All Forum Posts by: Robert Weissfeld

Thanks for your reply Doug. Yes, all those cautions are good ideas. My plan was to work with someone who has done similar homes in the area, if possible, who might come in with pre-approved or mostly ready-to-go building plans; no sense re-inventing the wheel. 

Assuming I own the land free and clear (value, say 800k) however, do you think that I could get the construction loan myself (I have about a 750 credit score) and just hire a builder to put it up, using the land as collateral for the loan? I imagine it would require between 1.1 and 1.3M? That would avoid splitting the profit.  

If I did something like that, would I need to make payments along the way, or could those be folded back into the loan? 

I have an old house on an exceptional lot (great street and mountain views, larger lot for area) in an area of SE Denver in which new houses can sell for more than 3M. I could probably sell for 850-900k), but realize that there is a greater profit potential. I am looking for a builder to partner with who will finance building costs (and get reasonable GC fees above cost for their efforts as well). Profits above this will be split 50-50 after the sale. 

First, is this a reasonable ask? 

Second - are you a builder who might be interested?  

My primary residence is a duplex. I want to sell it and take the profit from the primary res half, and reinvest the other half via 1031 exchange (I believe that is the correct designation). 

Q1: Do I actually have to rent out the new property, or can I move into it myself and keep the tax deferment?

Q2: If I sold the new property in the future (after living there for at least 2 years) would it again be considered a primary residence and get the 250k cap gains deduction?