Anyone do New Construction?

[Micah Uveges]

Has anyone ever gone the new construction route for investment properties? How does it work getting a construction loan? And do you convert it to a conventional 30-year mortgage after it's complete?

[Allan Smith]

That model is called build to rent and I have done a few single-family houses. You get a construction loan that automatically rolls into an amortized loan. All that is set in motion at the beginning so there's no refinance or anything. I always got commercial loans, but there might be a construction loan that rolls into rental and the conventional world. You could easily talk to a mortgage broker and have an answer in 5 minutes. Although those guys sure love to talk so it's probably more like 30 minutes.