Land Financing 101

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%.

Read More

Previous WD Land on Land Brokerage
Next NAHB Index Rises to Highest Level in Decade

About author

You might also like


Big Plans for Tustin Air Base

Over the past several years, coming out of the housing downturn, Tustin Air Base has seen significant development activity. However, with more than 400 acres of land still undeveloped and

Land/Projects 0 Comments

Construction on New Improvements at Orange County Great Park Begins

As part of agreements made between the City of Irvine and FivePoint Communities in connection with the development activities of FivePoint in the immediate area, $250M in improvements commences at


Redondo Beach Rejects Deal with Legado for 115 Units on PCH

By Kelcie Pegher – Setting the stage for a court battle that could cost the city millions of dollars, Redondo Beach has rejected a deal with the developer behind a