Financing Spec/New Construction Homes for New Investors
I'm looking to have a discussion on how new investors can acquire financing to build a spec home. Here is what I have come up with:
1. Bank Financed. The bank informed me they need me to live in the home for 1 year before selling, which is not going to work. Has anyone out there worked with banks using personal qualifications (credit/income/down payment etc.) opposed to having the "relationship" to do a spec build? This seems to be the most affordable method.
2. Hard Money Lender. This is a readily available option, however the going rate here is 4 points and 15%.
3. Private Money. I would prefer to have a track record of success before pursuing this route. Without one I think raising funds would be very challenging
How are you financing your spec builds or how might you recommend a new investor jump into this type of investing?
Thanks for your input!
Sawyer