Do i need a New hard money lender or partner?

Question

Hello everyone. Am Will and i have a problem here and need help on what do next. For the last several months i have been looking in my area for the right deals and lender to pursue my career as a developer. I graduated with my bachelor degree in Energy Technology Management in hopes of developing green housing. i have had a hard time of achieving this plan and my career.

I finally found a property that is suitable to doing this type of development in sustainable living. I located this property in the market and its been there for over a year now without any serious buyer to step up (a lot of inquiry stated by agent). The price was at one time $65k and reduce to $54k and now its at $38k my offer. i jump in and made an offer on this property which is a pre-construction home meaning about 60-65 percent completed.

I did the research on what it would take to bring this property update to standard of living condition roughly $68k in repairs making it completely off-grid home without needed to used energy from the grid . The power company stated that in order to run electric to the home it would be $50k that's why no one purchase the property. I figure  it would take to run on solar and battery bank system $30k. I feel that this would bring a higher price in the marketplace due to the fact its the only one of its kind being offered. My estimated would be $208,000 once its done.

It was build in 2004 w/o occupancy ;sf: 1553; 3bedroom/2 bathroom   . I feel that if completed it should be stated as a new home built in 2015 standards and energy efficient.

My Issue:

I place my partner as the buyer on this deal to qualify for the loan from a hard money lender that request to 1. fill app credit pulled 2.) DL copy 3.) 2 months Bank statement 4.) 1 mo pay stub

And require $950 for appraisal and $500 for the deposit.We're closing at my title company.

The only problem is that the agreement was sign on the 19th and my partner is in the middle of purchasing another property which he want to delay sending in the application and other requirement until this is finish. I'm at a lost right now on what to do next??The closing is on 15th of June. What should i do next??? My hard money lender can close in 10 days but that is after all the information is in and that we qualify for the loan.

Darrell Shepherd · Answer

How well do you know your partner?   The contract is in his name, but its your earnest money?  Or you're waiting for his $950?

I dont know Florida, but in Georgia you've got a 7 day unilateral extension.  Your seller hasn't had much action on this thing, you may want to call them and say you want to close 3 weeks later and see what they say.

Depending on the lender, the two loans shouldn't be a big deal as long as the cash reserves are there, assuming both loans are Hard Money.  If he's worried about doing both at the same time with Hard Money, I'd be worried he can do both at all...

Neat project, btw, I'd love to own a house off the grid.  Check the laws on it, though, I think I read somewhere that there was a problem with doing that down there.

Wil Jerome · Answer

Hey JeremyYes a niche how small or large would be a guess. My thinking is the there's a large group how would want a house that is different like Darrell said. For an example why do people purchase i-phone and not the rest of them due to the fact that it's different and set them apart from the rest. I fell that this product that we're offering would be in this type of catalog but without the premium  price to pay. And Darrell , i check on if this would be illegal in Florida. There was a case in Cape Coral Florida where the home owner wasn't connected for both the water and electric. She beat the case for the electric and fail on the water and waste part due to the fact of the city capping offer their sewer from her. But I will further contact my local city officials to find out if i will run into problems with this. My defense here is that the house will be able to connect once the electric is available or when  the cost has reduce from 50,000 where it's at currently. And with the financing i don't know if there will be issue with it. But i know that this lender will fund the project for me . I have able a year to figure it out .sustainable living in Texas and FloridaHey Toby,I'm using roughly 40pcs  300watt panels for this project well over what you had . So I'm a little worried able this issue of not being able to get financing. I feel that sometime you must try something new and out of the box to find out the results and not just go off of FEAR. I'm debating on what to do next; i just receive a call from the agent today will have to return his call tomorrow and see if there's an issue. I have 2 more days for inspection period and the ability to cancel the agreement without penalty .

Toby Seiler · Answer

And they don't like having too much land with it.  I have 25 and would have trouble with normal home lenders that sell to FMay or FMac.

Darrell Shepherd · Answer

I had a Lakehouse that was self contained except power and if I still owned it I'd totally disconnect with how reasonable solar has gotten.  Can't wait for that new Tesla battery to hit market.  May be a niche market, but in my experience the houses that are different sell faster than the ones that are just like everything else on the market.  I'd buy that thing in a heartbeat, no power bill has a nice ring to it.  I've been looking at how to be fully self contained, that's how I saw the article that mentioned Florida legislation against it.

Prob have trouble getting financing though, lenders don't like different.

Wil Jerome · Answer

Hey Darrell

Thanks for responding to my post. I will try that with the agent on Monday to see if i can get it extended. As far as the financing and knowing him ; he's my brother-en-law and he's going through conventional financing for the purchasing of the home  and the investment will be hard-money loan. I will have the money on Monday to provide the deposit for the appraisal/fees  and earn money too.

I have not check if there's laws or restriction on that.

Do i need a New hard money lender or partner?

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