All Forum Posts by: Allen Bounds

 I'd like to build more spec houses but I need a new financing strategy. My previous builds were with hard money at 6%. I am hearing 10%-12% now. My margins range from 7%-13.5% on $500k+ homes. Not much meat left unless I find a way to build cheaper.

New building to keep is an interesting idea. I don't have any experience with LTR or STR so I would be starting with zero knowledge. I might be able to self-fund 1 new build with a HELOC.

Florida Residential Contractors can build up to 3 family buildings.

1. The cheapest I have seen is around $200/square foot. I mainly build on the higher end $300-$350/square foot.

2. Wetlands issues are common. Flood plain issues (building on elevated structure is common). Good school zones can be hard to find (if that is your clientele age).

3. Depending on budget I'm pretty good, ha! Let me know the project details and I can name a few.

4. Depends on how you structure it. There are 2 banks that do most of those types of loans here.

Good luck and welcome to the area!

I have a Lowe's Pro account. Here are some more things to consider:

1. The interest rate is very high. You have to commit to paying it off every month or the discount does not make financial sense.

2. Their item numbers and descriptions are very vague. I have to look up most parts to see what is actually purchased. This takes some time.

3. The discount rate you start with may decrease with time, check the offer prior.

4. Having the card can make you kind of lazy. For instance, I can get certain products cheaper elsewhere but sometimes it is just easier to throw it on the card...

The cool thing is you can try it on smaller things and figure out what works best for your operation. Good luck going forward!

Hello BP! I have decided to get off the sidelines and start making some progress with real estate. I have floundered around trying different things in the residential real estate world, mostly with SFR. I'm ready to develop some sort of strategy and move the ball forward!

Background - I am an Architect and Contractor in Florida with 25 years of experience. I have designed 300+ custom houses, constructed 6 custom homes, built 5 spec homes, flipped 2 homes along with various smaller projects. I primarily work with higher end projects on the water. I am happy to lend my knowledge on any of the above!

Feel free to reach out and thanks for having me.