L/O Model Homes..Anyone done it? - Posted by Jim_NC


#1

Posted by JohnBoy on October 25, 1998 at 01:59:07:

Right!

If the builder can’t get rid of them he may be open to a l/o. I see builders offer to carry on contract for a year with $5k down a lot. A l/o would be better then sitting there. Maybe you can get all 3! Its certainly worth a try.


#2

L/O Model Homes…Anyone done it? - Posted by Jim_NC

Posted by Jim_NC on October 25, 1998 at 01:47:55:

I l/O a home from a guy today in a three year
old subdivision. It is a very nice
neighborhood and their are two model homes in
the neighborhood that the seller told me have
been for sale for three years now. He said the
builder is desparate to sell them. They were
originally listed for $210.000 and now they
have them marked down to $179k.They are
gorgeous 2400 sq ft homes that no one has ever
lived in and they have a lot of nice features.

It made me start thinking about going to the
builder and offering to l/o them. What would
he have to lose? They’ve been sitting empty
for three years producing no income. It also
made me start thinking about other model homes
in the Charlotte area. There are tons of new
developments all over the place here. In my
opinion they are overbuilding here and there
is a glut of new homes but they keep breaking
ground on new ones every day.

Has anyone ever done this before? Any
suggestions? I’m going to make them an offer.
What do I have to lose? All they can do is say
no…right?


#3

Re: L/O Model Homes…Anyone done it? - Posted by phil fernandez

Posted by phil fernandez on October 25, 1998 at 06:26:25:

Hi Jim,

I would go for all three. After all the houses are all vacant not generating any income for the builder. Also the builder is paying property taxes as they sit empty.

The one thing you might have to convince the builder on is will the tenant/ buyer take care of his new houses. With proper screening, enough incentive to eventually purchase the house ( good sized nonrefundable option money and rent credits ) and damage deposit you should be able to get a good tenant/ buyer.

Good luck