FAQs
Q. Why are you offering a guaranteed buyback at a profit for lots in Lauren Pines?
A. The guaranteed buyback is merely an expression of how convinced we are that real estate in our area is poised for strong gains over the next several years. We think that lot prices will be significantly higher over the next 2-5 years as housing demand from newcomers to the area strongly outweighs the limited supply of available land and lots. Beyond that, the combination of recent advances in land prices and increased costs to comply with new (and stringent) York County development standards will push up the cost of new lots significantly.
Q. What does a lot cost in Lauren Pines?
A. Lot prices vary based on the size and location of each lot. You can view a price list here.
Q. Can I purchase more than one lot?
A. Yes, you may purchase as many lots as you wish, subject to the developer's approval.
Q. When can I sell my lot back and receive my 5% annualized return?
A. Similar to a bank CD, to receive the guaranteed return on your investment in a Lauren Pines lot, you will need to hold it for at least 2 years, at which time the subdivision is expected to be 80% sold out. As soon as 80% of the Phase 1 lots have sold (80% of 54 lots is 43 lots), and once the 2 year time period has passed, you may exercise your resell right at any time.
Q. What if the economy remains bad for a long time and the 80% threshold takes several years to be reached? Am I unable to sell my lot in that case?
A. In the unlikely event that the 80% threshold has not been reached after four years have lapsed from your purchase date, you will automatically be given the right to exercise your buyback option if you wish.
Q. What if the 80% threshold is reached before two years. Can I sell my lot back after one year?
A. Yes, you can, subject to developer’s approval.
Q. How do I notify the developer that I would like to exercise my right to sell the lot back and collect my 5% annualized return?
A. A form will be provided to you when you purchase the lot. Filling out this form and returning to the developer is all you need to do to initiate your repurchase request.
Q. Can the developer require me to sell my lot back before I'm ready?
A. No. The developer cannot force you to sell your lot back if you are not ready to sell it. If you do not have plans to build on your investment lot, the developer may desire to repurchase your lot at some point in the future. Should that occur, you will be offered a repurchase price of your initial investment plus a 5% compounded return. You will have 15 days to accept or reject this offer. If you choose not to accept the offer at that time, you may do so merely by waiving any future repurchase rights you are owed by the developer.
Q. What if lot prices in Lauren Pines appreciate faster than 5% over the next few years? Am I required to sell back the lot and receive only a 5% compounded return?
A. No, you are not required to sell to the developer and accept a 5% compounded return if selling your lot on the open market would generate an even higher return for you. In fact, given the strength of the real estate market in York County, this is a very likely scenario.
Q. Can I purchase one or more lots through my retirement account funds (IRA or 401k)?
A. Yes! We can connect you with a company that specializes in coordinating the purchase of real estate in retirement accounts. The purchase of real estate in a retirement account is an excellent way to grow your wealth for retirement.
Q. Can I use my IRA or 401(k) to purchase a lot and build a house for my own personal use?
A. IRS rules against “personal benefit” from the use of retirement funds are clear. Your retirement account funds must be used for investment purposes and not for any personal benefit. So, while you could not fund a lot purchase in order to build your own residence, you could use it to build a spec house to be built and sold as an investment. One of our Preferred Builders would be more than happy to work with you in such an arrangement.
Q. Can I borrow from a bank to purchase a lot and still take advantage of your 5% return guarantee?
A. Yes, if you do not have cash available or would otherwise prefer to take out a bank loan, we can connect you with a local bank that provides very attractive financing rates and terms for your lot loan.
Q. What if I do not qualify for a bank loan. Can I still receive 100% financing?
A. If you do not purchase a lot with cash and do not qualify for a lot loan through a local bank, you may still be able to take advantage of our 100% financing offer. Speak with a Lauren Pines representative for more details.
Q. How does the 100% financing option work?
A. We will provide you with access to a local bank that will lend you up to 80% of the funds needed to purchase your lot. The developer will take a second mortgage on the remainder of the purchase amount, giving you 100% financing. You merely have to provide the closing costs!
Q. What expenses should I anticipate once I own my lot?
A. There should be relatively few expenses associated with owning your lot beyond property taxes and a modest annual HOA fee.
Q. What type of upkeep am I required to maintain for my lot?
A. There should be very little upkeep required for your lot. You will periodically want to inspect it and pick up any trash that may have blown onto the property. In the summer you will also want to mow the road frontage occasionally as well (alternatively, you can hire the resident landscaper to do this for you for a nominal fee).
Q. How much are property taxes on a lot?
A. Your taxes will be based on your actual purchase price of the lot and on the millage rate set by York County each year. In general you can expect to pay at least $500 but less than $900 a year for property taxes on a lot.
Q. How can I be sure that I will receive my 5% annualized return when I'm ready to sell?
A. The development company Laureate Developers, LLC is backing the 5% return guarantee. Laureate is a reputable company located in York County South Carolina and the owner of Laureate has sufficient financial resources to ensure payment of any and all of Laureate's financial obligations.
Q. Do I have to build a house on my lot eventually?
A. You are not required to build on the lot you purchase though the developer may reserve the right to require you to sell back the lot after five years if you never have any plans to build a house on your lot. If your purchase of the lot was for investment purposes only and not to build, then the developer would reserve the right in the future to list your lot for sale through MLS or other sales channels. When your lot was eventually repurchased, you would receive your original principal plus your 5% cumulative return.
Q. Can I sell my lot to someone else and transfer the 5% guaranteed buyback provision?
A. Unfortunately, the buyback guarantee is available only for the original purchaser of the lot.
Q. Does the guaranteed buyback at 5% annualized return last forever?
A. Alas, nothing lasts forever. The developer reserves the right to end the buyback provision after a period of five years at his discretion. You would have the opportunity at that time to choose to keep your lot or sell back to the developer and collect your profit at that time.
Q. If I want to build a house, can I choose any builder I want?
A. All homes in Lauren Pines are built by our Preferred Builders. If you have a strong preference for a builder who is not one of our Preferred Builders, that builder can apply for Preferred Builder status in order to build your home.
Q. If a purchase a lot and decide to build, how long will it take to have my house built?
A. Generally, it takes an average of six months from start to finish, though with no delays a builder may be able to finish within four months.
Q. Ok, I want to purchase a lot. What do I do next?
A. Great! We think you’ll be very happy with your decision. Just call us toll free at (877) 81-PINES or email us to request a contract.