New construction and private money

[Chase Tompkins]

Hello, I am trying to get more insight on maybe what I should do. I plan on building a duplex in my hometown this year, currently still looking for land and everything. I am just wanting opinions on if I should go to the bank and see what they can offer and then see if I can get private money for the downpayment. The other option would be to see if I can get private money for the whole thing. I am just struggling to find private money. Would it be better to do private money or try hard money since it seems easier to find? I am just wanting some opinions and explanations.

[Karen Margrave]

Loans are all about risk, security and reward. Loaning money to someone that has no money of their own into a project (skin in the game) and no experience building, wouldn't make any sense for a lender. On new construction, NOTHING is there to secure the loan, especially if you don't have the money to buy the lot. Private lenders are usually people that you know, and have a relationship with, that are willing to risk their money on you for some reason.  If you owned the lot, you'd be in a much better position to get a construction loan. 

A better first step for you might be to learn about the process of home building, from buying land through getting plans, permits, and construction loan. Maybe try to get a job working for a developer or contractor.