New Construction for a Beginner

[Shane Edwards]

I purchased a Fix and Flip investment property in Tampa. It is a 100 yr old bungalow that after an interior demo I have found that renovating this home is not the most cost effective exit. I am currently in search for my best option. A teardown New build is the best scenario, this will create a modern open flor plan and added square footage, but finding a lender that will work with me is not easy for 2 reasons, lack of new build experience(none) and the numbers are a little tight. I purchased the property in an LLC with a hard money lender. I was wondering if I could purchase the property in my own name for a new construction loan for personal residence or second home as I will be more eligible for an FHA or conventionial New Construction loan. I'd be more interested in new build as an investment property than personal property.

I have about $250k into the property now. I found a local builder that told me he could build me a New Construction Block home for $200k, 1600sqft, 2 stall garage, 3/2. This should ARV at roughly $500k minimizing losses, ideally this is the route I'd like to go. As I had mentioned qualifying for the loan I need is a struggle with my lack of experience.

I'm also open to suggestions on a different exit plans for this project as well.

Thanks in advance for any insite on this!

[Kristina Kuba]

@Shane Edwards

Drive around the neighborhood and look for new builds… Then look up the addresses on Tampa’s plan and permitting system…Accela Citizen Access. Reverse search the builder LLC or name on websites like Fast People Search and call them.

Some of these records will be investors that are GCs as well and are likely willing to do a profit split. Pitch your situation and see if it could be a win-win for both parties; it may be a safer route to go with an experienced investor who holds their GC license.

There are no great solutions out of a bad deal… I hope this helps. Good luck!