Spec Builders?
i know theres plenty of cash to be made from sweat equity in rehab projects.So what are peoples thoughts as investors,to go ahead and build the thing brand new compared to buy and fix? :-?
i know theres plenty of cash to be made from sweat equity in rehab projects.So what are peoples thoughts as investors,to go ahead and build the thing brand new compared to buy and fix? :-?
It has nothing in common with rehabing.
im a general contractor as of less than a year ago.still new though at age www.26.i know i could build a house from ground up,ive done it many www.times.im just wondering which avenue to drive down?i want to take my $180,000 equity and make it snowball.fixer homes appeal to me becausse im no stranger to all phases of building,the thing i really dont like about it is the commissions.seems to eat alot of profit at 3,4,5 or 6%,if i flipped it in about 6 months or www.so.is that accurate,or does it not matter much if you do well by fixing?
As Rehab said, its two different animals.
The majority of my work is new construction, residential and light commerical, with insurance jobs and rehabbing from time to time.
In rehab, the profit is typcially determined by what you bought the property for in the first place. New construction has more to do with current market forces etc.
Where you can lose your butt on rehabbing is when you
1) paid too much
2) did not correctly evaluate problems of the house
3) spend too much on items of very little to no return
4) failed to hire reputable workers and get good bids / estimates
5) insert any and everthing else I left out.....
Profit in spec has more to do with:
1) location
2) design
3) price
NC_Yank