Raising Capital??
My home resides on an acre of land with two access points from two different streets. I'm interested in raising more capital to purchase at least two more properties before the year is up.
I would like to get a contractor to give me an estimate on building a duplex on one quarter of my property. I'm assuming that i could get a construction loan based on the estimate i get. If i'm able to get the loan i was thinking we could take those monies and purchase a few more properties instead of building the duplex. i'm trying to think creatively, but i don't want to do anything that is ultimately illegal. if a lender approves a loan for my construction needs will they in fact go to lengths to make certain the money goes specifically for that purpose?
Any insights will be appreciated.
Thanks.
If I remember correctly, a construction loan doesn't just give you a check you can put in your bank account, it's an account you draw off of, to pay for supplies, etc. Besides they're very short term loans... if you can get a construction loan to build a duplex, why can't you get a loan to buy the other properties?
To obtain a loan under false pretenses is fraud, pure and simple.