About Sales | 15
the loanmodels for newhomes have changed.
She explains that in the past, banks would
supply loans that would cover 100 percent
of the cost to purchase land and lots and as
much as 80 percent of what it cost for con-
struction. Today, banks are only providing
construction loans to firms who have already
purchased the lots or land on which they’re
developing. Gary says this has prompted
builders to partner more with mainly lo-
cal investment firms or individual investors
who actually buy the land for one project at
a time which, in turn, enables the builder to
secure the needed construction loan. Gary
says such relationships have helped infuse a
lot of money in Atlanta’s market. Now that
the Atlanta market is showing strong signs of
recovery, this is attracting some really large
national investors that are allowing builders
to increase market share and grow their com-
panies at a much quicker pace. She says this
kind of funding creates opportunities to de-
velop massive, master-planned communities
while allowing the builder to purchase mul-
tiple sites. Whereas builders may have once
only focused on a few lots within a neigh-
borhood, there is now greater emphasis on
creating residential spaces that encompass
sustainability practices, amenities and multi-
ple-price points in home values. “It changes
the entire dynamic of building in Atlanta
to have that capital infused in the industry,”
says Gary.
As for the dynamics of services rendered by
