Commercial loan on land purchase
Hi Everyone-
1.Do you have any suggestions on commercial loans to purchase a land . I am looking for longer amortization period.
2.I will be purchasing a land and leave it for a yr or 2 . So it’s not like fix and flip .so the hard money lender a good idea?
- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
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Quote from @Pradeep Ka:
Hi Everyone-
1.Do you have any suggestions on commercial loans to purchase a land . I am looking for longer amortization period.
2.I will be purchasing a land and leave it for a yr or 2 . So it’s not like fix and flip .so the hard money lender a good idea?
A bridge loan might be a good idea but if you can give some more background as to what you're trying to do this will help with the answers you receive.
Quote from @Shaun Weekes:
Quote from @Pradeep Ka:
Hi Everyone-
1.Do you have any suggestions on commercial loans to purchase a land . I am looking for longer amortization period.
2.I will be purchasing a land and leave it for a yr or 2 . So it’s not like fix and flip .so the hard money lender a good idea?
A bridge loan might be a good idea but if you can give some more background as to what you're trying to do this will help with the answers you receive.
thank you for responding
I want to purchase a land and build SFH subdivision after 2yrs based on the market trend.
- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
- 756
- Votes |
- 1,784
- Posts
Quote from @Pradeep Ka:
Quote from @Shaun Weekes:
Quote from @Pradeep Ka:
Hi Everyone-
1.Do you have any suggestions on commercial loans to purchase a land . I am looking for longer amortization period.
2.I will be purchasing a land and leave it for a yr or 2 . So it’s not like fix and flip .so the hard money lender a good idea?
A bridge loan might be a good idea but if you can give some more background as to what you're trying to do this will help with the answers you receive.
thank you for responding
I want to purchase a land and build SFH subdivision after 2yrs based on the market trend.
Then I would look into a bridge loan so that you control the land but aren't required to do anything with it during the time of the loan. You might want to check local banks as they might have longer terms.
I hope this helps and have a good one.
1.Do you have any suggestions on commercial loans to purchase a land . I am looking for longer amortization period.
I'd reach out to private lenders/debt funds, banks and credit unions to see if you can find a lender or several lenders interested in land. Financing lend is generally far more difficult than other asset classes. A long or longer amortization period is typically unrealistic for these loans as not many lenders want to hold a note on land for very long. Bridge loan term lengths (let's say up to 36 mo's) are where you'll find the most interest. Of course, these structures typically don't amortize; they're I/O.
2.I will be purchasing a land and leave it for a yr or 2 . So it’s not like fix and flip .so the hard money lender a good idea?
It might be. It depends on the numbers and what the capital markets will bear.
great information Michael . thank you very much for details .