Model home leasebacks are really sweetheart deals. At least the ones that are located in growing real estate markets. Be careful of states that have troubled real estate economies trying to “pay” you to take them off their hands. My motto is, “If it’s easy to buy, it’s probably hard to sell”. In good markets like Texas and some other States, it is extremely difficult to do on your own. Many builders do not sell their models at all. The ones that do, usually require some convincing because of the risk to the builder. That’s right, “risk to the builder”. Imagine their sales counselors showing up for work at the model home one day to find that the model has been foreclosed because the Investor went bankrupt! So, as you can imagine the builders are naturally a little picky about the quality of Investors buying their homes. They want to know who they are selling to and what their level of investment experience is. Many of the builders designate certain models for sale to their friends, employees or family members in some cases. At the end of the day, there are usually a handful of models available as leasebacks on the open market every year in most states. They will require some research, time and luck to find. You need to establish a relationship with someone in the builder community to get the leasebacks.
