Any home builers here ?

[AUB]

I have been buying and selling homes and lots for 3-4 years now. Generally 2-3 homes and 8-10 lots per yr.

Nothing major but no labor involved on my part.

The realtor I use now is trying to talk me into building homes.

I have no experience in doing this but it does sound interesting. How long would it take to get a contractors/builder license and is it as easy as he says to sub-contract the entire home build.

I have another business that requires most of my time. I can free up about 25 hrs a week but no more than that.

I have 4 lots for sale now. I might consider building on one to start off with if this is as easy as my realtor says.

Thanks for any help

 

[NorthernStar]

One great benifit a builder gets is tax free money. Build a house worth $400K for $300k, live in it as your primary residence for two years and sell it for $400k and you legally made $100k tax free in two years. Builders need to be willing to move every two years.

 

[Volmania]

I have been buying and selling homes and lots for 3-4 years now. Generally 2-3 homes and 8-10 lots per yr.

Nothing major but no labor involved on my part.

The realtor I use now is trying to talk me into building homes.

I have no experience in doing this but it does sound interesting. How long would it take to get a contractors/builder license and is it as easy as he says to sub-contract the entire home build.

I have another business that requires most of my time. I can free up about 25 hrs a week but no more than that.

I have 4 lots for sale now. I might consider building on one to start off with if this is as easy as my realtor says.

Thanks for any help

First, congrats on moving 2-3 homes a year. I am sure you have gotten tons of experience with flips by now.

The realtor I use now is trying to talk me into building homes.

The question I would have for your realtor is: WHY?

I flip and hold several homes a year, and quite honestly the difference in money between new construction and flipping isnt worth the time and hasle. I am of course speaking from personal experience in my own neck of the woods.

Alot of realtors are seeing a market that is stagnating and they are looking for ways to drive some bucks into thier pockets.

Now, with that said. There are some smaller rural markets where flipped homes sit on the market for 3-12 months, while new homes are like hotcakes.

I have no experience in doing this but it does sound interesting. How long would it take to get a contractors/builder license and is it as easy as he says to sub-contract the entire home build.

Why should you get a license? GO find someone who just got thier license, but happens to be broke. Heres the deal, You front the money for the spec home, he supplies the labor. He also signs a contract thats says he will do a minimum of 10 homes with you.

If you want your license. Its a test that you will have to sit for, and take unnessary classes for. you will also need a rather large amount of money in the bank for a period of 6 months(20-50K) This is relevant for my state, yours may be different.

I have 4 lots for sale now. I might consider building on one to start off with if this is as easy as my realtor says.

I have been interested in investing in lots, whats the magic formula you have for lots?

Now, that I said all that, let me also say. There are homes that can be built cheaply and a large profit be taken. However, once your name is out there as a shabby builder then thats all you will ever be, a shabby builder.