Hard money loan flip to myself to get equity out

[Darcy Maiangowi]

I want to build a home. I've spent the last year and a half building my credit up to 600 from 457. I want to be the general contractor and build my own house. My brother who has been a foreman building houses for 10+ years is going to work for me.

I've found a local company that offers a DIY service to help walk me through the entire process, from financing, hiring subs to permitting. They are also a home builder so they have many local relationships.

Now my problem is my down payment equity for a conventional build loan. I've found a bank sale lot that I can get for under market value. My idea is to have my wife buy it with a hard money loan, then turn it around and sell it to me with a hard money loan for 15k more bringing it to market value.

Then using that 15k as my equity / down payment. Thoughts, tips, advice?

I'm located in Baytown, Tx.

[Mike Hanneman]

Most HML's won't lend to owner occupied homes. The properties being lended on must be an investment property. It's harder for them to foreclose on an onwer occupied property, so they don't lend on them.