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                                  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           YEAR          DECEMBER       JANUARY 1,
                                                                       ENDED          ENDED        16, 1999 TO      1999 TO
                                                                      DECEMBER      DECEMBER        DECEMBER        DECEMBER
                                                                      31, 2001      31, 2000        31, 1999        15, 1999
                                                                    ------------   ------------   -------------   -------------
<S>                                                                 <C>            <C>            <C>             <C>
PRIMARY EARNINGS:
Net income ......................................................   $     24,713   $     25,691   $       2,648   $      14,737
Effect of dilutive securities - 1998 Tandem Stock Option Plan ...              0              0               0               0
                                                                    ------------   ------------   -------------   -------------
Net income applicable to common stock ...........................   $     24,713   $     25,691   $       2,648   $      14,737
                                                                    ============   ============   =============   =============

Shares:
Weighted average number of common shares outstanding ............     11,500,000     11,500,000      11,500,000      11,500,000
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      11,500,000
                                                                    ============   ============   =============   =============

Primary earnings per common share:
Net Income ......................................................   $       2.15   $       2.23   $        0.23   $        1.28
                                                                    ============   ============   =============    ============

FULLY DILUTED EARNINGS:
Net Income ......................................................   $     24,713   $     25,691   $       2,648   $      14,737
Effect of dilutive securities - 1998 Tandem Stock Option Plan ...              0              0               0               0
                                                                    ------------   ------------   -------------   -------------
Net income applicable to common stock ...........................   $     24,713   $     25,691   $       2,648   $      14,737
                                                                    ============   ============   =============   =============

Shares:
Weighted average number of common shares outstanding ............     11,500,000     11,500,000      11,500,000      11,500,000
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      11,500,000
                                                                    ============   ============   =============   =============

Fully diluted earnings per common share:
Net income ......................................................   $       2.15   $       2.23   $        0.23   $        1.28
                                                                    ============   ============   =============   =============
</Table>