Frequently Asked Questions
Learn how you can grow your own home building business with support from the National Builder Group.
Starting a homebuilding company is capital intensive, requires land acquisition and construction financing, and takes time. Many executives are uncomfortable leaving their salaries and benefits behind to start a business, plus utilizing their savings as initial capital is risky. Furthermore, traditional acquisition and development financing options require personal guarantees, which doesn’t appeal to many. The National Builder Group owner operator program resolves all of these issues and more by providing compensation, benefits, and non-recourse financing from the start.
Do I run the day-to-day business?
As the operating partner, you lead and are responsible for the day-to-day operations in your market. NBG provides guidance, infrastructure, and support but you run the business.
Do I need to find my own lots?
Yes. You lead the lot strategy for your market, with NBG’s support and capital behind you. You’ll identify and secure finished lots, and NBG will approve, and finance the acquisitions.
What company name will I build under?
New Owner-Operators build and sell under Better Life Homes, NBG’s unified national consumer brand. Better Life Homes gives you immediate market credibility, standardized marketing materials, a national website presence, and a brand homebuyers recognize and trust.
Is there a fee to operate with NBG?
Yes. NBG Charges a service fee equal to 1.5% of your operating company’s gross revenues. This fee gives you access to the full suite of support services – technology, financial management, purchasing, marketing, and operations coaching – that you need to launch and scale your homebuilding company.
How many lots do I need to get started?
You’ll begin with 2 finished lots in month one. From there, you continue adding at least 2 additional lots per month, building a steady work-in-progress pipeline that supports consistent cash flow.
Why does NBG wait until drywall phase to list homes for sale?
There are five primary reasons for waiting until drywall to offer these homes for sale.
How much capital do I need to get started?
The initial capital investment to open an NBG operation is $60,000 from the Owner-Operator. NBG contributes $240,000 bringing the total starting capital to $300,000. NBG also finances ongoing lot acquisitions and vertical starts – no personal guarantee required.
How do I earn money as an Owner-Operator?
You earn through multiple channels:
- A guaranteed payment that begins at the start of your first home’s construction
- An annual performance incentive plan (TMIP) tied to closings, gross margins, net operating income, return on total capital, and Willingness to Refer score
- Profit sharing
- Distributions as the business grows.
You also hold 20% equity in the company from day one, which appreciates as you build enterprise value.
What markets are available?
NBG targets healthy and growing metro areas. We currently operate in 12 states and many markets remain open for new partners. Contact us to discuss availability in your area.
What support does NBG provide once I’m up and running?
Contact Us
Let’s Break Ground
From the National Builder Customer Support Center in Colorado Springs, we’re excited to support you in growing your business.
