Buying New Houses as Investments and Nomads™

How You Buy AC with New Construction
How You Buy AC with New Construction

Have you considered buying new construction properties as an investment or as a Nomad™? There are pros and cons to buying new construction as investments.

In this class you'll learn:

  • The pros and cons of new construction
  • The interest rate risk of new construction
  • Avoiding bidding wars buying straight from the builder
  • Equity: walking into instant equity or negative equity
  • The annoyance of moving dates and deadlines
  • Giving yourself time to find tenants/tenant-buyers before closing and why this might not always be possible
  • The gotchas of appraisals on new construction
  • Freebies included with resale properties not included with new construction
  • Paying a premium for new construction (or... are you really paying a premium)
  • Data comparing new construction to resale in several NoCo cities
  • Where are the new construction properties?
  • A list of local builders and what we typically look for
  • Different builders, different standards
  • The nastiness of the builder contract and how to prepare yourself
  • A deep dive into the risks of construction
  • Casting light on the dark underbelly of preferred builder lenders
  • The cost of an extra bedroom and how to think about it (hint: it's probably not what you think)
  • Discriminating against the unprotected investor class
  • How builder pricing works
  • Metro taxing districts and how to convert them to math that investors can understand and appreciate
  • Non-potable water
  • Who that friendly builder-rep works for (hint: it's not you)
  • To use a real estate agent/broker or go it alone when buying new construction
  • Lot selection tips and tricks: sucky lots and amazing lots for the same price
  • Which "extras" are worth buying and which are sucker bets
  • An example and some math on buying AC from the builder
  • Radon - the killer gas you need to know about
  • Sewer scopes and the importance of knowing the path for your poop is clear
  • The inspections typically done with new construction and optional ones you can add (plus when we recommend adding them)
  • The highly variable and annoying nature of builder walk-throughs and what you should do about it
  • Letting the builder use your home as their model home as dozens of people trample through without your knowledge
  • Visiting the building site the right way
  • How to piss off a builder, have them cancel your contract and never sell to you again
  • Warranties, making claims, buying third party warranties and more
  • Cracking concrete and crumbling foundations?
  • Taking photos and marketing your property prior to you owning it
  • The secret tax benefit of new construction properties that boosts your cash flow
  • That new home smell and why it may be easier to rent new construction properties than resale properties
  • Builders cutting corners and saving money and the impact to investors
  • The myths and reality of builder lawsuits and to get you some (or better yet... how to avoid them)
  • The ridiculously dangerous new construction pure speculation play
  • Plus much, much more...

Duration: 2 hours and 16 minutes
Recorded: September 19, 2028
Instructor: James Orr