Want more listings?
Find us a great project - vacant lots, teardown, and small subdivisions are all on the table. If you help us to find a project, you will be our Buyer Representative during the purchase and our Listing Agent for the finished product.
Want more buyers?
Our finished homes are always open to Realtors to host open house events. Work from our spec homes instead of your home office! No referral fees needed - just help us to market our inventory while building your own customer base.
Have buyers or investors?
We are happy to pay a $5,000 per unit commission for our builds for-hire. This amounts to a 2-4% commission, depending on the actual cost of construction - but the flat fee keeps things simple and transparent. (Note: our average build of this type is $150-$250K.)
INVESTORS
Build-To-Sell (BTS)
FBC's Build-To-Sell Program is a way for investors to financially participate in spec home construction without having to take on the risk, responsibility, or active effort of the project.
In the BTS Program, an investor provides FBC the working capital needed to complete the build project (typically, this is roughly the cost of the land), secured by a Promissory Note and a second-position Deed of Trust subordinated to our construction loan. In return, the investor receives their investment back plus 45% of the net profits from the project.
This is a passive investment, not a partnership. That means that FBC does all of the work (you probably like this part), takes all of the risk (you probably like this part too), and makes all decisions surrounding the project (you may or may not like this part). We choose the plans, finishes, pricing, construction loan, timing, etc. If you're looking for a more active role and influence on a project, consider the Build-To-Rent arrangement below!
A typical project would show an investment of $40,000 - $100,000 with projected returns between 20-40% in 8-12 months. We are open to working with small groups of 2-3 people acting as one single investor to provide this opportunity to more people.
The short of it: You provide the money, FBC does the work and takes the risk, we split the profits slightly in FBC's favor.
Contact us to discuss the full details and inquire about any specific projects currently available!
Build-For-Hire (BFH)
FBC's Build-For-Hire Program is very simple. This is where you buy a lot and hire FBC to build a new home on it for you. We do all the builder work - getting plans and permits, prepping the lots, and managing the construction. You provide the funding and make all the decisions about plans, finishes, and what to do with the home once it's done.
It used to be called the "Build-To-Rent" Program, but we've found that not everybody wants to rent them out. We have a great selection of plans to choose from and outfit them with finishes that are low-maintenance and built to last.
We do this on a cost-plus basis with the following fee structure:
<1600sqft: $30,000 per unit
1600-2000sqft: $35,000 per unit
>2000sqft: Not for us
We will pay your real estate broker a $5,000 per unit commission out of this fee. Of course, with larger projects and repeat business, these fees will be reduced.
We prefer the "flat fee" builder fee as opposed to the more common "percentage markup" (typical markup range is 15-30%) because it is simple to calculate, transparent, and keeps our interests aligned. We don't think it's good for trust to have a price structure that directly incentivizes the builder to increase costs.
We do not bill our staff (permitting, billing, construction management, etc) as job costs in addition to the builder fee, as some builders do. The entirety of what we earn is the fee above.
But what does it cost?? It's what everyone wants to know. It depends on your plan and the finishes you put in it. It also depends on the lot you have and what it needs to be build-ready. Here's what we can tell you with a degree of confidence:
$150,000 - the best-case scenario. The smallest plan with the most basic finishes we're willing to do, on a flat, clear lot already hooked up to city utilities.
$350,000 - the worst-case scenario. Our biggest plan (2000sqft w/ a garage) with more bells and whistles than we typically do, on a challenging lot.
Below this range, you're probably either approaching tiny homes or sacrificing quality of construction. Above this range, you're entering custom home territory. There are builders who specialize in these other things, it's just not us. We're most commonly within earshot of $200K for the homes we BFH.
The short of it: You fund the whole project, you take on the risk and get the upside, while FBC gets a guaranteed income as a hired contractor.
Contact us to discuss the full details and inquire about any specific projects you have in mind!