Housing Giants - October 24, 2008 - (Page 6)

VIEWPOINT By Bill Lurz, Senior Editor undeveloped or in various s “As long as you can development. How long wil buy lots for less than a builder to use that land b the entitlements? “It’s really hard to addres replacement cost generically,” Sheron cautio that’s probably the local. But Atlanta, it NEVER SAY NEVER WHENpublicinbuilders areappe alrea wayTO LAND Sheron the from land sellers to ac to go.” — Charles IT COMES over mode. They’re buying!” The land question is a local one, a source says.best policy for strate The never recover their value. But if you are Never say never. If you’ve h At our Professional Builder Benchmark gamble, in the next comes back.your market in the p willing to take that that if the market land in and Avid Leadership Conference this can pick“The other thing is, because of the year or so, you up some really probably will need to do so month in Phoenix, I had a conversation lots that may pay deeply discounted energy crisis, there are a lot of lots,can take years remember, it in with Atlanta-based international a couple of distant ex-urban locations, that may dividends years later.” develop raw ground. HG developer Charles Sheron, who has you may think you don’t Sheron said maneuvered his company, The develop land for the next 10 need to Sheron Group, through five housing recessions years, but predicting market conditions Do production builders need a new and thus qualifies as an expert the what two or three is a dicey beyond on next business model? action builders ought to take Sheron took the gamble on distant thing. and when to take it. I asked him whether builders market in past lots in the Atlanta should even plan to develop land as longon his assessment that recessions based as the current oversupply of lots persists. all come back into “eventually, they will “It’s a local question,” he said.builders will need to develop play, and “The CONFERENCE PRESENTATION first order of business is to make sure you wasn’t dealing with land again.” But he ONLINE NOW survive this downturn. $4 a as longgasoline prices then. And gallon as you Missed the conference? Che Professional Builder Benchm can buy lots for less than“The other thing I’m concerned about replacement AVID Leadership Conference cost, with very soft terms, that’s says, “is how municipalities will now,” he probably download copies of the pres the way to go. But youlook at land that is entitled now but can’t count on VIDEO EDITORIAL 6 HOUSING GIANTS.10.24.08 WWW.HOUSINGGIANTS.COM WWW.HOUSINGGIANTS.COM 10.2 http://www.housingzone.com/probuilder/info/CA6369493.html http://www.landback.in http://www.housingzone.com/probuilder/info/CA6369493.html http://www.sherongroup.com/ http://www.sherongroup.com/ http://www.IANTS.COM http://www.www.HO http://www.housinggiants.com http://www.www.HO http://www.www.HO http://www.IANTS.CO http://www.IANTS.cO http://www.IANTS.cO http://www.IANTS.cO

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Housing Giants - October 24, 2008

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