All Forum Posts by: Jason Carter

Thanks, John!

@Bryan Hancock @John Blackman  It's looking great guys! I am hoping you can answer a question about your crowdfund. When funding with equity I'm guessing that you can't guarantee any type of rate return. When funding with debt can you have a fixed rate of return for your investors? I'm guessing that it would probably be a lower rate?

Thank You Jimmy and Thank You Neal.

If I was able to find some private money, how would I go about keeping the house and paying off the private money? Would a new construction lender pay off a private money loan? I'm pretty sure I could wrangle up the rest of the money but i am not sure how to pay the private money back. 

Hi @Karen Margrave,

I plan on living in one unit and renting/selling the other. I don't think I could profit enough to pay off a hard money loan by selling just one. So I would need to carry a mortgage. This is an area I have wanted to live in for a while and this is the most affordable dirt I could find. It would be much easier if I didn't plan on living it it. I may have to flip it.

Thanks Karen!

Thanks so much for the quick reply @J Scott! I was looking at all kinds of property and wasn't really prepared for new construction (seems to be the best use for this one). If I paid cash for the house/lot I would just use a new construction loan but I am having to finance the purchase as well. I don't have any site specific plans or permits pulled (just got into contract yesterday). The New Construction Diary has been a great read.

Thanks for all of your contributions to the BP community  

Hello,

My question - can I refi a hard money loan into a new construction loan if my conventional lending doesn't come through.  tear down purchase price 295k 105 down.

I have a contract on a home. I am using conventional financing but I do not have a financing contingency in the purchase contract (everyone else is paying over asking with cash). I have a 5 day option period and It doesn't look like I can get the appraisal done for a week.

My lender isn't worried about the appraisal being off but she may not be able to give a loan on the property if it is inhabitable. 

I plan to refi into a new construction loan and build two units on one lot. I plan on living in one and renting/selling the other. 

I would love to hear from @J Scott and @Jon Klaus

Thanks in advance!

This is great news! Thank You Bill. Thank You Dave

Thanks for the reply Bill. I thought about the construction exchange but it was cost prohibitive. I figured if I kept one as rental income It would still qualify. I'll have to talk to my CPA and RE Attorney. I also thought of partnering and splitting the cost of the lot. I found this on some 1031 website.

"Exchangers who intend to acquire less than a 100% ownership interest in the
replacement property should specify the specific percentage interest". 

So if I partnered on a deal I could specify that I will be purchasing half of the property to keep as a rental and my partner should be able to sell the other half? 

I would also like to thank you for all the posts and info you share with the BP community

Hello, I am looking to buy a tear down or some land with my 1031. I would like to build 2-4 units on the land and keep 1 as a rental. would this keep my 1031 intact? Thanks in advance.