Planning
and Processing, The Keys To Land
Loans
Generally when a developer
talks about a land loans, he's
not talking about construction
loans or even acquisition loans
acquisition loans they are talking
about a loan for land which will
remain in place for a much longer
period of time.
Unlike the traditional acquisition,
development and construction
loan the term of the debt
is for a much longer period of
time.
Also the property loan can be
secured by a more sophisticated
method of collateral, either through
a developer placing a deed of
trust against another property
they either own or secured by
numerous other parcels which is
known as a blanket loan.
By a developer allowing the debt
against additional property the
lenders are more than willing
to place a lien against the subject
property for a longer period of
time, thereby allowing the developer
the proper amount of time to go
through the long entitlement process.
The entitlement process consists
of taking the undeveloped property
through numerous stages of planning
and processing, resulting in the
mapping of the entire project
for the eventual development of
the master planned community or
subdivision.
For a No-obligation Professional
Financial Loan
Analysis of an Investment
you may be considering click
here.
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