The Goldilocks Principle Applied to Las Vegas Land Buyers
In the world of land development, the Goldilocks principle commands that the acquisition of land must fall within certain value-margins and certain inventory-ranges – as opposed to extremes. In the boom-bust style of the Las Vegas real estate market, following this principle is extremely difficult.
In the children’s story, one bear finds the porridge too hot, one finds it too cold, and the other finds it “just right.” Buying and developing the right “quantity” of land is exactly like this.
Let’s take the average large-sized Las Vegas home-builder who may build roughly 500 homes per year. Building an individual home takes about 100 days and this schedule is highly reliable – even major Acts of God affect it.