All Forum Posts by: L R Wadsworth

After doing a little bit of research via public records, I don’t see any break in ownership or issues with the deed of a vacant lot I’m interested in. The realtor said the current owner has Quit Claim Deed that would be transferred to me at closing.

This is a very inexpensive lot and I’m doubtful there are any unseen liens or family members willing to lay claim on the lot. I would like to build a small rental home or even a low priced spec home.

I’ve purchased a lot and built in this area before with pretty good luck in selling, but not on a lot with a Quit Claim Deed. How tough will it be to turn a Quit Claim into a General Warranty Deed?

I’ve been approached to build a home but the buyer needs lending. I filled out all the request forms from their lender (as if I were the one getting the loan) and have been denied as their builder. They ran background checks, reference checks, I had to draw up what looked like a very detailed resume, and even went back through my previous jobs with listed values and extent of work. I’m told all builders who wish to build for homeowners with lenders go through this process. Most of the jobs like this that I’ve done in the past were cash jobs or refinance type funding. I fill all the experience requirements with being a licensed builder for 16 years, paying my bills, etc.... I’d like to be approved with a lender because I’m approached more often these days to build with a lender.

I went against the grain and built a tiny house to rent. I was able to squeeze a 512sqft 1/1 house in a $42k budget without financing. That’s land cost and permitting fees included. It was rented @ $550/month before the build was completed. Maybe I’m onto something or is this a shaky investment? Lots in this area are cheap and it’s near a large employment facility. It’s ideal for contractors with no long term commitment.

I purchased a vacant lot from someone that acquired it at the county tax sale last year. It came with a quit claim deed and I’m not too sure what, how, or if I need to clear it up. After talking to different people I found that I cannot insure or get a loan on the property, basically rendering it useless to me unless the quit claim deed is gone. I purchased with it in mind to build a small, low budget house for my dad to live in and maybe rent later. I’ve been told I need to wait 10 years from the tax sale or spend $3000 (lot cost was $1400) in lawyer fees to clear it for my intentions of use. I’m really at a loss of what to do? Are quit claim deeds really that hard to clean up???

@L R Wadsworth that would be interest rate, not internet

@Dan Carbone

I’m in the same boat as you, but in South Carolina and already licensed. I’ve made several attempts with different lenders and it’s always a no-go or crazy internet rates. The only advice I can give is to get equity in your home and borrow against that.

@Dennis Adler I can pull permits on my own license and have a plan already drawn. I have access to labor and vendors for material purchases. As far as housing cost, it seems to be all over the place regarding the price to purchase. There is new home construction going on in area neighborhoods but mostly on higher budgets. I really believe a smaller, well built home will appeal to many that cannot afford the more expensive homes or even those that want to downsize into something different. My thoughts on this project is to build something that I will keep and rent, or sell later to help finance another building project. Ultimately, I would love to build a small spec like this somewhere nearby.

@Jacob Sampson The size of the property would prevent anything with size. It is 60x100 and only perks for 2 beds. I’d love to figure out how to get more out of it, but a 2/1 will be the limit for this lot.

@Tamara Deering I’ve approached him in the past and no financial favor would be given. This type of home would not fit the reputation of homes that we build. The company I work for builds high end customs and this would be exactly the opposite.

I purchased a lot near my home that I want to build a small house on. This would be primarily used as a rental property and also my first investment property of any kind. I’m planning to build/contract an 800sqft, 2 bed/1 bath house. We have a good mixture of mobile homes and older homes in my area that usually rent for $500-$600 a month. I have done some number crunching and feel like I can get it built in the low $50k range. I’ve been employed with a custom builder since ‘99 and have had my residential builders license since ‘04 so most of the work would be on me. The rental market is strong here and I would likely try to rent it out at $600-$650/month. I’m capable of such a project as I’ve built many homes as a superintendent, the issue is funding... Since I’m not an actual building company and have “no experience”, finance companies don’t seem to like my idea and recommend private funding. The crazy thing is that I’ve huge equity in my home, good credit, and money in the bank -just not an investment minded wife (which could lead into a whole different conversation). Unfortunately, I’m clueless on how to find anyone that would want to tie up their money on something like this. Is my idea of owning homes that I build too far fetched for investment financing? I ran into the same issue years ago when I dreamt up building a spec house. For me, these ideas seem almost impossible unless the money is there to be spent without tapping into personal funds. I don’t know what feedback I’m looking for other than maybe one day get it all figured out and live out my real estate investment dream.