I am in the early stages of scoping out the details around demolishing and rebuilding on a property that I recently took out a home equity line of credit on (currently have all of those funds still). The area is hot right now with neighboring properties being demo'd and rebuilt left and right. I am already in talks with an architect who is inquiring with the city board to see what we are allowed to build. The lot is 6325sqft and I've seen 4-6 unit buildings built in the area in similar sized lots.
The architect mentioned that he has banks he can refer me to but I am new to this type of project and would like to know what I should look out for when financing this project.
Local banks and credit unions will most likley be your best bet. Contact all of them in your area and see if they are interested in financing your target properties.