House project funding

Steve58

Hi Guys, one of my first posts! Woo Hoo!I have a handyman business and want to farm out my services to a bigger business I run as a supervisor/advisor on a building project (have a builder, build a house sell it, take the profit, do it again and so on...) But due to a range of things (real estate already and other financial commitments) the bank is saying no to another mortgage or line of credit to fund the project.Thoughts... 1. The bank does not seem to have a loan for building a house that is a short term loan, they just see the project as a 27+yr mortgage, pay it off early is a bonus...2. I want to partner with a builder (or two) in a way that gets the place built and they have it to use as a display home for 6 months or so and then sell it.3. Will a builder want to go halves in the project? Share the profit and only have to put up 1/2 the $$ to build a display home?Thanks (in advance)
Steve582006-11-28 19:20:13

jellynet

Have you tried lending tree yet?  They tend to be able to find a lot of offers on mortgage loans.Another option might be what is called a "bridge loan"  Though I am not sure it is a better option than a mortgage.  Of course there are FHA loans, and such that if you were going to live there for a while first, then sell it.  This does not go with your plan, but can be an option to build something, sell or rent your old place, then.. well if your creative it could work..I really don`t think your going to have much luck finding a builder who would want to do that though.  Not to burst your bubble, I don`t really know your connections or anything. 

Steve58

I guess I should have mentioned I am in Australia... There that helps. (don`t you feel much better now...)I know of a builder that wants to build `spec` homes and this way he would only have to put up 1/2 the cash, to do this, though I want to specify the design of the home to ensure it has `my trademark` and he would have to agree to a range of conditions (I want an enviro friendly home with passive and active solar etc) but the advantage is it will give him a new niche to work into.Some of the terms  you guys used flipped me out... "Flipping houses" I guess that`s like flipping burgers... "FHA loan" nup don`t figure that one...

brains

Hi Steve

Steve58

Thanks all very helpful, I have found an accountant  who is advertising alternative funding options for real estate, so I will also look into that.thanks!