Borrower Solutions
Land Developers in Los Angeles, CA
Financing for land acquisition, entitlement, and subdivision development throughout Los Angeles County
Financing for Land Developers
The Los Angeles land development landscape is shaped by scarce supply, high land values, stringent environmental regulations, and complex approval processes. Developable land in desirable locations commands premium prices and attracts sophisticated competition. Successful land developers must move quickly on acquisition opportunities while managing the extended timelines typical of entitlement and infrastructure work. Financing must accommodate these unique characteristics, providing patient capital that aligns with development realities.
Benefits for Land Developers
We understand the unique financing needs of land developers in the Los Angeles market. Our programs offer specialized solutions designed for your success.
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Ready to explore financing options for Land Developers? Our team is here to help.
How We Help Land Developers
Entitlement period financing covers the extended timeline, often 12-36 months in Los Angeles, required to secure necessary development approvals. During this phase, developers incur costs for architects, engineers, consultants, legal fees, and carrying costs without generating revenue. Our entitlement loans provide interest reserves and extended terms that accommodate this capital-intensive, pre-revenue period.
Infrastructure financing funds the horizontal improvements required to transform raw land into buildable lots. This includes grading, utilities (water, sewer, electric, gas), streets, curbs, gutters, sidewalks, and common area improvements. Infrastructure loans are typically structured with draw schedules that match funding to completed improvements, verified by inspection.
Subdivision development loans combine acquisition, entitlement, and infrastructure financing for comprehensive project execution. These integrated facilities streamline financing and ensure capital availability throughout the development process.
Program Benefits
Land acquisition loans
Take advantage of our specialized land acquisition loans designed specifically for land developers.
Infrastructure financing
Take advantage of our specialized infrastructure financing designed specifically for land developers.
Entitlement period funding
Take advantage of our specialized entitlement period funding designed specifically for land developers.
Subdivision development loans
Take advantage of our specialized subdivision development loans designed specifically for land developers.
Frequently Asked Questions
What experience do I need to qualify for land development financing?
Land development loans require demonstrated experience with similar projects. We typically look for developers who have completed 2-3 prior land development projects of comparable scope and complexity. Experience requirements are evaluated on a case-by-case basis, a developer with one highly successful, complex project may qualify more readily than one with several small, simple projects. For developers new to land development but experienced in construction or real estate investment, we may consider joint ventures with experienced land developers or phased approaches starting with smaller projects. We evaluate both the individual project team and any advisory or partnership arrangements that bring relevant expertise.
How long does land development financing typically last?
Land development loans typically have terms of 24-48 months, reflecting the extended timelines required for entitlements and infrastructure in Los Angeles. Terms are structured around realistic project timelines including due diligence, entitlement processing, infrastructure construction, and lot sales or vertical development. Most loans include one or more extension options that can be exercised if the project timeline extends beyond initial projections. Interest reserves are typically built into the loan to cover carrying costs during the development period, minimizing ongoing cash requirements from the developer.
What loan-to-value ratios do you offer for land development?
Land development loans are typically more conservative than other real estate financing due to the inherent risks of development. We generally lend 50-65% of the current as-is land value for acquisition and entitlement loans. For loans that include infrastructure development, we can increase leverage based on the value of the improved lots upon completion. Maximum loan amounts consider both land value and the total development budget, ensuring adequate capital to complete the project while maintaining appropriate lender protection. Cross-collateralization with other assets or personal guarantees from principals may enable higher leverage for qualified developers.
Can I get financing for land that is not yet entitled?
Yes, we provide financing for unentitled land, though terms are structured to reflect the additional risk and timeline uncertainty. Unentitled land loans typically include longer initial terms, higher interest rates, and lower leverage than entitled land financing. We evaluate the regulatory pathway to approvals, including zoning, general plan consistency, environmental review requirements, and community opposition potential. Developers must demonstrate understanding of the entitlement process and have realistic timelines and budgets for securing approvals. We can also structure phased financing that provides capital for acquisition and initial planning, with additional funding available once key entitlements are secured.
How are funds disbursed during land development?
Land development loans use milestone-based draw schedules that release funds as specific development phases are completed. Typical draw points include: completion of due diligence and project feasibility, entitlement submissions and approvals, infrastructure phases (grading, utilities, roads), and final completion/acceptance by municipalities. Before each draw, the developer submits documentation including invoices, inspection reports, and progress photos. We verify completion through third-party inspection before releasing funds. For entitlement period loans with significant soft costs, we may establish monthly or quarterly draws based on documented expenditures for professional services.
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Ready to Get Started?
Contact us today to discuss your financing needs as a Land Developers.
Call (213) 667-4815