Multiple Lot Collateral for Construction Loans or Subordination?
Smart people - if I own 24 buildable lots appraised ~$1.6-1.8 million in total (assessed by town at $1.4M), what do you think is the best way to build out the homes (notionally $300-400K builds/$450-550K sells) and make money: a) putting the least money out of pocket into project, and b) NOT signing on construction loan(s) if possible? One of my friends said to subordinate the land to a GC willing to build/sign completion guaranties and bond and we split profits along the way. Will any lenders hold multiple lots for collateral and release them for building maybe 3-4 at a time? Please let me know if you have any experience with this situation. Also, selling off any lots up front is not part of equation because I've agreed to fix the subdivision road these are in. Thanks!