Construction Loans...

[skifaster]

Anybody here do them or have a contact of someone that does? This would be for a single family custom home project. Construction lending seems to be nearly non-existent with this wonderful economy. Anyone with experiences that have gone through the process to share would be great too.
Thanks.

 

[FASTJTBT144]

How much you talking about? I have a private guy tht ventures sometime
? Bill

 

[whiteworks]

If the lot is free and clear and your financials are good, you have a slight chance in hell. If its close to Upland I'd love to bid on it.

 

[skifaster]

If the lot is free and clear and your financials are good, you have a slight chance in hell. If its close to Upland I'd love to bid on it.

That is what I'm seeing. Private money only so far. Lot is free and clear and in Corona. The pics of all your work WW already has you on my list when the time comes. Very early stages right now. Thanks.

 

[whiteworks]

have you put together any preliminary numbers to see how much you will need? I put in a call to a potential lender, should be hearing back from him in a few minutes to see if they would consider touching something like this.

 

[Mandelon]

I have a little lot in mid town I'd like to build a duplex on. Its free and clear. I have looked around but haven't found any funding yet.

I wonder about a credit union?

HELOC maybe?

 

[CMC]

I had a lot here on the east coast free and clear and excellent credit. Between the bank making us feel like second class citizens and the city "Developer Fee" I gave up. We had a single house replacing a single house, and the city was still tapping into my wallet... made no sense. You think they would want a newer house for the taxes. We Sold it off....alot less headaches.

 

[jsquaredgc]

WW is correct, It does help that the lot is free and clear but you will need do a lot of preliminary paperwork. Typically banks want to see a breakdown of construction costs and it helps if you have a contractor on board. Sometimes they want conceptual drawings - not necessarily CDs but they might. The legwork needed to get through the city is always fun, get ready to loose hair! I put a call into a developer friend of mine to see if he can help. Its a long and frustrting process. If there is anything I can help you out with let me know.

[email protected]

www.jsquaredgc.com

 

[NicPaus]

Chances of a construction loan are slim. The bank will want to know what you plan on building and what it will be worth when finished. You will need a contractor to make a breakdown of all costs for each and every stage of build. How much is lot value in Corona verse how much funds you need to build. If lot value is more than funds needed you have a better chance. Most banks will want to see blueprinte have you started on them. City fees are going to rape you be prepared.

If I could borrow $450,000 I have a empty lot ready to start whenever on two new spec homes from ground up. Have tried every bank around for a loan. Workers praying for funds as this will keep us busy until next year. Any of you ballers ever thought of investing in flip houses. My build costs are around $50 a sq ft ground up building only no school or permit fees. Have inside scoop on houses that can be had for cash. Local to Beach so prices always go back up.

 

[skifaster]

The city fees are a killer for sure. Get a different answer each time I call them.

 

[CMC]

The city fees are a killer for sure. Get a different answer each time I call them.

Engineering Bond
Water Dept fee and Bond
Sewer Dept fee and bond

And the almighty Developer fee.
I was tearing down a house (that we owned for 20 years) and replacing it with ONE house.......How am I acting as a developer ????

I had sealed house plans, site plan done and we owned the lot outright. Went to a couple of builders and I was blown away at their prices. I think they wanted me to make up for the bad 2 years they had. With the drop in house prices in the area....it no longer made sense.......found a buyer but it took 6 months.......glad to be out of it.

 

[Zaairman]

My boss just got his 2nd construction loan on a house in less than a year. First house sold before it was completed. He got the loan from a local bank. He's never built houses before now. Just dealt with land. Nobody else around here is building.

 

[plaster dave]

All the job site I go to now the owner's are paying cash for the build.
On a side note my good friend just got a construction loan to build on his property in Malibu behind Troutdale and his property has a loan on it. Who knows. I can ask him who his loan guy is if you want?

 

[RogerThat99]

I have done a lot of construction and development financing (not it the last 1.5 years). I will pm you my number and I can get some additional info and see what's out there.

 

[Yellowboat]

The city fees are a killer for sure. Get a different answer each time I call them.

yep, and its often a deal breaker...

The building department I do about 95% of my work in wants $37/sqft for just school fees and the basic permit.

Sewer hook up is 9800 and change, water is 7800 and change, gas is actual costs, power is free for the 1st 50' from the pole, under ground is more...

a 2k sqft home will cost you about 110k in just fees... some of them are deals, some are actual costs, others don't use lube.

 

[t&y]

Not trying to hijack this thread... but are the fees and problems getting the loans you guys are talkng about true for additions to existing homes or remodels? Had considered adding on in the next year or so but really hadn't gotten into the dirty work and research yet.

 

[NicPaus]

yep, and its often a deal breaker...

The building department I do about 95% of my work in wants $37/sqft for just school fees and the basic permit.

Sewer hook up is 9800 and change, water is 7800 and change, gas is actual costs, power is free for the 1st 50' from the pole, under ground is more...

a 2k sqft home will cost you about 110k in just fees... some of them are deals, some are actual costs, others don't use lube.

Sounds like Big Bear highest school fees I have ever seen.....

 

[Yellowboat]

Not trying to hijack this thread... but are the fees and problems getting the loans you guys are talkng about true for additions to existing homes or remodels? Had considered adding on in the next year or so but really hadn't gotten into the dirty work and research yet.

For the most part, any time you add Square footage, you will be charged for fees for it; as well as, getting your property tax reassed.

Some times its less, some times it more. Some have a sliding scale based on either value or size of the home.

Also, most places say you can only have X% sqft of your lot size. That changes from building deparment to building department. Hell some times its even from one sub division to the next.

Most of the time, if you leave a wall standing, they won't count the existing sqft, but some departments are funny.




The best advice I can give you is, before you make any plans, find out what you CAN do, rather then what you WANT to do.

example, you can add X ammount of sqft, you can move this wall X distance away from the property line, I have this much to spend.


It can be "heart breaking" to find out all those plans you have spent countlless hours making can't be done.


Oh and nic, I've remodeled houses where the fees were 3x that ammount.



There have been many house selling for less then what it cost in fees.

 

[roosterjet 76]

This is why I got out of the business... There are way to many forclosures, shortsales etc that cost less than doing a project. There are 3 things that make a project, property which you own out right that helps a great deal, permits and fees, construction and if you go mfg or modular home (which is PDQ) 4. Now I know Riverside County very well but the City of Corona I do not. I have never done a project there. With a mfg or mod they are already approved by the feds that superseeds the city and it is against CA State Law to Discriminate placing these homes. With the way things are in the mfg or mod industry you can pick one up for cheap. There I know you can get a Temp to Perm Loan or Construction Loan. I know people who will more than likely do loans for stickbuilt. You can give me a call if you'd like, I know a guy that has pulled permits and has done projects all over also... PM me