Land Loan 5 day close for unentitled land acquisition and entitlement
Commercial Mortgage Broker Financial Compound arranged a 65% of all-in-cost unentitled land loan for acquisition and entitlement for an infill 10 acre residential project. A tentative tract map is expected six months post-closing that would allow for 150 town homes. In addition to the land purchase, the financing provides funds for entitlement, other soft costs, interest reserve, and closing costs. Due to timing requirements, Financial Compound arranged for this loan to close in 5 business days, which required an appraisal so the appraiser also had to move quickly. The lender provided a 2 year loan term, 1% lender fee, 12% interest rate.
The borrower originally asked this commercial mortgage broker to seek an equity partner or high leveraged financing and Financial Compoud was able to find not only an equity partner, but also a second mortgage lender willing to lend up to 95% of the total capitalization for an approximate 18% interest rate and 3% fee. In the end, the borrower chose to utilize this transaction for a 1031 exchange which needed lower leveraged senior debt. This pivot was quickly accommodated thanks to Financial Compound’s flexibility and ability to deliver capital stack solutions on tight timelines.
Through a combination of market insight, lender relationships, and Capital structuring expertise Commercial Mortgage Broker Financial Compound was able to present alternative financing options at various levels of the capital stack to help the borrower determine its best courst of action relative to their development goals and tax strategy.
Quick Close Land Loan
Due to urgent timing constraints, Financial Compound arranged for the loan to close within just five business days — a significant challenge in the unentitled land financing space. This required an expedited third-party appraisal, which the selected appraiser was able to accommodate on a rush basis. Whether navigating complex capital stacks, sourcing funding for unentitled land, or meeting urgent closing timelines, Financial Compound delivers customized commercial real estate financing solutions across all asset types and risk profiles.
In today’s market, securing a land loan—especially for unentitled parcels—requires a clear development narrative and strong sponsor track record. Lenders want to see a path to entitlements, nearby comps supporting land value, and a credible team capable of executing. Financial Compound helps borrowers present their project in the best possible light, including assembling packages with pro forma support, site maps, and zoning commentary to give lenders confidence in the exit.
Many traditional lenders shy away from unentitled land loans, as the perceived risk is tied not just to market fluctuations, but to local municipality timelines and approvals. This is why private capital and specialized debt and equity funds are often the best fit. Through its extensive network, Financial Compound is able to place land loans with groups that understand development pacing and are comfortable funding pre-entitlement stages when others are not. Commercial mortgage broker Financial Compound has financed more than 5,000 acres of unentitled land with structures all across the capital stack. We welcome you to contact us with your transaction and we’ll see if we can help.
Financial Compound continues to be a leading source of unentitled land loan financing for developers looking to acquire and entitle strategic infill sites, transitional land, and raw acreage. Whether your needs involve senior debt, mezzanine financing, or joint venture equity, we work quickly to identify the right lending partner and craft a structure aligned with your project’s vision and timeline.
If you’re seeking a land loan for acquisition, entitlement, or horizontal development, contact Commercial Mortgage Broker Financial Compound to explore options tailored to your site and strategy. With decades of experience and a commitment to execution, we help you move from concept to closing — fast.