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. Townhouse For Rent - Non-Recourse A, D, & C (Vertical) - 80%Loan Amount: $10M - $50M for A, D, & C
Term: Up to 3 Years Rate: 8% + Origination Points: 2-3% LTC: Up to 80% Recourse: Non-Recourse, 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. The market will mature, like single family rentals, with the entire project being able to sell at cap rates in the 5's. Non-Recourse Land Loans - Quick Close ScenariosLoan 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 FinancingSale 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 "overed land plays", mixed-use projects, resorts, and brownfields. |