Funding Projects Using Equity In Other Properties

[Tyler Crawford]

Funding a new project with 75% LTV from an existing property is normal. As a General Contractor, I'm wondering what the process looks like to utilize equity in a house that I build to build new projects.

For example, if the house costs us $150K to build using our own cash and the other 3 bedroom 2 baths in the area are selling for $250K, then lets assume the bank appraises the home at 250K, followed by a renter moving in. Which institution would allow us to use 75%-80% of the equity in the home to build another project? 

My experience is as a PM building student housing and ALFs for developers.