I am getting the property for 335,000 (paying 20% down) but in the time it took to construct it ...2 years...it has appreciated to 365,000.

hello everyone i need a little help in figuring out what i should do next in this pre-foreclosure deal that has came to me.well first off the way this deal came to me was i went to my local sheriffs dept and picked a list of the foreclosures, i mailed them all a letter stating how i can help them and etc.well one of them actually called my number and left a message, so after two days had passed (yah i know i was nervous and etc) i had called the homeowner who left the message.so i started speaking with the homeowner and started building rapport and etc. well anyway the homeowner was very upset and told me from the start that he doesn't want to lose his house (he has four kids), he told me he had got a mortgage on the house for $180,000 and now he has it paid down to $90,000 (so there is alot of equity there), the property is also in perfect condition, he also told me that he had fell on hard times because he works in the construction business and he had broke his wrist and something else and was out of work for awhile.then he told me that he was back on his feet and has been working now for a year, but the bank doesn't care because they want all of the back payments and etc up front.......so i told him lets setup a meeting at his house this tuesday to go over all of this farther (but i told him i will not be giving him a decision at this meeting, that will come later, i did this to buy some time and etc)so anyway, what should i do?

It is all brand new construction, so new roofs or major repairs should not be needed for the first 5 - 7 years (hopefully).

I hope someone can give me some things to think about.Good things about the house:Quality construction from 1968.

I have been in construction all my life and decided I should be doing this fo myself and making more money and having a future.

OK, my question is, would it be smart, since I'm looking several business, starting out with one LLC to act as General partner to all the different businesses as LP's LLC as general partner and me as a limited partner in construction LP real estate investment LP coin dealer and financing LP That is to start, if any one business takes off I will create a LLC just for that one business so the other LP can't touch the asset of the thriving Business. any thoughts would be appreciated.

if you paid cash and it holds value(equity) one option would be, a bank could give you an equity loan on the existing equity or better find a bank that does construction loans and they ll lend you what its worth now or what it will be worth upon completion. the money will be given in draws as you complete certain phases of the job so you ll have to plan out were and when the money gets spent example windows/carpet deposits and payoffs. another option would be to find partners(investors) to help with the construction costs

Especially don't assume because a family member was handled well by your buddy on a new construction residential loan that the next person will get the same experience.

After the completion of these projects in 2004, citizens voted to extend the duration of the tax to inject $700 million into the troubled Oklahoma City school system for renovations, new construction, etc(ongoing, see link).

Believe it or not, pre-construction still has its opportunities in the right area with the right project.