Hi everyone I am in the Dallas, Texas area and I am becoming a new investor. My father has a residential construction company and we are going to buy a residential lot (off-market), and build a home to sell. What are some tips we could use to ensure what we build will be profitable for the neighborhood?
Residential Real Estate Broker · College Station, TX · Member since 2013 · 1k+ posts · 969 votes
5y
@Collin Kilcrease. If there is new construction anywhere close to you - go study it - excellent guide to what people want. Look primarily at lighting, flooring, style, etc.
If it's an infill lot (within existing neighborhood) stay within about 5% - 10% of what existing properties are selling for.
Know the rules for what you CAN build (permits, restrictions, HOA Rules, etc.) before you buy the lot.
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
5y
Buy in a city that is prompt on permits and inspections. Long delays in places like Dallas can cost you a lot of burn rate. Burn Rate= your cost of money, taxes, insurance, and other costs for hold time. For example if you lender charges another 1-2% to renew your short term construction loan after six months..that can be a big hit to your budget, due to inspection delays.