Land Development Loans
When you think about constructions, preparations, and infrastructure, you do not always have to jump for the entire project. For example, you can start by purchasing and developing the land for it—or them. One way to finance this particular step is to choose land development loans instead of commercial ones.
Most commercial credits involve real estate properties instead of lands in specific, and it is not the same to purchase a property compared to land. What about construction loans? They are more similar to commercial or residential development credits than those meant for lands. After all, you cover more of the process that includes the structure and design of the entire property or building.
Then, in what cases should you choose land development loans? When your only goal is to purchase land and prepare it by leaving it ready for the future construction or project that will take place. Depending on who is the lender of the funds, you will have different options for what you can use the money. Most banks and financial groups only finance the purchase along with preparing the areas for future infrastructure.
However, private lending companies or particulars offer the option to acquire the land, deal with the limits, build the infrastructure, and leave it completely ready for future projects. At Commercial Real Estate Loan Pros of Jacksonville, we work with these possibilities since we are not trying to limit our borrowers and future clients as long as they will use the money for land development only and anything that can involve the process. Therefore, be it buying the land or maybe preparing it—sometimes, both at once—, you can rely on us for the funds.
Do we cover the total costs through land development loans?
Not quite. Just like other lenders, we work with LVR and LTV ratios which usually range from 70% to 85%. We will not finance the entire project but you can rest assured that most of the expenses will be covered and leave you in a great spot.
In addition to higher ratios compared to other lenders, we ask for fewer requirements for application, lower interest rates, fixed rates, longer periods for repayment, bigger loan sizes, and more. Also, we have average standards and terms, but we work according to the situation and request of the borrower which means everything varies to make sure you are satisfied and comfortable with the conditions before and after accepting the loan if we approved it.
Our company Commercial Real Estate Loan Pros of Jacksonville is not trying to be the only one winning from the situation. Instead, we want to build a relationship that is not based on borrower-lender but rather client-company. There is a big difference between both and to make it simple, we just want the entire process and land development loans to be a win-win situation where you get the funds and opportunities, and we get the chance to help you and still earn as the lenders and company we are.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.