Just found your channel, and this was a phenomenal breakdown🧠. I sometimes hear that contractors should foot the bill when starting a project. When is that method applicable as opposed to you paying out of pocket? Thank you!
Great question Paula. Construction financing is private lending in this scenario. Any good private lender will ask what the funds are for and will not issue funds above what the current loan to value on the property is. You could secure a private lender on another asset and then you would've have to go through this process but there are challenges with that too.
Glad it was helpful! And yes, I agree. I would not attempt these kinds of projects as your first investment unless you have a really experienced mentor guiding or coaching you.
No, you are allowed to do renovations to your property. As long as you're not tearing the property down and you have the right insurance coverage, the bank is ok with it.
Another great video! Found this just in time for us to do some DD on a property in Squamish BC! Looking to buy, tear down an old mobile home, then rebuild a duplex! After we would strata and sell half!
Darren you dont happen to have a spread sheet that you could plug in known numbers to find out what you might be able to get funded for do you? For instance im looking at an investment which I think would take 300k-350k to get completed I have about 70k in capital.
Is there not any property development mentors like assets for life channel or whitebox both with youtube channels from UK ? They teach students about property strategies with OPM strategies who go successfull very quickly . They follow up their projects and show plenty of case studies. Those students develop big new projects . Australiahas plenty mentors as well who show new students doing impressive deals too.
Awesome info. thanks so much for being willing to share this stuff. Knuckles are sweating just looking at your numbers. You gotta have an iron will and be sure about your final numbers to do deals this big!
Haha. You get less nervous the more of these you do but yes, it can be daunting to look at these big numbers and the expectation to get these projects over the finish line for my investors.
@@DarrenVoros Daren how do you not get nervous? This is my first deal with construction loans and the project is super big 😩 I can’t live with my life right now.
Just found your channel, and this was a phenomenal breakdown🧠. I sometimes hear that contractors should foot the bill when starting a project. When is that method applicable as opposed to you paying out of pocket? Thank you!
does Grant condone get bank loans or do they use their financial profolio ?
Why would you opt for construction financing vs private lending?
Great question Paula. Construction financing is private lending in this scenario. Any good private lender will ask what the funds are for and will not issue funds above what the current loan to value on the property is. You could secure a private lender on another asset and then you would've have to go through this process but there are challenges with that too.
Wow, very detailed explanation Darren, this is not for the faint-hearted but an experienced investor.
Glad it was helpful! And yes, I agree. I would not attempt these kinds of projects as your first investment unless you have a really experienced mentor guiding or coaching you.
If 1st mtg @1.75 with 60% LTV, does the major construction work violate the terms of first mortgage terms
No, you are allowed to do renovations to your property. As long as you're not tearing the property down and you have the right insurance coverage, the bank is ok with it.
You show flips and conversions but not new builds. If this exist in canada pls shed more light on it
Another great video! Found this just in time for us to do some DD on a property in Squamish BC! Looking to buy, tear down an old mobile home, then rebuild a duplex! After we would strata and sell half!
Glad it was helpful!
Darren you dont happen to have a spread sheet that you could plug in known numbers to find out what you might be able to get funded for do you? For instance im looking at an investment which I think would take 300k-350k to get completed I have about 70k in capital.
Great video but during the construction financing stage, we are actually the Lender's project monitor working for the Bank..
Is there not any property development mentors like assets for life channel or whitebox both with youtube channels from UK ?
They teach students about property strategies with OPM strategies who go successfull very quickly . They follow up their projects and show plenty of case studies.
Those students develop big new projects . Australiahas plenty mentors as well who show new students doing impressive deals too.
The right mortgage broker can go a long ways in helping a builder!
Awesome info. thanks so much for being willing to share this stuff. Knuckles are sweating just looking at your numbers. You gotta have an iron will and be sure about your final numbers to do deals this big!
Haha. You get less nervous the more of these you do but yes, it can be daunting to look at these big numbers and the expectation to get these projects over the finish line for my investors.
@@DarrenVoros Daren how do you not get nervous? This is my first deal with construction loans and the project is super big 😩 I can’t live with my life right now.
Hi there
Great detailed info, thank you Darren for taking the time to explain all this...
My pleasure Marinella. This one took a while to put together but I love numbers so that made it easier.
H