All Forum Posts by: Eddie Starr

Eddie Starr has started 56 posts and replied 143 times.

Is there any guidance published on tactics that new home builders should embrace such as one sided contracts to excessive markups on upgrades?

This is some basic guides, I hear from my construction network:

Avoid one-sided contracts by insisting on clear, fair terms regarding changes, cost overruns, and timelines. Ensure contracts define responsibilities and protect the buyer.

Be cautious of excessive markups on upgrades; get detailed quotes and compare prices before agreeing to extras.

Embrace transparency and communication with builders to avoid surprises.

Plan for contingencies and budget for unexpected costs.

Choose builders with good reputations and clear, itemized contracts.

Work with trusted local builders who understand community guidelines and offer personalization options without hidden fees.

My own $2 (up from $0.02, due to inflation): Where you can, look for non-recourse. Have lenders/lending teams that are compatible with your goals. Are you looking for "low end," or "high end," say using $10M as a rough guide. I know some high ends, that work with foreign entities looking to invest in the US, or 144A Bond Funding & Regulation D Loan Program: 100% LTV/LTC. Set your criteria of what you want to do, and network to find people who can help you accomplish those goals.

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Quote from @Hunter Keil:

Hey everyone,

My name is Hunter, I’m new to real estate investing but not new to real estate. I’ve spent the last 10+ years working hands-on in new home construction, remodeling, and residential project management.

Recently, I launched Roman Property Developments (RPD) with the goal of transitioning into investing—starting with wholesaling off-market deals and eventually growing into new development projects.

I know I’ve got a lot to learn on the investing side, but I also believe my construction background gives me a leg up when it comes to evaluating properties, estimating repairs, and seeing the potential in undervalued deals.

Looking to connect with other investors, buyers, and pros here in Michigan. If you’re open to collaborating, I’d love to connect!

Hey, Hunter. What are you looking at doing? Are you looking at doing your own construction projects, to then rent out? Are you looking to leverage what you've done, and resources you have for acquiring CRE (NNN tends to be good, if you can find something that works)? Do you have HML/Bridge financing in place, if not looking for long term?

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Detroit, Michigan

Quote from @Sonja Micocci:

Hi! I am trying to squeak my foot in the door and want to start investing in property. I found some land in a great location and want to put a small house on it, do short-term rental and use the space with my kids from time to time. It has great potential. My debt to income with the potential new mortgage comes out at 60%. Does anyone have any thoughts on this.... I could try as an investment rather than second home, but will need more down, and I don't know any lenders that do construction loans for investment properties. Does anyone know of any lenders that will take a higher DTI? Thanks for your thoughts and suggestions in advance :)

If you're still looking, I may have some people, who do "unconvetional" land+construction options. The land requires +5A, starts at $500k, interest is +6%, takes about 3 weeks.

Construction (I'm assuming you're not looking at a big project of +$10M) is usually non-recourse, Up to 75% loan-to-cost (LTC); Structured Debt & Equity Financing Available; 10 Day Start to Finish (providing no issues occur)...however, they prefer commercial/multifamily. Maybe you can do a small apartment building? If it's raw land, they do have the option for a "hobby farm," which doesn't need to produce income. Maybe a few "tiny homes with a community garden?"

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Sacramento, California

Quote from @Roque Miranda:

Hi all,

Just wanted to check if any fellow investors have any Idea how much will be the cost of construction per SF on the Montgomery area, we are looking at some lots to build a duplex or 4 plex in the area, this will be to build refi and hold, I'm a General contractor in South Florida Miami area, we are now pricing in Ocala FL to start developing new construction and the SF is favorable to build and sale, In Montgomery we will no sale we want to keep the property, we do porches and remodel now in Montgomery and the CF is very nice, but we will like to have better and more solid properties, anyway, if someone can recommend a GC in the Montgomery area well be highly appreciated.

Thanks, all

I did some searching--homeblue, homebuilders, and a few others--depending on the grade of construction (standard vs. premium), is the factor.

One group has $110 to $170 per square foot, another $98 to $146; so you could roughly average $135 per square foot on these ranges. This estimate typically excludes the cost of land and sitework.

As always DYOR.

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Montgomery, Alabama

Quote from @Michael Santeusanio:

For anyone who’s taken on a construction loan for a ground-up build or heavy rehab—what’s something you wish you knew before starting the process?

Note, I haven't been, but I have some peers, so will relay what I can remember, briefly:

Understand the type of construction loan you're getting (standalone vs. all-in-one) and the payment structure.

Work closely with your builder to stay on schedule.

Prepare to budget for unexpected costs by including contingency funds.

Ensure your financial documents and credit are in good shape for loan approval (varies with lender).

Many people underestimate costs or miss important details in planning, which can lead to delays, budget overruns, and loan issues.

I hope this helps, a bit.

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Quote from @Brody Bice:

I’m looking to build my first spec home but I’m having trouble finding a lender. Most lenders require you to have two new builds of experience. For the last three years I have been a superintendent for a commercial construction company overseeing 40+ million worth of work. Since these projects were commercial jobs and not for myself I have not been able to find a lender. Any help?

Hi, Brody. I have a few different people I work with. A lot of non-recourse options. Land funding, various types of construction, and some others.

Depending on what you're looking for, they can do sometimes 100% LTC. Land acquisition can start about $500k; construction is usually in the millions, tens - hundreds, depending on what you're going for.

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Birmingham, Alabama

Quote from @Hussein Fakih:

Hello, I’m an active real estate investor focused in the Metro Detroit market especially Oakland county and Wayne county, with a flexible investment range spanning from cheap rehabs up to full portfolios or high-value properties up to $5 million. I’m always on the lookout for strong value-add opportunities, whether it’s a single off-market property, a cash-flowing rental, or an entire portfolio with long-term potential. My goal is to build strategic partnerships and continue investing in Metro Detroit’s growth, one solid deal at a time.

Hi there. I've various people I work with. Would you consider Joint Venture Equity? Can also do Mezzanine debt, Preferred equity, A development agreement.

We're always looking for:

Residential & Commercial Land Developments
Residential Housing Developments
Value Added Commercial Properties
Credit Tenant & Single Tenant Properties
Condo Conversions
Apartment Projects
Industrial Parks
Retail Properties
Office Buildings

Let me know if interested.

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Detroit, Michigan

Quote from @Anna Smith:

Does anyone have a specific recommendation on a lender, or can a lender reach out to me so I can send the Pro Forma for review?

Hi, Anna. I may have someone that can help. You can forward me what you have, and I can see if they're interested, and we can go from there.

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Cape Coral, Florida

Hi, Anthony. Can you elaborate a little more.

Are you looking for land, or just construction financing? What are you looking at, ie: Government projects/infrastructure; Condominiums & hotels; Agriculture; energy/biofuel..?

I have a team for a lot of different things. I just would need to know what types, to best assist.

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Raleigh, North Carolina

@Chris Seveney Thanks for your reply. Please feel free to PM me, for discussion.

There's a lot of information out on the above, and I'm trying to cut through the noise, to find out what's legit.

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All Forum Posts by: Eddie Starr

Eddie Starr has started 56 posts and replied 143 times.

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