Predatory Builders EXPLOITING The Affordability Crisis

The housing affordability crisis is crippling home buyers across Dallas. In order to buy a home at all, many are at the mercy of builders with high pressure tactics and poor communication. We interview one such buyer today who describes his recent experience closing a Lennar home. Trapped in a cycle of limited options, entry level buyers are vulnerable to this kind of treatment and we’ll discuss that - and more - in today's livestream!

[@HumphreyU]

I haven’t watched the full video yet, but I 100% agree. I closed on a Lennar home in DFW in December. Their closing costs, rate special, and appliances included were the only reason I didn’t back out.
The home is okay, neighborhood is meh, but it’s a start to make extra principal payments, build equity, and move up in a couple years.

[@REWatchman]

Great content. Does a different vid break down how forward commitment works? If I understand, it is them selling in blocks, but is there any way to ensure it is individuals buying the rest? I cover San Antonio and one of my next videos is about Lennar selling a chunk of new construction in the same neighborhood as families to institutional investors. Doubt the families knew a whole block of neighborhood would be corporate rentals. Now the investors are actually selling. Interesting timing given one of them has been in the news, Blackstone REIT

[@WendyPannell]

The forward commitment isn’t about them selling in blocks, it’s about saying a certain amount of properties can be sold at a forward commitment rate. It has to do with tranches and how they are sold on the secondary market.
I read on their website that they “don’t sell to investors”. Wow! You should totally call them out on that if they are selling to investors. That’s crazy!

[@REWatchman]

@@WendyPannell thanks for the explanation. Your channel is a treasure trove of info and I am really enjoying your breakdowns on new construction in particular. Yes, I’m going to make a video on it soon. 27 homes on the same street owned by Lennar in 2022 per Bexar county, then sold to First Key Homes in 2023. First Key has 4 of them listed for sale now after months of dropping the listed rent. And it’s not build for rent because individuals own other homes on the same street. I started this journey as a data geek looking to buy a home but have now gone down the rabbit hole of consumer advocacy lol