Updated 2 months ago on . Most recent reply
First Ground-Up Build – Managing the Capital Gap Between Projects
Morning BP Experts!
We're midway through our first ground-up SFR build in Marion County FL. (HML with draws). One thing I'm trying to think through early is how others manage the capital gap between finishing a build-for-sale and starting the next one.
For those doing multiple projects, what creative financing or short-term capital solutions have worked best for you before sale proceeds hit? just trying to learn how experienced builders/Investors structure this phase.
Any helpful hints to help would be amazing.
Turn Two - Mike Cadden
Most Popular Reply
When I started out I would stagger my starts to offset that, and I also did pre-sold/remodel jobs to help shore things up. In the early stages try to get a few different revenue streams so the eventual sale doesn't end up stalling you. Do not take any advances on the sale. This is akin to robbing Peter to pay Paul and end up costing more than credit card debt in most cases. Good luck with your builds!