Читать книгу Flipping Houses For Dummies онлайн

43 страница из 103

 Inflated profit estimates: Beware. You’ve probably heard stories of people who invested in a development and made $100,000 in short order. What you don’t hear are the stories of people who lose money, and those stories are much more common.

 Variable building costs: Some contracts include language that allows builders to charge a variable amount — for the price of materials, for example. That variable amount could end up costing you double your investment (or more) if the cost of materials rises substantially, as it did during the COVID-19 pandemic.

If, after doing your research, you’re convinced of the benefits of investing in a new construction project, make sure you’re among the first 10 percent of buyers. These buyers make the lion’s share of the profit because, as construction proceeds, building costs rise. To find out whether you’d be in the first 10 percent group, ask the salesperson, who’s usually camped out in the model home, the number of total units planned and the number sold, and then divide the number sold by the total number of units planned.