Need financing help :(

[Jose A Serrato]

Investment Info:

Single-family residence other investment in New Caney.

Purchase price: $45,000
Cash invested: $33,000

Have land currently under contract for 45,000 to build a one story 2622 sqft single family residence with 4 bedrooms & 3 full baths.

Land Details:
$45,000
29,632 Lot Sqft
Public water & sewer
Located in Roman Forest New Caney, TX

Est. Sale Price
$400,000

Construction Budget (doesn't include Fixed Costs)
$243,000

Not even 3 minutes away from land, Tavola subdivision is being built with new homes priced from $300,000-700,000.
Similar build to ours is going for $440,000-480,000.

**Check my profile investments for home elevation, floor plan, & lot.**

What made you interested in investing in this type of deal?

I've been around new residential construction since I was a kid in middle school, every weekend when I was off from school my dad would take me to work with him. All summer break instead of hanging with friends or what not I was in job sites.
I've seen many master planned communities from start to finish hence my interest of becoming a home builder along side my father.

How did you find this deal and how did you negotiate it?

On the MLS.

How did you finance this deal?

Currently have a hard money lender with a loan amount of $273,000, currently waiting on lender for the appraisal of the new build. Only problem we have is cash reserves. We need 20% in reserves of the construction budget hence $48,600, PLUS cash needed at closing of $33,487. This totals to $82,087... we only have $60,000 cash in the bank to play with plus roughly $6,337 in available credit which the lender accepts. Still short $15,750, lender allows others to bring money to the table.

Lessons learned? Challenges?

Cash reserves is the challenge for me so far. Would like to find a partner willing to bring some money to the table & in return profits will be shared.

Floor plan