Land Acquisition Financing - Posted by Steve in VA

Posted by zach on February 24, 2006 at 18:53:50:

sent you over an email…

Land Acquisition Financing - Posted by Steve in VA

Posted by Steve in VA on February 24, 2006 at 16:14:21:

Looking at 175 acres raw land in W. Palm Beach, Florida for subdivision, purchase price just under $8M. My partner shopped local banks and the best she found was 50% LTV for 2 years, non-recourse, Interest Only, 6.75% and 1 point origination. Also, the 2 years interest payments are included in the loan amount so we’re actually getting less than 50% ARV.

What happened to 70% LTV financing on land? Did I miss a major tightening of underwriting criteria or are local banks just the wrong place to be shopping? Any recommendations on types or specific lenders we should contact for a higher % LTV? (Note the non-recourse term is required as some of or capital comes from self-directed IRA’s).



Re: Land Acquisition Financing - Posted by Michele

Posted by Michele on May 21, 2006 at 09:13:03:

I am located in Palm Beach County and have lived here since 1978. I would be very interested in what you are doing from a sales and marketing standpoint. With Scripps coming into all different areas of PBC and the bio tech industry moving in here PBC is a great place to be. I was on this site researching self storage facilities as an investment. If you are interested in talking let me know…I also have some excellent bankers that you might want to talk to here in the area.

Re: Land Acquisition Financing - Posted by Al

Posted by Al on February 28, 2006 at 14:27:03:

I work with large number of private inverstors and investor accross US. if you are interested we could lend a loand for 70% LTV or better…please send me Summary on your project if would like to follow up.


Re: Land Acquisition Financing - Posted by john bruno

Posted by john bruno on February 26, 2006 at 11:07:37:


RAw land without entitlements for a prospective developer likely done at 40% ltv. Raw land without entitlements is the hardest “commodity” for a funding source to sell when the project gets into trouble.

50-65% for land with the entitlement process in the works is commonplace.

Haven’t seen 70% for development raw land for quite a while.

john bruno 815-469-4520 or 815-464-6103