Burnham Custom Homes...Designers & Builders of Quality Custom Homes

Burnham Offers Three Types of Investment Programs

Periodically, Burnham offers three different types of investment programs. The generalities of the three programs are outlined here. For more detailed information, please click on the presentation link below.

The first type of investment is in one, single-family residence project:

A single investor provides the land, Burnham builds to residence, profits are shared once expenses are covered
Investment is typically the price of the lot plus construction financing costs
Estimated investment is between $110,000 and $300,000
These opportunities are usually abundant

The second type of investment is a small group of projects clustered nearby:

A single or small group of investors provides 6-8 lots. Burnham builds a model home, then markets the remaining properties as build-to-suit
Investment is through $10,000 “shares” which total an estimated $700,000
Early unit sales typically pay the bank loans. Investor payout is towards project completion
These opportunities are somewhat difficult to find

The third type of investment is an entire subdivision with 20 or more improved lots:

Investors own proportional interest in the project. Burnham builds a model home and one or more speculative homes, then markets the remaining properties as build-to-suit
Total investment begins at $1,500,000, shared among several investors
Payouts are through dividend payments at scheduled milestones
These opportunities are usually available, but are most difficult to coordinate

Please note that this is a highly selective process when it comes to participation in these programs. This is truly a partnership, one which is difficult to manage and not for the faint of heart. People see the prices of homes, especially recently, and feel that homebuilders earn a great deal of money. Not every project earns a good return, and some do not earn at all. Some even lose portions of the initial capital invested. The national average for homebuilders is a 16.7% gross margin. The net pre-tax margin hovers near 10%. Real estate investing should be considered a supplement to your other wealth-generating efforts, not the primary effort.

Please click here for a PDF version of our investment presentation. Please note that this file is very large (5+ MB).