Do Customers Take Out Loans For Large Projects?

Discussion in 'Landscape Architecture and Design' started by mcw615, Jan 16, 2010.

  1. mcw615

    mcw615 LawnSite Senior Member
    Posts: 473

    I plan to start doing landscape install and design in hopefully a year or two, currently focusing on obtaining my certified horticulturist and studying landscape design and everything before I get much into it.

    You will find in your state's nursery and landscape associations news articles or in magazines talking about this coming up decade about how the country is going to continue to shift into family's staying more at home and spending more on decorating, art... that steep bank in the back yard or the landscapes around the house because of spending more time at home, as well as wanting to increase the value of their home.

    I know a homeowner can spend easily $20,000 on work and materials on a job that isn't small....but not that big either.

    I was just curious, do your average homeowners who desire this work take out home equity loans for this?
     
  2. AGLA

    AGLA LawnSite Bronze Member
    Posts: 1,742

    Most people have taken about a 20% hit to their home equity in the last three years. You are a little late for that party. That is what people do when property values are on the rise. It is going to be quite a while before doing home improvements on home equity loans is common place again. Banks are not very eager to make home equity loans when the home values are dropping.

    A lot of people are upside down (owe more on their houses than they can sell them for) because they borrowed on equity that no longer exists. Most did it by refinancing rather than home equity loans, but the result is the same.
     
  3. Jim Bo

    Jim Bo LawnSite Member
    Posts: 34

    AGLA is right, that's exactly what I'm seeing around MD. There are people with money, but the $20,000.00 jobs are very few anymore. Even the big jobs that do exist are being shopped by at least 5-6 contactors and then the customer is playing the estimates against one another for a better price.
     
  4. PaperCutter

    PaperCutter LawnSite Bronze Member
    Posts: 1,938

    If you have any hopes of taking advantage of people getting home equity loans to fund your projects, you had better make networking a big part of your business. Join the chamber of commerce, marketing groups, etc., and be active in them, because there are not a lot of banks interested in lending right now. You need to find out who *is* lending money right now, because you'll need to get them and your homeowner together.
     
  5. whitebp1

    whitebp1 LawnSite Member
    Posts: 76

    im sure some customer do take out loans some do not there is really no way of being able to track that part of where they come up with the money. really its none of my business. i dont offer any type of assistance when doing jobs as far as loans etc etc. we mostly have pay at different intervals within the job andfinal payment once completed
     
  6. Turf Logic

    Turf Logic LawnSite Member
    Posts: 243

    If customers need financing contact JDL and they will finance 100 percent of the job as along as the majority of the materials come from JDL.
     
  7. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    I'd suggest starting out with projects they (and you) can afford.
     
  8. glaciator

    glaciator LawnSite Member
    Posts: 66

    I have no clue where people get the money to finance landscape projects, and frankly, I don't care. If they pay the deposit and the money is good, then I can get going on the project. If they do not pay at the end, then they risk a lien on their property. I have not had that happen. People tend to have the cash before major landscape projects, or, if a new home, they roll that money out of the original loan to cover the initial new landscaping. It is often part of the deal with the developer that they have a cash allowance for landscaping. Since landscaping is often a "luxury", people already have expendible cash for those projects. Just my 2 cents.
     
  9. Armadillolawncare

    Armadillolawncare LawnSite Senior Member
    Posts: 570

    I am getting geared up right now for a $40,000.00 project. 70 pallets grass, 340 yards dirt, 16 zone irrigation and two tier retaining walls for the beds on either side of entrance. My customers are financing to get it done.
     

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