Commercial Loan: Land and Construction together, or separate.

[Brandon G.]

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