Land Financing 101
Mark Strauss, Managing Director with Cohen Financial, discusses the nuances of land loans. Due to its illiquid nature and lack of cashflow, lenders are generally hesitant to lend on land assets. If they do, there is a preference for infill versus greenfield and entitled land where the borrower is implementing a business plan that entails build-out of the asset. LTVs tend to stay low – in the 50% to 60% range – with banks charging 4% to 6% interest rates and private money lenders charging 8% to 14%.
About author
You might also like
Land Shortage Impeding New Home Supply
In a May survey by the National Association of Homebuilders, 60% of respondents stated that the overall supply of developed lots was low to very low, the highest percentage since
All 31 Townhomes at Brandywine Homes’ Sunstone Development in Norwalk Sold
Brandywine Homes recently announced that all 31 townhomes have been sold at Sunstone, a two-acre, transit-friendly community located at 11009 Pioneer Boulevard that held its grand opening in May 2016.
Brookfield Has Big Plans for Nelles Property in Whittier
Brookfield Residential Properties is currently undergoing the entitlement process for 74-acres in Whittier, the former site of the Fred C. Nelles Youth Correctional Facility. The planned mixed-use project could see
