How do I build a duplex or triplex on vacant Land

Question

I have a vacant property in Lake Worth Fl, I would like to build a duplex or triplex on property, Property is paid for, I am cash poor, approximately 5000.00 and credit score is fair . Im trying to save more money, and pay down credit cards, Does anyone have any Ideas on how to obtain financing and where to start with building process should i obtain financing!

Robert Ellis · Answer

what percent equity contribution are you talking about here? In addition, I think you are assuming a general contractor will extend credit to a borrower which isn't' always the case. in columbus we build and make everyone self fund a 30k retainer account in a escrow that they have control over because we build new construction multifamily at a discount and won't extend credit to anyone

Ray Hage · Answer

Hey Lisa, it sounds like you are in a bad position in terms of cash. You will want to have some money handy and work with a contractor and there are construction loans but it may be difficult if this is first time without a partner who is experienced and has a nice resume of builds.

Jacob Sherman · Answer

You can utilize no income no doc ground up construction loans and they welcome first time investors . The land would be used as collateral to pay for closing costs etc . Let me know if you have any questions in regards to the way it works

Andrew Sundseth · Answer

That doesn't sound accurate but I get the picture. Get all your debt paid off and then reevaluate if you want to build or not. If you cannot get your personal finances in order then I would not suggest building.

Lisa Green · Answer

Thank you for your response, My current income is about 75,000 a year, My credit card debt total is approx 40,000.00 which consists of 2 car payments and medical expenses. about 6000.00 of it is money I loaned or I guess gave to family and friends, Not to mention the cash I have loaned or given away, I am going to stop being a leech and start to put my needs first, I will get there eventuality!!!

Andrew Sundseth · Answer

you are not in a good position to build. Pay off your debt, and build up a 6-month emergency fund or preferably more. Builders need cash and emergency cash funds, you do not want to be using credit cards that you can't pay off to build your home while already having credit card debt. You didn't say anything about your income which is also a big factor.

Melanie P. · Answer

You are not in a financial position to maintain, manage nor service the construction nor operation of a duplex/triplex rental investment. You have other options:

1. Sell the land as a first step in cleaning up your balance sheet.

2. Find a partner willing to build something on the land at their risk and expense and share in the profits.

3. Lease the ground to someone interested in building but who doesn't want to share more than a predetermined amount with their land partner.

With rental investments tenants are depending on you to maintain their homes and if you fail to do so there can be legal consequences. You have to be ready to chip in a lot more money at any time with no advance warning.

How do I build a duplex or triplex on vacant Land

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