I would like to purchase land in Southern California to build
Where do I begin? What kind of loan will I need. I can get the 20% down from my 401K.
I know there would have to be construction loans. I am not sure how it all is supposed to work out.
Like to keep the units to find my retirement. How do I calculate/ determine a good investment. TIA
@Joe Frank It all depends on what size property, how many units, how much cash you have to work with etc.
You want to get prequalified for a loan before you do anything. You can get development loans from Freddie Mac and Fannie Mae, For smaller projects you would go to a local commercial lender and you need to shop a bunch of them as they all have different appetites and offer different rates and terms.
The development process starts with site selection appropriate for the number of units you would like to build, then you hire a civil engineer to do surveys, site planning, soils and environmental in order to begin the entitlement process, then you get an architect to design the product, then you get bids from multiple contractors. You can also hire a design build contractor to handle the entire process for you.