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How do I get around "approved builder" for financing!!

pur_ange profile photo
  • Thursday, May 01, 2003 @ 09:28 AM EDT
  • 3 Comments

hey all, I really need a loop-hole on this one. Well I finally found someone who will give me a rehab loan, as I was looking over the papers it specifically states that all builders must be approved and the owner CANNOT participate in renovations. What! surprised Is there anyway to get around this confused My partner, who probably will not be on the loan, has been in general contracting for 10 years, that was one of the ways we were looking to increase profits. Would he qualify as a general contractor? Has anyone had problems with this before, and how did you overcome it??

Comments(3)

  • NC_Yank
    NC_Yank30th April, 2003

    Hey Pur-Ange,

    Many lending institutions have been burned numerous times by individuals who want to do the work themselves.

    Even builders get in over there head when emotions become involved or they are not knowledgeable with renovating,
    however depending on which state your in, the lending institution usually will have more leverage to go after the builders license when he screws up.

    There are lending institutions that will work with you but the numbers have to work so they feel they are not left holding the bag if they have to foreclose on you.

    You may want to look at private investors,
    possibly work out some sort of a percentage split.

    good luck

  • no photo
    rajwarrior30th April, 2003

    You should never have anyone working on your rehabs that isn't licensed and insured (including you) for the same reason as the bank; liability.

    If you did the work and miswired something and the house burned down, then you would be liable. Built a deck and the bansister breaks causing someone to fall, you're liable.

    I don't think the money you save is worth the potential for lawsuits. I don't do anything that a normal homeowner wouldn't do (not much).

    Roger

  • no photo
    pur_ange1st May, 2003

    Thanks guys,

    I think I've got this figured out. See we were going to contract an actual General contractor, but my partner works for him, so we will save on labor and hopefully get a discount as well. I was just hoping that this general contractor will get approval. Which I think he should since he has a license and all. Thanks for the info guys!!

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