All Forum Posts by: Derek Malveaux

Good luck Drew!

Thanks everyone, this is much needed information.  The lender did agree to change the terms to interest payments only on the amount drawn.  Juan Lara, I think you are correct about this lender not being a direct lender, as 2% is going to the lender and another 2% is going to a third party.  I will continue to shop around.  Lack of a track record has been a much bigger hurdle than I expected.  My plan is to increase my liquidity and are bring in an experienced partner for better rates. 

Thanks for the replies.  I didn't know fixed monthly payments on the entire loan was a practice with hard money.  @Andrew Postell my goal is to sell after construction, but I would consider refinancing and renting if the market calls for it.

I was recently approved and received loan terms for a new construction SFR spec loan. I have experience with fix and flip but this is my first new construction project. The interest rate is 12.5%, which is understandable with no track record. The loan point is 4%, high but i'm new. What I was not expecting was a fixed monthly interest only payment on the full amount of the loan. This includes paying interest on funds that have not been drawn. Is this common for new construction loans?

Guys, thanks for the feedback!  You have given me some very useful information.  I truly appreciate the help.

Searching for an appraiser in the Houston area that can appraise a proposed new home construction.  I'm trying to decide what to build on my lot, but what I'm planning will not have any comps for the area.  I'm hoping an appraiser can give me a valuation based on a blueprint and the location. I don't want to build and then have the home not appraise for what I need to sell it for to make a profit.  Any help is appreciated.