What Is A Land Loan?
It’s crazy how quickly the real estate market rates are increasing in the US. In these circumstances, it’s tough for any firm to buy commercial properties. Companies are looking to buy cheap raw land to expand. However, it’s not easy to buy raw land with the lack of capital. Private money lenders can help boost your business by offering land loans.
Here’s everything you need to know about it.
The Basics Of A Hard Money Land Loan
If you’re trying to buy a piece of land to grow your business, getting a loan from a bank might be challenging. Banks are skeptical in giving loans for lands as generating money from raw land is tough. However, even if banks are unwilling to provide loans, that shouldn’t stop you; you can reach out to private money lenders who offer land loans. Private money lenders use your commercial property as collateral to deliver land loans.
Types Of Hard Money Land Loans
You can only benefit from land loans if you opt for the correct type. Here are some of the common types of land loans:
- Raw Land Loan: As the name suggests, a raw land is a piece of land without any infrastructure. You’d buy this land for mainly two reasons: if you want to start everything from scratch or if you think the value of this land will skyrocket soon. Getting a raw land loanis a risky move, but if it pays off, it can give you massive returns.
- Enhanced Land Loan: An enhanced land is more developed than raw land. You’d opt for this loan if you want to skip the hassle of starting from scratch. Since an enhanced land can be easily refinanced, loans are readily available.
Benefits Of Hard Money Land Loans
The biggest benefit of getting raw land using these loans is the freedom you get. You can shape the property however you like and use it to its maximum potential. Moreover, buying land is cheaper than buying a developed commercial property. The funds you save by buying raw land can be used to develop other sectors of your firm.
Get Hard Money Land Loans In Atlanta, GA Today
If you’re looking to acquire hard money land loans or construction loans, visit Commercial Private Equity today. We offer hard money loans at competitive interest rates and provide financial consultation. Our specialized loans include commercial hard money loans, bridge loans, and workout loans.
Get in touch with us now for more information.