Updated almost 8 years ago on . Most recent reply
Advice, strategy and steps needed
Hello.
I have found buildable land in a tony subdivision in Metrowest of Massachusetts. Said lot is 1 of 21 being sold by the developer. Asking price of 300k. A builder is estimating 70k of land prep costs and another 350-400k of construction costs for a 4k sq ft single family home.
Comps for new construction in that area range from 1.2 to 1.5 M. On paper, this looks like 900k of costs with a profit of 2-300k allowing for commissions, fees, overrages.
This is completely new to me and my first foray. Advice needed on
a) Financing
b) Stepwise process to get this to from inking the deal on the land, to getting a permit from town, to getting plans drawn and approved to putting in a nice spec for the build.
c) Steps to liberate some of the cash/refi at a better rate whilst the house is being marketed.
As for me, I think I can pull 100k by liquidating stocks and 200k by borrowing from 401k. Which probably just gets me into the land. How to finance the construction?
Also, any partnership interest or mentorship for a slice of profits?