Site preparation costs can triple a luxury tiny home project's budget. Removing dirt from a 19-acre lot runs $40 million, pushing total costs from $90 million to $130 million. Even at $1.5 million per unit, the developer might only clear $20 million in margin.
Are you in the deal room? Started this before, I don't know, but I can tell you right now the guys that did think about it are making bank, right? You know, and so I really think that with the lack of knowledge about luxury tiny homes right now, like people that look at that property, the people that are looking at that property are not mobile home park developers. They're not. And there might be easier places to get it because the other thing is it's not that they're— if they did see it, what, you know what they're seeing? Seeing 4 foot of dirt removal that they have to do and put back. Right. Go ask Kathy how much dirt removal costs. 5 acres was $10 million. How many acres we got here? 19. Yeah. So let's just 4 times that. We're at $40 million now. So this is probably— $90 million price tag went to $130 million. And at $130 million, we are $20 million in a margin if we sold these things for $1.5 million each, right?
