Land Development Loans
There are multiple ways of financing a real estate business without funding it with your own money. Commercial Real Estate LoanPros of St. Petersburg offers you numerous funding schemes, including land development loans in real estate development. There is also an abundance of private lenders who are willing to risk your venture. If you want to prosper as an investor in real estate, then think about property development loans.
Real Estate Development Loans
Real estate development loans are finance issued to borrowers who need land projects. Investors rely on real estate development refinancing or financing to purchase land and construct a building or renovate an existing building. The funding might also be used in buying a new premise.
Types Of land and Real Estate Development Loans
There are four main types of real estate and land development loans: acquisition loans, acquisition, and development funds, construction loans, and development loans.
- Acquisition Loans
Acquisition loans are typically used in funding the purchase of undeveloped land. Also, the loan can be used to purchase the land without the intention of developing it. Commonly an acquisition loan offers little room for exploitation and must be facilitated by subsequent loans to develop the property further
- Development loans
If you need to develop the land you have acquired, you may need a loan to adjust your project. Development loans are borrowed to do that. Borrowers take out development loans to improve on the land, build roads, to level and accomplish water lines. Precisely development loans are essential in turning the raw land into a building site.
- Acquisition and Development Loans
At times investors want to acquire land and develop it respectively. The good thing is that it is possible as there is a loan for that, and that is acquisition and development loans.
- Construction Loans
Construction loans are utilized in financing the building or renovating of a particular real estate project. It is different from other loans in that the borrower receives the money in installments as the project advances. As you draw out more money, the monthly loan installment increases.
Land and Real Estate Funding Source
There numerous sources of funding a real estate project with Commercial Real Estate LoanPros of St. Petersburg. Here is a list of some of the sources.
- Traditional Loans: Traditional loans are loans that are provided by a bank or a private lending investing. They have low-interest rates to survive the market and remain competitive. Their loan duration is long, where they can last from 15 years to 30years with an interest of about 4%.
- Private Lender: Private lenders can be an investor with access to assets and be willing to invest on it. Private lenders are not licensed or institutionalized to provide or lend money, including land development funds. They instead make their investment back with interest.
- Hard money lenders: Hard money lenders are licensed but not standardized in lending money. They have short-term loans with the asset at hand. The loan comes with a high interest rate of around 12%, but they quickly access capital.
Funding real estate is a very concerned process. Fortunately, there are numerous real estate development loans intended to help buyers and borrowers in every situation. Reach out to Commercial Real Estate LoanPros of St. Petersburg and get your land development funds at considerable rates.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.