A & D Land Loans - 75%LTC Non-Recourse at Bank RatesLoan Amount: $5M - $100M +
Term: Up to 5 Years Rate: Prime + 0.5 / 1.0 or SOFR-based equivalent Origination Fees: 1.5 - 2.0 PT Loan to Cost/Recourse Options: Up to 75% Non-Recourse with Completion Guarantees for A & D; up to 80% LTC, 100% LTV for A, D & C. Facility Options: Prefer to set up facility for multiple transactions Note: Depository relationship not required with private capital Comment: Non-recourse land loans with private capital at bank rates is very unusual. Previous non-recourse rates topped out at 60%, thus 75% LTC is a vast improvement. A & D Land Loans - Up to 85% Non-Recourse Private FinanceLoan Amount: $8M - $100M+
Term: Up to 5 Years Rate: 11% and up Origination Fees: 2-3% Loan To Value/Loan to Cost: Up to 85% Recourse: Non-Recourse with Completion Guarantees Comment: Lot developers use high LTC non-recourse A & D land loans, in combination with their builder deposits to close with little of their own cash at closing. With the majority of the capital stack financed, developers can close without an equity partner, and keep 100% of their profit. Non-Recourse* Small Land Loans - LTV Underwriting - Quick Close ScenariosLoan Amount: $2M -- $15M
Term: Up to 3 Years Rate: 12% Origination Fees: 3pts LTV vs LTC: 60% of entire builder takedown which may be up to 85% LTC!! Appraisal: Not Required Recourse: Non-Recourse with Completion Guarantee Closing Time: Typically 3 to 4 weeks Customs/Condo/Apt/BTR - Non-Recourse A, D, & C - up to 85% LTCLoan Amount: $8M - $65M+ for A, D, & C
Term: Up to 3 Years Rate: 500-550 over SOFR Origination Points: 2-3% LTC: Up to 85% Recourse: Non-Recourse w/completion, standard carve-outs Note: BTR, Custom Homes/Communities, Condo opportunities to even, Multifamily OBS* Land Banking - Up to 85% (90% For Finished Lots)Investment Amount: $3M – $20M of Peak Investment Per Project
Builder Deposit: 15% of Acquisition & Development Cost (10% For Finished Lots) Term: 12 - 42 Months Option Fee Rate: 13% and up Personal Guarantee: Non-Recourse Builder Contract: Option Contract - No Specific Performance Minimum Term: No Minimum Term, Builder may buy early without penalty. Investor Minimum Return: No Minimum Return or Interest or Multiple Comment: Builders and large developers use OBS to minimize equity requirements, shifting risk from developers to the land banker. There are no minimum returns, multiple requirements, or hidden fees and builders can buy lots back early with no penalty. ****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. |