Originally posted by: dirtboy
Originally posted by: Arkitech
I've flipped properties in the past so I'm familiar with capital gains taxes and the entire point of me wanting to build 3 homes is based soley on profit.Originally posted by: dirtboy
Do you have enough income to get qualified for 3 loans?
I'm already pre-qualified for the loans, I also have the down payment needed
Do you have a plan on what to do if you can't sell 2 of your 3 homes?
I can carry the mortgage if neccessary until the homes are sold, but I should'nt have that issue considering almost every new home in my area sells very quickly
Do you have a plan in case you can't rent 2 of your 3 homes to cover the entire cost of your mortgage?
see above response
Do you have any experience flipping real estate?
I have about 3-4 years experience and several deals under my belt
Do you know what the real estate market will be like when the 2 houses you are flipping will be like when they are done?
Unless the economy or real estate market crashes completely within the next 3-4 months it should be pretty much similar to what it is now
Do you understand the taxes and costs associated in flipping property, and do you know if you can make a profit?
Since you have so many questions I'm assuming you're in RE market in some way. Do you have any advice?
Based on your first post you sounded like a noob.
Originally posted by: gscone
Originally posted by: dirtboy
Originally posted by: Arkitech
I've flipped properties in the past so I'm familiar with capital gains taxes and the entire point of me wanting to build 3 homes is based soley on profit.Originally posted by: dirtboy
Do you have enough income to get qualified for 3 loans?
I'm already pre-qualified for the loans, I also have the down payment needed
Do you have a plan on what to do if you can't sell 2 of your 3 homes?
I can carry the mortgage if neccessary until the homes are sold, but I should'nt have that issue considering almost every new home in my area sells very quickly
Do you have a plan in case you can't rent 2 of your 3 homes to cover the entire cost of your mortgage?
see above response
Do you have any experience flipping real estate?
I have about 3-4 years experience and several deals under my belt
Do you know what the real estate market will be like when the 2 houses you are flipping will be like when they are done?
Unless the economy or real estate market crashes completely within the next 3-4 months it should be pretty much similar to what it is now
Do you understand the taxes and costs associated in flipping property, and do you know if you can make a profit?
Since you have so many questions I'm assuming you're in RE market in some way. Do you have any advice?
Based on your first post you sounded like a noob.
What is your point? Dude is asking a genuine question. if you can't assist him, dont post.
Originally posted by: dirtboy
Originally posted by: gscone
Originally posted by: dirtboy
Originally posted by: Arkitech
I've flipped properties in the past so I'm familiar with capital gains taxes and the entire point of me wanting to build 3 homes is based soley on profit.Originally posted by: dirtboy
Do you have enough income to get qualified for 3 loans?
I'm already pre-qualified for the loans, I also have the down payment needed
Do you have a plan on what to do if you can't sell 2 of your 3 homes?
I can carry the mortgage if neccessary until the homes are sold, but I should'nt have that issue considering almost every new home in my area sells very quickly
Do you have a plan in case you can't rent 2 of your 3 homes to cover the entire cost of your mortgage?
see above response
Do you have any experience flipping real estate?
I have about 3-4 years experience and several deals under my belt
Do you know what the real estate market will be like when the 2 houses you are flipping will be like when they are done?
Unless the economy or real estate market crashes completely within the next 3-4 months it should be pretty much similar to what it is now
Do you understand the taxes and costs associated in flipping property, and do you know if you can make a profit?
Since you have so many questions I'm assuming you're in RE market in some way. Do you have any advice?
Based on your first post you sounded like a noob.
What is your point? Dude is asking a genuine question. if you can't assist him, dont post.
If you don't get my point, then it's over your head.
Originally posted by: Arkitech
Originally posted by: Fritzo
I'm in the middle of building one right now. Took them a week to lay the basement, the it went pretty fast after that. They're just up to putting siding on the outside now. Here's some pics (dates are below pics):
Started end of May, projected finish is October.
How did you find your builder? (recommendation, advertisement, etc.)
Originally posted by: gscone
Originally posted by: dirtboy
Originally posted by: gscone
Originally posted by: dirtboy
Originally posted by: Arkitech
I've flipped properties in the past so I'm familiar with capital gains taxes and the entire point of me wanting to build 3 homes is based soley on profit.Originally posted by: dirtboy
Do you have enough income to get qualified for 3 loans?
I'm already pre-qualified for the loans, I also have the down payment needed
Do you have a plan on what to do if you can't sell 2 of your 3 homes?
I can carry the mortgage if neccessary until the homes are sold, but I should'nt have that issue considering almost every new home in my area sells very quickly
Do you have a plan in case you can't rent 2 of your 3 homes to cover the entire cost of your mortgage?
see above response
Do you have any experience flipping real estate?
I have about 3-4 years experience and several deals under my belt
Do you know what the real estate market will be like when the 2 houses you are flipping will be like when they are done?
Unless the economy or real estate market crashes completely within the next 3-4 months it should be pretty much similar to what it is now
Do you understand the taxes and costs associated in flipping property, and do you know if you can make a profit?
Since you have so many questions I'm assuming you're in RE market in some way. Do you have any advice?
Based on your first post you sounded like a noob.
What is your point? Dude is asking a genuine question. if you can't assist him, dont post.
If you don't get my point, then it's over your head.
Doubt it. Re-read what i wrote and then you'll comprehend.
Originally posted by: dirtboy
Originally posted by: CrimsonChaos
Great thread. I'm interested in hearing people's experiences as well.
In addition to the OP's questions, I'd like to ask if it's really as much of a hassle as some people at my work say it is. They claim you need to visit your new property on a daily basis to monitor the ongoing progress, and to ensure the contractors aren't short-cutting anywhere. This seems pretty extreme to me, but would like to hear others' input.
Visiting "your" property while being built by someone else is called trespassing. You don't own anything until the loan closes. These days, you'll find the workers don't want you around and if you show up, the builder can have you arrested.
Tract houses are just that. You're often not allowed to make changes or do anything until the house is done. Read your contract and know what you can and can't do.
Originally posted by: dirtboy
Originally posted by: gscone
Originally posted by: dirtboy
Originally posted by: gscone
Originally posted by: dirtboy
Originally posted by: Arkitech
I've flipped properties in the past so I'm familiar with capital gains taxes and the entire point of me wanting to build 3 homes is based soley on profit.Originally posted by: dirtboy
Do you have enough income to get qualified for 3 loans?
I'm already pre-qualified for the loans, I also have the down payment needed
Do you have a plan on what to do if you can't sell 2 of your 3 homes?
I can carry the mortgage if neccessary until the homes are sold, but I should'nt have that issue considering almost every new home in my area sells very quickly
Do you have a plan in case you can't rent 2 of your 3 homes to cover the entire cost of your mortgage?
see above response
Do you have any experience flipping real estate?
I have about 3-4 years experience and several deals under my belt
Do you know what the real estate market will be like when the 2 houses you are flipping will be like when they are done?
Unless the economy or real estate market crashes completely within the next 3-4 months it should be pretty much similar to what it is now
Do you understand the taxes and costs associated in flipping property, and do you know if you can make a profit?
Since you have so many questions I'm assuming you're in RE market in some way. Do you have any advice?
Based on your first post you sounded like a noob.
What is your point? Dude is asking a genuine question. if you can't assist him, dont post.
If you don't get my point, then it's over your head.
Doubt it. Re-read what i wrote and then you'll comprehend.
Apparently it is because you are still grasping for straws.
Originally posted by: Fritzo
Originally posted by: dirtboy
Originally posted by: CrimsonChaos
Great thread. I'm interested in hearing people's experiences as well.
In addition to the OP's questions, I'd like to ask if it's really as much of a hassle as some people at my work say it is. They claim you need to visit your new property on a daily basis to monitor the ongoing progress, and to ensure the contractors aren't short-cutting anywhere. This seems pretty extreme to me, but would like to hear others' input.
Visiting "your" property while being built by someone else is called trespassing. You don't own anything until the loan closes. These days, you'll find the workers don't want you around and if you show up, the builder can have you arrested.
Tract houses are just that. You're often not allowed to make changes or do anything until the house is done. Read your contract and know what you can and can't do.
You own the land they're building on- the bank won't give you the mortgage unless you bought the land. They don't mind you visiting, just don't get in the way. In fact, my builders show me around when I show up. I've made a couple of changes already, and it wasn't that big of a deal- just had to sign a paper with the builder and it was done the next day.
Originally posted by: meltdown75
holy sh!t there's something called PMs for pete's sake. way to wreck a thread with a zillion nested quotes.
Originally posted by: Fritzo
Originally posted by: dirtboy
Originally posted by: CrimsonChaos
Great thread. I'm interested in hearing people's experiences as well.
In addition to the OP's questions, I'd like to ask if it's really as much of a hassle as some people at my work say it is. They claim you need to visit your new property on a daily basis to monitor the ongoing progress, and to ensure the contractors aren't short-cutting anywhere. This seems pretty extreme to me, but would like to hear others' input.
Visiting "your" property while being built by someone else is called trespassing. You don't own anything until the loan closes. These days, you'll find the workers don't want you around and if you show up, the builder can have you arrested.
Tract houses are just that. You're often not allowed to make changes or do anything until the house is done. Read your contract and know what you can and can't do.
You own the land they're building on- the bank won't give you the mortgage unless you bought the land. They don't mind you visiting, just don't get in the way. In fact, my builders show me around when I show up. I've made a couple of changes already, and it wasn't that big of a deal- just had to sign a paper with the builder and it was done the next day.
Originally posted by: dirtboy
Originally posted by: Fritzo
Originally posted by: dirtboy
Originally posted by: CrimsonChaos
Great thread. I'm interested in hearing people's experiences as well.
In addition to the OP's questions, I'd like to ask if it's really as much of a hassle as some people at my work say it is. They claim you need to visit your new property on a daily basis to monitor the ongoing progress, and to ensure the contractors aren't short-cutting anywhere. This seems pretty extreme to me, but would like to hear others' input.
Visiting "your" property while being built by someone else is called trespassing. You don't own anything until the loan closes. These days, you'll find the workers don't want you around and if you show up, the builder can have you arrested.
Tract houses are just that. You're often not allowed to make changes or do anything until the house is done. Read your contract and know what you can and can't do.
You own the land they're building on- the bank won't give you the mortgage unless you bought the land. They don't mind you visiting, just don't get in the way. In fact, my builders show me around when I show up. I've made a couple of changes already, and it wasn't that big of a deal- just had to sign a paper with the builder and it was done the next day.
You're correct if you buy the land first.
Most people don't go that route. They hire a builder who builds on the land that has already been purchased by the builder and all you need is a downpayment and a meaningless prequal letter. If you go that route, you don't own the land. You don't own or have any rights to anything until the house closes escrow. Under those terms you cannot visit the property, because it is trespassing, unless you are with your agent who has received permission from the builder to visit on a specific date and time.
Originally posted by: dirtboy
Originally posted by: Arkitech
I've flipped properties in the past so I'm familiar with capital gains taxes and the entire point of me wanting to build 3 homes is based soley on profit.Originally posted by: dirtboy
Do you have enough income to get qualified for 3 loans?
I'm already pre-qualified for the loans, I also have the down payment needed
Do you have a plan on what to do if you can't sell 2 of your 3 homes?
I can carry the mortgage if neccessary until the homes are sold, but I should'nt have that issue considering almost every new home in my area sells very quickly
Do you have a plan in case you can't rent 2 of your 3 homes to cover the entire cost of your mortgage?
see above response
Do you have any experience flipping real estate?
I have about 3-4 years experience and several deals under my belt
Do you know what the real estate market will be like when the 2 houses you are flipping will be like when they are done?
Unless the economy or real estate market crashes completely within the next 3-4 months it should be pretty much similar to what it is now
Do you understand the taxes and costs associated in flipping property, and do you know if you can make a profit?
Since you have so many questions I'm assuming you're in RE market in some way. Do you have any advice?
Based on your first post you sounded like a noob, which is why I am wondering why you asked the questions that you did, because if you are experienced, you'd either: already know the answers, or know someone you trust who could answer the questions for you.
Originally posted by: Fritzo
Originally posted by: Arkitech
Originally posted by: Fritzo
I'm in the middle of building one right now. Took them a week to lay the basement, the it went pretty fast after that. They're just up to putting siding on the outside now. Here's some pics (dates are below pics):
Started end of May, projected finish is October.
How did you find your builder? (recommendation, advertisement, etc.)
We actually liked the area, and went through a bunch of builder "walk throughs" at new subdivisions going up. We looked at about 7 builders before we we found one with the build quality we were looking for. Somethings you'll want to look for:
- Look at the windows: are there actual frames or are the windows built into the drywall? No frames = cheap construction
- Check what quality of wood they're using, make sure they're not using seconds in anything but the framework.
- When touring a builder's house, look for trim curling away from the walls, shake the railings (if there are stairs), look at foundantion for large cracks/moisture.
- Make sure they're not short changing you on the furnace/air conditioning. A common tactic is to put underrated heat/air in the house to save money, then you get $$$$ bills because it has to crank all the time. It's better to get over rated than under rated. Same with your hot water heater- get a 40-50 gallon rather than a 30 gallon.
- Check builder with BBB and your local HBA if you have one.
We saw some really bad construction out there, so you have to remember you get what you pay for. When you have the house built, show up every two-three days and get to know the workers so they can put a face on your house. I bought my builder's pizza last week- nothing like buttering them up a bit It's a lot like buying a car though- talk with the builder, select a blueprint you like, choose options, and you're done. Sign a million papers, meet with a lawyer, and they break ground. Well...maybe not exactly like buying a car, but similar
Originally posted by: Arkitech
Well rehabbing homes and building them from scratch are 2 different arenas. Sure there are some similarities, but I've been around enough to know that asking as many questions as possible saves me money, time and headaches.
Originally posted by: Arkitech
Originally posted by: dirtboy
Do you have enough income to get qualified for 3 loans?
I'm already pre-qualified for the loans, I also have the down payment needed
A pre-qual is not worth the paper is printed on. You will need a pre-approval letter which says you have sufficient income to make 3 seperate house payments and stay within the guidelines for whatever type of loan you are doing.
Do you have a plan on what to do if you can't sell 2 of your 3 homes?
I can carry the mortgage if neccessary until the homes are sold, but I should'nt have that issue considering almost every new home in my area sells very quickly
You should always have a backup plan in case you are wrong. How do you know where the RE market will be when your spec houses are done being built?
Do you have a plan in case you can't rent 2 of your 3 homes to cover the entire cost of your mortgage?
see above response
If you can cover the cost of 3 mortgages then I'm impressed. You are either buying tiny houses or already very wealthy.
Do you know what the real estate market will be like when the 2 houses you are flipping will be like when they are done?
Unless the economy or real estate market crashes completely within the next 3-4 months it should be pretty much similar to what it is now
Out where I live it is taking 9-12 months to build a house. Unless someone in your area is building them that quickly, don't expect them to be done in 3-4 months.
Do you understand the taxes and costs associated in flipping property, and do you know if you can make a profit?
I've flipped properties in the past so I'm familiar with capital gains taxes and the entire point of me wanting to build 3 homes is based soley on profit.
Then I hope you don't lose money in your venture.
Since you have so many questions I'm assuming you're in RE market in some way. Do you have any advice?
Just remember: what goes up, must come down.
Originally posted by: dirtboy
Originally posted by: Fritzo
Originally posted by: dirtboy
Originally posted by: CrimsonChaos
Great thread. I'm interested in hearing people's experiences as well.
In addition to the OP's questions, I'd like to ask if it's really as much of a hassle as some people at my work say it is. They claim you need to visit your new property on a daily basis to monitor the ongoing progress, and to ensure the contractors aren't short-cutting anywhere. This seems pretty extreme to me, but would like to hear others' input.
Visiting "your" property while being built by someone else is called trespassing. You don't own anything until the loan closes. These days, you'll find the workers don't want you around and if you show up, the builder can have you arrested.
Tract houses are just that. You're often not allowed to make changes or do anything until the house is done. Read your contract and know what you can and can't do.
You own the land they're building on- the bank won't give you the mortgage unless you bought the land. They don't mind you visiting, just don't get in the way. In fact, my builders show me around when I show up. I've made a couple of changes already, and it wasn't that big of a deal- just had to sign a paper with the builder and it was done the next day.
You're correct if you buy the land first.
Most people don't go that route. They hire a builder who builds on the land that has already been purchased by the builder and all you need is a downpayment and a meaningless prequal letter. If you go that route, you don't own the land. You don't own or have any rights to anything until the house closes escrow. Under those terms you cannot visit the property, because it is trespassing, unless you are with your agent who has received permission from the builder to visit on a specific date and time.
Originally posted by: HBalzer
My house is almost done so far it's been around 4 months. I check on it almost daily. If I could do it over and had the time I would contract it out myself simply because that is the only way to insure you get a quality home and you can save a ton of money removing the middle man. Nevertheless, I am generally happy with the progress and the builder I choose. I live just south of D.C.
Originally posted by: Fritzo
You're correct if you buy the land first.
Most people don't go that route. They hire a builder who builds on the land that has already been purchased by the builder and all you need is a downpayment and a meaningless prequal letter. If you go that route, you don't own the land. You don't own or have any rights to anything until the house closes escrow. Under those terms you cannot visit the property, because it is trespassing, unless you are with your agent who has received permission from the builder to visit on a specific date and time.
Originally posted by: dirtboy
Originally posted by: Fritzo
You're correct if you buy the land first.
Most people don't go that route. They hire a builder who builds on the land that has already been purchased by the builder and all you need is a downpayment and a meaningless prequal letter. If you go that route, you don't own the land. You don't own or have any rights to anything until the house closes escrow. Under those terms you cannot visit the property, because it is trespassing, unless you are with your agent who has received permission from the builder to visit on a specific date and time.
I've never heard of this style of building. Bank rules must be different where you're at then.
Originally posted by: Fritzo
Originally posted by: dirtboy
Originally posted by: Fritzo
You're correct if you buy the land first.
Most people don't go that route. They hire a builder who builds on the land that has already been purchased by the builder and all you need is a downpayment and a meaningless prequal letter. If you go that route, you don't own the land. You don't own or have any rights to anything until the house closes escrow. Under those terms you cannot visit the property, because it is trespassing, unless you are with your agent who has received permission from the builder to visit on a specific date and time.
I've never heard of this style of building. Bank rules must be different where you're at then.
It's called tract house buying. You go to a builder, select a plan, they build, then you buy. It doesn't have anything to do with the bank, but the builder. They buy the land, get the workers, etc.
Originally posted by: ShowdOWN
the best place to find a qualified builder are during the parade of homes or just any model home in your area. you want to visit the homes first and see the quality of the homes the builder has to offer. after that you can contact him and schedule a consultation.
I had zero problems with my builder. he was highly praised by everyone i spoke to including banks, owners and sub contractors. it took a little less then 6 months to complete my house which is approximately 4400sq ft but it was at least a year long process. we had to design the house and then redesigned it again and again..... at the beginning i told myself i was going to do the nik naks like closet shelves, bathroom mirrors and some of the lighting.... i eventually talked myself out of doing it cause these guys were pros and could do it in a much quicker time frame then i would be able and the money saved from it wouldnt have been worth it. to me at least. i ended up paying close to $30k to the builder but it was worth not having to deal with the headache. everytime there was a change i wanted done to the house, there was no problem.
good luck.
Originally posted by: daveman
This sounds alot like a presale to me. As far as that goes you may be right about the legal aspects of it. But I think most builders dont care if you check it out daily. I wouldnt want to work with someone who did. The first house we bought was a presale and our builders didnt mind.