Posted by Mark Levin on December 28, 2000 at 19:27:58:
be careful with that. My friend did the same esact thing, and ended up having forfiets on atleast half teh lease options. Thats a risky business, I myself lost my first lease option. They are not taken as seriosuly as other contracts
What type of Loan/ Lender do I need? Help!! - Posted by JeneanNC
Posted by JeneanNC on December 28, 2000 at 19:20:35:
I want to purchase 4 to 6 SFH from a builder at a discount. Then when the homes are complete I want to sell or lease/option them individually to home owners.
I need a loan/lender that will finance the entire deal but release each property separately for the new buyers when the homes are complete.
In this area some builders will sale a block of new homes at 70% to 75% of the FMV in a new sub-division when starting up the project. The builder will take about 4 to 6 months to complete the construction of the new homes, which will give me time to find my new tenant/buyer.
What type of loan will best fit my needs and what type of lender is best to provide this service?
Help, the opportunity is now!!
Re: What type of Loan/ Lender do I need? Help!! - Posted by Ed Garcia
Posted by Ed Garcia on December 30, 2000 at 16:21:17:
Jenean,
First of all Jenean, I don’t believe that the builder will sell these houses at 70 to 75% of market. That’s just about what a builder makes if he’s done his project right in a good market. I find myself questioning the market, if he’s willing to sell with a discount that even resembles what you’re suggesting. In another words, if I were in a hot market, I’d be a fool to sell off 4 to 6 houses at such a discount and lose good inventory.
Another thing I’m trying to understand Jenean, is if the builder is going to build these houses, why don’t you just tie up 4 to 6 under contract in you name or assignee. As you stated, the builder is months away from completion, which gives you plenty of time to flip them. What you could do is go to a broker and get pre-approved for financing on these various houses prior to building.
Now if you’re going to JV (Joint Venture) with this builder, then what you’re telling us could make sense when talking about financing. But if you’re not JVing, then Jenean, there is no reason for you to acquire financing. As you said, You should have the houses sold before, or as, he is building them. The only reason to lease/option new houses, is if the project is in trouble, and the houses are not moving.
Jenean, I want to wish you and your family a Happy New Year,
Ed Garcia