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Updated about 1 year ago on . Most recent reply
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1031 Into Land To Build Residential Multi
Hello Biggerpockets Family
Thoughts on selling a SFH to 1031 into land that qualifies for duplex- quadplex? I've heard Lland can serve as a down payment for new construction. Home has about $100k equity do to previous refi cash out.
Thoughts?
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Construction lending is different than existing lending.
Yes, typically, the lenders will account for "hard costs" associated with the deal as part of the initial down payment / equity from the borrower. Be sure to discuss with a qualified lender in your area that does construction lending like this.
Every lender has different standards on these as they are more of a portfolio product at the banks.