LGI Homes: Entry-Level Profits

LGI Homes (LGIH) is one of the nation’s fastest growing homebuilders engaged in the design and construction of quality entry-level homes primarily for the first time buyer, suggests Tom Bishop, small cap expert and editor of BI Research.

It has 110 active selling communities in 16 states where it builds and sells its homes. The average home goes for $248,000, but houses can range up to ~3,000 square feet and as many as 5 bedrooms with prices over $400,000.

LGI has 45,000 lots owned and controlled for future development and is benefiting from a lack of entry level homes on the market and the desire of pandemic weary people to move out of densely populated living situations and into homes that offer more space and privacy.

Other positives include the Fed’s pandemic driven low interest rates with mortgage rates below 3% and the Fed’s intention to keep them

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