Bitter sweet Friday · Don't Buy Real Estate

Bitter sweet Friday

Closing on a piece of land today that I owned. Bittersweet moment because I basically got the land for free, got the plans approved, and then ran into construction issues and $$$.

Turns out you need a solid stack of reserves for construction—these construction lenders don’t pay your contractors as the work is done. They only reimburse after you pay, which defeats the purpose.

Luckily, we worked out a seller-finance deal with the new buyer. He put 50% down, and I financed the other half. So I get some money upfront, plus $1,000 a month for the next 15 months, and then he’ll pay off the remaining balance.

I’m now this guy’s number-one fan because I want to see the project succeed—from a whole different angle.

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