Updated 7 months ago on . Most recent reply
Escaping flipping to become a new home builder
Is there any guidance published on tactics that new home builders should embrace such as one sided contracts to excessive markups on upgrades?
Most Popular Reply
This is some basic guides, I hear from my construction network:
Avoid one-sided contracts by insisting on clear, fair terms regarding changes, cost overruns, and timelines. Ensure contracts define responsibilities and protect the buyer.
Be cautious of excessive markups on upgrades; get detailed quotes and compare prices before agreeing to extras.
Embrace transparency and communication with builders to avoid surprises.
Plan for contingencies and budget for unexpected costs.
Choose builders with good reputations and clear, itemized contracts.
Work with trusted local builders who understand community guidelines and offer personalization options without hidden fees.
Avoid one-sided contracts by insisting on clear, fair terms regarding changes, cost overruns, and timelines. Ensure contracts define responsibilities and protect the buyer.
Be cautious of excessive markups on upgrades; get detailed quotes and compare prices before agreeing to extras.
Embrace transparency and communication with builders to avoid surprises.
Plan for contingencies and budget for unexpected costs.
Choose builders with good reputations and clear, itemized contracts.
Work with trusted local builders who understand community guidelines and offer personalization options without hidden fees.
My own $2 (up from $0.02, due to inflation): Where you can, look for non-recourse. Have lenders/lending teams that are compatible with your goals. Are you looking for "low end," or "high end," say using $10M as a rough guide. I know some high ends, that work with foreign entities looking to invest in the US, or 144A Bond Funding & Regulation D Loan Program: 100% LTV/LTC. Set your criteria of what you want to do, and network to find people who can help you accomplish those goals.