Another kind of loan, its actually not a mortgage but a loan against the value of raw land or the appraised value of developed land. These types of investor loans can be with private (sometimes called hard money) money or bank funding.

Private money borrowers are, most often, solid individuals or businesses that have circumstances or opportunities that do not fit well into the rigid structures of long term institutional lenders or the need for speedy acquisition. Many of these loans are bridge (short term) situations, used to acquire and stabilize a property or prepare for long term financing or resale.

In many cases bank funding will take too long as these deals need to be able to close quickly. Banks will generally lend to 75-80% of purchase price or value on raw land. Private lenders may go to 65% of value on raw land and 75% of the post development value. Check with as we are independent agents for some private money lenders and can fund deals coast to coast.

When checking on raw land funding please be ready to answer and discuss

1. use of funds (have a real good loan summary prepared or ready to discuss. We must have clear understanding of project with deadlines and timeframe's)

2. value of land and project

3. construction and development budget

4. monies already spent and invested

5. any permits, zoning, environmental studies needed or already performed

6. who are the principals? Is there a prepared resume or outline of experience?

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