Construction to Perm Loan on STR Quesetion

[Alicia Hall]

All, 

We are looking to build our second STR but needing some advice from others who have done a construction to perm loan before. Our builder currently has his finances tied up in a different build, so we are needing to do a construction to perm to avoid waiting until his other current in progress build sells. Please tell me if my husband and I are looking at this correctly.

Our builders agent is saying that it should be around $400 per SQFT for pricing, but my husband and I continue to push back on this because it isn't making sense. Wouldn't you assume that it would be MUCH less than that considering we are getting all the construction loans and essentially carrying the risk? Typically, when a builder is building a home to sell their interest for taking the cost to build is built into the price, but why would it be included still if WE are doing the construction loan? They are still trying to price it as a if they are listing it and going that process even though we have the construction loan. 

How did the pricing work for you or the process in general? Thank you! 

[Tyler Solomon]

Alicia - where is the property located at? This is going to play a big factor here.