Spec home dilemma

[Aaron Aguilar]

As an architect by trade for over 20 years, my dream has been to build what I have designed. As in the business of architecture, after every completed project is done I’m basically unemployed. With that being said, I wanted monthly cash flow and just opened up a franchise business that will provide monthly cash flow while still continuing to work at my “day job.” To pursue my dream, I reached out to a friend who is a contractor to get advice of how to go about doing this. They referred me to a developer who has 6 lots and is willing to partner with my by throwing in the lot, and I get the financing. We will then sell and pay him back the lot and split the profit. The lots are 1 acre plus in the Davidson, NC area and plan on building about 3,200 sf 2-story that are currently being appraised at about 550k. We can build for 100/psf, plus the lot at 80k, I will do the plans and permitting, while we will split the GC duties. My big hang up is that I will be responsible for the monthly interest payments until it sells and just opening up a business, I used my cash and business credit cards to get up and running. Is this too risky for me and my family at this time? Should I pass and save up the cash or think outside the box?  Thanks for your suggestions!