Waiting to list homes until drywall protects the company’s profit margins by ensuring a majority of costs (not all) are accounted for before a home is sold.
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