I am going to inherit some property, the lot is big enough to divide. I am interested in developing a house on the property and selling it or renting it. Is it common and normal for banks to provide a construction loans to build an property for investment property?
I would say you are going to have to dig around awhile and make a bunch of phone calls. I live in a very rural area and so my experience might differ from some more traditional markets, but we had to go through 5 banks before we found one that would do a construction/perm loan for us. My partner and I also have about 10 years of experience building custom homes as well which was very important in securing our financing. I would suggest bringing someone to the table with you who has GC experience or is a builder if you are going to try to secure financing for this project. Good luck.
Thanks Kyle, That's what I figured. I am inheriting money. I ran the numbers, and the investment makes if the cost for construction and site work are reasonable. There is a good chance I could pay for the project out of pocket and refinance once I get renter, it's just a lot of capital to tie up at once, especially for a newbie like me, but if I will not invest in my self who will?