Land and subdivision financing might seem like a simple process at first. However, this type of lending can get complex quickly.
Any lender that decides to finance one of these projects will be interested in making sure investors and developers meet key milestones. If the developers can’t meet these benchmarks, they might not be able to get the additional capital needed to continue work.
Making sure you check your boxes thoroughly is important. Following are a few pieces of key information you won’t want to miss.
- Financial projections are a key piece of the data you’ll need to include. There’s a few subcategories here you’ll want to add on like a profit cost analysis and any estimated working capital requirements. Make sure to add in other expenses like land acquisition and marketing costs.
- A project submission is necessary for a land and subdivision overview. Mention the location. Plus features like access to entertainment options, towns, and roads. The overview should also mention items like access to gas lines, electricity as well as storm sewers, and sanitary lines if these already exist. This stage can also include what’s called a development plan which includes the subdivision’s layout — the size and number of units and lots.
Remember, we are commercial construction financing experts who can help you through the land and subdivision financing process. Our team is here to support you through every step including environmental site assessments and appraisals as well as building inspections and legal and closing aspects. Get in touch with us today so we can help you in structuring and sourcing appropriate debt and equity capital. Contact OMJ Mortgage Capital Inc. We can help you with your next deal. We are looking forward to hearing from you.
