Does anyone buy land and advertise it with a spec home for sale?

[Sarah Davis]

Good afternoon,

I've dabbled in real estate investing, a couple of flips, a short term rental, etc. I just sold off my STR and was looking for other ways to invest. I found a great piece of property - off market. Perfect for a SFR. Not in an HOA community. I don't have the cash to build a spec home on it, but I could purchase the property and advertise it with a spec home for sale. I have a builder that is willing to do the build once buyer purchases. There are a few people in my area that do this. I wanted to reach out to a broader community and see what your experience has been with this and if there are any "Need to Knows" before I get started. Also, how profitable has this been for you?

Edited to add: I am also a licensed real estate agent and sell real estate full time

Thank you!

[Zach Matson]

Quote from @Sarah Davis:

Good afternoon,

I've dabbled in real estate investing, a couple of flips, a short term rental, etc. I just sold off my STR and was looking for other ways to invest. I found a great piece of property - off market. Perfect for a SFR. Not in an HOA community. I don't have the cash to build a spec home on it, but I could purchase the property and advertise it with a spec home for sale. I have a builder that is willing to do the build once buyer purchases. There are a few people in my area that do this. I wanted to reach out to a broader community and see what your experience has been with this and if there are any "Need to Knows" before I get started. Also, how profitable has this been for you?

Edited to add: I am also a licensed real estate agent and sell real estate full time

Thank you!

 I've sold spec homes off renderings when the market is hot. I haven't really attempted since rates increased, but I'm about to on a few homes. It's tough because people don't have very good imaginations. So your renderings need to be on point. When I did it the first time we paid $3000 per house to have photo-realistic renderings made that incorporated all the finish selections we made. If you just put plans up with no good renders, plan on sitting on it for a loooong time.