Land Development Financing

Buying and developing land is capital intensive, which requires land development financing. Here is how land development financing helps you for land development purposes. * Land development financing and liquidity: Land development financing helps the residential land developers with the necessary resources to control their finances. This provides cash flow and liquidity for the project. * Land development financing and ongoing finance: Land development financing is a reliable source of continuous finance for existing and future subdivision projects. * Land development financing and projects: Financing for land development provides the developer with the resources and products for development of the project. * Land development financing and land notes: Land development financing allows land note portfolio purchase in lump sum. This also allows a committed credit line to help instant purchase of land for development. The developer can take advantage of better land purchase price because of ready cash made available through land development financing. * Land development financing and joint venture: Land development financing through the debt equity program provides 100% commercial loan for niche product development. The minimum loan amount is $5million, involving an insurance financial guarantee from the investor and a joint venture for that particular project. Land Development Financing for Land Development Costs Land development costs are quite substantial and are tided over through land development financing. Certain factors involved in land development ascertain financing needs. The geographical location of the development site affects the construction and land development costs based on the distance associated with transporting construction material, transporting workers, distance of waste sites, and connecting the site to the nearest roads. The more cost involved in the geographical location factor, greater the amount of land development financing. Land development costs are influenced by zoning, which involves density and land size. Low-density zones increase the land development costs. Thus, land development financing depends upon the zoning factor. Topography and soils too have a direct bearing on the development costs. Steeper sites and poor soil conditions increase the land development costs and correspondingly, the land development financing needs. Development of subdivisions at higher elevations for construction of water pump station and reservoirs too add to the land development costs, which in turn effect the land development financing requirements.