New construction

[Penny Conner]

I am wanting to buy a lot and build a 1200 sq. Ft. Home and then sell it. I was told that I would need a contractor license to do this. Does anyone know if I do need a license? It's in the state of VA. Also are there any private lenders that will put up the money until the house sells? Thanks for your input.

[J Scott]

I don't know VA laws, but I imagine you'd either need your own GC license, or you'd have to hire someone who is a licensed GC in the state -- it's this person who would pull your permits and be on the hook for all building code compliance issues.

As for private lenders, these are typically people you know who are providing capital based on their relationship and trust in you as an investor.  Strangers can sometimes be private lenders, but that's typically not the case until you get more well known and have a proven track record.

There are plenty of banks who will provide new construction lending, but expect to have to come up with at least 35% of the lot + building costs.