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