My RE investment plan

[Sasidhara Manthena]

Hello experts,

Here is what my RE investment plan..Not sure if it has any specific name in RE world. 

My plan is to buy a single family lots in the neighborhood, and construct home in it and either keep it for rent(for some time and sell) / sell right away. Math is Land cost = 20%-25% of the total project cost(land+construction). By putting this as my 20% down and get the construction cost as loan from the bank. Now selling price should be 30k~40k more of the project cost. Would this kind of plan is feasible for the banks to to lend money for construction? Have any of you done this before? If so what are the pros and cons? Please let me know. 

Thank you,
MS.

[Joe Villeneuve]

That's not a plan...that's a strategy.  A plan would  be specific as to where (specifically) you would do this, how much the costs and profits would be (in $$$$, not in %%%), and specifically taking the profits, and moving forward into specific properties/markets.  Each property in each market are connected to eachother, and the plan would reflect how.

The key to a plan is it involves specific steps that are connected, with the $$$$ details of each step spelled out.  To execute the plan, you would then need to find the markets where the financial profiles in these markets, and the strategies to be used on th properties in these markets, match the criteria designed in the plan, at each timeline in that plan.