Question for investors

Question for investors

Investor · orange county, CA · Member since 2026 · 3 posts · 3 votes

So my big question is there anyone who builds spec homes to sell as well as own self storage facilities? if they are, any advice on capital stacks allocation? so right now I am enrolled in Eric Crutch field builder accelerator program to learn building houses to sell and also enrolled in Aj Osborne self storage income both enrolled last year obviously I learned they both compliment each other to a extent the business models, but I am asking for feedback on my plan to scale my company from zero to big player, my plan is using a consultant business funding person to help me stack multiple zero percent business credit cards for 12-18 months plus hard money and buy something in Dallas,tx land cost anywhere $300-700k depends on area arv like around $1.9-2.6 mill depends on size ,location etc decent easy to pull permits from what I heard but any how I sell it assuming I pocket $350-650k depends on staying on budges house features etc, my question is it viable for me to use that funds cash get into another spec home build down payment for hard money and addition use SBA get a value add mom pop self storage facility so from one house sell it profit and go get a second spec build plus my first storage facility and from there after second home compound more homes projects and once facility one I cash out refi get storage facility 2 SBA same cycle and keep compounding? any advice pls thanks

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    14h

    Ken, I think the bigger opportunity here is figuring out how to recycle the capital without mixing the two businesses together. The spec-building side and the self-storage side can have very different economics and tax treatment, so I'd model each business separately and look at how much cash is actually available after taxes, project reserves, financing costs, and the capital needed for the next deal.

    I'd also be careful about assuming that business credit, SBA proceeds, or hard-money proceeds from one business can simply be moved into another project. The loan terms and use of proceeds need to allow that, and I'd keep the businesses and their books clearly separated.

    On the tax side, if you're going to be doing spec builds consistently with meaningful profit, I'd at least evaluate whether an S-Corp makes sense for the active building business. It's not an automatic tax-saving strategy, so the profit, volume, reasonable compensation, payroll costs, and overall structure all matter.

    Then I'd look at the self-storage side separately, particularly the depreciation and development/acquisition opportunities. The goal isn't just to keep moving cash from one project into the next. It's to build a structure where you know what each business is earning, what you're actually keeping after tax, how much capital needs to stay in each business, and where the next dollar produces the best return.

    Feel free to DM me, I’d be happy to send over a few resources that might be helpful.

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  • Lender · Houston, TX · Member since 2026 · 25 posts · 3 votes
    7h

    Hi Ken, interesting plan. Before leaning on stacked cards, it might be worth pricing a ground-up construction loan on the first Dallas build so more of the lot and build costs are covered and you keep cash for reserves. Once you have a lot picked out, I'm happy to look at the numbers with you.

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