Does anyone purchase land and build from scratch?

[Camille Miller]

I have searched the forums and not found any examples of people building on raw land.  I'm a noob, so help me understand why?

[Clayton Silva]

Many people do not do this, because most banks do not lend on raw land nor ground up construction.  Typically it is a financing issue. We have started to do some ground up construction lending but for the most part, it is a pretty significant risk for the banks so they don't like to lend on it.  So, unless you have a pile of cash to buy the land cash, and pay for the construction in cash, and then refinance later, it is really hard for the average person to do a ground up construction.