House And Land Deals Qu........

Happy 1

Can any builders enlighten me to how/ what sort of deals have you set up on any of the following:

1) If you find land you'd be keen to build a house on, but dont want to outlay to take ownership of it, what deal/ conditions do you set in place?

Eg:

* There must be some issues to resolve before being able to offer the above scenario as a house and land pkgs?


* To secure the construction job, what deal do you work out with the owner/ developer?

* To secure it, do you use a deposit? An option fee? Neither?

Any insight into what builders are doing to secure the "rights" to build on land without actually owning it, (like house & land deals) would be appreciated.

thom

If you will be getting a construction loan the bank will insist on ownership of the land.

You could do a partnership arrangement with the land owner in which the owner gets paid when the project sells. The owner would need to put up the land which the bank would lien.

Oftentimes land owners are real leary of these deals because they have nothing if the house doesn't sell for enough to cover the construction loan plus their land value.