Buyer financed new construction

[Patrick Philip]

I'm a home builder. I've been building by financing through HML. I want to try a new strategy of having the buyer finance the construction with a construction-to-permanent financing.

I have several questions...

1. Are the sales contract and construction contract completely separate? Or do I need to find one contract that covers both?

2. How/ when are the agent commissions paid out?

3. As the owner of the land and the builder, would I be able to include all my expected profits with the cost of the land and then build "at cost?" Basically to get all my profits up front and then build "for free." Even if I can't put "building at cost" in the contract, I could just put the building cost estimate to include no profits for myself because I will have added them to the land price.