All Forum Posts by: Sophia Berry

Hello all,

Thanks for the feedback. Please note two of the homes I'm building are under contract now therefore all of the HELOC's will be paid off before I apply for another loan. So hard money lender is out. I'm okay with that. I'm okay with a construction loan conventional. Please inbox me with suggestions. :)

Good Afternoon,

I am currently building homes as an investor using HELOC's I have acquired. Because the market is great I plan to sell my personal home and wanted to build another home for myself. I don't want to use my HELOC's to build therefore I was interested in getting a Construction Loan. My question is should I go Conventional or Hard Money?

@Dustin Allen Thanks so much.  You are right about the REALTOR.  My Realtor is new and didn't know to add that clause. :(

Hello all,

I've seen on the news that if a New Construction home is under contract that has not broke ground.  The prices of lumber ect has now gone up.  Can the builder make the buyer cancel the contract and charge them more for the home?

Hello all,

Can anyone recommend or point me in the right direction on a Sub-Contractor Agreement that I can send to each Sub completing the work on my house?  I am building a new construction home to sell. I am acting as the General Contractor and owner. With information such as, all work will be completed in workmanlike manner, as well as if anything goes wrong or breaks within a certain period, they will fix the problem.  Some of the forms online seem to be very lengthy.  This would be on top of them providing their license and insurance information.  Or is this document even necessary?

Any advise would be very helpful.

Thanks.

@Josh C.@Micah Redden@Nicholas Field Thanks so much Gentlemen.  I have three houses under contract.  Not looking forward to telling them there is going to be a delay.  

Hello all,

I am located in Atlanta Georgia and purchased 5 lots and building SFR homes on each. It is taking months to get windows delivered. Is anyone else having the same problem?

@Nate 

@Nate Bell Thank you so much.  I will get with my Insurance Agent to possibly get a "Course of Construction Policy". 

@Lisa Jackson.  Yes, I am notified when the inspection fails or is approved.  I guess some of the process where there is no inspection required the site manager would let me know if work was acceptable.  I am at the site quite so the workers know who I am.  I will look into a punch list as well.

Thanks again.

Hello all,

I am trying to find out what type of insurance or documents needed just in case something went wrong building homes as an investment project.   Just a little background, my brother and I purchased three lots in a subdivision and successfully built and sold one home.  My brother was not the easiest person to deal with therefore, I just sold him the other two lots and I went on to other projects.  In the first project we had a builder complete the home and I just paid him in draws to get the home done.  There was always something in the back of my mind that he may be charging me more for the work than what the actual cost were. 

Fast forward I found and purchased 5 other lots in a subdivision and have just started building the first house. This time, I am in a unique position because I am acting as the General Contractor/Builder.  I was referred to a guy who has built homes for many years for another company and he is willing to let me use his knowledge to build my homes and I will be just paying him to go out to the site and make sure the work is completed correctly. He is also in charge of ordering the inspections and moving the process along for me.  I don't pay any of the subs until he tells me the work was done correctly and completed. My job was pulling all the permits and hiring all subs to do the work and paying them directly.  Most of the subs he has worked with however, if I found a better price somewhere else I can do so. I believe I am in a better position because I am in complete control of how much I spend and cost. I am  also learning a lot about the process which is Great.  Things have been running smoothly so far.  I was speaking to some friends and he asked me what would I would do if one of the workers got hurt, or what if something is wrong with the house once complete.  I know I will most likely need Home Owners Insurance if there was a fire ect.  Just want to know everything I need to cover myself if something went wrong.

Hello all,

I am new to the Construction deals and for some reason this deal does not sit well with me. I am okay with the points and interest payments, However the cash to close is having me scratch my head. I am paying for the Land, soft cost and horizontal costs from my own money so where does the cash to close come from. The LOC should be at 60% of the Vertical Cost and not the total . If I am only borrowing $136,800, why or who is getting the $43,200.

Someone please help me  wrap my head around this. (see below)