A Secret To Real Estate Profits Follow The Builder

A Secret to​ Real Estate Profits - Follow the​ Builder
As the​ real estate market cools,​ the​ profit potential of​ home ownership has cooled as​ well .​
Here’s a​ strategy called follow the​ builder .​
It is​ relatively easy to​ make a​ profit when you​ sell your home if​ the​ market is​ rising sharply like it​ has been in​ most of​ the​ country for the​ last three years .​
It becomes more difficult when a​ hot market slows down .​
It’s very difficult to​ make a​ profit on​ the​ sale of​ your home when prices are falling .​
Is there a​ way to​ be relatively sure you’ll make a​ profit when you​ sell your home? There is​ under all but the​ most negative market conditions .​
In fact,​ I’ve seen young,​ energetic couples use this maneuver multiple times when they don’t even need to​ move .​
Follow That Builder
In many areas of​ the​ country,​ there are builders who build hundreds of​ houses each year within a​ fifty mile radius of​ each other .​
They build entire communities or​ are one of​ three to​ five builders who build entire communities around big employment centers .​
This present you​ with an​ important opportunity .​
New Community
Builders will typically sell first phases of​ communities for significantly less than later phases .​
On one hand,​ they need to​ get the​ cash flow moving .​
On the​ other,​ it​ is​ harder to​ sell at​ high prices because the​ community typically consists of​ dirt lots and construction equipment .​
Put the​ hands together and you​ have a​ great profit opportunity .​
The idea is​ to​ get in​ on​ the​ first phase of​ the​ build out .​
You will purchase the​ home at​ a​ discount,​ which gives you​ built in​ equity .​
As the​ community is​ built up,​ you​ sell the​ home for a​ profit at​ a​ higher price .​
While you’re doing this,​ you​ keep tabs on​ the​ builders projects and find another location where you​ can do the​ same thing .​
You’ll end up living in​ each house for a​ year or​ more and picking up nice profits along the​ way .​
The only real downside is​ you​ have to​ move repeatedly .​
Tax Consequences
I’ve seen this work well for a​ number of​ people who have done it​ more than once .​
However,​ you​ need to​ be aware that generating profit this way can have tax consequences .​
You need to​ discuss your plans (including projected timing and profit potential) with your tax professional so that you​ are prepared to​ deal with any tax consequences.
A Secret To Real Estate Profits Follow The Builder A Secret To Real Estate Profits Follow The Builder Reviewed by Henda Yesti on August 28, 2018 Rating: 5

No comments:

Powered by Blogger.