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Ok, so this is totally different to how I would have thought it would work. I was under the impression you would get a loan for the property and then a separate construction loan. That seems ridiculous if the bank will only give you a loan of x% of 20% less than your total land + build...

Most likely residential lending (either 3 or 4 unit build). Basically I'm just trying to figure out all up, how much cash I would lose through a development. e.g. For a buy and hold strategy, you just lose the deposit (say 20%) and the purchase costs (although my question remains whether...

I'm just wondering how much cash you actually need to fund a development from start to finish (assuming you can get the required amount of finance of course). Consider the following hypothetical situation: Land: $500K Purchase costs: $25K Build: $700K Interest rate: 5% Holding period: 18...