How do I get financing to build neighborhood

Question

13 acres of land. City has approved the lots dimensions. Need to build streets, homes, etc. Where can I find financing to do this?

Kevin Romines · Answer

This would be a land development loan. You can get 50% to 65% LTV on raw unimproved land, or if there are horizontal improvements, you can get 75% LTV to finish out the horizontals.

The construction loans will give you 85% to 90% of the LTC or loan to cost, but these will only be done on an individual basis. each lot on its own loan.

Let me know if you have any other questions, I'm happy to help.

Jacob Sherman · Answer

Building the homes on shovel ready lots won't be an issue to find lending for . Its getting it there with the roads and utilities etc

Lenore Mohr · Answer

Hello James. That's a little more complicated answer starting with a few questions.

What state?

Does the owner/operator have any experience with land development?

Are partners involved?

How much liquidity do you have?

Have you reached out to the City zoning, etc for due diligence? Lenders will most likely require all these docs.

How do I get financing to build neighborhood

How do I get financing to build neighborhood

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