How to Make Money with New Builds

Disclaimer

Here on Selfmadesns.com I’m only giving you my life experiences. So, you may learn and benefit from my mistakes along the way. As well as learn from all of the good decisions I made. What may work for me in some different experiences is not always what you should be doing on your own. Always do your own research or speak with a professional on the subject. Better yet do both guys. It will be way more beneficial for you at the end of the day. If you want more information on our terms, please visit our terms and conditions page along with the privacy policy page as well.

When I first started in the real estate world it was kind of like I stumbled into it. I was moving out of my condo and wanted to sell it. You know like most people do. I was going to use the money from the sell towards the new home I wanted. Not that I couldn’t afford it, I just was doing what I normally do. But one day I was at lunch with some friends. They were letting me know how they would go about the move and what they would do with the condo. They told me I should buy my new home and rent out my condo. This way I create a new revenue stream. From then on, I was hooked. I started learning all kinds of real estate strategies. So, today I’m going to share one with you guys today.

New Builds

New builds are real estate projects build from the ground up. These can of projects is really team effort. Everyone has an important role to play. First a real estate developer has to find the right location and with enough land and acquire it. After that they have to get all the planning and zoning in order. Now on to the next ones in line are the banks and investors to help get the project off the ground. Next up is the construction company. They will be in charge of building the whole thing. Now it’s time to find the buyers after that. So, you need the real estate agents. to bring you the buyers. And lastly, they may establish a HOA to help keep things running smooth.

My 1st Strategy

My first strategy is where I have my realtor on the lookout for new developing neighborhoods. So, I can go in early if it hit all my bullet points and get my plot of land or plots. They usually have more than one price point for the homes. I’ll go in there and see what they are offering for the most money. and see what they offer for the lower end. I’ll get the lower end floor plan and add all of the upscale things on my own. Now from there I’ll either rent it out for top dollar or sell it right away if I get a price I can’t turn down. But what I like to do is hold it until the neighborhood get really popular and sell high. When demand is high and supply is low, they’ll pay top dollar.

My 2nd Strategy

My 2nd strategy is where me and my realtor will both be on the lookout for plots of land or homes on good plots of land. Now if we come across a good plot of land. We’ll go about it just like the real estate developer would. We got the construction company we like to work with. some time we use our favorite floor plan or maybe we’ll get something new. I really like to hold on to any new build we have. But in the beginning that wasn’t the case. My first few new builds that I did on my own I sold them. I would build like duplexes, and they’ll be like 3bedrooms, 2 baths, finish basements, and two car garage. I’ll go get Home Equity Loan on the new build. Use the money to fund a new project and rent it my new built. This way someone else can pay off my Home Equity Loan for me.

Bonus – Things to Consider When Building a Home

  From the title you know where we headed with this one. This for anyone considering on building something from the ground up. This will really help those who have never really dealt with real estate. There are some things I believe most people will overlook when they set out to start a new build. But good news, that won’t be any of you guys. Your here for a reason so I’m not going to hold you up too much longer, let’s just get to this.

#1

  So, since this will be a new construction you want to first find a lot that seems perfect for your new build. Once you find your lot there is some due diligence that has to be done.

  With this lot you picked you now have to get septic permits. These permits will tell you how many bedrooms you’re allowed to have on the lot. You don’t want to get the land and find out the permits only allows for a 3-bedroom home, when you want to build a 5-bedroom home.

#2

  Next, you want to check to see what kinds of restrictions comes with the property. Even if you’re in a neighborhood with HOA or on farmland you might not be able to just do what you want to do on the land. Some of the restrictions you may run into may be the type of home you can build, the size of the home you can build, the kind of materials you can use to build, and the setback from the edge of the lot you have to be on.

#3

  The loan you will need will also be different if you’re not paying out of pocket for this new build. You will most likely need new construction loans. It’s a shorter loan than a regular loan for an already built home. Closing fees maybe different as well but that’s not always the case my friends.

  There you have it some of the things you will have to consider when you are building a home from the ground up or buying new construction homes. This isn’t everything you might run into, but I feel like these are the biggest ones to look out for my friends. If you here reading this, you already ahead of the game. At least you have a list of things to bring up when planning the new build. Take this information and do your research my friends before you make any moves or talk to someone you trust on the subject. Good luck.

Summary

There you have it my two strategies plus the bonus part of the post. These are the two I like to use when I’m dealing with a new build. These are the ones that work best for me. These aren’t the only ones out there that works. It’s always more ways to get the job done. I’m sure there are some better one out there, but these are the ones I like to use. Hopefully like this post helped someone out there. In the comments let me know what strategy you guys are using out there. Thanks for your time and the visit.