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
California’s Marblehead Project Down to Four Finalists
The California Marblehead Project in San Clemente is managed by Lehman Brothers Holdings Inc. and formerly controlled by Suncal. The San Clemente site is one of OC’s last remaining stretches
Foremost Companies Announces Grand Opening of Two All-Age Neighborhoods in Temescal Valley
Foremost Companies has announced the grand opening of its first two all-age neighborhoods at Terramor, a new unique multi-generational master-planned community.
Land Acquisition Challenges
Land acquisition veteran Joseph Reed, newly with Shopoff Realty Investments, discusses acquisitions strategy and challenges. At the top of his list of challenges? Navigating the difficult entitlement process in California
