Looking to Connect with Spec Builders
Investor · Georgia, USA · Member since 2023 · 51 posts · 14 votes
Looking to Connect with Spec Builders
Most Popular Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesQuote from @Henrry Novas:
Thank you @Jay Hinrichs!
What strategies do you recommend for securing hard money loans for spec builds? We’re working in a smaller market like Cornelia, GA, where comparable sales data can be limited, and want to make sure we present a strong case to lenders. As a family-run business we’re curious—what factors do lenders prioritize most when evaluating projects like ours? And how can we align our approach to meet those expectations and improve our chances of securing financing?
lima one does spec loans
builders capital.
they mainly rely on experince they want to see you have done 2 or 3 in the last few years..
AMeris bank will do specs I used them.
but if you have zero experience you will have to mitigate it with a lot of cash or get an experienced partner.
What I did in Charleston SC were I built.. I just used cash to build my first 3 specs no loans at all.. once done and sold then I went to lima got one loan from them.. then went to local bank ( much much cheaper) and got a 3 mil guidance line and went on to build 30 or so in charleston.. you have to prove the model.. its not like buying a rental where lenders look strongly at your fico fico is required but not the main consideration like and investor loan and all you need is 20% down or 30% down and a few bucks in reserve that wont fly with spec loans..
7 Replies
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
done it all except the grants.. what do you want to know ?
- Investor · Georgia, USA · Member since 2023 · 51 posts · 14 votes1y
Thank you @Jay Hinrichs!
What strategies do you recommend for securing hard money loans for spec builds? We’re working in a smaller market like Cornelia, GA, where comparable sales data can be limited, and want to make sure we present a strong case to lenders. As a family-run business we’re curious—what factors do lenders prioritize most when evaluating projects like ours? And how can we align our approach to meet those expectations and improve our chances of securing financing?
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Henrry Novas:
Thank you @Jay Hinrichs!
What strategies do you recommend for securing hard money loans for spec builds? We’re working in a smaller market like Cornelia, GA, where comparable sales data can be limited, and want to make sure we present a strong case to lenders. As a family-run business we’re curious—what factors do lenders prioritize most when evaluating projects like ours? And how can we align our approach to meet those expectations and improve our chances of securing financing?
lima one does spec loans
builders capital.
they mainly rely on experince they want to see you have done 2 or 3 in the last few years..
AMeris bank will do specs I used them.
but if you have zero experience you will have to mitigate it with a lot of cash or get an experienced partner.
What I did in Charleston SC were I built.. I just used cash to build my first 3 specs no loans at all.. once done and sold then I went to lima got one loan from them.. then went to local bank ( much much cheaper) and got a 3 mil guidance line and went on to build 30 or so in charleston.. you have to prove the model.. its not like buying a rental where lenders look strongly at your fico fico is required but not the main consideration like and investor loan and all you need is 20% down or 30% down and a few bucks in reserve that wont fly with spec loans.. - Investor · Georgia, USA · Member since 2023 · 51 posts · 14 votes1y
Gotcha,
Thanks for sharing:
1. Did you guys ever raise private money? If so, how did you approach it initially?
2. How long did it take to complete those first three builds? Were they all completed within the same 12-month period, or did it take longer?
3. What are your thoughts on hard money lenders for spec builds? Do you see them as a viable option early on, or is it better to avoid them altogether?
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Henrry Novas:
Gotcha,
Thanks for sharing:
1. Did you guys ever raise private money? If so, how did you approach it initially?
2. How long did it take to complete those first three builds? Were they all completed within the same 12-month period, or did it take longer?
3. What are your thoughts on hard money lenders for spec builds? Do you see them as a viable option early on, or is it better to avoid them altogether?
we did the first 3 in a 18 month period we used internal funds so no debt.. these were 350k to 400k all in projects.. so U need cash to be a spec builder or you need investors if you dont have cash.. Bank financing is very tough for anyone starting out so HML is generally ( unless you use your own cash or cash in your network) the only funding there is.. the goal has to be though moving towards bank financing so you get the best deal possible.. right now I am at 1/2 point and 7% and my bank pays for my appraisals. U can check out ivyridgeestatescanby dot com for my 90 home project in Oregon that I did with my oregon bank and then my website for pictures of homes we built in Charleston SC which is the only market I tagged HML ( lima one) and only one time the rest were done with Ameris bank or Service first bank that is local in the market. its all about the three C's Character Collateral and capacity.. Fico while they will look these are not credit score driven loans like those buying rental houses or houses to live in... So the though Hey I have an 800 fico and I should get a loan does not work. - Investor · Georgia, USA · Member since 2023 · 51 posts · 14 votes1y
Quote from @Jay Hinrichs:
Quote from @Henrry Novas:
Gotcha,
Thanks for sharing:
1. Did you guys ever raise private money? If so, how did you approach it initially?
2. How long did it take to complete those first three builds? Were they all completed within the same 12-month period, or did it take longer?
3. What are your thoughts on hard money lenders for spec builds? Do you see them as a viable option early on, or is it better to avoid them altogether?
we did the first 3 in a 18 month period we used internal funds so no debt.. these were 350k to 400k all in projects.. so U need cash to be a spec builder or you need investors if you dont have cash.. Bank financing is very tough for anyone starting out so HML is generally ( unless you use your own cash or cash in your network) the only funding there is.. the goal has to be though moving towards bank financing so you get the best deal possible.. right now I am at 1/2 point and 7% and my bank pays for my appraisals. U can check out ivyridgeestatescanby dot com for my 90 home project in Oregon that I did with my oregon bank and then my website for pictures of homes we built in Charleston SC which is the only market I tagged HML ( lima one) and only one time the rest were done with Ameris bank or Service first bank that is local in the market. its all about the three C's Character Collateral and capacity.. Fico while they will look these are not credit score driven loans like those buying rental houses or houses to live in... So the though Hey I have an 800 fico and I should get a loan does not work.Hi Jay,
Thanks again for taking the time to share your experience—it’s been really helpful.
Before we wrap up, I’d love to hear your thoughts on two things:
- 1. Looking back on your earlier projects, what were the biggest mistakes or lessons learned in securing funding or managing build costs?
- 2. Since we’re in the early stages, do you have any tips on building meaningful relationships with lenders or private investors for future projects?
Thanks so much for your time and advice—it’s been a pleasure connecting and learning from you!
- 1. Looking back on your earlier projects, what were the biggest mistakes or lessons learned in securing funding or managing build costs?
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Henrry Novas:
Quote from @Jay Hinrichs:
Quote from @Henrry Novas:
Gotcha,
Thanks for sharing:
1. Did you guys ever raise private money? If so, how did you approach it initially?
2. How long did it take to complete those first three builds? Were they all completed within the same 12-month period, or did it take longer?
3. What are your thoughts on hard money lenders for spec builds? Do you see them as a viable option early on, or is it better to avoid them altogether?
we did the first 3 in a 18 month period we used internal funds so no debt.. these were 350k to 400k all in projects.. so U need cash to be a spec builder or you need investors if you dont have cash.. Bank financing is very tough for anyone starting out so HML is generally ( unless you use your own cash or cash in your network) the only funding there is.. the goal has to be though moving towards bank financing so you get the best deal possible.. right now I am at 1/2 point and 7% and my bank pays for my appraisals. U can check out ivyridgeestatescanby dot com for my 90 home project in Oregon that I did with my oregon bank and then my website for pictures of homes we built in Charleston SC which is the only market I tagged HML ( lima one) and only one time the rest were done with Ameris bank or Service first bank that is local in the market. its all about the three C's Character Collateral and capacity.. Fico while they will look these are not credit score driven loans like those buying rental houses or houses to live in... So the though Hey I have an 800 fico and I should get a loan does not work.Hi Jay,
Thanks again for taking the time to share your experience—it’s been really helpful.
Before we wrap up, I’d love to hear your thoughts on two things:
- 1. Looking back on your earlier projects, what were the biggest mistakes or lessons learned in securing funding or managing build costs?
- 2. Since we’re in the early stages, do you have any tips on building meaningful relationships with lenders or private investors for future projects?
Thanks so much for your time and advice—it’s been a pleasure connecting and learning from you!
ya those are totally open ended questions your going to have to figure it out from here on your own or with someone else chiming in.. I am off to the boat show so done for today best of luck. - 1. Looking back on your earlier projects, what were the biggest mistakes or lessons learned in securing funding or managing build costs?
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