All Forum Posts by: Account Closed

Also, holding costs of 2 percent are so low it might not make sense to pay all cash, as you can invest with leverage at a greater magnitude and earn returns at a faster velocity.

Their are usually seasoning requirements or a waiting period of at minimum 90 days to obtain a mortgage.

Consider leasing a new car for a monthly payment that fits into your budget. It may be worth the piece of mind knowing all of your expenses are covered.

Deconstruction would also get you far along the path for LEED certification. You may want to build a premium on the value in your analysis due to LEED status, and explore what the requirements would be. You may find deconstruction as a starting point would get you 90 pct of the way to cert.

Most Fannie lenders , and I suppose portfolio lenders too, use the cost of the land and not fair value (per fannie underwriting guidelines) to determine LTV. In other words, equity in the lot will not help you meet down payment requirements. Helpful to know, if you own the land for >1 year, Fannie guidelines use fair value. I have rentals that I will use for spec builds down the road which will provide for cash on cash returns that are theoretically infinite, since no cash is required to close --the lot equity helps meet LTV down payment requirements.

No not a full time broker kept my day job.

Central pedigree might not allow you to reach your full potential. With a 3.2 a transfer to Broad or Ross at MSU or UofM is a real option and would increase your chances of landing a job with a blue chip company exponentially. Having a W-2 job will allow you to invest in real estate at a much higher velocity. food for thought.

Jeff,  I agree without the intent to occupy it is unethical and would rise to the level of fraud. I  may very well find another more desirable building site for a personal residence during construction. Wondering what my options are to call an audible during or after the build-- as long as my intent was occupancy during an application I think it is above board.

Anicidotal story, but various home owners are holding out on properties in Detroit as the olympia development company tries to assemble a contiguous parcel for a new detroit red wings arena. Some owners are asking for prices in the excess of $1m and I wouldn't be surprised if they received close to ask. There is reputational risk in taking this approach but worth considering.

Further to the original question-- why couldn't someone obtain financing for new construction as a personal residence and then once the construction to perm converts, decide to sell and pay capital gains as an investment?