All Forum Posts by: Bob Ross

Well, a law just passed here inMA making them completely legal.  Also my basement is a walkout so it is partially out of ground.   I don't think it would be super costly.   It's just.  Does having e legal rentable space make the home more valuable than simply just finishing it? 

I want to finish my basement to get more living space, but also to increase the value of my home. I was thinking to make it into an ADU with a bathroom and kitchen and then either rent it out or just use the space as an extension of my house. Would have it be an official ADU make my house more valuable than simple finishing the basement and adding a bathroom, bedroom and kitchenette in the basement? Also if it's an a Adu, would be current 3 bedroom 2 bath then be considered a single family 4 bedroom three bathroom house?

thank you 

@Jeff Sine   What kind of banks offer asset based loans? 

@Mike Klarman think could your 40% be home equity or an approved home equity loan sitting untouched? 

I am looking to build a spec house.  Bank have told me I need 2 previous successful builds to qualify for financing which I don't have as this would be my first time. 

I don't want to use hard money lenders as I have heard horror stories of them not releasing funds on time.

my plan is to try and get a home equity loan for most of my financing.  I was planning to finish my basement as this would nearly double my homes sf, then reappraise in order to get as much home equity as possible.

do you think this is a good idea? Any other ways to get financing?

thanks 

Do you building a duplex (2 condos) is a good first development project? I think smalller condos will cost similar to build as a single family home. The lower cost of the condos may go quicker, however do you think it is too complex for a  first timer? I know there will need to be a trust established and things like that.  Thanks 

Great! Yes I think this is where developers make their money, but it's obviously not an exact science. If all boxes have been checked, then I guess it's just a matter having the confidence of pulling the trigger.   Curious, do you do anything as far as title searches? 

Does anyone use a due diligence checklist for determining if a site is a good buy for developing a single family or duplex home (or anything g else) Is it something you developed yourself over time or did you purchase or find one online?  How do you ensure to conduct proper due diligence when purchasing a new site?

What I’m saying is, this shouldn’t be considered “throwing money away,” it COULD be used as a way to increase equity which would leave me with more money (via equity) than I started with to then reinvest in real estate.

I want to put an addition on my home - I want more living space for my family and to change the look of my home.

I am also looking to become a real estate investor.

Is it an ok strategy to build the home addition, which will in turn increase my home equity (by more than what I can build it for) which I can then access to fund other real estate deals? Or is it foolish to build the addition, and I should use the funds I have first to invest in real estate.

Thank you