Building on a lot owned by...

[Bryan Wilson]

I am not sure if this is the correct forum.  Please forgive me if it is. 

There is a home builder who has 5 or 6 great lots for sale but he has to be the builder for these lots.  We were thinking about building a home to sell on one of these lots.  He is a pretty good contractor as I've noticed over the past few years his houses sell fast.  Even before they are finished being built.  The area is in a prime location as well.  This would be my first venture into building a new home and I don't care if I don't make a lot of money on the first one as I think the experience is worth a lot.  Has anyone had experience with this?  Is there a forum on here or a thread someone can direct me to for info?  Does it sound like a decent investment?  Any problems you see with doing this sort of transaction?

Thanks for your time!!

[Account Closed]

It's usually more cost-effective to purchase a home on a lot that's ready to go.

One of the biggest problems with doing a build from the ground-up is the time it takes.  And if you have to go with this guy, you can't fire him and find somebody better/faster.  However your longest time frame you have imagined to get it ready to move into, multiply that by 3.

And you'll have driveways and sidewalks and landscaping to put in, which is enormously expensive, too.

And in the meantime, you're paying rent somewhere else.  

The closest I've come to doing this, is I improved a lot by putting in a driveway, fence, septic and well.  Took forever.  Waiting on them to get to your job can take so much longer than expected, even with their best intentions.  They get delayed at the jobs they are working on ahead of you.  And in your case, you're at the mercy of this one guy.

I would find a different way.  Personally, I'd only ever buy ready-to-go homes again.  But, if you want to build, don't be at the mercy of one particular builder, is my advice.