Anyone Here Invested In The Pre-construction Market In North Florida
There is a new development going on with homes selling currently in the $100K range.
I have not been up that way in a while. How is the North Florida market for Pre-constructions?
You might do better asking in the commercia forums. But if you are going to sell to one developer better not to develop it. However, you could develop it like you proposed - water, sewer, etc and then sell to small developers.
My company worked with someone who did something similar - he sold the major part to a very large developer and then sold off the rest in small parcels to small developers - of course you then have to put conditions on the type of home (size, etc) so that the area keeps the character the large developer is aiming for
I have bought and sold maybe 20 properties in the last year and seasoning has never been an issue with me. If I have owned it less than 3 months I simple state that "Seller has owned property less than 3 months. No FHA". Before I sign a contract I get a preapproval letter and speak to their broker about their specific lender and get the seasoning questions answered. i will not sign a contract with a lender that has seasoning issues. Most conventional lenders do not care about seasoning. it is usually the 100% financing guys that do not want seasoning. But if you do any kind of rehab it will probably take more than 3 months anyway.
So FHA only requires 3 months?
FHA is one that I know has seasoning requirments. The others have to be evaluated on a case by case basis. That is why I ask for the prequalify letter and talk with the broker prior to signing any contracts. I would also put in my contract no FHA loans as you really can not prevent them from trying to go FHA. But even so, I had a townhouse for 2 months, signed with a buyer, he decided to go FHA, and we still got the deal closed. It is just that three months go by with the blink of an eye. Just do your due deligence by requiring a pre approval letter and following up with the broker to make them understand there can not be seasoning and you should not have an issue.