Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded, and over
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
Speaker 1: are here illegally, your next you will be fined nearly
Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
Speaker 1: never return. But if you register using our CBP home
Speaker 1: app and leave now, you could be allowed to return legally.
Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
Speaker 1: border and families will be protected.
Speaker 2: Sponsored by the United States Department of Homeland Security, construction.
Speaker 3: Loans and once again, construction for not construction like you're
Speaker 3: going to build an apartment building like this is if
Speaker 3: you buy a plot of land, correct, and you just
Speaker 3: want to build your house as opposed to building a
Speaker 3: house buying a house that's already built.
Speaker 4: Correct. So you know, typically, like you said, you buy,
Speaker 4: you get a piece of land, and now you need
Speaker 4: funding for it. So there's two ways you can go
Speaker 4: by it. If you're the consumer, If you're the home buyer,
Speaker 4: you can buy the land or cash, which I would
Speaker 4: recommend buy whether it's cash or you use a credit card,
Speaker 4: whatever means you find to buy that piece of land,
Speaker 4: because I feel like this is the easiest way to
Speaker 4: do a construction loan. And then now you go to
Speaker 4: the bank to get a construction a permanent loan, where
Speaker 4: now that construction permanent loan is basically it's treated like
Speaker 4: a refinance now because since you already own the property
Speaker 4: and so there's no rush right to get your plans
Speaker 4: and your permits and things of that nature. Because with
Speaker 4: most construction loans, when you're talking primary residences, which this
Speaker 4: conversation is about, the bank is only going to give
Speaker 4: you a construction time of nine to twelve months. So
Speaker 4: we all know permits can take six months. So if
Speaker 4: you do a one time closed construction loan, which is
Speaker 4: you're buying the land and trying to get the construction
Speaker 4: loans simultaneously, and you're using the bank for the finance
Speaker 4: and of the land as well. That's when I see
Speaker 4: problems arise because you're not technically the owner of that property.
Speaker 4: So you can't go out and submit architectural plans to
Speaker 4: the town that you're buying the property in until after
Speaker 4: you close, because you technically don't own the property unless
Speaker 4: the seller of the property is willing to submit the
Speaker 4: plans on your behalf, which in most cases they're not
Speaker 4: going to do that, right, So it's much easier for
Speaker 4: you to acquire the land on your own then use
Speaker 4: the bank for the construction loan to build your home.
Speaker 4: And the reason being again is because architectural plans can
Speaker 4: take depending on the scope of your work, that can
Speaker 4: take two to four months, depending on how busy your
Speaker 4: architect is and how efficient they are, And when you
Speaker 4: get plans, you're going to go back and forth to
Speaker 4: adjust things of that nature. So if you're doing a
Speaker 4: one time closed to construction, that means you're in contract
Speaker 4: and you have a time clock already to close with
Speaker 4: the seller, right. They don't want to sit there and
Speaker 4: wait four or five months for you to get your
Speaker 4: plans together before you close. So again that can cause
Speaker 4: a delay and it can cause some strain between you
Speaker 4: and the seller. Now, if you've got an architect who's
Speaker 4: on it, they can get you plans in thirty days. Cool,
Speaker 4: you can do the one time close. But again another
Speaker 4: con of that is after closing, now you have to
Speaker 4: submit those plans to the town to get approval. And
Speaker 4: depending on the county, which it's hit a miss, Right,
Speaker 4: it's hit a miss for plans. I mean New York
Speaker 4: is kind of like, I don't want to say nothing
Speaker 4: negative because you know, but it kind of kind of
Speaker 4: gets interest. Yeah, it gets kind of it gets kind
Speaker 4: of crazy, and it could be a lengthy process. So now,
Speaker 4: if you're on a time clock to build and the
Speaker 4: lenders only give you nine to twelve months, and some
Speaker 4: lenders will give you an extension of an extra two
Speaker 4: to three months. On top of that, you done wasted
Speaker 4: half of your time just waiting on the plans to
Speaker 4: get approved by the town. So my recommendation for construction
Speaker 4: loans and anyone who's looking to build their first home
Speaker 4: or their dream home, acquire the land first. Acquire the
Speaker 4: land first, have a dope ass architect, who understands the
Speaker 4: urgency of what you're looking to do. Get your plans
Speaker 4: and everything drawn up because you already have the home
Speaker 4: now or the land, so you don't have to rush.
Speaker 4: And now, once you have your plans submitted, then applied
Speaker 4: for your construction loan, because now it's more like a refinance.
Speaker 4: There's no time clock, there's no sellers. You can take
Speaker 4: four months to close, it doesn't matter. And once your
Speaker 4: plans get approved, then close on your construction loan. Then
Speaker 4: born you can start your construction pretty much immediately.
Speaker 5: Yeah, so let's talk about the other way when you
Speaker 5: have a lender that will do both give you construction,
Speaker 5: the construction loan for building it, and then actually having
Speaker 5: the house built itself. Right, So there's two pieces. You're
Speaker 5: paying for both. And I think the misconception this is
Speaker 5: something we kind of learned through the process. Like you
Speaker 5: get that time frame to build, and you know you
Speaker 5: do that with your building and they'll say it's between
Speaker 5: six to twelve months, we can get.
Speaker 2: This house built, correct.
Speaker 5: Right, But you're at the mercy of the town. Correct, right,
Speaker 5: because and the build up and the builder and the
Speaker 5: engineers and the architects.
Speaker 4: Correct.
Speaker 5: But you're paying for a house that you may not
Speaker 5: even live in, right, because sometimes the building process may
Speaker 5: take sixteen months absolutely, and so like for a year
Speaker 5: you might be paying interest, but after that twelve months,
Speaker 5: now you're going to be paying that full loan. So yeah,
Speaker 5: talk about that and the appurances that having residual income
Speaker 5: in situations like this.
Speaker 4: Yeah, so when you get a construction loan, first, it's
Speaker 4: an interest. During the construction period, it's interest only payments. So,
Speaker 4: like you said, you're going to be paying a mortgage payment.
Speaker 4: You have to pay your property taxes, you have to
Speaker 4: pay your homeowners insurance and builders insurance. You're going to
Speaker 4: need buildings insurance as well to protect yourself on that end.
Speaker 4: But yeah, you're going to have a payment. So if
Speaker 4: it drags out, you know, and the lender says, okay,
Speaker 4: now it's trying to convert from the construction to permanent.
Speaker 4: Now you're going to be paying a mortgage payment that's
Speaker 4: going to be hired because now it's principal and interest
Speaker 4: that's going to be included into your mortgage payment. And
Speaker 4: so your first twelve sixteen months is all going to
Speaker 4: be interest only. And that's why it's very important if
Speaker 4: you're going to take the leap of faith and build
Speaker 4: your own home, especially if you're going to act as
Speaker 4: your project manager. You're hiring your GC, you're hiring your builder,
Speaker 4: You're hiring all these folks, and you're not buying directly
Speaker 4: from a builder, right, You're hiring everybody. You have to
Speaker 4: make sure you know what you're doing and you're hiring
Speaker 4: the right folks because folks will sit here and overpromise
Speaker 4: and underdeliver you and kill your entire timeline, which ultimately
Speaker 4: is going to cost you more money as the homeowner.
Speaker 4: So it's very important that you make sure you vet
Speaker 4: out your team because your team has to understand the
Speaker 4: urgency of you getting it done the timeline, and they
Speaker 4: have to understand how they get paid as well, because
Speaker 4: there's there's a process of how they get paid. So
Speaker 4: when you close on a construction loan, the lender is
Speaker 4: only going to give you ten percent or max fifty
Speaker 4: thousand within ten ten days fourteen days after closing, and
Speaker 4: typically that money is used to cover you know, demolition permits, plans,
Speaker 4: you know things of that nature. You're kind of like
Speaker 4: your soft costs, right, but the lender, I mean the
Speaker 4: builder will have to be able to front that job.
Speaker 4: So let's just say that the build is going to
Speaker 4: cost a million dollars Fellas to build and they only
Speaker 4: released in fifty thousand dollars. But the first phase of
Speaker 4: the project is going to cost you all quarter a
Speaker 4: million dollars. So now where does that two hundred thousand
Speaker 4: come from? Right? That two hundred thousand has to come
Speaker 4: from a builder. They have to be in position to
Speaker 4: start that job, complete phase one, then the link earners.
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Speaker 1: An illegal alien from Guatemala charge with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded, and over
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
Speaker 1: are here illegally, your next you will be fine nearly
Speaker 1: one thousand dollars a day, imprisoned and deported. You will
Speaker 1: never return. But if you register using our CBP home
Speaker 1: app and leave now, you could be allowed to return legally.
Speaker 1: Do what's right. Leave now. Under President Trump, America's laws
Speaker 1: border and families will.
Speaker 2: Be protected sponsored by the United States Department of Homeland Security.
Speaker 4: And there will send out and aspect to inspect you know,
Speaker 4: phase one to make sure auti's across Aza dotted. And
Speaker 4: then the inspector will go back to the bank and say, okay,
Speaker 4: you can release the draw of two hundred thousand, and
Speaker 4: then now the builder gets paid that two hundred thousand,
Speaker 4: and then they move on to phase two and it
Speaker 4: goes on like that until the job is complete. So
Speaker 4: it's very important that you understand your builder, understands how
Speaker 4: they get paid and they are liquid because a lot
Speaker 4: of builders out here are not liquid as well. So
Speaker 4: you can't pick the builder just because they might have
Speaker 4: gave you the cheapest price.
Speaker 3: How do you note that, liquior.
Speaker 4: Now, the lenders will vet the builders as well. There's
Speaker 4: a lot of lenders out there that use third party companies.
Speaker 4: I'm not going to mention their name because they don't
Speaker 4: endorse us right, and they will have to see the
Speaker 4: liquidity of the builder bank statements, do you have Amax's,
Speaker 4: whatever it is, to make sure that they are liquid
Speaker 4: to be able to do this job. Because the lenders,
Speaker 4: again they're putting out a million dollars on construction. They
Speaker 4: want this house built. They don't want to own the property,
Speaker 4: especially if it's something that's not built right. So it's
Speaker 4: in their best interest as a lender to make sure
Speaker 4: that the builder can get this job done and they
Speaker 4: have the experience to get it done as well. Because
Speaker 4: a lot of people talk to talk, but they can't
Speaker 4: walk the walk. So that's why again like a two
Speaker 4: or three K, I like to call a two or
Speaker 4: three K the training will for investors. So a construction
Speaker 4: loan when you're going through like the conventional way for
Speaker 4: a homeowner, is kind of like training wheels if you
Speaker 4: want to get into development as well, because you have
Speaker 4: the lender by your side and the inspectors by your
Speaker 4: side that work for you, and the lender to protect
Speaker 4: you against the builders because you know, we all say
Speaker 4: contractors are you know, you know what I'm saying, but
Speaker 4: you got to But the bank is always going to
Speaker 4: make sure that they protect the investment at the same time.
Speaker 3: So what happens if it's not going right? Like, as
Speaker 3: as a customer, what recourse do you have if the
Speaker 3: contractor isn't doing what he's supposed to be doing. It's
Speaker 3: not moving at the timeline and it's supposed to be
Speaker 3: moved there, Like what can you do?
Speaker 4: You can fire them, But then now you start from
Speaker 4: square one again. Right now you have to find a
Speaker 4: new builder. Now they have to give you their costs.
Speaker 4: Now that's new paperwork that has to get submitted to
Speaker 4: the bank. Right, So it's a whole process that if
Speaker 4: you're doing this post closing right, you're doing the post
Speaker 4: closing and you're already in your project. It's like anything
Speaker 4: if you do if you do a bathroom over in
Speaker 4: your house and you don't like the contract and you
Speaker 4: fired them, now a new contract is going to come
Speaker 4: in and say, well, their work is not good, so
Speaker 4: now I got to tear all their work down and
Speaker 4: restart it over again. So now the cost will be
Speaker 4: more than what you anticipated. So you have to weigh
Speaker 4: out what's the opportunity cost really of me firing my
Speaker 4: contractor right now or my builder at the phase that
Speaker 4: I'm in right now, because I'm already started, and it
Speaker 4: can wind up costing you more money. Now, if they're
Speaker 4: just negligent and they're just disrespectful and they just don't
Speaker 4: they're not really there, then obviously you're going to have
Speaker 4: no choice. But you got to handle your business because
Speaker 4: you are a CEO. This is real estate, right, so
Speaker 4: you have to fire them. But understand, there's going to
Speaker 4: be now a whole new vetting process that now the
Speaker 4: lender is going to have to do, and then ultimately,
Speaker 4: if they're going to charge more than what the scope
Speaker 4: of workers already approve. You're not getting no more money,
Speaker 4: So where's that extra money? If they're gonna charge your
Speaker 4: extra fifty one hundred K, where's that extra money coming from.
Speaker 4: It's coming from you because you decided to fire them.
Speaker 4: So it's best while you're in the underwriting process. If
Speaker 4: you're going to make any changes with your contract or
Speaker 4: your builder, is best to do it while you're in
Speaker 4: the process because if they come with the higher scope
Speaker 4: of work, then you can protect yourself easier and reapply
Speaker 4: or not reapply, but you can ask for all request
Speaker 4: to see if you can get more of an approval
Speaker 4: to compensate for that extra money. So you just have
Speaker 4: to make sure again vetting out your people to make
Speaker 4: sure that they are who they say they are.
Speaker 5: If I'm looking to build a new property and I'm
Speaker 5: trying to find land, I know you can vet everybody
Speaker 5: on that side, but is there any way to or
Speaker 5: is there a database that you can vet the town
Speaker 5: engineer or the county engineer or the building department. Is
Speaker 5: there any way to do that? Because a lot of times,
Speaker 5: and we've seen it personally, like they're the ones that
Speaker 5: are holding up the whole things, right, like I might
Speaker 5: not move to that town or I might not try
Speaker 5: to develop there if I know there's going to be
Speaker 5: that type of ay, if they have a history of that.
Speaker 4: So typically when you're applying for permits and stuff like that,
Speaker 4: you would want to hire an expediter, right, And then
Speaker 4: expedite is someone who works within the town or has
Speaker 4: a relationship with them and they're able to push the
Speaker 4: paperwork through in a timely matterm But ultimately, again it's relationships, right,
Speaker 4: Like if you hire a great architect and they have
Speaker 4: good relationships within the town because they're doing a lot
Speaker 4: of business and they're doing a lot of jobs, then
Speaker 4: they might not need to hire experdita because they know
Speaker 4: Mary Sue over here in this department and their sons
Speaker 4: go to soccer together, right, so they can have that
Speaker 4: type of conversation and kind of try to get things
Speaker 4: pushed through. But that's hit and miss as well. So no,
Speaker 4: is there a way to vet really really not. It's
Speaker 4: kind of the lucky to draw and you have to
Speaker 4: put your plans in as complete as possible because sometimes
Speaker 4: they'll come back and they want corrections to your plans,
Speaker 4: and then you got to go back and forth as well.
Speaker 4: So it's unfortunately, it's one of those situations you're damned
Speaker 4: if you do, you're damned if you don't. The town
Speaker 4: is always going to come back with something, They're always
Speaker 4: going to want some sort of correction, and it's always
Speaker 4: going to be some back and forth. And that's why
Speaker 4: your architect and building is probably one of the most
Speaker 4: important roles because they have to be quick on their feet.
Speaker 4: Some architects are just slow as hell to change something
Speaker 4: so minor to us. It might take them thirty days.
Speaker 4: That's setting your timeline back right, So again I think
Speaker 4: not vetting the building apartment. You need to vet the
Speaker 4: architect to make sure that what's their turnaround for changes,
Speaker 4: what's their relationships with the town that you're building in.
Speaker 4: How many jobs have they submitted in the last sixty
Speaker 4: ninety twelve months? Right, these are questions when you're interviewing
Speaker 4: an architect. Just don't go off the referral like, oh,
Speaker 4: he's a great architect and this then a third nah,
Speaker 4: chill ask the questions. Right, this is your house, this
Speaker 4: is your business. You own the property, You're responsible for
Speaker 4: the mortgage payment, nobody else. So you have to make
Speaker 4: sure whoever you're hiring, you have to make sure they
Speaker 4: can get that job done. And they have a sense
Speaker 4: of urgency too, right, And because a lot of these
Speaker 4: folks they just don't have it. My graduates from my
Speaker 4: school being forced back drop b drop, Mike drop back
Speaker 4: drop drop.
Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded, and over
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
Speaker 1: are here illegally, your next you will be fined nearly
Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
Speaker 1: never return. But if you register using our CBP home
Speaker 1: app and leave now, you could be allowed to return legally.
Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
Speaker 1: border and Fai families will
Speaker 2: Be protected sponsored by the United States Department of Homeland Security,