Seeking advice on starting and construction loans to start developing raw land (by right project)
Thanks in advance - we own 2 acres of raw land (flat/graded), and are planning a by-right project. We have done work with an architect who guided them they CAN build a 41,000 SF building on the site. We have put together a comprehensive report, studies, hard costs, and met with the city. We would like to move forward in securing a construction loan, but need to get someone to help us cover the costs before we go in and submit plans. Any advice on how to secure capital to get the first leg covered?
[{"id": "fd0rvsd", "text": "Construction loans typically require the borrower to provide their equity portion prior to starting construction draws. \n\nAlso, most construction loans require projects to be \u201cshovel ready\u201d aka all plans are approved and the project is ready to begin construction.", "replies": [], "depth": 1}, {"id": "fdfpkj0", "text": "What value in terms of a % of overall costs are you assigning to the land?  If it\u2019s valuable enough, a bank might not require any cash equity.", "replies": [], "depth": 1}]