All Forum Posts by: Kevin WANG

I am out of country now. I would love to meet you guys in Houston. I have some friends building new homes in West U and made a lot money few years ago. It is a great idea to buy the lot, hold it, sell it with an approved plan. The property tax and interest are not as much as new home.

"Some builders simply get the LISTING from the seller of the tear down house to sell the home, and market it as a new home, cutting your exposure even more." My question is that the listing should be been sold quickly if it has good value, am I right?

My broker in law bought quite a few foreclosure SFH in North West Houston, south of 290. Cash follow is pretty good and houses are quite new. ROI is more than 10%. But it might be too safe to play if someone has capital compared with building new homes. Also I do not think the price of these house will be much higher in the near future because there are so much land to be developed, same situation in Katy.

Thanks!

Kevin Wang

Thank you so much, Lynn and Karen. There are so much info I could learn. I know Houston pretty well. I heard some investors are building big homes in desired area but lot is very expensive. If in case the house could not sell, the 3.7% property tax and interest will eat up the profit soon. Also there is no way to rent it out to cover the expenses.
So there is no exit strategy unless we can find lot with very good value.

Rich Weese did very well because he could find lot with less than 20k and building cost is less than $60 per square foot. Renting out the inventory is a good exit plan.

I do not anything about construction. Maybe it is better to do rehabs before building new homes I guess.

Thanks!

Kevin Wang

Hi Folks,

I was sending message to Rich Weese and seeking advice about new home development strategy. It might be a better idea to post it here so everyone could share and exchange ideas. Here is my message:

[/u]Hi Rich,

I am an owner of distributor company. I am thinking to do real estate investment and building new homes is one of my options.

I had been reading your excellent postings in BP and learnt a lot.
Here are my questions:

Question 1:
How did you find good deals on building lots? Your new homes investment in McAllen, Texas is very successful. Did you live there for a while and found this deal?

Question 2:
How to choose location? Your lot in McAllen is very cheap but how about schools, local employment, neighborhood etc?

Question 3:
You have projects on different locations. How do you manage to monitor each project? If you are new to the town, how did you find reputable general contractors or sub contractors without supervise them?

Thanks!

Kevin Wang