New Construction in Denton, Texas

[Nathan Carsten]

Hey BP,

I live in Denton, TX but each of my 4 investment properties are out-of-state due to high purchase price and lower cash-flow on most properties in my home town.

I am considering starting my search for some off-market empty lots closer to home that I could put new construction on, doing a lot of the interior finish-out myself.  (sheet-rock, texture/paint, flooring, fixtures, cabinets, etc...).

I have done 5 rehabs on previous properties of mine, with 2 of them getting down to the studs and enjoy getting to do a lot of the work.  What I don't have a lot of experience with is:

1. Confirming that there are no restrictions that would hinder plans, prior to making an offer or at least before purchasing the property.

2. Getting a good set of plans.

3. Hiring many of the sub-contractors that I would need.  

4. I have a potential partner that I would like to approach about partnering on the deal, so I may be able to bypass getting a loan. But if that didn't work out, I'd need to do more investigating with the local banks to determine their requirements.

5. Lots of other stuff that I'm sure I'm missing....

Any advice is much appreciated!

Thanks, 

Nathan

[Bruce Lynn]

You may have to borrow from 401k if you can or retirement funds for financing.  You can also check with some of the local banks to see if they would finance you.  Right now also might be a good time to do cash out refinance on your primary or maybe your rentals.

As a firefighter I think you would know all the trades.  Seems like there is always one guy who knows framing, another that can do electric, another that does plumbing, etc.

To me you do want to know your trades and have them lined up.  There is a lot of construction going on in DFW area right now so there is a shortage.  If you don't get your trades working on time and it extends your build time, that can be tough on your financing if you go that route.

Seems to be a shortage of multi these days, so you might could make some decent cash building 2x or 4x in areas like Krum, Sanger, Aubrey, Cross Roads, Collinsville, Gainsville, Valley View, etc.