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Houston Builder
Dyn-o-mite!


Joined: 09 Jan 2009
Posts: 351

Land strategy - great summation by Horton...
PostPosted: Wed Feb 09, 2011 5:29 am Reply with quoteBack to top

even though their homes and cust service are c**p, their land strategy is the best in the bizness


http://blogs.wsj.com/developme.....d=yahoo_hs
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NewHomeDallas
Dyn-o-mite!


Joined: 05 Jan 2009
Posts: 404

Re: Land strategy - great summation by Horton...
PostPosted: Wed Feb 09, 2011 7:08 pm Reply with quoteBack to top

After saying they option land, Horton just bought 155 acres in the Alliance Corridor. Pulte bought 380 acres from the same trust.

Usually the big players have a ditinct advantage. I have worked for some small builders who have had to pay cash up front to buy lots where the big players paid for their lots after they closed the houses. This was a big competetive edge.
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mikestrong
Cherry Bomb


Joined: 07 Oct 2008
Posts: 118

Re: Land strategy - great summation by Horton...
PostPosted: Thu Feb 10, 2011 7:07 pm Reply with quoteBack to top

Horton freaking amazes me. They doubled the number of closing for the DFW then then the number 2 builder.

Horton closed about 2000 in 2010.
Pultex closed about 980 in 2010.
All other builders where less then 500 for 2010.

I have friends that work there and hate it, but they sure as heck know how to build and close homes, as well as pick up good land.
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Houston Builder
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Joined: 09 Jan 2009
Posts: 351

Re: Land strategy - great summation by Horton...
PostPosted: Fri Feb 11, 2011 2:45 am Reply with quoteBack to top

mikestrong wrote:
Horton freaking amazes me. They doubled the number of closing for the DFW then then the number 2 builder.

Horton closed about 2000 in 2010.
Pultex closed about 980 in 2010.
All other builders where less then 500 for 2010.

I have friends that work there and hate it, but they sure as heck know how to build and close homes, as well as pick up good land.


I didn't know they had such a large % of the DFW market. Horton s*cks as a builder, no question.

But you have to salute them as they have proven they can chew through land like no other. They truly are the Walmart of the industry.

If they are they are willing to play at every price point in DFW at low margin, no one else has much of a chance to make any true margin. Pultex appears to be holding their own.

KB Houston with Kyle Davison's idiotic (Martha Stewart is our I Phone" strategies) is doomed.
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NewHomeDallas
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Posts: 404

Re: Land strategy - great summation by Horton...
PostPosted: Sat Feb 12, 2011 12:42 am Reply with quoteBack to top

2,000 isn't that impressive, especially with Choice gone. I count 88 communities on their DFW map. That works out to 22 homes per location, and with at least 2 sales people per location, that works out to 11 or less sales per sales person. They are doibng what Choice did, too many communities cannabolizing themselves and their margins.
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Houston Builder
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Joined: 09 Jan 2009
Posts: 351

Re: Land strategy - great summation by Horton...
PostPosted: Sat Feb 12, 2011 6:21 pm Reply with quoteBack to top

NewHomeDallas wrote:
2,000 isn't that impressive, especially with Choice gone. I count 88 communities on their DFW map. That works out to 22 homes per location, and with at least 2 sales people per location, that works out to 11 or less sales per sales person. They are doibng what Choice did, too many communities cannabolizing themselves and their margins.


there is no question they are canniballizing themselves, but look at some of the prime locations - Shops at Legacy, 5 communities in Frisco, Prestownwood Town Center - pretty impressive.

Compare them to KB in dallas - 0 communities in Collin County - that's a sign of desperation
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mikestrong
Cherry Bomb


Joined: 07 Oct 2008
Posts: 118

Re: Land strategy - great summation by Horton...
PostPosted: Sat Feb 12, 2011 6:30 pm Reply with quoteBack to top

NewHomeDallas wrote:
2,000 isn't that impressive, especially with Choice gone. I count 88 communities on their DFW map. That works out to 22 homes per location, and with at least 2 sales people per location, that works out to 11 or less sales per sales person. They are doibng what Choice did, too many communities cannabolizing themselves and their margins.

It impresses me since that is double the number two.
Quadruple number 3 or 4.
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Nelson
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Joined: 07 Nov 2008
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Location: Texas

Re: Land strategy - great summation by Horton...
PostPosted: Sun Feb 13, 2011 4:22 am Reply with quoteBack to top

I think the 88 Horton neighborhoods include "scattered lot" positions which do not have models or salespeople specifically assigned to the neighborhood. I know of several instances in which they have one salesperson handle a number of neighborhoods from one model complex.

Are there still builders that routinely use 2 salespeople per neighborhood?
That sounds like a loser.

Haven't heard Choice brought up lately. They were the prototype for building lots of homes at minimal margin.
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mikestrong
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Joined: 07 Oct 2008
Posts: 118

Re: Land strategy - great summation by Horton...
PostPosted: Sun Feb 13, 2011 7:11 pm Reply with quoteBack to top

Nelson wrote:
I think the 88 Horton neighborhoods include "scattered lot" positions which do not have models or salespeople specifically assigned to the neighborhood. I know of several instances in which they have one salesperson handle a number of neighborhoods from one model complex.

Are there still builders that routinely use 2 salespeople per neighborhood?
That sounds like a loser.

Haven't heard Choice brought up lately. They were the prototype for building lots of homes at minimal margin.

Oh heck yeah, there are alot of builders that do 2 person offices including Horton. Its hard to make money period now, but when you have a 2 person one, its next to impossible. I know the hard way.
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Houston Builder
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Joined: 09 Jan 2009
Posts: 351

Re: Land strategy - great summation by Horton...
PostPosted: Sun Feb 13, 2011 8:52 pm Reply with quoteBack to top

Nelson wrote:
I think the 88 Horton neighborhoods include "scattered lot" positions ..............


WOW! 88 communities in DFW for Horton - as much as I hate them, you have to respect how they have come out of the downturn to get dominant lot positions.

Every other homebuilding exec at Ryland, MTH, KB, etc.... has to be shaking in their boots to know that any lot position that they approve of in DFW was turned down by Horton time and time again -

I counted 40 Horton communities in the Collin County/Denton County areas - compare that to.....

Ryl - 6 storefronts
MTH - 7 storefronts up north
KB - big fat goose egg, not even a Kyle Davison/Martha Stewart community!!
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