I am currently looking to purchase a property. (single family residential) to subdivide 1 building lot from the extra large lot that the existing home is on. This would be a minor subdivision and take 3-4 months in this township. I would like to re-sell the existing home on it’s smaller lot and then sell the newly created lot to a builder. The numbers work for a nice profit. Question is… What is the cheapest form of mortgage or loan to acquire and hold this property for 4-6 months while waiting for the subdivision approval and then sell both pieces? Would a typical hard money lender look at the future market value of the exisiting house and subdivided lot in working his lending ratios?
Thanks in advance