New Construction Money Needed

Hello we own 6 lots in the state of florida that we would like to build homes on, we would like to know how we can get started using private money to get started.

Yes we owe money on the lots and no we are not builders but have been in the building industry for many years and understand how to build a home.

The homes we will be building will all be the same house over and over again and the home should appraise out at $140k at least.

We owe 25k per lot right now and dont have the funds to start building so im looking for ideas.


How many square foot per home?
How much per square foot to build the home for a start.
Sean 8)

Each home will be 2060 sqft

We plan on building the homes ourselfs and have only the need of a septic and well driller which cost under 10k for them in our area.

The cost of the home for material is basically all we need which should run no more than 60k and each home will appraise out to be atleast 140k.

So lets do a spread sheet…

Lot 25,000
Materials 60,000
Well 10,000
Labor ??? 70,000
Interest 8,000
total 173,000

Sale price 140,000

Minimum Loss 33,000

Could this be why you cannot find financing? Forgive me for being presumtuos but if you know how to build a house how could you not know this simple math?? Does this not sound like a upside down deal???

Sean ::slight_smile:

i am not going to mess with the math till i get all the facts! what are the vacant lots worth? and what kind of financing do you have in place for the lots?

No no the math you got is incorrect.

I owe 25k per lot which I know will have to be paid off before I find a construction loan.

There are no labor fees except 10k for the septic and wells to be put in. (we are doing all the work)

The material cost to build one of these homes is between 50-70k at the most. (alot of building material we already have infact a tractor trailor full of it so this may be way lower)

And we can sell the homes for 140k easily. (homes in this area sell for atleast 140k)

So our total cost to build the homes is between 50k-80k total after the lots are paid off.

Im not sure where you came up with 70k for labor when we are doing all the labor except for we are hiring out the septic and well installation.

We have a private person who is holding the first note right now on the lots, I guess that I could ask him to move the notes to a second or pay him off when we find a construction loan or sell the home.

The total price we need to build the first house is between 50-70k at the most since we have almost everything needed to build the house in a tractor trailor right now.

Our labor we are doing 90-95% of that ourselfs and like I said I think we have enough building material to build one or two homes already but didnt want to start the project without some financing just incase we needed something and had to go out and purchase it.



I know that there is enough lumber and material to build atleast one house and as far as labor goes why would we need to pay for things that we are licensed to do already.

What we need is a 50-80k construction loan thats the total it will cost us to build the house TOTAL.

We built one house and it only cost us 35k to build the house it was 300sq ft smaller but it worked out real good now we want to do it again and again instead of one every two years .


See every time you post I learn alittle more.

If you can do this deal this cheap, I do not see why you cannot get a loan with your equity in the deal as your down payment. All you need to do is get an appraisel. If you do not want to pay for an appraisel up front, gather all of your iformation and go sell it to a bank, they can ussually make an intial commitment, based upon the information and subject to the appraisel. If the property appraises at 140k, you are good to go. If the first house goes well they will be anxious to do more…does that make sense?


Yes it makes sense the problem we are running into is that the banks want us to own the land free and clear first before they will loan us the money.

And although we are licensed carpenters they want us to be licensed general contractors and were not such as life. So our first step is to find a way to come up with 25k to pay the first lot completely off and then go to a private lender instead of a bank.

Which leads me right back here looking for anyone who would loan us the money to pay off the lot or to pay off the lot and give us a construction loan.

Does your state require you to be licensed general contractors?

If it does, then you may have to look for private money. Look locally!!!

Good Luck

We can build our own home and we can file permits in other peoples names to get around the license thing but the banks wont give owner builders the funds in the state of florida that I know of ., atleast not unless we paid off the lot first anyways and that still leaves me right back here seeking someone to loan us enough money .

Since you own several lots, and this is a private lender, who it would seem would have more flexibility to work with you, would he be willing to release the lien on one lot, and place a larger lien on the other lot(s) so you can start building? There is probably more risk there for the lienholder if the lots aren’t worth what the lien is, but if you have a feasible plan, maybe you can talk him into doing it.

Just a thought–I have no experience in vacant lots or building houses!

Question, whom do you have set up to do your Financing, once they are built and sold?
Luis Torres


You were nice to them! I would have put a number of other items on that list.

They should have done the math first.

Regards, Frank

Since the lot is partial paid off, you can a get a 100% construction loan. Please feel free to contact me.