New Luxury Construction Questions...
I'm looking to purchase land and then build my own residence on it. How do I go about this?
Now that I've started with the most vague and open question let me supply some more details so you get an idea of what kind of answers I need.
I'm currently looking at a lot in Hoboken, NJ (20 x 75) and would like to build my own brownstone style home. Its zoned for a 2 family home with 40' height build clearance. They are currently asking $300k just for the land. Is that too much?
Can anyone recommend any contractors with experience with this type of urban/luxury/brownstone construction? How much should I expect construction of a 3 story home to cost? How much per square foot?
I own a condo worth between 250-300k. How do I work out the financing to get the land and then get a loan for the construction? Is there any possibility of deferring payments until construction is complete?
I really appreciate any input and assistance you could provide.
Thanks for helping a poor rookie out!
run comps for your area....no one on here or anywhere can determine the value of the land.... you have tooo.
get comparables in the area...cost of construction...feasability...
check whats selling around there
what has recently sold in the area
contact contractors or new home builders and get rough idea of your construction costs[ Edited by DaveREI on Date 09/21/2003 ]
There are ways to defer payments until your construction period is finished or 12 months. You can also have a 1 time closing on the land and construction loans. Email me at **Please See My Profile** would you like some elaboration.
Everybody on line ahead of me is full of good advice. Best to know everything in advance.
After all that due diligence you have decided to buy this town lot. I suggest if it has been sitting awhile listed and unsold you check things one more time.
I would make an offer subject to the Seller taking back a mortgage with a low interest for the first 14 months. No payments until the 14th month. Also the Seller agrees to subordinate to a new lst mortgage securing a note in the amount that you will be spending for construction and please include a small pad of at least 10% for those moments when costs are over, the trades are striking and Brownstone goes up in price.
the above is AAAA++++. Be prepared for something a little less. Construction is best attempted with as little of your capital exposed as possible.
Also somewhere during the construction show up with a very used tool belt and the most expensive hammer 28Oz you can find. It impresses the troops and gives you something to keep your hands busy and out of the trades little tasks.
Cheers Lucius