I currently live in an area of the US where the population is exploding. The city I live in is always growing outwards, from the middle. There is no land to purchase here, all the developers own it. I found a new master planned community about a year ago that was just a pile of dirt at the time (no houses built). Purchased a house to be built, and now 1 year later I have about 90k of equity in this house. Half of that equity came during the first 8 months of waiting for the house to be built, without even making a single morgage payment yet.
I see most people take lower priced houses, fix them up quick, and resale. I am planning to sell my house and take the equity to build 2 houses and a town home in another developing area of our town (still a pile of dirt). Is this a viable alternative for someone who has money to spend on how to invest in property? I have been keeping a very close eye on how the real estate market works in my town for the past 10 years and havent been wrong yet. But this would be my first time actually doing it for investment purposes.
Hey Bushmaster,
Would this be a good investment for you?? well hell yeah it would… I Buy houses before they are even built… In one of my farm areas they are built in phases. The further along the phases are built… the more money I make… so say for instance, I buy a house in phase 4, and they are only in phase one. well I don’t have to pay a single penny untill Its built? Well by the time phase one is done and phase 2 is being built, the value has already gone up 10k, wow 10k in my pocket. well phase 2 is done and they are starting phase 3, and my value went up even more… etc etc… what I love to do is buy these deals and turn around and stick them on the market… I get a HUGE return on them. Its a great investment. Don’t be told otherwise!!! Just be careful, The more properties you buy by the same developer, the harder they get to control. And ontop of that, you can’t display any ads in front of the house at all.
Hope this makes sense!!!
Good luck and enjoy your investments!!!
Money!!!
Bushmaster,
You’re on a roll, keep rolling with your methodology, and you’ll be one of those success stories on TV!
Good Luck!
New construction homes are the my favorite as apposed to fixer-uppers. You get all the appreciation without the work.