Entitlement for a property that has a mortgage

[Bardia Mehdizadeh]

I am not experienced in new construction however I have done couple of semi-successful filliping already. I usually get loan from private lenders with 8% interest and it was quick and easy. Now I am trying to see if I can get into the new construction and I have a whole world of questions. I was hoping maybe someone here have previous experience with multi-units construction. I am trying to get an already existing building in an average area of Los Angeles with conventional loan, they get it permitted and entitled for multi-unit development. Either sell the property with entitlement or go for construction loan after that. I am an engineer and have more than 8 years experience in planning in multi-family design so that`s the easy part for me. My main concern is if I can get a permit the entitlement for a home that currently has a mortgage? Does the bank that financed the property let me to do so? Does the city accept it or the property loan need to be paid off before getting the permits. If someone have any insight about this matter I would appreciate the help.