All Forum Posts by: Aaron T.

Jay,

I will look into the verticals financing.

In our area flippers are over paying and its dog eat dog, that is why we opted to build from the ground up. less surprises and less competition; buy dirt, build, sell.

Thanks all for all the suggestions we should be thinking about. I welcome all the input as it will help us in future growth to get these and many more done.

Karen,

Maybe you read that the wrong way, my comment is not meant to be inflammatory. I am saying we have the lots, so we are going to build. I don't believe selling the lots is an option for us. I believe it will be easier to get one funded and the rest will fall into line, rather than sell all the lots to fund one, then try and find more lots for a good price......I own the dirt, its just a matter of building on them, and that part is not rocket science. If I had the capital, we could build a could start them in just a matter of weeks of one another.

There is no deed of trust, we [our LLC] own the lots free and clear. We worked with friends and family to get the capital for the lots.

We will continue to seek private and HM to get this done.

We own the lots, so there is no liens. Our investors hold promissory for a return for carrying the lot for us.

our elevations are between 1300-1450 sq ft. This fits in line with the neighborhood.

I am not sure why we would sell the lots. if we sell the lots, then we pay back the investors and now we are with no lots and maybe a little cash.

We will get these built, I am just looking to hear ways to make it happen, not ways to not make it happen.  

I have not been to inverness in many years, but its about a hour north of Tampa and where the turnpike starts off I75. Like anything in FL I am sure it has grown since I have been there last.

Karen,

Its hard to get funding for something you don't have. If we did not have a lot, it would be harder to justify funding; Now we have lots. I am partnered with a builder in Tampa that has many connections and gets leads on lots. Rather than let these go, I wanted to get these under contract and purchased. We have been seeking funding for the construction costs from private money individuals, but because it would be unsecure funds, people are a little more hesitant; We also may not be talking to the right people. I continue to network. 

The lot I purchased was $15k which I could use as collateral, but that still is not the 25% that some of the HMLs are looking for if we are building at $105k. The other lots range from $5k-$12k. We are able to build in the $70-$75sqft range with our sale price being in the 145k-155k.

We could just as easily buy flips, but in Tampa its easier to not follow the crowd and fight for over priced properties and still have to spend the same amount of money we would on a new construction build.

These will get built. I will let you know our progress.

I need some creative minds to help with new construction funding.

My company is planning to infil SFRs within the Tampa area. We currently own 5 lots in the Tampa area. 4 of the 5 lots are funded through private investors. I personally hold the 5th.

Our first lot is ready for ground breaking in the next week, but we are lacking the funding to move to the next stage. After contacting Hard money lenders, they want 25% in the deal. I don't have the 25% after exhausting my capital on purchasing 3 buy and holds and 1 of these vacant lots.

Two of my rentals have equity, but not enough to pull out (75%LTV, would put me cashed out around 10k for two rentals) equity and make a difference in getting these projects started.

Does anyone have any ideas or leads for how we can move forward. I would like to build a relationship with someone to help get these moving.

Robert,

I pretty sure there is no requirement for longevity for a VA loan. It is occupancy they are looking for. If you were to PCS 6 months after purchasing, there is no way to hold you to longevity. You must live in the property to have occupancy though, and that is the biggie they look at. If you PCS, then you can rent all units and receive a new VA at your new location as long as you have eligibility left.

I know in Tampa full eligibility for a 4-unit is 880k, nothing out of pocket. in CA you may be eligible for more due to the cost of living.

If you buy at a discount with VA loan, and fix the property up, you could REFI with the improved equity position and not have to pay PMI or 20% down. Then you could move and use your VA loan again with full eligibility.

Tampa is tough right now. it is a sellers market for sure. Keep looking and you will find a deal. double check most of the wholesalers in the area. some have decent deals and others are no deal at all; no meat on the bone for you.

Welcome to BP. There is a lot of contacts in Jacksonville. set up your keyword alerts and you will have no trouble tracking down people.

Central AC all the way. on unit for each and you don't need multiple window units making the place look bad. mini split is good if its a smaller space or one room, but the Central AC will give the long term bang for the buck.