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Land escrow closes January 23rd
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In preparation for the rapdily approaching escrow closing, we are finalizing our financing. I have several lenders working simultaneously pursuing the two following structures.
Option I: acquire land with a conventional 80% mortgage (there is an existing structure on the site), finish up the pre-development activities (survey, soils, plans, permits) using cash equity, then take out a construction loan to commence construction.
Option II: Finance as owner-builder and acquire property and commence construction using the same loan.
As you can imagine, Option II is cheaper (less fees) and easier to administer (I can serve as general contractor). A third option, paying for construction using a home equity loan on my existing property, is also a distant possibility, although I don't like this option as much, because then I have "cross-collaterialized" my properties.
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Closed!
Well, we finally closed today amd everything fell right into place. We are utilizing a construction loan from Indy Mac, arranged by our outstanding broker Scott Engel and his boss Ian Mitchell at First Capital in Santa Monica. Scott got us the proceeds we needed and the Indy Mac loan is highly flexible. It's an 18 month construction term that rolls into a permanent loan upon completion. We were qualified as Owner-Builder so we can put together our draw requests and manage the construction process. Due to the engineering and construction complexities of our hillside site, Indy Mac did require a construction manager, but ultimately we believe this will be to our benefit.
Now we are heavy into site design, working with our soils and structural engineer and plowing ahead toward demolition and permitting. I will have a new post on site design soon.
Peter
cost of retaining wall?
Hi there, Just wondering what cost estimates you received for the retaining wall?
Thanks! Dianne
Did it close
Peter,
So now its January 31st and I wonder if you closed escrow and sorted out all your financing issues...