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Plus Lana ($2.5M, $400K net), Ricky in Dallas ($10M active), Carlos, Trent, Morgan, the Geist Brothers, and dozens more building right now.
Want To Know More?
Yes, we help with business funding and most of our students leverage business funding to finance their new builds.
You don't need hundreds of thousands sitting in the bank to do new construction. All financial requirements are leveraged through business funding and strategic lending partners. While having cash reserves helps, what matters most is your ability to access capital, and we show you exactly how to do that so you can cover everything you need to start and finish your project.
The largest upfront cost is the land. Most lenders require 10 to 30% down, depending on your relationships and experience. With our preferred lenders, expect around 50% of the land cost plus 20% of the total project cost.
Example (Nashville): Lot $120K to $200K + Build $350K to $400K = roughly $500K total project.
It depends on the market and size of the build: entry-level projects (around $500K) run $160 to $170 per sq ft; mid-range homes (under $1.5M) run $170 to $190 per sq ft; luxury builds ($1M+) run $200 to $250 per sq ft.
We target a minimum of 20% profit on every deal. Example: a $2M home typically nets $400K profit. If a deal falls below 20%, we don't touch it.
On average, $50K to $100K in cash reserves is needed for your first project.
That said, you don't need hundreds of thousands sitting in the bank. All financial requirements are leveraged through business funding and strategic lending partners. What matters most is your ability to access capital, and we show you exactly how to do that.
Students typically use hard money lenders or private and business funding.
Holding costs (loan payments and carrying expenses) are the main factor that can affect profits.
On average, 12 months from land purchase to resale.
Roughly 30 days, depending on the city.
About 6 months from groundbreaking to finished home.
The main variable is time to sell the property once construction is complete.
Plan to carry financing for about 6 months before the sale closes.
Most hard money lenders finance about 70 to 80% of the property's purchase price, and in many cases a large portion of the rehab budget. We show you how to cover the rest through business funding and strategic lending partners, so you don't need hundreds of thousands sitting in the bank.
Typically around 20% down is required, sometimes 25 to 30% depending on credit or deal structure. Don't worry if you don't have all of that sitting in cash. We show you exactly how to leverage business funding.
You'll need some financial contribution, but it doesn't have to come directly from your savings. We work with you on business funding solutions so you can access the capital you need without having to drain your personal bank account.
Yes, and we help you with that. Many of our students pair hard money with business credit lines, additional lenders, or private partners.