Bulletin Board Magazine 2021 V4

Associate Spotlight

Using Construction to CREATE REAL ESTATE INVENTORY Adam Lepore, Citizen’s Bank

O ver the last two years, we have all heard about the struggles potential homebuyers have faced in purchasing the home of their dreams. On the top of that list is a lack of inventory in the housing market. If you were in a competitive bid for a home in the past, that usually meant what offer had the best heartfelt letter to the seller, or who was paying cash vs. getting a mortgage. Now, sellers expect you to pay way over asking with no contingencies. This causes buyers to “tap out”, because they feel they will never find the home of their dreams. In my capacity as a licensed Mortgage Loan Officer for Citizens Bank, I have shared these ups and downs with homebuyers. Many of these folks I am with for 6/12/18 months before they finally get into something that works for them, if they find something at all. Yes, there are still ways for buyers to stick out in this competitive market. However, there is another solution out there that not only can get you into a home, but really into that home of your dreams. That solution is using Construction and Construction Financing to create something that currently isn’t there. There are many people that look at an open lot or distressed home and think to themselves… "Wow, wouldn’t it be great to build the home of our dreams here?" But where do you start? How do I acquire the land or distressed property? Do I contact a builder or architect first? Can I finance all of this? Many potential homebuyers cannot get answers to these

questions and therefore give up. However, there are solutions out there, specifically when it comes to financing. There is Lot/Land financing available, typically through local banks. There is also financing options out there through Government (FHA/ VA), Agency (Fannie Mae), and Portfolio (Banks like Citizens Bank) that allow you to acquire the land and finance the construction

Over the last two years, we have all heard about the struggles potential homebuyers have faced in purchasing the home of their dreams. “ “

all in one transaction. This provides potential homebuyers with the financial roadmap to really make this idea of building that dream home a reality, creating inventory that wasn’t previously there. The construction and housing industry gets a huge Win! Most importantly, it results in a happy homeowner!

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