What does it take to build an Apartment Building??

[Jennifer Lee]

HI BP

It's been a while since I have been on BP.

I have been toying with the possibility of building an apartment building.

This is a bucket list thing, and I think an opportunity has come up.

This is a VERY general question, what do I need to consider when building an apartment building.

This is something OUTSIDE of my expertise.  

I have a general Plat for the lot, and a general usage, building location rendering. (Which hasn't been approved by the municipality according to the agent)

I have looked briefly on USAGE and Code/Ordinance, it's a Special Use, and it seems I can do what I want, if "everyone" agree.

I have contacted my Financing people, but I haven't gotten details on how to structure the loan.

I know the rental market in the area, if my numbers are correct (Ha!) it should work out...

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If this works out, I am buying VACANT commercial land.

1. Should I buy it with the approval in place? or buy the lot and then build in future?

I do want to make sure I can do what I want on it, 20+ unit. the current rendering is for restaurant/office/medical (3000-12,000sqft (2 stories)) 

2.  How does one usually structure this kind of loan? is it a construction loan?

3. What must I consider when building an apartment? Traffic, parking, fire sprinkler system, elevator? garage parking? Storage?

4. How long does zoning approval take, how complicated/annoying is it? I have the list of all the docs required.  

5. Get an architect or pick a building plan online and go to builder?

I am sure I am missing other IMPORTANT questions.  

Any advise or share of your experience will be helpful.   

[Milan Mehta]

Hi @Jennifer Lee , I agree with @Mark Creason . I recommend hiring a civil engineer that is familiar with the area and approval process in that area.  You want to make sure that the site is "buildable" to what you desire.  A step further would be to enlist an architect or design professional to put together a feasibility study.  They can come up with a design, a cost-estimate and a schedule.  Put together a proforma to see what it would take to buy the land and build.  Prove to yourself on paper (design-wise and financially that the project can work).  Don't rely on a rendering.  The loan can be a construction loan.