All Forum Posts by: Dustin Morgan

Congrats @Kenneth Bell 

Would you be open to sharing more of your experience with iFunding?  What kind of information did they request when you presented the project and while they were vetting you?  What kind information did you have to provide to them during construction?  What did you have pay to iFunding in fees? Does iFunding hold the title? Thanks

I'm looking to purchase a residential that the seller is willing to carry the note on with 30% down.  Can I build on this lot before paying off the seller if I'm using cash for construction?  The seller would remain first lien holder.  The only downside I can think of is that if things were to go South and I couldn't pay subs or suppliers (hypothetically, I wouldn't start the project with out the funds in place to finish it) and stopped paying on the lot than the seller would be taking back a property with possible liens on it.

Thank you everyone, I will take your advice under advisement.

@ John Blackman  How long do you anticipate this property to sit on the market?

Thank you for the responses.

I also have a business partner so holding a property in my personal name would not be an option.

Jim - Wouldn't the bank require the title to stay in your name?

I'm assuming banks do not lend to LLC's, so how do investors that hold their properties in a LLC's finance them through banks?

Please give me your opinions.

I'm working towards my first spec build. The first few are going to be hard to fund so my plan is to start small. I have purchased two vacant lots, one with cash for $19k and the other is seller financed for $21k w/ 30% down. The lot I paid cash for is a nice lot w/ a great view that I felt deserved a larger home so that is why I bought the second lot. Both lots are held in the same LLC.

I had plans drawn up on a 1500 sq ft home and got bids to build. Construction cost is going to be $130k so I will be into this project for about $100/ sqft.  Comps in the neighbor hood are all over the place $90-$150/ sq ft with the new construction homes right around $140/ sq ft.  The house next door to the lot I am planning on building on is for sale for $143/ sqft with a pool and has been on the market for 45 days.  I want to sell my spec as fast as possible since I will be paying high interest so I'm thinking I should shoot for $120/ sqft.  That would net me about a $20k profit.  Tight margin but would hopefully help sell quickly but at the same time I don't want to hurt the comps and make my next project worth less. 

Feel free to share your opinions or advice for a new developer.

New member here from Western Arizona.  I am self employed in the construction industry and looking to expand into real estate development.  Working towards my first spec build. Any advice would be appreciated.