Developing 8 Units.
I am looking to develop 8 condo units in a certain part of town. This town doesnt really have much vacant land so I will need to purchase a home knock it down and build.
I know the zoning works and all that. I'm just not so sure how the financing works.
Do I buy the house take out a mortgage on the house use the money to knock it down and start building and then take out a construction loan? whats the process?
The question you ask is covered in my residential real estate development course and because you have asked it now, I can only assume that you have not studies my material.
So I can't go into sufficient detail in an email to satisfy you. So I will just say that I am the only developer who has ever bothered to write the exact process and all the procedures that instruct you on how to go about developing successfully.
Developing real estate is not the cheapest exercise to undertake in life and the cost of my instruction material at $89.00 will be the lowest part of the entire exercise and it will underscore your entire development work.
But a quick answer is this.
As a developer I have never taken out a mortgage. Most beginners do; first mistake.
As a developer I never buy the land FIRST. I do all my preliminary design; feasibility study; Authority application and finance application FIRST before I buy.
So if you read all that again you can see how far off the mark you are. So please don't proceed until you study my stuff and give yourself a chance of doing development successfully.
My course includes a Development Finance Application. It's all filled out for you like the professionals do it and all you have to do is amend the words to describe your own development. It tells you exactly what a financier wants to know from you.
If all that sounds harsh; sorry. But I have just done you a massive favour and saved you a stack of cash.