Homebuilder

Hello all-

My father in law is a home builder in California. He has run a plastering business for 26 years and started building homes about 6 years ago. He usually buys 2 or 3 lots per year and builds homes in Victorille, Hesperia, and Apple Valley(2 hours outside of vegas).

He is very old school when it comes to funding his projects, using 100% of his own money. Lately, after some convincing he has considered using financing so he can expand his business.

What would be the best way to generate money? He has been thinking about getting private investors, but he prefers not having a bunch of people constantly worrying how the project is going. I guess a bank loan could be another option, but would it be a business loan or real estate loan? He doesn't like the idea of having strict monthly payments since the home sales won't be until down the line and he won't be getting money to start paying off the loans right away. He would prefer paying back the money on a quarterly basis(if that is possible). Any suggestions on how to generate capital would be appreciated.

Thanks

-Jeff

[MrMon]

Talk to a bank, they've undoubtedly dealt with this problem before. I'm guessing a line of credit is the answer.

And talk to a lawyer. If he isn't set up as some sort of corporation, like an LLC, he should be, just to shelter his personal assets from liability. A good corporate lawyer would also be able to direct him to several good banks.