Loans????

[Teinlow]

Looking to start up a home building company... my only problem is I dont want a loan from the bank. Does anyone know maybe a personal investor or even something better than a bank they are just useless.?? thanks any help on this matter will do

[AcuraTl]

loan shark? i hope your legs are good man, seriously though, this country is built on credit...you cant really get anywhere without a bank! :thumbsup:

[Teinlow]

Yea I know about credit and I dont have the problem of gettin the loan. Just want more $$$$ I have been talking to some of the other premire builders and they all say stay away from banks even if they gve you what you want. At the end of the day they just arent worth it.

More or less looking for a private investor type

[FlySi]

what is the real reason for avoiding banks? i don't think that very many private investors will give you a rate as good. at the end of the day, you'll end up paying a higher interest rate and have to deal with a shady fuck who doesn't have as much patience as a bank does

[Kobe]

Originally posted by Teinlow
Looking to start up a home building company... my only problem is I dont want a loan from the bank. Does anyone know maybe a personal investor or even something better than a bank they are just useless.?? thanks any help on this matter will do

what kind of school do you need for home building???

[JordanLotoski]

why would anyone lend u money to become a home builder...what are you gonna do to secure the fact your gonna be able to pay it back?

What experience you have in homes, building homes
what managment experience you have

do you have a business plan? cause any smart investor is gonna wanna see that.

why not start with a landscaping company, see how well u do at your own bizz.

[jdmakkord]

Haha find some baller coke dealers that need to launder thier money. Easy cash, but when the house burns down, you better run and hide.

[350]

Originally posted by jdmakkord
Haha find some baller coke dealers that need to launder thier money. Easy cash, but when the house burns down, you better run and hide.

u dont want to get urself into drugs. everyone gets caught eventually.

how much do you need tho? (out of curiosity)

[jdmakkord]

Originally posted by 350


u dont want to get urself into drugs. everyone gets caught eventually.

Really?:dunno: I had no idea....:rofl:

[Xtrema]

Originally posted by Teinlow
Looking to start up a home building company... my only problem is I dont want a loan from the bank. Does anyone know maybe a personal investor or even something better than a bank they are just useless.?? thanks any help on this matter will do

Good idea but if you have to post here, you don't have the right connections.

Usually you need to start small with bank's money to get some results. Give it a few years and then attack bigger projects.

You can do it many ways.

- Start a new company with a group of investors and split the profit base on shares.

- Sell bonds to gurantee investors a specific amount of return that's attractive.

Business plan is crucial, nobody will hand over any money unless the plan is over the top. A lot of time, they will check on your pedigree and experience.

How long have you been a home builder? Do you have a reliable list of contractors? Have you management them before?

Independent builders are rare birds now. Builders that got big has all the captial and connection to get the best lots in all communities leaving independents scraps.

One of the source for money when starting a business is your family and friends that's by your side for a long time. Trust is already established (I hope).

[t-im]

Getting lots is the hardest thing to do these days, esp. without the right connections and a solid reputation.

What type of housing do you plan on doing then? Infills????

There's so much more to this then just asking for money....

I mean, you don't want to ask banks because..if you fuck up then you're gonna be deep in debt (and then some)..so what difference is it if you get money from private investors?

[Xtrema]

Originally posted by t-im
I mean, you don't want to ask banks because..if you fuck up then you're gonna be deep in debt (and then some)..so what difference is it if you get money from private investors?

Difference is banks are armed with lawyers ready to pounce the minute your payment is late.

Private investor money has a more flexible arrangement and worst case you just left town with their money. I remember many crooks call themselve developers and stole a lot of money from people well before this housing boom.

[90s_tuner]

Originally posted by Xtrema


Difference is banks are armed with lawyers ready to pounce the minute your payment is late.

Declare bankruptcy. :rofl:

[D. Dub]

To the OP.

I worked in the construction financing biz for a few years.

Biggest 2 questions any investor, bank or lender will ask are:

1. How much of your own money are you putting into the build? You'll need at least 15-25% of the total construction cost (land/materials) to build each home.

2. How much experience do you have in building and/or general contracting?

If you don't have these 2 things $$$ and experience, don't waste your time.

[Teinlow]

Been in construction for 4 years
Been buying fixing up and selling estate homes for 2 years
I already own 2 lots in bearspaw...westminister glen to be exact a
Have a business plan
Am able to get a loan from the bank for the first house but as Xtrema stated best way to start is to get a group of investors.
I do have people lined up but they are friends and the last thing I wanna do is ruin a friendship over a business
Also have to custom home builders willing to help out, Mckinnly Master and Crystal homes. Both selling homes for the $750000 and up range and have been doing it for longer than I have been alive.
But as I was ready to take the bank loan they both told me look for investors use the bank as a last resort.
This is why I am on here asking if anyone knows where someone would go as I do not want a friend involved in the business as it is more complicated!!!

[90s_tuner]

Just go with the bank. It'll be a lot better because if you fail, you can just decare bankruptcy and be credit screwed for awhile instead of having the mafia on your butt.