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
Lobbyists In Mission Valley Land Rush
By Matt Potter The controversial plan by a stealthy group of La Jolla money men known as FS Investors to replace city-owned Qualcomm Stadium with a soccer venue and high-end
Willowbrook Getting 94 New Affordable and Market-rate Homes
The Olson Company has announced the development, Magnolia Walk, will offer 30 affordable and 64 market-rate homes.
Lennar to Build 124 Homes in the Phillips Ranch area of Pomona
Lennar Corp. has purchased a 13.9-acre site in the masterplanned Phillips Ranch area of Pomona where it plans to build 124 homes and 6,000 square feet of retail space. The