Building To Sell.

[Chad D.]

Hi to all, I'm new here. I have a question for whoever has knowledge on this. My mom is trying to help me invest in Real-Estate. We have a nice chunk of money we can use, but I don't know where to begin. I tried going to auctions, and people end up paying about 5 grand less than what the house is worth. If I'm trying to flip, that doesn't make sense to me. I always thought I could go to the auction, and get something decent for about 20-30 thousand less than the value of the actual home. I was wrong about that...

Now I have this idea of wanting to build to sell. Only problem is, it seems like the builders won't give you a discount. I'm based in Houston, TX by the way. I want to build in the Heights, or Museum District. I'm curious on how do you make a nice profit with building to sell? The land cost is expensive as it is, then I have to build on whatever I can get. I guess I had the wrong concept of how this goes? I thought you can build cheap, and sell high. Are there any pointers you guys could suggest to me?