Buying & Selling Real Estate Discussion

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Commercial loan on land purchase

Posted Jul 26 2022, 22:31

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?   

 

Fayetteville, Arkansas

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Shaun Weekes
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  • Rancho Cucamonga, CA
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Shaun Weekes
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Replied Jul 26 2022, 22:41
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.  

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Replied Jul 26 2022, 22:44
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.
 

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Shaun Weekes
  • Loan Officer / Processor / Life & Health Agent
  • Rancho Cucamonga, CA
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Shaun Weekes
  • Loan Officer / Processor / Life & Health Agent
  • Rancho Cucamonga, CA
Replied Jul 26 2022, 23:04
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.

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Michael Kinsella
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Replied Jul 27 2022, 09:46

@Pradeep Ka

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.

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Replied Jul 27 2022, 11:13

great information Michael . thank you very much for details .