Another way to invest in Austin real estate
When times are tough, it’s time to think outside of the box. The same is true for investing. While it is difficult (if not impossible) to find a lucrative rental property in central Austin right now, and the idea of cashing out of an investment may seem like a poor idea until sales pick back up. It’s time for some creativity in investing.
One less-known way to invest in Austin real estate is to invest with a builder. Basically, you purchase a lot and/or put the construction note in your name. Then the builder does all the work. In this climate, builders need capital while they sit on lot inventory and often even large spec home inventory. The profit split can be amazing and you can just sit back and wait for the home to be sold (aka payday). Of course, you still need to do your research. Builders in Austin are a dime a dozen these days — everyone wanted to get in on the boom in 2002 and 2006. See how long a builder has been in business and ask about success other investors have had. It’s a good idea to see if they will let you contact any previous investors as a reference.
Want more information? I’d be glad to point you in the right direction, so feel free to email me. After growing up in a real estate family in Austin, I’ve learned a few tricks myself.
Builders like Corias Homes, Inc. currently have investment opportunities available and have stood the test of time and work with only the best lots. Currently, Corias has a lot inventory available for investors:
- 8900 Calera Drive in Barton Creek just off the Fazio Canyon’s Golf Course
- 9407 Angelwylde Drive off Patterson Road in Westlake, a 7 acre estate lot
- 3107 Westlake Drive is a new 2 or 3 lot subdivision with Lake Austin Waterfront
- A 1 acre “interior Westlake” property will soon be available, email for details
The process is a simple one for the right investors, someone who can sit back and relax while their investment grows with the structure. I am happy to help anyone who would like more information as I have experience in this process!
Aria Schoenfelt
ariakristen@gmail.com
(512) 771-1776
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So builders have so many unsold houses that they are unwilling to put their own money into building any more, but will happily take my money to build another spec home to add to their unsold inventory?
Actually, builders have been doing this for years. The money has to come from somewhere.
There are many builders in town who only build 4-6 houses each year. They are small companies focused on quality, not quantity. They are small on purpose, the intimate ’boutique’ style company provides an amazing level of attention to detail and customer service. These are the types of builders that I like to work for (like Corias Homes).
It has nothing to do with unsold houses. There are really two groups of unsold builder houses. Those by track builders (volume builders) who are being hit by the market slow down, and luxury builders who started homes when the market was supporting the volume produced, but these homes were not finished until the market slowed.
I have worked with investors in this way before and the investors have been very successful and happy.
Also, the builder does not make any money until the house is sold.
I fail to see everyone’s pessimism in this industry, and since I work in it daily (and always have), I am seeking only to educate everyone to make the most educated consumers. Builders aren’t dumb, they are in this business every day (unlike consumers). As a Realtor, I feel my job is to bridge the gap between consumers and those in the industry.