Did you know that several of the homebuilders in Briar Chapel offer their model homes for sale to investors who are interested in making a return on their money without the hassle of having a live-in tenant, or to someone who wants to eventually live in the home but might not be ready to move in right away and wants to take advantage of today’s low interest rates and prices?
It works likes this… a buyer purchases a model home and then immediately leases it back to the builder so the builder’s sales team can utilize the model as an office and show an example of the type of homes they are building in the community. Most leaseback programs last for a period of 1-2 years, but occasionally they can last for as long as 5 years (as is the case with the info center in Briar Chapel). The length of time will usually depend on how quickly the builder can sell out the community in which the model is located, or moves onto a new phase and wants their model to be located closer to where available homesites are.
Here’s the best part about builder model leasebacks. Unlike a typical investment property scenario, the investor with a model home leaseback doesn’t have to worry about tenants damaging the home or not maintaining the landscaping. The builder has every reason to keep the property looking its best, and typically takes care of all maintenance and repairs. Additionally, they may even make improvements along the way to keep the home looking brand new.
In exchange for use of the model home, the builder pays the owner a monthly rent payment that is typically more than the mortgage payment on an 80% LTV mortgage. Since they have a commercial lease, as opposed to a residential lease, the builder often pays for the property taxes, insurance and HOA dues as well.
If you are interested in learning more about builder model leaseback opportunities in Briar Chapel, please contact Jen Winkler at 919-593-3662.