My family is the builder. Investment comes in two forms: my uncles have a mortgage investment corporation that funds alot of projects, and then there is a direct investment by an individual or two or three individuals.
The money they put in pays for the land, (and they are the title holders) and the bank finances construction.
Most of the time, the people who buy the finished product intend on living there, but I have seen them get flipped. The 4plexes get flipped more often.
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