Financing a Duplex
Вставка
- Опубліковано 28 сер 2022
- In this video, I explain the process we went through in financing our first duplex new-build.
01:13 - Details about our property, lot size, credit history, and debt ratio.
01:52 - Initial loan application documents required
02:10 - Additional follow-up documents required for loan
03:36 - Architectural plans and specifications
04:15 - Appraisal details
06:23 - Loan timeline
07:02 - Final Notes (Draw Process, Builder's risk insurance. Homeowners Insurance
Wow, really impressive…y’all did a great job. I’m so inspired.
Very cool i love this thank you for sharing
Thank you. Great video! I love seeing couples working together. May the Lord bless you two richly.
appreciate that. Thanks! Blessings to you as well!
Just found your channel. Thanks for sharing. I'm def interested in hearing more about the process!
This video came at the right time. I learned so much. This just told me a few things I have to do before we go to the bank.
Yay! So happy to hear that this will help. Best of luck to you on your project!
Thanks for sharing. Your video was very detailed and I appreciate you breaking down the process and including cost. I’ve been buying properties and steering clear of land. I’ll look more into land now, as your video has peeled my interest. Thanks!
Thanks for watching!
I appreciate you sharing your experience. Great video, please keep them coming!
Thank you! Will do!
This is so very helpful!! Thank you sooo much for posting. I’m in the initial stages of trying to build a duplex on land that I own. 🙏🏾
Yay! So happy to hear that! Have you started your plans yet? Next video will cover that process.
Hello reaching out to see did you build the duplex on your property.
@@firsttimebuildingaduplex8738 I am getting a quote from a general contractor on the cost to build. It’s taking a while to get things moving.
Hello reaching out to see how did your process go with building on land you already own. Would like some feedback. I also own a lot that would like to build a duplex.
great content..thanks for sharing..I will definitely stay tuned..
Great video. Thank you!
I own my land. I have a contractor coming out to take a look both lots. I'm taking baby steps. I plan to build a couple of duplex I'm just feeling my way right now.
This was so helpful. My husband and I are looking into building a duplex. Please continue to make videos.
Glad to hear this. Thanks!
Great video. Keep Growing!!
great video, thank you for breaking it down
Excellent Information and presentation. Thanks
Thank you for your video!
Great info..Love the channel!!
Thank you for sharing!
Thanks for sharing!
Keep up the great work
LOVE THIS!!!!
Thank you for this video.
Thanks for watching!
Interesting video. What state/area is this?
My wife and I are doing this type of real estate investing. I hope you post more videos going forward.
What a blessing
Love it
Thank you
Thanks
Great video - building a multi-family in the USA is a dream of mine. I sub'd.
Great video
Thank you!
👏👏👏👏👏👏👏
Sounds like something is up with the land appraisal. There was just a news special about that
Great Video! I am also in the process of building once the market "calms down". Did you use a GC or a Builder? Can you share their information?
Hello….my husband and I just watched your videos and was very impressed as this is something we are believing to do. Have questions:
- what city and state are you in
- did u get several bids from architects and GCs
Thanks
Jackie
Good Afternoon! I just have to say this is truly a Blessing to have these videos! I prayed earlier this week for God to send me some information on how we could start this process on a piece of land that we have. Answered prayers! This and the other videos are so helpful! My Husband and I have flipped properties but we wanted to build a duplex and just didn't know what to do???I wanted to ask if you guys pulled the permits or did your contractor do that for you? I feel like that is something I could be doing now instead of waiting because we have been talking about this for over 2 years! I want to stay productive! Thank You
Hi @mscameshamiller , I am so happy to hear that you found these videos helpful. Your words are indeed a blessing to me!
With regard to the permits. We pulled them ourselves. I'm not sure what city you are in or how permitting works, how long the process takes, or if they expire, etc. So, I'd recommend giving your local permitting office a call and asking them.
Hello, great, thanks for the info. What bank did you use? Sounded pretty simple and easy to work with.
Thank you for sharing! Great Information and congratulations to you guys. My wife and I have a couple lots that are similar in size and we were looking to build something similar. Do you mind sharing where we can find these plans? Thank you again!
You're welcome. I am glad you found it valuable. I am excited for you and your wife. Yes, please drop me an email at wallacefranklinllc at gmail dot com.
So what’s the total square footage of each place, how many bedrooms/bathrooms, and do you have tenants currently in there now, and what are you charging? What’s your monthly residual income/cash flow?
Great video and congrats 🎉!!!
I can’t seem to find the link to get more information.
Hi there, I am still assembling this area. I will add the link once it's ready. Send me your email address at wallacefranklinllc at gmail dot com and I will personally notify you once its up.
Thanks for this video. Very good information. You mentioned that the land was not platted (zoned?) For duplexes. Can you share what the rezoning process was like? Also, what is the square footage of each side of each duplex? Thanks!
@omargran4314 It is zoned for residential property (as opposed to commercial property), so there was no zoning issues. What I was referring to is that the land is platted as one big piece of land and is not split into two . So they share an address. For example the address for two different pieces of land would be 410 Unit A & B and 412 Unit A & B. Instead, since its one piece of property platted in county records, they are all one address with 4 different units.
*side note 1-4 units is still considered residential (this matters for permitting and for financing purposes).
This was great my wife and I and investing in multi family starting with building 4 plex’s so this helpful. What state and area did you build yours we are in South Florida , Ft Lauderdale
We're in Texas, near Houston.
Hello thank you for sharing my husband and I are looking to start on the same journey as you and your husband and I wanted to get more info from you if you don’t mind. Thanks
Just curious where you are today in development and how the duplex is doing if you sold or rented it out
Great Video! You mentioned how the land value could potentially cover the closing costs/down payment; will the lender do that appraisal of the land or will I need to do that before approaching the lender? Secondly, when did you apply for building permits? (Before approaching lender?) Or after approval/closing, therefore being able to use the loan for that cost as well? Thank you for your help!
Thank you! The lender will do their own appraisal (whether you purchase one or not). If you purchase one, it would be for your own peace of mind.
We applied for permits after we closed on our loan. They give you a small advance for fees that you may have already incurred and other fees like permits. So yes, you are able to use loan proceeds for permitting cost.
Thank for sharing! What area is this?
Thank you for sharing that information. How long after finishing did it take to fill up and may I ask what you're asking for each apartment?
They were all leased within a month! $1200.00
Question I also own my land its 100 by 51 square feet. Would like to build a duplex on it. Is it possible you can do this without putting any funds down?
This is great! Thank you for explaining this. Can you talk about how it works with each draw? With the $ approve you use it for the materials and also to pay the contractors? do you start making payments after each draw?
When working with a construction loan, each phase of work is assigned a specific percentage of the total loan amount. Once a phase is completed, the borrower can notify the lender that the work has been finished. The lender will then send out an inspector to verify that the work has been completed satisfactorily, and will issue a draw in the corresponding percentage of the loan amount. For example, if the framing phase was assigned 10% of a 100K loan, and the borrower has completed framing, the lender will issue a draw in the amount of 10K. This process continues until all phases have been completed and the borrower has reached 100% of the loan amount.
It's important to keep in mind that there is a fee for every draw, so borrowers should aim to make as few draws as possible to minimize fees. Additionally, on most construction loans, borrowers are only required to pay interest on the amount they have borrowed for the first 12 months. After this initial period, they will begin paying both principal and interest.
We will have the actual percentage sheet loaded in the learning portal, once I get that up. If you want to be notified when we launch it, please shoot an email to wallacefranklinllc at gmail dot com.
Great content. Could you make a video explaining how to obtain the lot of land to build on? Criteria, credit score, reasonable cost of purchasing a lot etc
What link? There is not a link in the Description. @first Time Building a Duplex
what bank is doing 85ltv? never herd of a bank going that low unless its a personal guarantee
Blessed
Thanks for your information.
My location is ct.
Could you help?
Always wanted to do.
Who did you go to for underwriting the property? Did you create your own financial model to provide to the bank or did you have a third party do this?
There was nothing titled "financial model" required. What type of info is contained in the document that you are referencing? Maybe it was called something else. I can tell you that we didn't hire anyone for any documents.
Thanks allot for making this video! Question, you mentioned the land wasn't zoned for a duplex. How was that process of getting it rezoned?
You’re welcome Paul. It was zoned for residential (which includes duplexes ). However, it was not platted for two structures.
@@firsttimebuildingaduplex8738 ahh okay. I know most lenders require a minimum of 20% for commercial loans. Did this fall under a commercial loan?
@@paulmeek2153 This was't a commercial loan, as the property is considered residential property. It was a construction loan (in a business name) and yes, we had to put 20% down.
Understood. I believe you mentioned in the first video that one of the duplex was appraised at 190k, was that the total amount it endup costing to build in the end? Minus the cost of the land
@@paulmeek2153 Slightly more than that, but not too much more ;-D
I will be sharing our spreadsheet which capture every single dollar we spent and on what in our learning portal. If you're interested in being notified when that is released, shoot me an email to wallacefranklinllc at gmail dot com.
How did you structure your partnership with your contractor? Did the GC build the property at his cost?
Yes , the GC built this property at his cost. There wasn't a "partnership". We had a contract. Once consruction was complete there were no further obligations between us. Does that answer your question?
Greetings! You mentioned that you had your lender put your lot in your LLC before financing. Does the financing show up on your personal credit report? Thank you
Hi Ronna, just to clarify, I wished I had put the lot in the name of my LLC. We did not. The loan is in the LLC and does not show on my personal credit report.
Thank you for responding…
I asked code enforcement if I can split to build 2 units cos I already had 2 units multi family they said the lots allow only 2 families units but not sure if lawyer can do the jobs to do likes ur duplex cos I want to have cash flow I own land n 60000$ in principle of 3500000$-
Hi there. Thanks for watching. Yes, sometimes the deed restrictions or codes will specify what can be built. As I understand it attorneys can help you request a variance. Definitely check with a planning company or attorney in your local area.
I’m sorry that you got a low appraisal amount. If you asked me it’s because you were black and that’s a shame you should never ever have to use an appraisal company like that ever the same thing happened to me years ago I disputed it and make sure my bank I never ever use appraisal company.