Land loans have been difficult to obtain for many borrowers, but with the change in the real estate markets this money is beginning to loosen up.  This is especially true in the hotter market areas, and is starting to bleed over into the larger market.  For those who have been looking to secure hard money loans for land in California unsuccessfully, we can potentially help.

When looking for a land loan the loan to value is one of the largest factors.  While the money is starting to loosen up, typically the most you should expect is a 35-40% loan to value loan.  In some areas this can go higher, especially if there is a strong guarantor involved.

Another factor to consider is the loan amount.  Many investors do not want to fund loan amounts under $100,000 on land.  Although we do have access to such funds, larger loan amounts typically afford more flexibility with regards to terms and loan to value.

With the diverse types of land in California, there are many different types of land loans.  Agricultural land loans are unique, and sometimes we can secure more aggressive terms on these types of properties, especially if the land is income producing.  Vineyards are another type of land that fall into that specialty category where we can have more flexibility and aggressiveness on our loan to value ratios.

Subdivision land loans are another unique category.  When the market crashed, many finished lots or subdivisions with curbs and gutters suddenly were not able to obtain funding to finish their projects.  Now these parcels are being sold at a fraction of their cost, which can allow for some creative options not just for the land financing, but for the vertical construction as well.

In addition to straight land financing, we can also cross collateralize other real estate to put together a more aggressive solution for your needs.  By collateralizing multiple properties with a blanket loan, we can utilize equity you may have elsewhere to help finance your land transaction or project.

While hard money land loans are not extremely aggressive, there is money available for these projects.  Give us a call today to discuss your scenario and how we may be able to help.  Typically we can have a brief conversation and give you a general idea of your options.  You can reach us Monday through Friday at 877 462 3422.