I've done about 6 fix/ hold deals in the past year. I want to get into new construction & ANY inside info would help.
I've bought 2 residential lots in established neighborhoods that I'm holding onto. I have general knowledge of how the construction deal (ACV, LTV) etc is set up
How much (more than actually build costs) should I fund for?
HML vs bank for funding?. I've used HML on most of my buy/holds
references for builders in DFW area
references for funding sources in Texas
It may a tough place, but it will be a hard place. You must have to work harder. If you get a god deal in a good location will probably have a contract the next day. You need to find a motivated seller.
Congrats on your fix/hold deals! New construction is hot right now and if you can find lots in good areas to buy for a decent price I think you can make some good money. I have worked with smaller builders for the last three years who build on lots in existing neighboorhoods. I have sold over 40 new builds in the past 2 years and these guys are making great money.
Most of them get construction loans from banks. Typically they are lending about 80% of the pre construction apprisal value. So if your apprisal comes back at $200k, they will lend you up to $160k and space it out over several draws. I can send you some references for guys that do construction loans in Texas.
Where in DFW are your lots that you are looking to build on? Depending on where you are at I can send you some builders as well.
Colin, thanks for the reply. I will be building in existing South Oak Cliff neighborhoods.
Any idea of cost per sqft on construction with lower end finishes?
Any building resources would be appreciated.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.