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​Non-Recourse A & D Land Loans - Up to 80%

Loan Amount: $2M - $40M+
Term: Up to 5 Years
Rate: 10% and up
Origination Fees: 2-4%
LTC: Up to 80%
Recourse: Non-Recourse

Comment: Lot developers use high LTC non-recourse A & D land loans, along with their builder deposits to close with little to none of their own cash at closing.  With potentially 100% of the capital stack financed, developers can close without an equity partner, and keep 100% of their profit. ​

​OBS* Land Banking  - 90%​

Investment Amount: $2M – $10M of Peak Investment Per Project
Builder Deposit: 10% of Acquisition & Development Cost
Term: 12 - 42 Months
Option Fee Rate: 16% Payable Quarterly
Personal Guarantee: Non-Recourse
Builder Contract: Option Contract - No Specific Performance
Builder Deposit - due when funds are needed: Builder only funds 10% deposit as funds are needed, not all at land acquisition.
Minimum Term: No Minimum Term, Builder may buy early without penalty.
Investor Minimum Return: No Minimum Return or Interest or Multiple
Profit Participation: $0
Origination Fee: $0
Brokerage Fee: $0
Investor Legal Fee: $0
Site Visit Fee: $0
Appraisal Fee: $0
Other Closing Costs: $0
*Off Balance Sheet
​
Comment: Builders and large developers use OBS to minimize equity requirements. There are no minimum returns, multiple requirements, or hidden fees and builders can buy lots back early with no penalty. All fees are included - no surprises like a $100,000 legal fee from a NYC Attorney. 

 Single Family & Townhouse Communities For Rent - Non-Recourse A, D, & C (Vertical) - 80% LTC

Loan Amount: $8M - $50M for A, D, & C
Term: Up to 3 Years
Rate: 6.75% and up
Origination Points: 2-3%
LTC: Up to 80% 
Recourse: Non-Recourse w/ completion, standard carve-outs

Comment: Best to use our program for land acquisition, site development, and vertical. Then refi or sell at occupancy / lease up when the buildings are complete. Since there are major construction efficiencies, and no change orders, the units can be built in as little as 90 days from slab. With the market matured, the entire project can sell at cap rates in the 5's. 

Non-Recourse Land Loans - Quick Close Scenarios

​Loan Amount: $2M - $40M
Term: 1 to 2 Years
Rate: 12%
Origination Fees: Risk Adjusted
LTC: Up to 75%
Appraisal: Not Required
Recourse: Often Non-Recourse
Closing Time: Typically 2 to 4 weeks, but 1 week close possible

Comment: Ideal for quick closes, return of equity (cash-out) and special circumstances.

​Model Home Non-Recourse Sale/Leaseback Financing

Sale Price: Up to 92% of Appraised Value
Lease Term: 1 - 3 Years
Lease Rate: From 8%​
Personal Guarantee: Non-Recourse
Upside Profit Participation: Builder may participate in model home resale profits

****Other Asset Classes
Land Finance Group strives to provide the gamut of land loans, often characterized by risk.  We also entertain other risk-based loans, such as "covered land plays", mixed-use projects, resorts, and brownfields.

Contact Kyle Poole to discuss specific scenarios - 202-244-3000 / kpoole@landfinancegroup.com

​GET IN 
​TOUCH

3718 Massachusetts Ave. NW, Washington, DC 20016  
Tel 202-244-3000 
​kpoole@landfinancegroup.com


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