Land Acquisition and Development
September 26, 2007
An experienced commercial loan officer will ask two key questions for every land acquisition and development project. Here are the questions you should be prepared to answer -
1. How much money do you, the borrower, have invested into the project? This is an important question for our lenders and influences who we will ultimately present the project to. Since the lender will ask to see documentation during the closing process, you should expect us to ask for documentation that substantiates your investment.
2. Is the property fully entitled? If not, what will it take to get the property fully entitled. Once again, the lender will ask for documentation to substantiate the entitlement. Please expect us to also ask for documentation.
Yesterday, I posted our first commercial real estate loan tip – Be honest. Remember lenders will discover the answer to these two questions during closing. If the project has been honestly documented, your chances for success are much greater for successfully funding the transaction.
