Lot + Construction Financing? - Posted by Sam
Posted by Sam on July 19, 2007 at 12:25:22:
I found a 5 acre property zoned commercial for 1.2 million in a growing area. It has a 165 ft frontage on a road that is currently being converted into a 7 lane road(currently only 3 lanes). The seller is willing to subordinate $600k at prime for 1-2 years time(enough time for construction,permits, etc…) The property is bordered by the major road and in the back there is a road with residential areas. I would like to subdivide the property so that the frontage with the major road would be some sort of retail strip, while the back would be developed into apartments(there are apartments being built one block down with the same zoning, so I think it is allowed with approval). I would need funding for the entire project including the cost of the land. Is there a loan for this type of deal? Also, does this type of deal seem to pencil for you guys with more experience? I was originally thinking of building self storage units, however there is too much competition nearby to make it pencil. I would like to tie up this property, but would like to make sure I could get financing either for the whole project so I could develop it out myself, or at least so I could get approvals,permits, and plans so I could sell the project to another developer. Preferably I would like to develop it out myself.
To tie it up, I am looking to see if I could get some sort of financing for this project.