i just have a quick question about investing i’v heard there’s a way to make quick decent cash on the side doing this…
around where a live there’s tons of growth, the average $130k house appreciates 20-50k just in the 6-8 months it takes to build it. basically there are a few people i know that say they make money doing this.
they put the deposit down for the builder to start building a particular house usually it’s 5-8k here to do that. toward the end of the building time, they advertise and sell the house before it’s ever built. but they make that appreciation in profit because the price was locked in from the build starting date.
is this something that’s difficult to do? too good to be true? what are some walls you might run into doing this. i know you run the risk of having to finance if yourself and hold the morgage on it if it doesn’t sell but other than that, is this a good idea?
Chris I have only done this three times in nine years and have had success with this. The only reason I dont do this now is there is no really hot areas being built here now. I know of a friend of mine doing this in AZ that has great luck doing this I would say it is once again based on your area and market for new homes!!
awesome, yeah, there are is a TON of growth here in central FL, and it’s been going for years and years. i’m really interested in doing this, if you sell it before it’s build do you ever even have to get a morgage? i’m trying to figure out exactly how it’s done.
Hey Chris T
I know a gal here in Las vegas who did what you are suggesting and it is doable but know your market price after the final closeout… She is having trouble selling due to the market slowdown here in LV. If the market is still hot and will be after the house is built go for it. If it does not sell right away try a creative strategy to sell it . You have 30 days until after closing escrow to arrange a sale to a buyer so if it is a hot market you most likely will get your price and better!!
From my understanding you will acquire a note when the house is built and you close on it unless you can sell it presale to another retail buyer.
Iam not broker but a investor like you…
Good luck to Ya…
Oh I forgot to add always have a appropriate exit strategy for your property before hand in case your plan does not work out…
Cover your angles and if you need a few contingency plans on exiting when the house is built that is fine… Take Care…