Investors
Investors Highland Homes is always willing to work with investors as long as the projects make sense for both parties involved.
Typically, projects are structured as joint ventures in which a spec house is built and sold. The investor provides all necessary funds and Highland Homes handles all construction and marketing related issues. These include site selection, plan selection, permitting and construction. Profits are shared upon sale of the home.
Another common scenario is when the investor provides only a portion of the necessary funds. Highland Homes uses these funds as a “down payment” on the land/construction costs and gets a construction loan. Usually, Highland Homes guarantees a certain rate of return on the investor’s funds. The investor’s funds can be protected by a second mortgage on the property. The institution providing the construction loan always gets the first mortgage.
A third scenario is when a landowner or developer provides a lot upon which Highland Homes builds a spec house. Highland Homes then gets a construction loan. In order for this to happen, the land must be transferred to Highland Homes. Once again, the institution providing the construction loan holds the first mortgage. The landowner can be protected by a second mortgage on the property. In this case the lot is paid for upon sale of the house. Depending upon the circumstances, profits can also be shared upon sale of the house.
A question often asked by investors is, “How long will it take to sell the house?” The truth is no one knows. Real estate sales are entirely random. The house could sell before we start excavating or it could take a year. However, our 30-years experience in residential building enables us to make those decisions throughout the process which enhance the likelihood of a quick sale.
Another frequently asked question is, “Why Banner Elk?” Our answer is Banner Elk has 961 full-time residents within “city limits.” It also has seven banks
and a brand new full-size Lowe’s Home Center. The money is here.
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