<PAGE>   1
                                  EXHIBIT 11.1

                      NEWMARK HOMES CORP. AND SUBSIDIARIES

                    COMPUTATION OF EARNINGS PER COMMON SHARE

           (DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)


<TABLE>
<CAPTION>
                                                                                   PERIOD          PERIOD
                                                                                    FROM            FROM
                                                                      YEAR         DECEMBER       JANUARY 1,       YEAR
                                                                     ENDED       16, 1999 TO       1999 TO        ENDED
                                                                    DECEMBER       DECEMBER       DECEMBER       DECEMBER
                                                                    31, 2000       31, 1999       15, 1999       31, 1998
                                                                  ------------   ------------   ------------   ------------
<S>                                                               <C>            <C>            <C>            <C>
PRIMARY EARNINGS:
Net income ....................................................   $     25,691   $      2,648   $     14,737   $     12,795
Effect of dilutive securities - 1998 Tandem Stock Option Plan .              0              0              0              0
                                                                  ------------   ------------   ------------   ------------
Net income applicable to common stock .........................   $     25,691   $      2,648   $     14,737   $     12,795
                                                                  ============   ============   ============   ============

Shares:
Weighted average number of common shares outstanding ..........     11,500,000     11,500,000     11,500,000     11,035,342
Effect of dilutive securities - 1998 Tandem Stock Option Plan .              0              0              0              0
                                                                  ------------   ------------   ------------   ------------
Weighted average number of common share outstanding as
  adjusted ....................................................     11,500,000     11,500,000     11,500,000     11,035,342
                                                                  ============   ============   ============   ============


Primary earnings per common share:
Net Income ....................................................   $       2.23   $       0.23   $       1.28   $       1.16
                                                                  ============   ============   ============   ============

FULLY DILUTED EARNINGS:
Net Income ....................................................   $     25,691   $      2,648   $     14,737   $     12,795
Effect of dilutive securities - 1998 Tandem Stock Option Plan .              0              0              0              0
                                                                  ------------   ------------   ------------   ------------
Net income applicable to common stock .........................   $     25,691   $      2,648   $     14,737   $     12,795
                                                                  ============   ============   ============   ============

Shares
Weighted average number of common shares outstanding ..........     11,500,000     11,500,000     11,500,000     11,035,342
Effect of dilutive securities - 1998 Tandem Stock Option
  Plan ........................................................              0              0              0              0
                                                                  ------------   ------------   ------------   ------------

Weighted average number of common share outstanding as
  adjusted ....................................................     11,500,000     11,500,000     11,500,000     11,035,342
                                                                  ============   ============   ============   ============


Fully diluted earnings per common share:
Net income ....................................................   $       2.23   $       0.23   $       1.28   $       1.16
                                                                  ============   ============   ============   ============
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