The California real estate market has been hot. Banks are lending, property is being bought and sold, yet there is still a niche that can be very difficult to find financing for. Our California hard money land loans offer a solution for that niche.
Land loans offer multiple hurdles. For owners looking to refinance their existing land, establishing a value is the first hurdle. For homes it's typically pretty easy, but for land there are less sold comps. Not only are there less sold comps with which to work, but those comps are less likely to be "model match" comps, for lack of a better descriptor.
For those looking to refinance, other hurdles include pegging a current value to the price paid for the land, wanting to limit or deny cash out, requirements with regards to use of funds on the cash out and multiple other issues.
For buyers of land, the issues are slightly different. One of the issues many buyers face is the large down payment many purchase money land loans require. If the land is to be developed, getting confirmation of the process, time frame and requirements to develop the land can also be a hurdle.
Our California hard money land loans can help overcome many of these hurdles. For buyers, we can structure our loans to work in conjunction with a seller carry back. This can really help both the buyer and the seller, allowing a buyer to get in with less than 50% cash down payment, and allowing a seller to close their sale, while not having to take less than market value for their property. In addition to carry backs, we can also work with cross collateralization. By blanketing a loan across other property the buyer owns, we can utilize equity from other properties to lend more on the land purchase.
For owners looking to refinance their land, we also have options. We have many private investors and lenders who are interested in lending on land. We have a lot of flexibility to structure loans, allowing an owner to obtain the financing required, while allowing the investor to be comfortable with their investment in that loan.
We can also structure our California hard money land loans as improvement loans. For example, if a property has approved plans and an owner is looking to refinance their land to build, we can potentially structure the loan as a construction loan. This allows us to base the loan on the as built value, rather than just the land value.
Land loans are unique, and due to this it is best for clients interested in obtaining a land loan to call us and discuss their specific scenario. Usaully we can get a good feel for what we can do with a 15 minute phone call. If you are looking for a California hard money land loan, call us today at 877 462 3422 - or visit our California hard money land loans page for more information.