Buying in Bulk

The success of the Costco chain of stores has proven that buying in bulk makes sense to a lot of us. From retail sales to real estate, the bulk purchase concept is logically sound.

Builders who negotiate a purchase of all or a portion of a subdivision may find that the bulk sale is beneficial, allowing for a better purchase price, among other things. We see these types of transactions more and more as residential development evolves to a separation of development from home building.

Builders who buy super-pads or finished lots can file for a public report before the acquisition has been completed, adding another layer of efficiency to this type of buying. There are a few things to address in the documentation in order to get the best results:

  • Incremental take-downs work, but the take-down schedule must include an outside date (calendar date) for the last take- down.
    • Documents that don’t include an outside calendar date will result in deficiencies and delays at DRE.
  • The outside date will allow the DRE to pinpoint an expiration date for the public report
  • Having the outside date be conservative and at least one year out will allow you to obtain a full-term preliminary (pink) and/or conditional (yellow) report
  • At least one lot must be acquired in order to obtain a final (white) public report, called a “Limited Term” Public Report. This report will expire 30 days after the outside date, and can be converted to a full-term report with no additional DRE fees
  • The take-down schedule should be tied to the marketing phasing schedule to avoid delays or complications in HOA budgeting.

Hi, I'm Scott

I'd love to learn more about your new development or project. Use the link below to request a proposal.


Stay up to date.

Sign up our newsletter for latest article and news.
Community Associations and Inflation

Community Associations and Inflation: Strategies for Resilience and Financial Stability

Inflation is a persistent issue that wreaks havoc on the financial health of community associations. From project delays to regular assessment increases and impact on reserve funds, the effects of inflation can be far-reaching and challenging to manage. Community association boards must be proactive in mitigating the impact of inflation to ensure that they can continue to provide necessary services to their members while also planning for future capital projects.

Read More »
Your Go-To for DRE Public Report Processing

Your Go-To for DRE Public Report Processing

If you are a real estate developer in California, obtaining a public report from the Department of Real Estate (DRE) is a crucial step in your project’s success. The public report discloses important information about the development to prospective buyers, such as an overview of the community, the developer’s financial stability, the project’s legal status, the association’s monthly assessments (if any), and the estimated completion date.

Read More »
Reserve Study Misconceptions: Debunked

Reserve Study Misconceptions: Debunked

As an owner or manager of a homeowner’s association or other planned community, it’s your responsibility to ensure that finances are properly managed. Reserve studies are vital for an association to maintain its financial health, as they are required to take place every three years in accordance with CA Civil Code 5550. However, there are several misconceptions about them. We’re going to divulge some of the most common myths about reserve studies and explain why they are untrue.

Read More »
Schedule a Call
Discuss your project or needs with someone from the California Builder Services team.