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Home builders are the life blood of the American economy with over 2 million new home starts
a month in the US.
The fact that about 39 percent of single-family housing starts are built by small builders
(less than 25 units a year); 21 percent by medium builders (25-99 units); and 40 percent
by large builders (more than 100 units) gives the industry great flexibility. There are different
advantages to each type of builder and the services they can provide to the consumer.
Small and medium builders maintain better control than larger builders with, more face to face
service. The smaller to medium builder is more invested in each home than a larger builder
who is focused on numbers built and the bottom line. However, large builders have numerous
advantages over small builders starting with volume pricing. Volume purchasing can mean as
much as 10% in your pricing and can give you strong leverage in getting more quality products at
a more reasonable price. Secondly, in consideration of pricing, the large builder can guarantee
continuous, year round work for sub contractors, but at a reduced price. In addition, the fact
that the large builder is consistently building more homes, he can operate at
a smaller margin to be profitable. The large builder can also afford certain amenities
that the smaller builder can not afford to factor into the cost, such as design centers,
on-site sales staff, full time superintendents, integrated tracking software and warranty
departments. The final issue builders and real estate investors encounter is cash flow and
equity contribution. With all the advantages how can a small builder compete and flourish?
The answer is Synergy Group and its new innovative Builder's program.
Synergy offers the small and medium builder and real estate investor all the advantages of the
large builder with a start-to-finish home building program that includes 90% financing
pre-approved. The following section will give you a small look at the advantages for builders
and real estate investors.
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In today’s creative financial world it is still a major ordeal to finance any project including
the building of single family residences. Most banks require an extensive credit package and
still will only finance 65% to 80% of your cost. This often leaves small and medium builders in
a difficult cash flow position and limits the number of homes they can build.
Synergy Group has revolutionized that issue with 90% pre-approved financing for the entire
project regardless of your credit or experience. With the supervision of the Synergy system
you have reduced risk with greater potential rewards.
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Synergy Group reviews numerous development projects to determine the feasibility of residential
construction. The proximity to major metropolitan areas is of foremost importance. Due to
the planning process and infrastructure construction time frame, we focus on growth areas that
are anticipated to have several solid years of growth and maturation.
Furthermore, local amenities add a tremendous value to our developments and attract
homebuyers, which impacts the easy of marketability.
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With Synergy providing pre-designed house plans for each development .. you are quickly ready
to build. Pre-designed plans save you thousands of dollars in engineering and architecture
expense. You can immediately proceed to construction. Through years of residential experience
we have developed a keen sense for the type of residences that are selling. This experience is
passed on to you, the Investor/Builder, and eliminates any guess work.
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Field superintendents are home building's first and last defenders of quality homes. They
build quality homes when involved in a system that works right. They manage suppliers, sub
contractors, inspectors, and the phase inspections right down to completion. They are your best
defense against warranty work or defects by doing it right the first time. That is why
Synergy Superintendents have no less than 15 years experience and are screened to be the
cream of the crop.
Synergy helps you select the home design, materials, set quality standards, contract
with the trades, schedule production, hire co-workers, provide training, and determine
superintendent workloads. These decisions are made long before any problems appear on the
job site. When problems do occur, experienced field superintendents meet the challenge
of solving the problems.
Field superintendents routinely insulate decision-makers from the realities of production
system shortcomings by quietly solving problems. Usually, management learns about situations
only when several problems converge at one time. When this happens, Synergy's highly motivated
superintendents do not need to be told how to do their job. That is why we hire only the best to
ensure a seamless construction process.
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The Devil is in the Details:
As experienced or first time builders there are several areas that Synergy will help you
achieve your goals and profits. The construction phase is the one area in which many
builders neglect the details at a cost to their reputation and profits. With Synergy your
superintendent has a strict performance schedule to meet. Expectations for quality
construction are increasing, but so are the costs for builders who try to buy quality by
adding layers of inspections to their construction process.
There is a better way - build it right the first time.
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Improving quality is more than finding new ways to hire and fire trade contractors. We have
changed the approach to quality control. To accomplish this, the quality control system has
set requirements for approved materials, use of qualified persons to perform specific tasks,
work standards, explicit sales contracts, and job site inspection by the crews performing
the work. All lead to a first class built home, and a satisfied consumer.
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One of the major advantages the large builder has is the economy of scale for purchasing and
feature services. Home buyers are becoming more sophisticated and demanding leaving the small
to medium builders struggling to keep up. Synergy uses its economy of scale to purchase material
and negotiate sub contractors to maximize cost savings.
Synergy has developed a contractor approval and bidding system that ensures you, the
Investor/Builder, that you are using the best contractors and getting the best pricing.
Each approved contractor must submit and complete a builder package including all required
licensing, insurance, bonding and references. Once they are approved as a vendor they must then
submit an annual price sheet for their specific trade. Due to the volume of construction and
contracts through the Synergy program our contractors bid on volume and you receive the benefits.
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Investing today has become more and more complicated and risk driven, even for investors with
large amounts of capital.
Synergy has developed a program to help the small Investor/Builder capitalize on the growing
residential market. It is no secret that real estate and home building are two of the most
secure investments you can make.
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