Anyone know anything about house construction businesses?

**adrizzle** · 02-04-2007 12:37 PM

Does anyone own a house construction business? Know someone who does? I was wondering what their profit is like off of a $150,000 house?

**robfagan** · 02-04-2007 12:51 PM

I have asked a few folks about this myself in the business and got different answers. I think it is between 20k to 30k.

**adrizzle** · 02-04-2007 04:52 PM

ok thanks. I ask because I have an idea for a business for contruction of houses.

**Steve** · 02-04-2007 08:52 PM

It depends what area you live in. In Las Vegas some of the "big-boys" took in some major cash. They pushed a guy into closing the purchase of a house at $520k, the next week they lowered prices to $420k. That means they either are loosing their butts, or have big margins (I would say they have big margins). I believe this was DR Horton.

The building industry works a little bit different on the West Coast, though.

The barriers to entry are very large. Money can be made in the right market.

**maymay** · 02-04-2007 10:04 PM

In China, construction business is a high profit industry. My uncle is in this line, while I am in building materials line.

**robfagan** · 02-04-2007 10:23 PM

Hey Steven,

You are right on the money. The profit can be pretty close and it is easy to lose your butt on one if you aren't careful. I know a lot of contractors that "rob Peter to pay Paul" in this type of work.

**ideas2earn** · 02-05-2007 12:13 AM

Construction is a cyclical business. Everyone makes money as the market rises and then the smart boys get out or move into rentals. As with all bull markets the people following a trend are the ones who pay too much and make too little profit. Watch a bunch of folks go bankrupt for the next 2-3 years and then start building boys! :-)