Investor · San Antonio, TX · Member since 2018 · 188 posts · 54 votes
Hello, Y'all!
My family owns 5 acres of undeveloped county land in my hometown but never did anything with it. It's down the road from our high school, an elementary school, and the main drag. I want to build a duplex on it. Should I get a hard money investor on board or pay for it myself as I go with my salary? Both ideas have their negatives and positives.
Allen, TX · Member since 2014 · 74 posts · 22 votes
7y
Hi Juan, Have you looked into a construction loan? Lot's of variables here but there are a few routes, but HM is going to be your most expensive if you could get it. Most HM lenders want a home/structure as the collateral. Your best bet is a construction loan from a bank that you can turn into a traditional mortgage after its built. The other good option is to find a partner with money.
Investor · San Antonio, TX · Member since 2018 · 188 posts · 54 votes
7y
Hey Jason!
Thank you for your advice. My hometown is named Del Rio, Texas. It's on the border up from Laredo, Texas. It has a population of about 36,000 but in my opinion its hitting 40,000. We have a small air force training base named Laughlein. Major employers are the base, federal agencies such as border patrol/homeland security, school district, city, and the hospital. I have stopped by a local bank in my hometown to inquire about a construction loan and it's SUPER complicated or maybe it was that specific bank making it complicated.
Investor · San Antonio, TX · Member since 2018 · 188 posts · 54 votes
7y
I'm going to be a teacher by next year in the SA area. I didn't pass my certification test in time to teach this year. So with that salary, I wanted to pay as I go with this project. Teachers make 45k and up in the SA area.
I'm going to be a teacher by next year in the SA area. I didn't pass my certification test in time to teach this year. So with that salary, I wanted to pay as I go with this project. Teachers make 45k and up in the SA area.
You will be unlikely to fund new construction with that salary, sorry.
Develop plans and a budget, timeline, expected rental values, P&L. Then partner with an existing developer to JV the land. That's your best option for success. No bank is going to lend to you unless you put up collateral worth 150% of the construction loan (and the land ain't it).