OT:Pre-Construction Home "Investment" Program, sounds too good to be true in FL |
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OT:Pre-Construction Home "Investment" Program, sounds too good to be true in FL |
Mueller |
May 12 2005, 06:54 PM
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#1
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914 Freak! Group: Members Posts: 17,146 Joined: 4-January 03 From: Antioch, CA Member No.: 87 Region Association: None |
A family friend has brought this to our attention...basicly it sounds like you buy a lot, the realtor finds a builder, house gets built, you sell the house and make $$$$
Investment Homes in Florida Upon doing some searches, it seems this is only done in Florida??? |
914rrr |
May 12 2005, 07:25 PM
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#2
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Senior Member Group: Members Posts: 1,835 Joined: 1-July 03 From: Knoxville, TN Member No.: 874 Region Association: South East States |
Kinda like a "hot" stock tip. By the time most people hear about it, it's already peaked and on the way down. I've been buying, rehabbing and selling single family homes for about 5 years and I'm still bullish on Florida real estate in general and people have made some really nice pre-construction profits, but mostly on waterfront condos. I do see the "specualtive" pre-construction market getting overheated. There are already new condo buildings in Tampa where 40% of the units are empty and the owners are speculators. It only takes a couple of investors "dumping" their units cheap to screw up the comps for the whole development.
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Mueller |
May 12 2005, 07:33 PM
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#3
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914 Freak! Group: Members Posts: 17,146 Joined: 4-January 03 From: Antioch, CA Member No.: 87 Region Association: None |
that has to hurt....I don't mind the investing, but there just seems something "odd" about this method, I guess I just never heard of it before....I like buying something already built, no big deal if I have to put some money into to fix it up to rent it out, but this pre-construction speculating does not appeal to me right now |
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kenporacer |
May 12 2005, 08:34 PM
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#4
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Member Group: Members Posts: 65 Joined: 10-January 05 From: Deltona, Fl Member No.: 3,432 |
I have friends that try this, mostly my builder friends do a variation where they stay in the house a year or so then sell to escape capitol gains, then build all over again.
Erik |
Carl |
May 12 2005, 08:45 PM
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#5
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Ummm ... what? Group: Members Posts: 781 Joined: 17-January 03 From: San Jose, CA Member No.: 163 Region Association: Northern California |
It looks like a simple way for a developer to finance his project while someone else takes the risk on the land and the developer doesn't have to comply with loan covenants of a regulated financing company, i.e., a bank. I'd sure be careful of the financial strength of the developer and know for certain what was going to be built on the lot and the surrounding property.
Also, Mike, with the problems you've had with your Louisiana investment, why are you thinking of Florida? There is huge value in investing locally so you can watch what's going on. |
JerryP |
May 12 2005, 08:49 PM
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#6
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member Group: Members Posts: 314 Joined: 8-October 03 From: Berwyn, PA Member No.: 1,225 |
Pre-construction can be a legit investment if, just like anything else, you really study the market and know exactly what you are doing.
On the other hand.... If you knew a concrete way to make big money in the real estate market, would you just do it until you had all the money you wanted...or would you jump through hoops to set up a company whose sole function is to help everyone else do it? Anyone remember Dave Deldado? Still in jail I think. |
neo914-6 |
May 12 2005, 10:04 PM
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#7
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neo life Group: Members Posts: 5,086 Joined: 16-January 03 From: Willow Glen (San Jose) Member No.: 159 |
(IMG:http://www.914world.com/bbs2/html/emoticons/agree.gif) with Carl, there are closer opportunities avoiding travelling so far if something needs attention. Central Valley has some developments according to my Realtor friends. His home isn't even built yet and values have risen. Rise enough and they may even sell instead of moving in. I've heard AZ areas will be the next boom like Las Vegas. My parents and a friend of mine made out nicely from their Las Vegas homes. Wish I listened to them AND got the money to invest... (IMG:http://www.914world.com/bbs2/html/emoticons/wacko.gif) |
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airsix |
May 13 2005, 10:40 AM
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#8
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I have bees in my epiglotis Group: Members Posts: 2,196 Joined: 7-February 03 From: Kennewick Man (E. WA State) Member No.: 266 |
24 months as your primary residence to be exact. -Ben M. |
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azbill |
May 13 2005, 11:25 AM
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#9
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Member Group: Members Posts: 455 Joined: 26-July 04 From: Glendale, Az Member No.: 2,403 Region Association: Southwest Region |
Arizona is booming. There is indicators that the blooms are falling off in some areas. The raw land in the far west side of Phoenix is nuts. Buy one day sell the next for double digit gains.
I am a certified general appraiser and broker. I am using the first sale as a comp and avoiding the latter sales. It is getting squarrely. There could be a change in the market in the very near term. Be very careful when investing in this market. |
spunone |
May 13 2005, 11:33 AM
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#10
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Senior Member Group: Members Posts: 945 Joined: 6-April 04 From: Anaheim CA Member No.: 1,901 Region Association: Southern California |
HEH AZBILL heard anything about Meadview??AZ
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azbill |
May 13 2005, 01:33 PM
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#11
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Member Group: Members Posts: 455 Joined: 26-July 04 From: Glendale, Az Member No.: 2,403 Region Association: Southwest Region |
Not realy - I have heard that it over looks Lake Mead. Don't know if there is lake access but the hilltop views are said to great. I don't know anything about the market, prices or values. If it is like most areas of Az it is going up most likely because of Lost Wages.
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