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Land Loan

Land Loans

We offer hard money, bridge financing for well located land parcels in larger metropolitan areas throughout the United States. Residential sub-divisions, commercial pads, PUD’s senior housing communities, and apartment land projects. Our land program is currently only available on the hard money side of our company..No single digit rates will be offered today..so don’t bother asking..

The exact pricing you may expect will depend on a variety of factors including LOCATION of the collateral, strength/experience of sponsor, LTV, and the all important exit strategy.

Please take a moment and review the product offering to see if you may qualify and if our pricing fits for your situation. If you have any questions, please contact our office for further details. One of our specialists is available today. – 800-838-1889.

Millions of dollars are earmarked for deployment in 2012 for residentially zoned land loan opportunities that are either bank owned REO’s, stalled/partially completed sub-divisions, bank work-outs, principal reductions, and joint ventures in select markets. This product is a hard money loan…Prefer most horizontal infrastructure improvements to be completed with building lots ready to sell today. Nationwide consideration for well located projects. Loan amounts ranging from $500,000 – $20,000,000+

Direct Money Lenders is actively looking for commercial land opportunities for well positioned/locted properties. Loan to Values (LTV) up to 50% are typical. Rural locations are difficult to obtain approval. Purchase – Refinance – Cash Out financing availalbe. Loan amounts ranging from $500,000 – $20,000,000+.

Private bridge financing for land development projects Nationwide. Typical deal structure is 12-24 months up to 48 months in select markets – Interest reserve, so no monthly payments will be required – NO PPP (pre-payment penalty) – lot release provisions and even for those well qualifed, vertical money for quality projects only – Flexible underwriting guidelines, typically non recourse – Performing or non/underperforming land development properties Nationwide. Loan amounts ranging from $750,000 – $20,000,000+.


Hard Money Land Loans

There are basically two types of land loans that are being underwritten and funded in today’s market. Seller financing or hard money land loans are really the only 2 sources for money in 2012 and the foreseeable future. A traditional bank may consider lending money on land only if the borrower is extremely strong financially, meaning excellent FICO scores, strong liquidity, high net worth, tons of experience, and a first son to include for extra security. If you are not willing or able to qualify for bank financing or the owner is not willing to finance the debt on their own, don’t feel bad your other option is a hard money land loan.

Many residential and commercial developments stalled during 2008 and 2009 for various reasons including reduced values from already high loan to values, banks pulling credit lines, or lack of permanent capital financing which left many companies and banks holding the bag on undeveloped or partially developed projects. Direct Money Lenders can help you obtain favorable financing for land loans in most regions Nationwide.

Because of the historically aggressive lending environment, the market has created a lot of opportunities and the light at the end of the tunnel is becoming a little brighter for shovel ready projects. If the land is property zoned, engineered, and approved by the city or county for a specific use such as a residential sub division, commercial office, multifamily apartments, or light industrial pads and you are in a larger metropolitan area, you may have an opportunity to seize an property and acquire a stalled project at a deep discount from a traditional bank or hard money lender that is looking to get out and add liquidity to their portfolio.

Hard money land loans have much higher interest rates, lower loan to values, and usually require a decent down payment or a large amount of equity baked in before consideration. The reason is simple. Land loans are a risky business. Commercial land or lots typically do not cash flow positive or produce any income on a monthly basis so servicing the monthly debt can be difficult.

Hard money lenders lending on land will want to know they’ll see a return on their investment. Lenders don’t want to worry that the borrower may not be able to pay the loan back or that they may simply walk away if times get tough. It is for this reason the land loan notes are typically written for 12 – 24 months with an interest reserve that mirrors the term already built into the loan so the borrower won’t have to meet the monthly debt obligations.