Any new builders allow investors to buy their house?

Question

Hello

I am interested in buying a new build for investment/rental in DFW area.  I live away from DFW and one day want to settle in that neighbourhood.

i did some research - so far no luck in terms of Lennar and DR horton dont sell their homes for investors.

can someone tell me which builder would allow investors to buy their house. I am interested in Rowlet, Rcokwall, FAte, Royse city area and my budget less than $350K.

Thank you

Dan

James Hamling · Answer

@Sonu Sundar your VERY incorrect.

Both D.R. Horton and Lennar happily, with open arms, sell to investors. AND if one is savvy, can also get financing, as an investor/investment purchase, including a list of perks.

You may be finding "a" development that has some covenant banning rental's, it's "a" development thing not a builder thing.

You skipped the step of FIRST getting your team together, namely the REI Realtor, didn't you? Rewind, and start there. They will solve this for you.

Courtney Roberts · Answer

I'm a Sales Agent with D.R. Horton in Baldwin County Alabama and we sell to investors. Rental terms can vary by neighborhood due to HOA restrictions, but we have some that can be mid and long term rented.

Mark R. · Answer

Every builder will sell to investors at some point. It may depend on what you pay per home, how their community is doing for sales/margin, and how many homes you buy. They also care will care how you market the property, how you run your property management business in regards to how it may impact a community that they are still selling in.

David Crudup · Answer

Hello, I'm with Lennar in San Antonio and James is Correct, I have Homes available now to investors with incentives and price reductions all over San Antonio, New Braunfels and Seguin!!Please contact me directly for a current Inventory List!  david.crudup@lennar.com

Kristin Flores-Brockman · Answer

I know that DR Horton and Impression do

Eric Fernwood · Answer

Hello @Sonu Sundar,

Before you decide what and where to buy, you need to first determine who you want to rent your property to.

This is how the commercial world works.  Do you think Whole Foods, Walmart, or Target decides on a location because someone in management thinks this is a good location? No, they have a deep understanding of their customers and place stores where the customers want to shop to maximize sales and profits. You need to make decisions using the same principles as retailers.

One goal of a rental property is to have a reliable income. The only way you will have a reliable income is if a reliable tenant continuously occupies your property (your “customer”). A reliable tenant is someone who stays many years, always pays the rent on schedule, and takes good care of the property. And, because you will hold the property for many years, you will need multiple reliable tenants.

Reliable tenants are the exception, not the norm. The best way to have a reliable tenant in your property is to:

• Buy a property that attracts a tenant segment with a high concentration of reliable people.
• Work with a property manager who can consistently select reliable tenants. There are very few property managers with this skill. Over the last 16+ years of working with investors and property managers, I have encountered only two with this skill.

You can identify a tenant segment with a high concentration of reliable people through property manager interviews. If anyone would like sample property manager interview questions, let me know.

Once you identify the segment, determine what and where they rent today. From this, you can create what I call a property profile. A property profile is a physical description of a property. A property profile has at least four elements.

• Location - The locations where significant percentages of the target segment are renting today.
• Property type - The type of properties they rent today. Condo, high rise, multi-family, single family, the type does not matter. Only a reliable tenant matters.
• Rent range - What the segment is willing and able to pay.
• Configuration - Two bedrooms, three-car garage, large back yard, single-story, two stories?

Once you have a property profile, you can give this to any realtor, and they can find conforming properties.

However, just because a property conforms to the profile does not mean it is a good investment.  Every property of interest must be evaluated based on current and future performance.

Current Considerations

• Time to rent
• Renovation Cost & Risk
• Initial ROI and cash flow
• Purchase Price
• Maintenance cost
• Acceptable area rental restrictions
• In an area that is doing well and likely to do better in the future.
• In the migration path of urban sprawl.

Future Considerations

• The location has a track record of appreciation and rent increases.
• It physically matches the expected demographic changes for the foreseeable future.

Buy what your “customer” wants to rent, not what you think is a good property.

Jennifer Volek · Answer

If you have a realtor, they can help you with this. If you need a realtor I would be happy to help, I know of a builder.

Preston Dean · Answer

Hey Sonu,

I'll send you a connection requests I know some builders in DFW that sell to investors.

Sonu Sundar · Answer

Oops I see you are in las Vegas.

😴

Sonu Sundar · Answer

Please let me know is this in Texas? Which suburbs?

thank you so much

Any new builders allow investors to buy their house?

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