All Forum Posts by: Shane Mcc

@Curt Davis 

Con's - borrower defaulting

I would think if the borrower declared bankruptcy you would already have a reverse quit claim deed in place to take back the home, your in the first position lien on the property.

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Is the borrower defaults is it possible for you, as the lender to somehow not get the home?

I've been combing through a lot of hard money loan questions people have been asking the past few years and a lot of the questions often come from the perspective of someone trying to obtain a hard money loan. I know this website/forum primary focuses on real estate investing in homes, multi-family, commercial etc.. but I'm going to ask a question coming from the perspective of the hard money lender (I'm not actually a lender)

1. What are the pros of being a hard money lender?
2. What are the cons of being a hard money lender?
3. If one of clients (the person your lending money too) declares bankruptcy can you (as the lender) lay claim to the property because it's an asset-based loan? or the fact that it's an asset-based loan does not matter and you can't legally claim ownership of the property
4. I know this question is local specific but whats the typical APR on an hard money loan?

@Bill Gulley 

Why don't you chronicle your journey here if you build it yourself? That would be an interesting read for people thinking of doing the same as well as builders / contractors.

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That sounds like a good idea but I'm leaning hiring someone to do the work. I'll might chronicle the work anyway. That could be interesting. 

@Eric Bowlin 

You won't have this benefit and will pay full 'homeowner' price for everything. Any savings you MIGHT get will be offset with higher costs on subs. Your GC will have accounts at the lumber yards and suppliers and get significantly discounted materials as well. On top of it you will carry ALL the liability (this is not a small consideration).

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If a contractor is paying wholesale why would he resell me those products/materials at wholesale prices? From what I understand, if the contractor is paying $10,000 in materials he's prob. going to charge me $15,000 for said materials. 

Who's to say I can't form an LLC and create an account at the lumber yard (or just simply create an account) or HD/Lowes and deal with the person that handles local contractors and get wholesale prices

Hi Everyone

I'm new to real estate investing and this is also my first forum post on BP. I purchased land about 6 months ago and my goal is to develop the land. More specifically, I want to build my own home. I've gotten a few quotes from various GC's and they are all quoting me prices higher than I want to pay. My goal is to develop/build the home myself but my problem is I don't have any real estate experience whatsoever. 

The land is 17,000 square feet. It has water, sewer and gas hookups. I have a 20ft variance on both the east and west sides of the property and a 35ft setback in the front and back.

I'm working on getting plans from a local architect. My question is this, after I get these plans from the architect what do I need to do next? I know this a very broad question but please understand I'm a amateur at this and please put everything in layman's terms.  Thanks, looking forward to hearing from everyone.