Land Acquisition & Development

When seeking to aquire land for commercial construction, you may face problems with trying to receive a "all-in-one" type loan. Many mortgage brokers would rather see that the raw land is paid off fairly quickly or that you have substantial capital to place a large down payment. Most lenders will tell you that you need to put at least 50% down on the land aquisition deal.

Also, in particular to a planned construction project, lenders prefer to see that the sale and lease of units have occured. When a lot of money is being loaned, the lenders want to make sure that they will receive a timely return.

That being said, you should probably check into getting a loan for the acquistion of the raw land first and pay that off quickly in the required term. With the land out of the way, you can then proceed to pre-sale or pre-lease the units, if any, in the development plans. This should raise your chances of securing a commerical construction loan to start developing on the land you purchased from the acquisition deal.