I have a building lot with a partner. My partner is very solvent and will co-sign deal. My credit is garbage but his is very good. his net worth over million $. We want to build a spec house on a 7.76 acre lot with a building permit in hand. We have a $60,000 note on land. Looking to pay off note and build a 4 bedroom colonial - approx retail value $375,000 - 395,000. Note: my partner is trying to keep his money liquid for a multi family project he plans to start within 3 months - he plans a 4 unit, selling 2, keep 2 for investment. Our goal is to build 3-4 homes a year. He was going to self finance this multi family project, but if I can show him the benefit of bank finacing, keep his financials as extra collateral/security, I believe he would use this route.
looking to borrow 275,000 - 280,000 (includes lot cost) with reasonable interest. I will build house with my partner. My partner will start the project with his own money (to be reinbursed at closing or construction draws) if a commitment letter is given guaranteeing financing. The reason for this is our permit Runs out June 15th if we don’t start. Once we start, get foundation in ground, the permit is good for another 2 years.
Our realtor has advised us that lots without a house don’t move quick so we would like to move forward.
I have a full set of architectural plans, building permit, 6 bedroom septic design and cost sheet fro complete construction breakdown in hand.