Centex not selling to investors??

[Christine Steiner]

For a number of reasons, hubs and I have decided that buying a new 3/2 Centex home near our primary to use as our first investment property is how we are going to get into the business. We stopped by the model home today and were told that they don't sell to investors, and we'd have to buy a previously owned one if we wanted a home in the neighborhood to keep as a rental property. My realtor had never heard of a builder saying 'no' to an investor and has even bought a new home for investing in another city, herself. She's looking more into the matter, but I wanted to reach out to y'all. Have you ever heard of this? Any way around it?

[Mark Creason]

Originally posted by @Christine Steiner:

For a number of reasons, hubs and I have decided that buying a new 3/2 Centex home near our primary to use as our first investment property is how we are going to get into the business. We stopped by the model home today and were told that they don't sell to investors, and we'd have to buy a previously owned one if we wanted a home in the neighborhood to keep as a rental property. My realtor had never heard of a builder saying 'no' to an investor and has even bought a new home for investing in another city, herself. She's looking more into the matter, but I wanted to reach out to y'all. Have you ever heard of this? Any way around it?

They do not want to sell houses to investors because they believe it lowers the value of the neighborhood.  It was common in the 2000s for builders to refuse to sell to investors.  Some would require an affidavit stating you would live in the property, and if not, that they could force you to sell.  I don't know if they ever enforced such clauses.

Mark