All Forum Posts by: Ben Mosier

@Andrew Postell

Yeah that makes sense. I guess my question was for anyone was does it make sense to use my own money to fund the deal instead of paying the interest (7%) but would have to pull it out of the high yield savings which pays 5% therefore would be a gain of 2%?

Or is there a better use for the cash in the meantime? Again I need to have the cash back in 12 months roughly to use for another project.

@Andrew Postell

Yes there is a total amount that can be pulled. It’s set up to be taken in 4 draws as the new build progress but I have skipped the first 2 draws so far. And I’m at the point where I need to either take a draw or pull money out of the high yield saving account to start funding it.

@Andrew Postell

I’m not sure if I’m understanding what you mean about talking the final draw at the end… are you saying make sure the lender doesn’t have an issue with me doing that ?

I’m and trying to weigh out whether or not to use cash on hand or New Construction loan….

I am in the process of building two triplex townhomes buildings for a total of 6 units. I have a new construction loan in place with a rate locked at 7% percent. I have yet to take a draw from the new construction loan.

I have the funds in cash to cover the cost of the builds in a high interest saving account earning 5%. What I’m thinking is to use the cash to fund the buildings instead of paying the 7% rate and would in theory be earning 2% more than the saving account. At the time the buildings are finished and rented out I will pull all the money off the new construction loan and pay myself back.

I need to use the cash in the next 12 months to fund the build of another project so I am trying to make the best of the money over the next 8-10 months without risking the principal.

Does this make sense? Or anyone have a better idea?

@Jonathan Bock

Thanks for the reality check. I have one other option I have been thinking of and just wanted me to make sure I’m thinking of it correctly….

I am in the process of building a 3 unit apartment building which I have a new construction loan on it at 7%. I have yet to pull any funds from the loan yet and if I don’t take any draws off the construction loan and fund the build with the cash in have in the high yield savings that would be like getting a 7% return on that cash? Then once the building is completed and rented out I can pull all the money after the construction loan and pay myself back.

Let's say one has an excess of $500k that is in a high yield saving account earning around 4.5-5% APR. What are some other options that would /could pay a higher return that allows for the money to be relatively available. Also without huge risk of the principal being lost? I understand that other options than a saving account come with risk. Just trying to see if there's a better place to put the money in the meantime. The money is going to be used to build 30 new unit townhomes in the next year and half. That is the timeline to start the project so I need to keep the funds to get that project going but also want to receive the best return in the meantime.

I have a piece of property that is has already been rezoned R3 that I intend to build apartments on. The land will allow for 30 units based on the zoning requirements. I am considering building townhome style units. I’d like other opinions on wether I should build one of two options.

1. 3 bedroom 2.5 bath 1500 sq ft 1 car garage. Would need to rent for around $1800-2000 a month

2. 2 bedroom 1.5 bath, 950-1100 sq ft no garage. Would rent for $1100-1250

The 30 units would be made up 5 separate buildings. Maybe should do a mixture of both. Anything else I should consider building a new apartment community?

@Evan Polaski

Thanks for the info, greatly appreciated I’ll give that a try. I’m currently willing to go outside of Tipp or Troy area but at this time it will have to be in a manageable distance to where I can still manage the properties myself. I have never worked with a property managers before and feel I can keep my profits much higher doing it all myself. Not saying that I’m not open to it, it’s just an unknown area that I’d have to get comfortable with.

@Zeke Liston what’s the best way to get in contact with wholesalers?

@Zeke Liston I search everyday I know. On market, for sale by owner, Sheriff sales. Online. Have any ideas to find property’s?