Builder/Developer Partnerships - Due Diligence and Services

HIC analyses many real estate proposals brought to us by builders, brokers, and developers throughout the United States, but less than 1% actually meets our strict criteria. We search our extensive network of banks and bankruptcy courts to purchase well located land zoned for residential construction. We then re-sell the same land, in small portions to major homebuilders.

Due diligence and deal analysis include:

  1. Location
  2. Market absorption  
  3. Builder/Developers track record
  4. Builder/Developer personal and corporate financial statement
  5. Product to be sold
  6. Profit margin
  7. Cash Flow analysis
  8. Appraisal of as is and finished project
  9. Lien positions of subordinate liens
  10. Physical inspections of property
  11. Meetings with governing municipalities
  12. The creation of exit strategy

Our deals are typically structured, so that prior to closing of a property, the same property has been re-sold to a builder. Our Investors usually enjoy immediate returns on their investments, high interest payments, participation in the homebuilder’s profits and a very large annual return on investment.

With the protection of a first lien position on a discounted asset and major profit participation with builders and developers, investors reap the benefits of a low risk investment with a preferred return and significant profits.

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