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FREQUENTLY
ASKED QUESTIONS
Are the homes as well as the duplexes on septic?
Virtually all duplexes and single-family are on well and septic. Some
older areas near commercially developed property may have access to
water and sewer. Most areas we are recommending to our investors do
not.
How much out of
pocket money will this program require? Depending
upon the cost of the lot, home, improvements, credit history, market
conditions, and the lender’s requirements, up to approximately five
percent (5%) of the loan value may be required. Your typical out of
pocket deposits prior to or at closing should range between $5,000 and
$10,000 of which, $1000.00 is for the lot deposit, $2000.00 is for the
builder deposit, $450.00 is for the appraisal expense, $225.00 is for
the survey expense, and the required additional deposit at closing.
Your broker/bank representative will direct you on this step.
Is there a projection of city sewer coming to Lehigh Acres?
This is one of the challenges we face with our pre-platted
community... the development is scattered. Hence, it is not cost
effective for the County to provide sewer and water to all areas. We
would not expect to see it for a very long time. The good news is...
because well & septic is so commonplace here, it is not perceived as a
detriment.
What would you expect the rent to be on a single family home?
For a 3/2 with 1,400 - 1,600 sq. ft. you might expect $1,150 - $1,200
for a Single Family Home. Duplexes would be approximately $900 - $950
per side.
When will construction begin?
After your lot and builder contracts are executed, you should close in
approximately 45 days. With a construction loan, the closing takes
place prior to construction commencement. The builder will then apply
for permitting. This alone could take 3 - 5 months for a builder to
pull permits, due to the volume of construction in the county. Once
the permits are approved, construction of your duplex will begin. In
all, the duplex builder is projecting 12 months from close to CO.
Has everything already been approved by the city, county for splitting
the duplex?
The county has been approving these on a case-by-case basis. It's a
new concept, and with anything new, the county may later find cause to
change their minds. Currently, the concept is being embraced with much
needed affordable housing in mind. The property can not be split until
after closing at this time. Here's how we are looking at the big
picture... If the investment can be justified as a duplex alone with
the likelihood the property can be split, this would only improve the
investor's potential return. We like to think of it as icing for the
cake.
Are you investing in these?
While not everyone on our Team is in a financial position to invest,
several of our Team Members are definitely well vested in the
investment strategies we have promoted over the years and this is no
exception.
Will I have to make payments during the construction period?
Depending upon the lender’s requirements, construction interest is
typically allotted within the loan amount such that no payments will
be necessary during construction.
How many preconstruction homes can I purchase?
That depends on several factors including your credit and the number
of lenders we are working with at any given time. Typically, everyone
qualifies to build at least one property. You can also invest with a
partner in order to build more than you could on your own.
What if I want to rent my duplex?
We work with rental management companies in the county which will
provide a full range of management services for a fee.
Do you provide full service real estate services and mortgage loans?
Yes. We can help you buy or sell a home as well as achieve the best
financing for it. If you have an outside project you are interested
in, we can facilitate the financing and real estate services as well.
Which model should I choose?
Depending on the surrounding area of the lot, as well as
your individual needs, we will work with the client to
choose the right model.
Do I need insurance on this real estate property?
No. The builder carry’s a risk policy throughout the
course of construction.
How do I get started?
Your real estate agent will refer you to a qualified broker
or bank representative for pre-qualification. Once
pre-qualified, we can begin the process and you are on your
way to ownership!
Do we own the house and the lot while it is under
construction?
You will own the lot after the construction loan has
closed, but the house is owned by the builder until the
Certificate of Occupancy is issued from the municipality
governing the construction.
Do you provide any other real estate opportunities?
Yes. We strive to provide our clients with quality real
estate opportunities in all aspects of pre-construction and
the like. Ask your J Roberts representative for
information on other great real estate opportunities
Why
do you like Lehigh Acres?
We Like Lehigh Acres for several reasons:
How do you select the Lots (land)?
Most multi-family zoned lots (land) in the area are owned
by private individuals from all over the nation & globe.
When selecting a lot, we are searching the lower end of the
market for the best location. Our search includes the local
MLS, private investors and businesses that specialize in
land acquisition for builders, developers and investors.
Great care is also taken when selecting a lot to minimize
site prep costs and building permit issues as they pertain
to building codes, land elevation and types of soil &
vegetation conditions that are regulated by the Florida
Department of Environmental Protection. Specifically, we
avoid regions that may be considered "wetlands" by the DEP.
To learn more about "wetlands" please
visit........
http://www.lee-county.com/dcd/Environmental/Wetlands.htm.
How do we select Builders? This is an on-going process
and takes much diligence. Due to our large pre-plated
communities (Cape Coral & Lehigh Acres), it is virtually
impossible for any builder to dominate the market. This
would require the ability for a builder or developer to
acquire larger tracks of land... these are very few and far
between in Lee County. Consequently, this puts large and
small builders on the same playing field. It is also the
reason a private individual, such as yourself, can function
as a competitive developer. Development is limited to one
lot at a time. This environment can make finding a good
builder difficult. Builders are a “dime-a-dozen”. Also,
many smaller builders can easily overload themselves. Over
the years we have developed our own knowledge base of
established local builders. We also network amongst other
Agents in the area doing the same thing we do. And finally,
any builder we select for consideration must be
pre-approved with the lender. We may recommend different
builders from time to time as we see fit in the best
interest of our clients... primarily concerned with
competitive pricing, quality and reliability. Essentially,
we limit our investment recommendations and builders to the
ones we have done business with ourselves or would consider
doing business with. Please keep in mind we can only do the
best we can do in a fast-paced evolving market.
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