I have purchased a 2 acre lot in a neighborhood that's been subdivided already. I am looking to build as an investor. I'm a broker and have working knowledge on the construction process but I've never done my own project. I have investors who are interested in funding my project. I'm looking to get a budget, detailed plans, and a schedule. I'm thinking that I can take this info to my potential investors or to a lender if I cannot secure the funds privately. Can anyone point me in a direction of where to start on getting my budget, plans, and schedule?
We recently completed our new build with Built Green Custom Homes. It is an owner-builder program that allows substantial savings over a traditional builder. We have approximately 25% equity based on our loan to value and we have almost no money in.
@Kevin Goodsell thanks for the reply. How did you come up with the equity you have? Is that based on comps?
I suggest you contact Ecocast Homes in Humble, Tx. to assist you with plans and a budget.
@Gregory Wesley , The equity is based on the bank appraisal vs what I owe. As I mentioned, I have very little money in, this is because I was able to use the equity in my land toward the down payment.
@Kevin Goodsell that’s awesome. I own my lot free and clear so I may be able to use that equity for a down payment. I have an friend who’s interested in investing. I just keep going back and forth on whether I want to do financing or investors to fund the project.
@Roger Crooks I will reach out to them. Thanks for the info.
@Gregory Wesley If you go the construction loan route, you will need a builder of record. Built green charges something like $4.65/ft (covered) but that includes custom plans and access to their contractor network. You would manage the project to get the most value out of the program.
@Kevin Goodsell gotcha thanks