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Updated over 5 years ago on .
Commercial Loan: Land and Construction together, or separate.
Hello everyone,
I'm looking at 3.5 acres that is commercially zoned and has a small warehouse on it. I want to construct mini storage on the lot. I would like the forum's opinion on how I should structure the loan. Should I purchase the land (bank loan) and then after owning the property get a construction loan to build the buildings/lot/etc, or should I get one commercial loan that will include paying for the property as well as the building and construction. The owner is a individual, private owner. The construction will be handled by a local contractor that I have a small previous relationship with. For what it is worth, there is a time factor involved in that there is a large corporation that is also wanting to purchase the property and ready to do so quickly.
Your opinions are appreciated.
I'm looking at 3.5 acres that is commercially zoned and has a small warehouse on it. I want to construct mini storage on the lot. I would like the forum's opinion on how I should structure the loan. Should I purchase the land (bank loan) and then after owning the property get a construction loan to build the buildings/lot/etc, or should I get one commercial loan that will include paying for the property as well as the building and construction. The owner is a individual, private owner. The construction will be handled by a local contractor that I have a small previous relationship with. For what it is worth, there is a time factor involved in that there is a large corporation that is also wanting to purchase the property and ready to do so quickly.
Your opinions are appreciated.
Thank you,
Brandon