Spec Home Lending for New Builder

[Dan Carbone]

Does anyone have a lender in Florida that will Lend to a new builder for spec homes? Currently I am a Construction Manager for the largest production home builder in the US and have built a few hundred homes ranging from single family, villas, town homes 6+ unit, and luxury estate homes. I have also flipped homes and done hard money lending, but really don’t want to go that route on a spec. I am in the process of getting my GC license and want to branch off and start my own company and maybe build 2 specs at a time. Any information is greatly appreciated.

[Greg Dickerson]

Originally posted by @L R Wadsworth:

@Dan Carbone

I’m in the same boat as you, but in South Carolina and already licensed. I’ve made several attempts with different lenders and it’s always a no-go or crazy internet rates. The only advice I can give is to get equity in your home and borrow against that.

 There are lots of options available to you. If you have good credit and cash reserves you can get loans from a bank you just have to find the right one that likes to do development loans. Some building supply companies have spec loan programs and there are asset based lenders for spec houses.

Other than that you can raise private money which is a great way to go.