Own land and looking to build on it - Need help finding financing

[Dustin McGee]

Hey everyone! 

I bought land from my parents using owner financing. I owe about $26k on their loan and the lots next to it are selling for $75k-$85k which makes me think ours would be worth the same. I would like to build a house on it but I am having issues finding financing that works. I am going to build the house myself (I have a background/experience) which will save a lot of money. My plan is to build for as little as possible and get it refinanced after it is finished. In hopes to be able to pull some equity out to invest in another deal later in the future. Would really like some feedback on how I can finance paying off the land and the construction cost.  Thank you! 

[Chris Seveney]

@Dustin McGee

You will not find a lender that will let you build it yourself unless you are a licensed GC, doesn’t matter how much experience you have

What you could do is pay a local GC a flat fee to pull permits and you be a sub to them and you hire everyone out. In that instance you could get financing. Construction lending typically go up to 70% of cost so if your new build is $300k expect to have to contribute another $90k. Some may appraise the land and use that and others may not.

First hurdle is the GC as that is your choke point right now