Looking To Buy New Construction Properties
Hi all,
I am really confused about investing in new construction. I have heard that builders don't like to give investors new construction cuz they sell when construction is done. I have also heard that you need to stay in the property for 2 years or 1 year before selling. Is there any way around this?
I am actively looking for pre-construction properties to invest in the Va, MD and Dc area. Let me know if you guys have a good lead.
I look forward to hearing from you all. :-?
I have four new construction condos under contract. One closed last month, one will close next month, and two more will close sometime next summer. All units by the same builder, two in one project and two in another project. I don't think the builder is too concerned about what I plan to do with the property after the settlement.
If you are using owner-occupied financing, the lender will have a one year occupancy rule. If the loan is an FHA insured loan, you will have a one year occupancy requirement AND you will not be able to get another FHA insured loan for two more years.
Get investor financing and you won't have any occupancy requirements.
Oftentimes builder have bad experiences with investor-buyers, hence their hesitation.
A seasoned builder could care less if you make money. They are actually happy that you did and want you on board for the next project in order to sell the first few homes (to acquire loans, etc)
A seasoned builder may however require that an investor-buyer make a larger initial deposit.