s the real estate market hundreds of houses each year
cools, the profit potential within a fifty mile radius of
of home ownership has each other. They build entire
cooled as well. Here's a strategy communities or are one of three
called "follow the builder." to five builders who build entire
communities around big employment
It is relatively easy to make a centers. This present you with an
profit when you sell your home if important opportunity.
the market is rising sharply like
it has been in most of the New Community
country for the last three years.
It becomes more difficult when a Builders will typically sell
hot market slows down. It's very first phases of communities for
difficult to make a profit on the significantly less than later
sale of your home when prices are phases. On one hand, they need to
falling. get the cash flow moving. On the
other, it is harder to sell at
Is there a way to be relatively high prices because the community
sure you'll make a profit when typically consists of dirt lots
you sell your home? There is and construction equipment. Put
under all but the most negative the hands together and you have a
market conditions. In fact, I've great profit opportunity.
seen young, energetic couples use
this maneuver multiple times when The idea is to get in on the
they don't even need to move. first phase of the build out. You
will purchase the home at a
Follow That Builder discount, which gives you built
in equity. As the community is
In many areas of the country, built up, you sell the home for a
there are builders who build profit at a higher price. While
you're doing this, you keep tabs I've seen this work well for a
on the builders projects and find number of people who have done it
another location where you can do more than once. However, you need
the same thing. to be aware that generating
profit this way can have tax
You'll end up living in each consequences. You need to discuss
house for a year or more and your plans (including projected
picking up nice profits along the timing and profit potential) with
way. The only real downside is your tax professional so that you
you have to move repeatedly. are prepared to deal with any tax
consequences.
Tax Consequences
About the Author:
Raynor James is with http://www.fsboamerica.org - providing FSBO homes for sale by owner. Visit our "sell my home?" page at http://www.fsboamerica.org/seller.cfm to list and sell your home for free for one month. Visit http://www.fsboamerica.org/buyer.cfm to see homes for sale by owner.
Source: www.isnare.com
