Joe P.
Maybe So Maybe Not but you are at the mercy of the lowest cost
Here is a more consolidated post of my experience that isn’t necessarily bashing D. R. Horton I will post every two weeks so all who come here know what there getting into and if you choose to deal with D. R. Horton or another production builder so you get the best deal. Bottom line in the high interest rate market the best time to buy is October-November to take advantage of them buying the debt and giving interest rates in the 3% range for reducing their inventory to avoid taxes on assets. I had a negative experience with D. R. Horton’s Lafayette Office. I’m a mentally disabled retire Naval Officer who the Lafayette Office was very interested in my buying from them even though I was exhibiting erratic and irrational behavior but still competent enough to buy. When they put the close date the day before my birthday I got suspicious and looked into them a bit. The business model sell itself so why the amateur sales tactics. After a deal fell apart and I lost significant potential gains in the stock market after the 2024 election we reach a deal on a future build where I would have three structural engineer inspections and an open wall inspection with inspectors of my choosing to inspect critical system or so I thought. They were very professional in terminating their association with me on that deal then they just stop answering or returning my calls. D. R. Horton’s business model as a production builder builds at 15-20% below market build cost and sells preconstructions for 6% under market build cost. In the secondary market, since these are new construction D. R. Horton prices homes a slightly above market rate or 33% above cost of build. This gives D. R. Horton a gross profit margin of 44% (assuming perfect build-sale compounding of 2.4 times yearly) and 33% +/- 3% in the secondary market in which they own all the homes in that market but just selling through real estate agents. If you buy in the secondary market your getting ripped off if you don’t knock 10% off the market price per sq ft. You’re the buyer and they make 13% profit a year with this model or rather 4.8 billion dollars. Don’t you want your piece of that pie. D. R. also engages in rental properties (I would imagine likely some low income ie. guaranteed government money), this is an additional revenue stream that can offset Accumulated Earnings Taxes and provide a revenue stream that results in a return on investment of 6% which is better than the financing arm of the end of year buydown not including the tax advantage of getting the inventory off the books. Respectfully, Concerned Consumer

