All Forum Posts by: Reid R.

This specific project is to partner on the construction of one SFR along hole 8 of the golf course on 2.5 acres of wooded land. The builder is under contract to purchase the land and is scheduled to close at the end of May.

Project Overview:
- Total Loan: $2.9 million (comprising $1.1 million for land acquisition and $1.8 million for construction)
- Interest Rate: 12%
- Points: 3%
- Equity Partnership: 50%
- Opportunity for Investment in Future Projects, with or without Capital Contribution
- Anticipated Investor Returns at $4 million Sale Price: 18%-23% ($500k-$700k)

Key Financial Considerations:
- Interest and points will be disbursed in arrears and will compound throughout the loan term.
- Projected completion timeline: 12-24 months
- Estimated sale price: $4 million
- Potential Upside: Off-market sales indicate the possibility of a $5 million sale price. With a 50% equity stake, investors could realize returns nearing 35%.

We are building a home that is intended to be our primary residence in Morrison Colorado. I am currently working with a local bank that has a jumbo construction loan product, they do not go above 43% DTI, the bank has said the max loan amount is $900k. Our build budget (with contingency built in) is $1,100,000 (this includes $200k to pay off land). We have already received an appraisal on the home that came in at $1,700,000 ($1,625,000 with unfinished basement). We are planning on breaking ground in about 3 weeks once permits are issued, they are currently in the building safety phase. We have hired a fixed contract builder that has incentives to finish early and penalties if they finish late, we expect the build to last 9 months.

We purchased the land in April of 2022 for $270k and put $70k down on the property. We believe the land is worth $315k today. We currently live in DTC, we owe $215k on our townhouse and will be selling it when we are complete. If we were to list it today we would list for $375k. In all we have about $275K in equity between both properties that you would place a lien on.

Our exit strategy is to purchase the home ourselves when it is complete. We would get a traditional mortgage on the property, which will be fine because traditional jumbo loans can go to 50% DTI. We have already received pre-qualification letter to purchase this home. If for any reason that does not work we will sell the property and expect to get near $1.7MM for the home. I can send you a few comps as well, appraisal says $1.7, comparables indicate closer to $1.9MM.

2 options that we are looking at-

1- A loan of $150k-$200k to cover the difference of budget vs bank loan
2- A loan of $1.1MM which would cover the entire build 

Looking for a cash investor or an investor to carry hard/ private money loan for new construction project in Morrison CO. Completion expected in 9 months. Comps in neighborhood are 1.7MM- 2.2MM

Cash scenario

Lot + build cost $1,300,000.00 ($120,000 contingency built in)
Closing Cost 7% $122,500.00
Sold Price $1,750,000.00
Net profit $ 327,500.00 (not including contingency)
ROI 25.19%

Project is in permitting, ready to break ground in 4-8 weeks.

Hard money would be $300k out of pocket expecting over 50% cash on cash return.

Looking for a cash investor or an investor to carry hard/ private money loan for new construction project in Morrison CO. Completion expected in 9 months. Comps in neighborhood are 1.7MM- 2.2MM

Cash

Lot + build cost $1,300,000.00 ($120,000 contingency built in)
Closing Cost 7% $122,500.00
Sold Price $1,750,000.00
Net profit $ 327,500.00 (not including contingency)
ROI 25.19%

Project is in permitting, ready to break ground in 4-8 weeks.

Hard money would be $300k out of pocket expecting over 50% cash on cash return.

Is anyone willing to help me out with a BPO in Morrison Colorado on a new construction SFR. Ideally, someone familiar with mountain/ luxury properties. Will pay for your time.

As the title says, need a lender that can close this in 30-45 days. 

As the subject says, need a 10% down one time construction loan. please let me know if you know any lenders that can do that. 

Looking for a great custom builder for new construction in the foothills just outside of Denver. 

I am currently under contract on a piece of land in Homestead (just past Indian Hills on 285). We plan on starting to build ASAP, who do you recommend to take on this project?

Good morning all,

Wanted some insight on something I am working on. Wife and I are are looking for lots in the mountains within 45 minutes of the city (Evergreen- Indian Hills area). We want to build a custom home and have been exploring different options. We were introduced to modular homes (prefab) vs stick build. Being told it is much cheaper to do pre-built. After research it looks like we can get what we want for about $250 a square foot. With 0 construction experience and today's crazy world I am curious if we can do a traditional stick build for similar or cheaper price? We don't want cheap quality finishes but we don't need $400 a square foot finishes either.  We are also thinking a budget of about $800k (including lot). We also need a construction loans for this project. I have heard it is hard to get construction loans because of material and contractor shortages. Any opinions? Contractors and lenders please feel free to reach out. 

Thanks,