Commercial Loan: Land and Construction together, or separate.
I'm looking at 3.5 acres that is commercially zoned and has a small
warehouse on it. I want to construct mini storage on the lot. I would
like the forum's opinion on how I should structure the loan. Should I
purchase the land (bank loan) and then after owning the property get a
construction loan to build the buildings/lot/etc, or should I get one
commercial loan that will include paying for the property as well as the
building and construction. The owner is a individual, private owner.
The construction will be handled by a local contractor that I have a
small previous relationship with. For what it is worth, there is a time
factor involved in that there is a large corporation that is also
wanting to purchase the property and ready to do so quickly.
Your opinions are appreciated.