Has anyone in this forum flipped a brand new house? What was your experience? Any info you can share is appreciated.
Out here in California (Bay Area), new subdivisions are sold out all the time. I remember when we bought our new house 3 years ago, we had to get on a waiting list and the open house was pandemonium. The value of the property was $100k higher when construction completed. If it stays this way, it could be profitable. However, I’m not sure if there is a clause when you purchase a new house that you cannot flip it. I guess that would depend on the subdivision?
It depends on the builder. Many builders in Florida are now putting clauses that you cannot flip for 18 month or you will have to pay the developer 50% of any profits. it is in there contracts. Mercedes Homes still allows investors and you can flip the properties. I have seen them raise the original cost of the house by 10K when it came time to close because of labor and material cost. There is a clause in the contract that states they can do that as well. If they allow it, it is very easy. You can close then sell or if you have a buyer have a back to back closing.
Just to build on hinestro. Here in Melbourne, I bought my house and started slowly learninga bout the real estate process. The builder - Lennar allows assignments and does not require you to close. My current investment property in Kissimmee ICI homes does not allow assignment. I must close with the company and they dont care if I sell it to somebody else right after tahta. Except the mortgage company might take offense at that. lol. Hinestro, where you located?
steve
;D
I’m in Boca Raton but my family lives in Melbourne and Indialantic. I use to spend a lot of time there before I moved from CT to FL. I wasn’t aware that Lennar still let’s you flip. That’s good to now. It difficult to find any builders in Palm Beach that will allow. Of course you can in miami with condos but that is completely out of control.
I’m in Prescott AZ & the building & growth is exploding… Because we believe in diversification… some rentals - some fix & flips some lease/options… rehab repo mfg. homes on lot & sell … (sounds like we do a lot but we are still pretty small time!)I am trying to learn about Pre-forclosure & Pre-constrution
the pre-construction is a hard nut to crack here as far as even getting info! example: my sons work for a survey company & know of a Phase 3 golf/condo they are suveying right now - trying to find anyone on line or off that knows anything is a joke… realtors & builders … like the keep it a big secret
anyone know the reason?
tia
Candy
ps my cat is jumping on the leyboard so I blam all typos on him ! (this time) :
In Florida the builders have seen how the prices have climbed in the short amount of time it takes them to build. Therefore they figure they can keep making money if they build these clauses into there contracts. Also many of them do not want the stigma of communities that are for speculative buying. This seems to give a false sense of security to people who buy that will actually live there that there home prices will remain stable or go up if the “boom” ends.
