Updated almost 2 years ago on . Most recent reply
1031 Into Land To Build Residential Multi
Hello Biggerpockets Family
Thoughts on selling a SFH to 1031 into land that qualifies for duplex- quadplex? I've heard Lland can serve as a down payment for new construction. Home has about $100k equity do to previous refi cash out.
Thoughts?
Most Popular Reply
Construction lending is different than existing lending.
Yes, typically, the lenders will account for "hard costs" associated with the deal as part of the initial down payment / equity from the borrower. Be sure to discuss with a qualified lender in your area that does construction lending like this.
Every lender has different standards on these as they are more of a portfolio product at the banks.