CAPITAL AND MORE GROUP INC.
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"Flexible Commercial Finance"
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Land Loans
Capital And More Group Inc. arranges private and non bank financing for raw unimproved, un-entitled and undeveloped land that is slated for development in the near future or that is in the path of growth.
The loan amount ranges from $10,000,000.00 to $100,000,000.00 plus.
The main advantage we offer borrowers is that the vast majority of our lenders are direct portfolio lenders. This means that they originate loans directly with their own funds or with discretionary funds committed to them by investors and hold them in their portfolio or on their balance sheet until maturity. They do not securitize the loans and sell them in the secondary market. This provides for maximum flexibility in customized deal structuring that is impossible with conventional lenders whose loans have to fit within a predefined box that will allow for their subsequent securitization and sale. We also have several direct portfolio lenders that can accommodate loans in excess of $50,000,000.00 without the need to syndicate.
If you are a land owner who needs to finance or refinance your property, with or without cash out, or if you are a land developer looking to acquire land for future development (land banking), this would be an ideal financing program for your needs.
This program would also work well for a developer/ builder seeking to acquire developed land and/or lots for vertical construction.
Financing options may include debt, participating debt, mezzanine debt, equity, preferred equity joint ventures.
Land loans, since usually there is no immediate land development planned, or development may be a few months or years down the road, are made on the "as is" value of the land and not the "future" or "improved" value. The Loan to Value ratio (LTV) is also determined very conservatively, based on a variety of factors. Generally, the Loan to Value for Land transactions involving unentitled, unimproved and raw land with Debt Financing only and NO profit participation is usually 30%-50% LTV (can be as high as 65% LTV for prime land in key markets) of the "as is" value as a First Mortgage. The LTV can be less if it is based on a percentage of the fire sale value rather than the "as is" value depending on the condition, location and marketplace dynamics related to the property. Some Debt Financing only and NO profit participation options can raise the LTV to 65%-75%LTV as a First Mortgage for improved, partially entitled or fully entitled land in key markets. Another way to raise the LTV to the 65%-75%LTV range as Debt Financing only with NO profit participation would be to put a Mezzanine Loan behind the First Mortgage or to use Equity or Preferred equity (Equity and Preferred Equity options will usually require profit participation). Joint Venture programs which are targeted at experienced land developers in target markets can provide up to 90% to 95% or more of the funds required to acquire, entitle, and develop land primarily for sale to residential builders.
Loan structures include long term loans (3 to 10 years), short term/ bridge loans (1 to 3 years) and hard money loans (1 to 3 years).
We have a specific Non Recourse Land Financing program structured for the long term (3 to 10 years) targeted at land owners, land developers and home builders across all major markets in the USA.
Quick closings for the short term/ bridge or hard money land loans are possible and can be done as fast as is necessary or possible (usually within 30 days or less) as long as all the paper work, legal work and title work is in order, third party reports required and ordered for the transaction are not delayed and there are no unusual issues present.
Please visit our "Contact Us" page by clicking on the link above, where under the heading "Compatibility Test", you will find an extended discussion of how we work, our fee and the general terms and rates available from most of our lenders' for our various financing programs.
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Copyright© 2003-2007 Capital And More Group Inc. All Rights Reserved
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