re: Homebuilders cancelling contracts to sell for more on market

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Most contractors can't just unilaterally walk away after signing and demand more money once stuff starts getting more expensive.

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If you are doing anything under contract right now, and there is no language to account for the wild fluctuations in material cost, then you won't be in business for much longer.

I wonder what the penalties were for being four months late on the original build contract?

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I wonder what the penalties were for being four months late on the original build contract?

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They either had language to account for supply change issues or extensions were signed. Possibly both.

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Houston market

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My aunt and uncle bought their house in 1996 for $132k. About to sell for over $600k.

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In minds such as yours, anyone who is more successful than you has never worked a day in their life and is simply drawing from a trust fund and laughing at your misfortunes. You are such a victim, you just have to believe in your manufactured boogeymen hard enough and rock that "tax the rich" t-shirt long enough, and things will ultimately change for you, I'm sure of it.

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Except, I work with a lot of these people. I see their finances. I see what they do. I sit in meeting with their parents and grandparents, the ones who started the companies, where the parents and grandparents spend an hour complaining about how lazy, spoiled and entitled their kids are.

I've sat in meeting with successful business owners who are in tears as they decide to sell their businesses because they do not trust their kids and grandkids to run it.

I've sat in meetings with the grandkids and the great grandkids where they state that the 20K a month tax free they are getting is "just not enough to live on" while the family patriarch is cursing under his breath.

I've consulted with companies that had annual net profit over $1M and two years after the grandkids take over, the company is bankrupt, because they first thing they did is fire a bunch of employees in an attempt to increase owner cash flow, and it backfires.

So... no... I don't have a "tax the rich" shirt, but I see what is happening. I'm sorry you do not.

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I wonder what the penalties were for being four months late on the original build contract?

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Probably about the same as Bluto's GPA

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I wonder what the penalties were for being four months late on the original build contract?

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We bought a lot and signed our contract with a homebuilder in December 2020. Slab poured in March of 2021 and the house is still not complete. We had to sign a 6-month extension of our construction loan earlier this month and, of course, are paying interest on the draws that have been made to-date. Original completion date was December 2021, then January, then March, and now TBD April according to them. I showed up at the builder's office, demanded a conversation with the owner, and we had a very clear conversation about the events that have taken place and how unethical this entire process has been. We are now on our third different "site superintendent" because the other two have quit and gone to work for another builder.

The contract we signed is brutally one-sided to the builder and has all sorts of ambiguous language that allows them reprieves for taking longer than the 240 day completion timeline they themselves outline in the same contract. It's extremely frustrating to say the least. The builders have taken on an extraordinary amount of business to take advantage of the high home prices but have sacrificed quality and customer-service in that vain.

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Investment groups accounted for 23% of all purchased homes in Houston in the past year. That number only increases when you filter down to desirable, up and coming neighborhoods that traditional middle class families targeted.

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Let's see a link then. What I posted was supported by a bunch of other articles too.

You tinfoil hat people are something else. Everyone is out to get you and you specifically, ESPECIALLY the government

I'd also love to hear how this business makes sense for them. They're paying more than market (allegedly), not flipping them...just holding and paying the note (allegedly) and we're heading into a raising rate environment so home price growth will slow down. And as more inventory comes online there will be further downward pressure.

Do we hate capitalism in general now, or only when it doesn't work to our benefit?

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Let's see a link then. What I posted was supported by a bunch of other articles too.

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Here is where he got the black rock story

LINK

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“You now have permanent capital competing with a young couple trying to buy a house,” said John Burns, whose eponymous real estate consulting firm estimates that in many of the nation’s top markets, roughly one in every five houses sold is bought by someone who never moves in. “That’s going to make U.S. housing permanently more expensive,” he said. The consulting firm found Houston to be a favorite haunt of investors who have lately accounted for 24% of home purchases there. Investors’ slice of the housing market grows—as it does in other boomtowns, such as Miami, Phoenix and Las Vegas—among properties priced below $300,000 and in decent school districts. “Limited housing supply, low rates, a global reach for yield, and what we’re calling the institutionalization of real-estate investors has set the stage for another speculative investor-driven home price bubble,” the firm concluded

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Let's see a link then. What I posted was supported by a bunch of other articles too.

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LINK

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Institutional investors have accounted for 24% of home purchases in Houston, according to John Burns Real Estate Consulting.

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5 second Google search found at least one article discussing it.