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Partner Interview
Published January 23, 2026

LGI Homes: Sales Playbook & Margins

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Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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Why did the company drop those criteria that they used to have, maybe in the 2022 time frame?

A good analogy is from Nick Saban's book, where he talks about how he was never really looking for the five-star or six-star quarterback from Texas. He wanted to find the three-star or four-star player who had so much potential that he could grow from the ground up and teach them the way to play football, to play that position, and turn them into that five-star quarterback. That was kind of the mentality. We would hire the top salesperson at D.R. Horton, but what we found was that those people are great and stick around for three or four years, but then they move on. But the people who were making $40,000, who were ambitious and had all the right material and potential, would be around for 10 years because they loved the success and the processes.

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Why did the company drop those criteria that they used to have, maybe in the 2022 time frame?

Some of that started to shift. The history of sales was that they had to know how to sell. We realized we had a process. Most places say they have a process, but they do not actually have it written down, or they do not train on it. If they do, they are not strict to follow it. Our process is so efficient, we could take anyone. Even if they have never been in sales, it is almost better that they have never sold a house at D.R. Horton or NVR because you have to get rid of all that pre-existing information to get them into our sales process. That was a hurdle that took more time.

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