Updated about 9 years ago on . Most recent reply
Investing in New Home Building
Hello BP members,
I'm about to embark in a new home building project as an investor and desperately need advise. I just recently met a very nice and well versed in construction individual that has a team of people on his side. This is what he proposes: He will be getting a Hard Loan for 70% of LTV (though I can provide all of the investment money) and the rest I put down. He has provided a 22 pg. with all the cost associated with building (though the flooring and lot were not included but is adding it and the total will still be the same as before $120K). He has the overhead and profit (of his) included as well in the list. When the property sells at roughly $150 the difference will be my profit (30k). Question: How is my investment protected and does this scenario seem right? What should I be looking out for? Thank you for your valuable time in responding!!