Mountain Real Estate Capital (MREC) offers multiple structures to partner with builders to acquire land and build homes. Our builder partnerships have been completed in a variety of ways including (1) Joint Ventures (2) Fee Build and (3) Lot Options.
Joint Venture Program
Mountain Real Estate Capital and Homebuilder form a joint venture to acquire land and construct and sell homes. The Homebuilder invests 5% to 20% of the overall capital investment and MREC invests the balance of the investment. MREC and Homebuilder may also arrange for vertical construction debt over the life of the project. The Homebuilder, builds the houses, manages the overall construction and facilitates all sales for the joint venture. MREC and Homebuilder then share land and house profit commensurate with their respective investment and the Homebuilder will also receive standard development fees.
Fee Build Program
MREC invests all the capital required to acquire the land and construct homes. Homebuilder manages the site, builds the homes, and facilitates all home sales at the project. The Homebuilder is paid a builders fee for constructing the homes and may also receive an incentive fee based on the success of the project.
Lot Option Program
MREC will purchase and land-bank the improved lots, and then sell them on a scheduled take-down basis to the Homebuilder based on projected absorption. Mountain’s ability to quickly purchase bulk lots on an unlevered basis through its billion dollar opportunity fund results in purchase prices adequately sufficient to afford acceptable margins to MREC and the Homebuilder.
Mountain’s experienced investment managers are located in and familiar with all major housing markets. Call us with your capital needs and let us quickly offer creative solutions for our mutual benefit.
For more information, please contact:
Joel Kaul, jkaul@mountainregroup.com
Tom Orradre, torradre@mountainregroup.com
Lance Franklin, lfranklin@mountainregroup.com