 |
LAND LOANS
|
|
California Lending & investments arranges private and non bank
financing for raw unimproved, un-entitled and undeveloped land that is slated
for development in the near future or that is in the path of growth.
The loan amount ranges from $1,000,000.00 to $100,000,000.00 plus.
The main advantage we offer borrowers is that the vast majority of our lenders
are direct portfolio lenders. This means that they originate loans directly with
their own funds or with discretionary funds committed to them by investors and
hold them in their portfolio or on their balance sheet until maturity. They do
not securitize the loans and sell them in the secondary market. This provides
for maximum flexibility in customized deal structuring that is impossible with
conventional lenders whose loans have to fit within a predefined box that will
allow for their subsequent securitization and sale. We also have several direct
portfolio lenders that can accommodate loans in excess of $50,000,000.00 without
the need to syndicate.
If you are a land owner who needs to finance or refinance your property, with or
without cash out, or if you are a land developer looking to acquire land for
future development (land banking), this would be an ideal financing program for
your needs.
This program would also work well for a developer/ builder seeking to acquire
developed land and/or lots for vertical construction.
Financing options may include debt, participating debt, mezzanine debt, equity,
preferred equity joint ventures.
Land loans, since usually there is no immediate land development planned, or
development may be a few months or years down the road, are made on the "as is"
value of the land and not the "future" or "improved" value. The Loan to Value
ratio (LTV) is also determined very conservatively, based on a variety of
factors. Generally, the Loan to Value for Land transactions involving unentitled,
unimproved and raw land with Debt Financing only and NO profit participation is
usually 30%-50% LTV (can be as high as 65% LTV for prime land in key markets) of
the "as is" value as a First Mortgage. The LTV can be less if it is based on a
percentage of the fire sale value rather than the "as is" value depending on the
condition, location and marketplace dynamics related to the property. Some Debt
Financing only and NO profit participation options can raise the LTV to
65%-75%LTV as a First Mortgage for improved, partially entitled or fully
entitled land in key markets. Another way to raise the LTV to the 65%-75%LTV
range as Debt Financing only with NO profit participation would be to put a
Mezzanine Loan behind the First Mortgage or to use Equity or Preferred equity
(Equity and Preferred Equity options will usually require profit participation).
Joint Venture programs which are targeted at experienced land developers in
target markets can provide up to 90% to 95% or more of the funds required to
acquire, entitle, and develop land primarily for sale to residential builders.
Loan structures include long term loans (3 to 10 years), short term/ bridge
loans (1 to 3 years) and hard money loans (1 to 3 years).
Quick closings for the short term/ bridge or hard money land loans are possible
and can be done as fast as is necessary or possible (usually within 30 days or
less) as long as all the paper work, legal work and title work is in order,
third party reports required and ordered for the transaction are not delayed and
there are no unusual issues present
|
 |
|
|