Updated over 8 years ago on . Most recent reply
Flipping new homes?
I was reading a real estate book that mentions a strategy of how investors can make a quick profit by putting down a deposit on a new home that a builder or developer hasn't even started, basically, making a reservation on the property in the hopes that when the house is complete or sooner, the market value will have risen to a point where they can make a quick profit by selling your stake before closing on the deal. Has anyone ever used such a strategy? If so, how much (%) did you have to put down and what are the major downsides to such a strategy?
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It's an interesting concept, but probably needs to be done with the right timing during a growing market.
From a spec build standpoint, I see a lot of tear downs turning into brand new expanded homes.