Referrals and Tips for New Home Construction in Brookeville, MD

Land & New Construction
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Referrals and Tips for New Home Construction in Brookeville, MD

Jin Wang
Gaithersburg, MD · Member since 2017 · 5 posts · 2 votes

Hello All! This is our first post on Biggerpockets, very excited to start engaging in discussions about RE investing :) 

So my husband and I have a piece of land  in Brookesville, MD that we'd like to build a single family home on to sell. This is our first construction project ever, so we are wondering if anyone has any general contractor or new home builder recommendations in our area, or know of someone who might? The land is 0.57 acres and we are looking to build a home around 3000 sq. ft.  

Also, do you have any tips in general for new home constructions for sale as investors? Thanks! 

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Andrew Michael
Lender · Frederick/ Falls Church DC, Maryland & Virginia · Member since 2014 · 794 posts · 612 votes
8y

Two ways, you can literally drive and see who is building in the area.  Most of the time they will have signage posted at the site.  Secondly, you can have an agent pull every home in the area that has an age of 2 years or younger and then contact those builders to see what they can offer you.  There are several builders that have the you buy the land we build your home model.  

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  • Andrew Michael
    Lender · Frederick/ Falls Church DC, Maryland & Virginia · Member since 2014 · 794 posts · 612 votes
    8y

    Two ways, you can literally drive and see who is building in the area.  Most of the time they will have signage posted at the site.  Secondly, you can have an agent pull every home in the area that has an age of 2 years or younger and then contact those builders to see what they can offer you.  There are several builders that have the you buy the land we build your home model.  

    2Reply
  • Jin Wang
    OP
    Gaithersburg, MD · Member since 2017 · 5 posts · 2 votes
    8y
    Thanks Andrew for your help, those are great ideas that we hadn't thought of. My husband is a realtor actually so I can have him search for the newer homes and their builders. Thanks again!
    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y

    Dont forget the impact taxes. That usually makes building in MoCo prohibitivly expensive. Brookeville you are looking at about a $50k impact tax I think.

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  • Jin Wang
    OP
    Gaithersburg, MD · Member since 2017 · 5 posts · 2 votes
    8y
    Thanks Russell for the heads up on the Impact Taxes, yikes that's a lot of money!
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  • Jin Wang
    OP
    Gaithersburg, MD · Member since 2017 · 5 posts · 2 votes
    8y
    As a follow-up to the above question on the new home construction, can we use the profit from the sale in a 1031 exchange to buy other investment properties?
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  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    8y

    @Jin Wang, If you are building a house to sell then you cannot perform a 1031 exchange.  1031s are available for property that you have purchased with the intent to hold for productive use.  Property you buy or create primarily to resell is treated as inventory.

    If you build the house and then rent if for a while you could 1031 then. 

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