Problem With Builder
i am a owner of a new house that ended up being crap. it took a year longer than what was suppsoed to and now i noticed i have leaks in the house that i have been telling my builder about for the past three months and have not heard back from him at all regarding this and other things. ever since he received the last draw i have not heard back from him to fix any problems i have emailed him and called and also text messaged him. i have lost a lot of money on this house and also am having a problem with the bank for releasing the money to him. i wanted to know if there was anything i can do to this guy and get some money back i am in fl.. please let me know.. thanks..
Be careful of sellers who post financials based on pro forma numbers.
Always ask to see actual numbers and tax returns from previous years to prove expenses.
If you have to make an offer to get those, make sure you have an escape clause written in to back out for any reason.
Hello,
First let me say I am a rookie at this and I am just commenting on how I handled a similar situation. Please do your own research and check with qualified specialists. That said....after years of doing residential rehabs I decided to take on the challenge of a development. I hired a developer as a consultant and interviewed several others. I told my equity investors that I was going to form an LLC for them. All of the investors were designated a percentage of the LLC based on what each investor contributed towards the total amount of money of the equity pool. The attorney filed the LLC papers for the group. The attorney also put together the promisory note which I signed outlining the agreed upon return. The attorney filed a lien against the land, with the agreement that the lien would subordinate to all construction and development loans. So the investors, while realising that their investment was speculative, had some sense of security with the promisory note AND a lien against the property, albeit a junior lien.
As for the return. I went back and forth on this issue and had to change the return structure several times. I ended up not offering a return based on the success of the project, to many variables involved. I wanted to be a little more definitive for my investors so I ended up offering them a little better flat return on their money instead of a percentage of the project.
My process might not be relevant to your situation at all. Just the way I worked things.
All that said I am just under way and just went through with the aquisition of a parcel of property in NC to put in a small (16 homesites) gated community . The area is a couple hours from you.
PM me if you want any more info or want to share.