I live in Kokomo, Indiana. Im planning on investing a little outside of Indianapolis and in Kokomo.
How do you guys feel about building new houses through a company like Century 21? I mean, I dont see how you can possibly lose as long as you dont buy in a declining market. I hear you can build for like 80% the cost of the house, or something like that?
Also, you only pay interest until the house is fully complete. So lets say the house take 6 months to build, that gives you 6 months to find a tenant without paying any significant cost.
I’m only 16, so maybe my little mind cant understand this, but I dont see how you can fail at this. Whats your thoughts? :help
Building a house is like paying retail plus you are paying the builder a profit. There is no gain in that scenario unless the market is rising rapidly. As far as paying interest only for the construction period; if you do the math you will learn that the majority of your monthly payment on any mortgage is interest so an interest only loan really does not save you that much money. By the way, Century 21 is a real estate brokerage firm not a home builder…correct?
I really aint sure what Century 21 is man. Im only 16 lol.
So you say its a bad thing to do?
Because im gonna be honest, my aunt and uncle were doing it(were. but arent anymore because he got on drugs and now they are divorced.) and they are some of the dumbest people you could ever meet, but they were making alot of money doing it.
By the way, my dad is willing to get into the real estate game too(he has never invested either) he makes pretty good money($37.25 an hour) and is willing to invest with me.