Spec home&business plans

I have many questions regarding the spec home industry and have had a difficult time obtaining useful information. Plenty of info on fixers, foreclosures, investment property and such but with regard to building spec homes and the financing, planning construction and selling there just isn't much out there. So, what exactly is a spec home?

Spec home&business plans

Cash flow statement from your home-building business Business plan for your home-building business Copy of most recent federal income tax return Copies of bank savings and checking account statements Copies of credit card bills and other loan statements, such as car, personal or business Marketing plan for your spec home When you build a spec home, you'll have to work with a mortgage lender.

If you're a builder building a custom home for a client, that client will get a mortgage loan to pay you while construction is taking place. With a spec home, though, builders don't have clients; they're building a home with the intention of selling it either before or after it is completed.

They need financing from mortgage lenders, then, to purchase their materials and pay their construction crews until the house is built and sold. Step 1 Gather and make copies of the financial paperwork that you'll use to prove to mortgage lenders that you have a high enough income to pay back the construction loan you'll use to finance the building of your spec home.

This paperwork includes your most recent federal income tax return, savings and checking account statements and statements from any other sources of income, including rent checks and settlements.

Make copies, too, of the documents that verify your monthly debt obligations, including any loan statements or credit card bills. Finally, make a copy of your construction company's business plan and cash-flow statements.

Step 2 Write a marketing plan for your spec home. This plan should spell out how high you'll price your completed home and who your target buyers will be. It should also explain how you'll inform your target buyers that your home is on the market.

Will you hire a real estate agent to promote your home? Will you include it in a local parade of homes event? Include this information in your marketing plan. Step 3 Call a mortgage lender--you can shop around at as many as you'd like--and request a construction loan for a spec home.

Answer the basic questions that a lender will ask you: What is your Social Security number? What is the address of your spec home? How long is the estimated time of construction on the home?

spec home&business plans

What will the spec home be priced at once it is built? Step 4 Send your lender the paperwork you copied in Step 1 along with your marketing plan.

Your lender will consider all of this information in determining whether you qualify for a construction loan. Step 5 Give your lender the OK to run a credit check on you.

This will tell lenders how well you've managed money in the past. Lenders rely heavily on your three-digit credit, or FICO, score today. If yours is at or above, you'll qualify for the lowest possible interest rates. Step 6 Agree on a closing date for your construction loan if your lender approves your application.

At this time, you'll sign the papers and pay the origination and closing fees that make your new loan official.

spec home&business plans

Tips Before agreeing to take on a construction loan, make sure that the loan provides you enough money to finish building and selling your house.

He is also the managing editor of "Midwest Real Estate News. He holds a Bachelor of Arts in journalism from the University of Illinois.I am a general contractor looking to build a spec home. I have looked at a lot of homes to fix and flip but there is just not the margin that I would need to make it work due to the current market in my area.

After talking to a number of realtors they have recommended building spec homes. The mission of Eyecatching Interiors is to offer high–quality interior commercial and residential painting services.

The company will accomplish this by using the highest quality materials and apply them in the most professional manner.

For the last 2 years, I have been trying to determine the best strategy for me to get started in real estate investing. I have strongly considered flipping, buy & hold, and spec home building.

I have finally determined that spec home building would be the best option for me and I . Click link: regardbouddhiste.com? source. regardbouddhiste.com - Home business opportunities and gudes.

Buy Tru-Spec SC-4 Signal Combiner Channel 4 Insertion Filter For MATV Systems: Splitters - regardbouddhiste.com FREE DELIVERY possible on eligible purchases. Custom v. Spec v. Tract Homes. What are the differences between custom homes, spec homes, and tract homes? These are common terms, but every potential purchaser of a new home should take the time to consider exactly what is meant by each term because there is a big difference between the three.

Builder Finds Perfect Spec Home | The House Designers