Step-By-Step Process for Investors

  1. Meet with the team at Phillips Luxury Homes to assess your capability and type of investment you are looking for.
  2. See one of the Phillips Luxury Homes preferred loan officers to obtain pre-approval for a certain amount.
  3. Work with the team at Phillips Luxury Homes on the lot or location selection.
    • This is a fun part of the project. We will only select top lots or locations (with or without existing homes) that provide the best chance of quicker sales at the end of the project.
    • We are willing to pay more for prime lots and locations because in the end they will pay off. People who purchase high-end homes or rent commercial space will pay premiums for better views, more space, the right elevation, and the right location.
  4. Meet with other team members, including the architect, field supervisor, design team, and real estate agent who will sell the final product.
  5. Receive and approve initial floor plan and elevation. Only minor modifications can be made on-site by the builder. We will rely on the expertise of the architect, designer, builder, and real estate agent to make the best judgments when it comes to the design.
  6. Approve the final design. Again, your input will be valuable but the final decision will be up to the team at Phillips Luxury Homes.
  7. Receive final loan funding.
    • This could happen before or after the final design depending on how the loan is structured and other timing considerations with the design.
    • Once you receive final loan funding, the soft money draw will become available. This draw will be defined by the cost breakdown provided by the builder.
  8. Start construction or demolition if required.
  9. List and sell the property.
  10. Complete the property. This process usually takes between 14-16 months.
  11. Modify the loan into its final stage if not sold before construction is complete.
  12. Split the profits.

There is an IRS code called “1031 exchange” that allows people to sell their home and not pay capital gains on the profit from the sale. This is an option worth considering as your house sells.

To learn more about investing in a Phillips Luxury Homes project, contact us.