As an investor, you have a few additional due diligence items you need to do to properly introduce yourself to a builder’s sales agent.
- Tell them that you’re working with a real estate agent (you do have an agent, right?)
- Tell them that you’re an investor.
Most builders have a cap on how many homes they can sell to investors… generally 10%. This is designed to keep the community from (at least initially) becoming over-commercialized. Remember, other people are buying their dream home in this same community and potentially don’t want a bunch of renters changing out every 12 months. If the builder has already reached their cap, they will quickly tell you. No sense in wasting your or their time on a community you can’t even buy into. Keep in mind, though, that these are generally rolling caps, as they continue to build out the community. Meaning, as they build more homes they will release new inventory to investors. If you like the community, ask if this is the case, give them your contact information, and ask to be put on the investor list. As far as the agent is concerned, a sale is a sale, so they will be more than happy to do this.
While this may all sound complicated, it’s actually quite quick and painless. I like to do it in my introduction… “Hi, I’m Brian. I’m an investor working with a real estate agent. Are you still open to investors?” If they say Yes, you’re good to go. Just don’t forget to fill out your agent’s name in the contact card that they love to make you sign when you leave.
Happy hunting!
