I am buying several distressed homes that need a lot of work. After taking a closer look at the properties i decided it may be in my best interest to tear down the homes and build quad town homes on the lots. I own all the homes but maybe two in the area. My plan is to build the first two on the three lots i have and finish up with a total of 5-6. My real estate agent has a builder that would do each one for around 100k. If i make the homes for low income individuals the state will pay me 40k for each one that i build once i am at 50%. Each lot i have is worth 40k and i owe 35k for each of them. Also i have about 40k in reserves.
If anyone have any resources for the Greenville, SC that can get the ball rolling i would appreciate any information.
Currently working this out.
Last week i was told this should not be a problem by a representive of the city.
Still waiting to set up meeting with City Manager. Doing PR with fire department and will be making donations as a added bonus to the city.
Construction loan with take-out refers to short-term financing of real estate construction followed by long term financing, called a “take out” loan. This “take out” loan is issued upon completion of improvements. Construction loans normally work together with take-out loans.
For example:
1. The land developer gets a construction loan to build a cluster of homes.
2. When all the homes are ready to sell, a buyer gets a take-out loan from a lender to purchase one of the new homes.
3. The builder uses part or all of the money from the sale towards paying off the construction loan.
** The disbursement of the take out loan is contingent upon completion of construction and, in most instances, needs to be applied toward the preceding construction loan. There are funding sources in our directory that provide this type of interim financing.