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Updated about 11 years ago on . Most recent reply
Spec Home Funding
Being in a very hot residential market ( DC Metro) I have several lots and land developments that can be pursued. Here's a few typical scenarios, #1- I control a few lots and some have a teardown and others are just raw land. I want to fund the new SFH cost and can probably have it sold before its completion. I currently have one buyer already lined up. #2 - I have a lot in a neighborhood that can be subdividing into two building lots. This is in a highly sought after area (Reston) and the home sales price would be $1mm+. #3 - I have a seller that has their developments through entitlements, approvals and bonding. Basically, I can place a down payment and then buy down the lots. I need the funds to start pushing the dirt and build the first spec. These typically range in the 10+ lot category.
My questions here is, other than traditional banking, what options do I have to fund these sort of projects? Any creative ideas are much appreciated. I know someone is going to say the obvious of "write a check"! lol