All Forum Posts by: Armando Roses

If you own the lot, best way is finding a Bank or Lender that will allow you to build on your own. Unless, you plan to to hire subcontractors to do the full project.  

Here’s an example.  

Lot “Hard Money”

Build “Construction Loan”  1 time or 2 time loan.  

1 time loan would include both the lot and build cost 

2 time loan would close on the lot first, then  the build.  This cost more due to closing twice.

 I’m actually going through the process and learning these terms as I go and sharing my current experiences.

I have couple of projects I am in need of advice in the best scenario to get the best results in financing.

project #1 purchase price of $360k with $47k down payment

Hard Money

$320k at 12% and 1 Point a month on 60 days, going into 90 days with both interest and points due a month.

Goal.

This home sits on a .23 acres zoned residential with the option of changing the conditional use permit to multi-family. Making ARV $550k to $600k

project #2 purchase price of $245k with $37k down payment

Hard Money

$220k at 12% and 1 Points a month on 6 months for new build.

Goal.

This home sits on a .22 acres zoned residential for new construction, ARV $700k

@Chris Pflum I was able to find a property ARV is $319,999. Currently U/C for $279,999, after my down payment I will be financing $271,000. How do I go about get cash out on this home to finish the remodel and reinvest ?

I'm in the process of buying a second home ARV is $319,999k. My current U/C price is $279,999 after all down payments I'm looking at financing $271,000. I would like as much cash back as possible once closed. What would be the proper way to go about it?

@Chris Pflum in your experience how much have you spent on a rehab/renovation?

@John Warren I appreciate your input, thank you. 

@John Warren thank you.  This would be for my primary residence with a mother-in-law to rent.  

Any particular way I should purchase my second home as an investment? HELOC? I'd appreciate your feedback.