The fees, permits, and soft costs of getting ready to build a home can sometimes be $70,000 or more before you even break ground.

And don't do it soft, lower it substantially. 

@Greg Bass I have done comparable multiple times.

No Fishtanks over 20gallons and I don't think its an issue since circa 1985 but no waterbeds.It's not a one step process but its not rocket science either, use common sense and seal up the soft spot in your heart, don't fall for the "give me a chance" hard luck stories, let someone else take that on.

@Shayla CollinsMost flippers know pretty well what their building costs will be, but with new builds it adds in a greater site cost and soft costs.

They've been very problematic, but my parents hearts are sooooo soft because they have a zillion (8 or so kids).

The first step is to look for an obvious fit.Although there are a number of soft differences between the two types of methods, there is one very important distinction.

SEC attorneys have told me before that larger investors regularly want to rework the deal as you are getting near the closing since you are in a tough spot without many options.A soft commitment is worthless and nothing really counts until the wire hits escrow.

On 10,000sf I would assume soft costs of $15-20/SF and hard costs of $150-$200/SF (depending on where you are at) so best case you are looking at an all in cost of $2.2M so you would need to bring about $700k to the table. 

There are two types of credit inquiry's, hard and soft.