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
