Land loans were relatively easy to obtain between 1995 and 2007. Since the national credit crunch in 2007 land financing has become more difficult to obtain. The landscape today includes a dramatically reduced pool of land capital providers.
Financial Compound is one of the few commercial mortgage brokers remaining active in 2010 in the land financing arena, having closed transactions ranging from unentitled, large, master planned single family tract developments to specialized infill, high-density zoned land. Land Capital provider yield requirements hover between 12% and 23%, oftentimes with a minimum multiple return requirement of 1.5 to 1. Financial Compound welcomes land developers and home builders as we have recently processed land loans for finished lots, rough-graded lots, and partially completed residential developments including land improvements, clubhouses, golf courses, and models.