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How to become a home builder: your first build
You do not need a track record to build your first home to sell. Here are the steps, from finding a lot to handing over the keys.
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Estimate only. Loan amount is 90% of lot price plus build budget. Business-purpose loans on investment property, not homes you will live in.
Eight steps to your first build
- Learn your market. Find out what new homes in your area sell for, and how fast.
- Find a lot. Buildable, with utilities available or nearby.
- Pick plans. Stock plans that suit the neighborhood keep costs down.
- Choose how you will build. Hire a general contractor, or manage the trades yourself.
- Build a budget. Line by line, with a contingency for surprises.
- Check the math. Sale price minus lot, build and selling costs should leave a profit. Try the calculator.
- Get financing. We fund 90% of lot and build for first-time builders.
- Build and sell. Draws pay the build; the sale pays off the loan.
Licensing and permits
Builder licensing rules and permit requirements vary by state, county and city. Check with your local building department before you start.
Your first build, financed
| Deal | Amount |
|---|---|
| Lot price | $80,000 |
| Build budget | $320,000 |
| Total cost | $400,000 |
| We fund 90% | $360,000 |
| Sale price when finished | $560,000 |
| You bring (10%) | $40,000 |
Questions builders ask
Straight answers about becoming a home builder.
Can I become a home builder with no experience?
Yes. Many investors start by hiring a general contractor for their first build. We fund first-time builders with no completed builds.
How much of my build do you fund?
We fund 90% of your total cost: the lot price plus the build budget. You bring the other 10%.
How is the build budget paid out?
In draws. As each stage of the build is completed, the work is inspected and that stage's money is released.
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