Updated almost 5 years ago on . Most recent reply
Model leaseback homes
I've just come across this terminology today and I've been researching online to see what's the drawbacks on it. Seems that there are a lot more pros than cons. Any feedback on model leasebacks? Another question, where would you find them? I did a Google search but only found outdated articles and Youtube ads on them. Would the best way to go about it to just search for big homebuilders and contact them?
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@Peggy Liu
Also if you’re looking to get into a 1031 you can go this way because the hold will be at least 1 year. Also this could be a good way to get in with a developer - you can prebuy the homes before they’re built at a discount rate (to get the developer cash flow) and then sell once it’s done.
Just don’t overpay on the Model since it will likely be fully upgraded, try to negotiate paying half the costs of the upgrades.