Owner/Builder GC Experience

[Christine Cheyne]

Investment Info:

Single-family residence other investment.

Purchase price: $65,000
Cash invested: $217,000
Sale price: $365,000

House appraised at $365,000 at time of completion. This was 100% new construction financed loan leading to an end loan.

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

The current market gave me no options. I was working for a new construction builder at the time estimating the cost to build all designs for the subdivisions. House prices were high, I was young and couldn't afford a home I wanted to buy. It became apparent to utilize my skills to design a budget-friendly floor plan, buy a lot, send out the plans for bids, obtain financing, and be my own general contractor from start to finish.

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

Worked with a local real estate agent to find the lot, dug deep to find creative financing after learning a traditional construction loan wasn't going to work requiring 20% LTV on final construction costs.

How did you finance this deal?

Found a local company who did owner/builder loans for all construction costs & secured the end loan.

How did you add value to the deal?

With my college education in design/architecture and my work experience in new construction plus a lot of sweat equity!

What was the outcome?

A successful build job within budget, on time & an appraisal way over job costs.

Lessons learned? Challenges?

I'd do it again & again...this time with less sweat equity though!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Everyone we worked with is either out of business or does not offer the program anymore