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Where I'm At...

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  • Steve Rapport
    I got the building permits for my LV Home in Pacifica, CA a few weeks ago. That s the (only) good news. The total permit cost was around $17k, and that s IN
    Message 1 of 7 , Sep 2, 2009
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      I got the building permits for my LV Home in Pacifica, CA a few weeks ago. That's the (only) good news. The total permit cost was around $17k, and that's IN ADDITION to all of the extra engineering and architectural fees I've had to pay to get through the approval process.

      Then, as I got to the final and, I thought, routine portion of the loan process - the bit where you sign paperwork and actually receive money - I began to realize that my loan was not secure, and was in fact in jeopardy. And after leading me along for another month, the lender - Bismark Mortgage - eventually decided to 'pass' on the loan, leaving me high and dry. As there are no other banks currently doing construction loans, I had only a couple of choices: wait until next year, when things may (or may not) be better; or seek out a 'hard money' loan from a private investor.

      Right now I'm trying to do the latter, but it's hugely expensive. The loan rate will most likely be 11%, the loan cost will probably be 9 points (nine points!), and the 'loan arranger' wants over $8k for putting the package together.

      Ugh. And there's no guarantee that this application will be approved either. I suspect this is my last chance to get funds to build the house this year, so despite the astronomical increase in costs I'm still keeping my fingers crossed that I get a green light.

      If it's a go, maybe we can start excavating and drilling piers in a couple of weeks. Maybe.

      Onwards and upwards.

      - Steve 

      Steve Rapport
      415.235.7556
    • Dar Kuehl
      Little consolation , but , a lot of folks are having the same problems. The very reason I am taking 2 years to build is because of funding.. Very frustrating ,
      Message 2 of 7 , Sep 2, 2009
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        Little consolation , but , a lot of folks are having the same problems. The very reason I am taking 2 years to build is because of funding.. Very frustrating , I know. I was told by my local " money arranger " a while back "no problem, we will get you what you want for a construction loan"...well , never happened , they are now out of business.Banks are too busy trying to unload what they have foreclosed on , to even think about lending for new construction.  besides , in most cases , being your own GC is a no no for construction loan , unless you are a licensed contractor with a good reputation , and no defaults.

          Sorry to say , I think the money lending for new construction is not over yet , next year may be even worse. Private funding and earning power are what it takes these days. The good thing is , prices for materials and labor are at bargain levels if you shop around. I still think now is a good time to build , if , you have the funds. I hope I will be in my LVL by Christmas , one way or the other. Ebay has been good to me, I feel lucky. Thats why I call " The Edge "...........the house Ebay built. , one auction at a time !

           Good luck to you , and to others that are going through the same all across the Country. These are creative times, that call for creative solutions  , its a jungle out there !   Dar.

        --- On Wed, 9/2/09, Steve Rapport <steverapport@...> wrote:

        From: Steve Rapport <steverapport@...>
        Subject: [LVHomeFans] Where I'm At...
        To: LVHomeFans@yahoogroups.com
        Date: Wednesday, September 2, 2009, 5:09 PM

         

        I got the building permits for my LV Home in Pacifica, CA a few weeks ago. That's the (only) good news. The total permit cost was around $17k, and that's IN ADDITION to all of the extra engineering and architectural fees I've had to pay to get through the approval process.


        Then, as I got to the final and, I thought, routine portion of the loan process - the bit where you sign paperwork and actually receive money - I began to realize that my loan was not secure, and was in fact in jeopardy. And after leading me along for another month, the lender - Bismark Mortgage - eventually decided to 'pass' on the loan, leaving me high and dry. As there are no other banks currently doing construction loans, I had only a couple of choices: wait until next year, when things may (or may not) be better; or seek out a 'hard money' loan from a private investor.

        Right now I'm trying to do the latter, but it's hugely expensive. The loan rate will most likely be 11%, the loan cost will probably be 9 points (nine points!), and the 'loan arranger' wants over $8k for putting the package together.

        Ugh. And there's no guarantee that this application will be approved either. I suspect this is my last chance to get funds to build the house this year, so despite the astronomical increase in costs I'm still keeping my fingers crossed that I get a green light.

        If it's a go, maybe we can start excavating and drilling piers in a couple of weeks. Maybe.

        Onwards and upwards.

        - Steve 

        Steve Rapport
        415.235.7556
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