That new building project you're planning requires you to do a little pre-work ahead of time if you're planning on getting a building or construction loan to finance it. If you're developing a previously undeveloped tract of land, you'll need to make sure you can get utilities in there first. Install some pipes for the water system, some wires and cables for electrical service, and some roads for access. These are items not included in a standard building or construction loan. You'll need to take out a commercial development loan to get them taken care of before you can even apply for financing to build.

 

One of the first questions you'll be asked by any bank or lending institution when you apply for a new construction loan is whether or not there has been a commercial structure on that property before. If not, you need to do the prep work to get it ready. Think of it as clearing a plot of farmland before you can plant. The land you're going to build on doesn't come ready-made for you to put up a multi-unit or stand-alone commercial building. There's work you need to do before you can get to that point.

 

Hopefully, you did your homework before you purchased the land. If you haven't bought it yet, you can use the development loan to make the purchase, but you'll need to prove to the bank that the property is viable. Can you build on it? Is it cost prohibitive to bring in water and other utilities? How many miles of roads do you need to have built to gain access to the property? Remember, the more remote the land is, the more expensive it will be to bring civilization there. Is it worth the price you'll pay for it?

 

Once you've answered all of these questions, you can apply here at iBank for a commercial development loan. We'll shop your request around to multiple lenders, so all you need to do is fill out our application form one time. We'll take it from there. There are numerous lenders who want to do business with you, both in the development stage and when you get to the actual building process. If you have questions about this or any other type of loan, please browse our website. Many of the answers you seek are published there for your convenience.