How do I prepare in case my finance collapses?

[liamaust]

If I was to build townhouses on a vacant block of land...

Should I identify and contact potential buyers in case my finance collapses during build?

If not, what happens if I need to sell quickly and the project isn't finished?

I'm trying to identify if there is a way for me to reduce my risk if suddenly I need to sell. Surely if I have a few interested buyers lined up this will allow me to sell without losing too much time or money?

What would you do?

 

[Terry_w]

Firstly, under what circumstances would finance collapse?

If it did collapse you would find it very difficult to finance mid project.

Secondly, if the project did collapse who is exposed and what assets do they have that will be potentially exposed?

 

[Aaron_C]

Um....very weird question. Fact is that it's hard to sell a half finished house 'as is'. One of the worst assets you can have.

 

[HD_ACE]

Sell otp before you commit to construction. Unless your main plan is to hold at the end.

Cheers

 

[Shahin_Afarin]

You will potentially make severe losses if you are going to sell a half cooked construction site. Why do you think your finance is going to collapse and how many dwellings are there?

 

[westminster]

If I was to build townhouses on a vacant block of land...

Should I identify and contact potential buyers in case my finance collapses during build?

If not, what happens if I need to sell quickly and the project isn't finished?

I'm trying to identify if there is a way for me to reduce my risk if suddenly I need to sell. Surely if I have a few interested buyers lined up this will allow me to sell without losing too much time or money?

What would you do?

If it's a bank financed complete construction loan then it won't collapse during built. Its a contract and the bank will want the build finished and not bail half way through as it's a nightmare to get money back from a half built house.

 

[liamaust]

Thanks for your insights guys, much appreciated