Commercial Mortgage Lenders active in land financing
Commercial mortgage lenders, despite the credit crunch, continue to provide land loans as well as joint venture equity capital for land, both for entitled land financing and un-entitled land financing. This according to commercial mortgage broker Financial Compound who works with the handful of commercial mortgage lenders focusing on land transactions and that remain active in today’s real estate capital markets. For land assemblages that can be purchased or refinanced at a conservative basis, Financial Compound is able to obtain 100% financing from certain commercial mortgage lenders both in the form of land loans and joint venture equity financing.
Commercial Mortgage Broker Financial Compound arranged an approximate 85% of cost, $20 million land acquisition loan for 150 acres of un-entitled residential land in the southeast for 130 single family lots. Loan terms included a 12% interest rate, non-recourse.