A Formula for Success

There are six fundamental components needed to produce the winning formula for our real estate investment opportunities:

1. Purchase Prime Lots. Identify finished lots for sale in the prime neighborhoods of Rancho Bernardo, Poway and Escondido. The lots we purchase are in neighborhoods that were originally built 20-35 years ago. NPC homes stand out because they are newly-constructed in an established neighborhood with no Mello Roos (an additional property tax added to a home owner’s property tax basis in newer communities, 1995 to present) or other special assessments that come with purchasing a new home in a new community. The purpose is to support the necessary infrastructure, like roads and schools, for a new community.

2. Purchase the Lot at the Proper Cost Basis.  Determine the correct cost for the land, first and foremost. This is established using an inverse formula, and the future value of the new home is the starting point for the calculation. We use a blend of existing home and new home sales from today’s resale market to establish the sales price for the new home.

3. Select the Right Design. Design the new home customized on the best market approach for the neighborhood, which will yield the quickest sale and maximize profit.

4. Relationships for Construction Financing.  Secure financing for the construction of the new home using a construction cost analysis that delivers reliable cost estimates. We have solid relationships for construction financing with Lenders who understand our business model, want our business and have proven themselves over time.

5. New Home Market Forecast. Accurately predict the market conditions for a suitable sale of the new home and market the new home while under construction. We build homes in mature neighborhoods that are as insulated as possible from the causes of pricing pressures in the real estate market, such as short sales and foreclosures.

6. Select Solid Partners. Execute the construction of the new home with a team of qualified vendors and construction partners to produce a quality product in a timely manner. We supply standards to home owners today that matter, for example: tankless water heaters, energy efficient windows, super-efficient heat & air conditioning and a host of others. We work to make the home “turn key” for the new owner by installing rain gutters, landscaping and other features as standard options and accommodating buyer upgrade requests. We believe a home cannot be produced like a widget and that quality and customer service count.