Land development represents one of the most lucrative yet capital-intensive segments of real estate investment, offering exceptional returns for investors who successfully navigate the complex journey from raw land to finished development. In Anaheim and throughout Orange County, where buildable land is increasingly scarce and population growth continues to drive housing demand, strategic land investments provide the foundation for substantial wealth creation. Our land development hard money loans provide the specialized financing that developers need to acquire entitled parcels, secure pre-development approvals, install infrastructure, and position properties for vertical construction or sale to homebuilders.
Land financing presents unique challenges that conventional lenders are typically unwilling or unable to address. Traditional banks rarely finance raw land, and when they do, they impose conservative loan-to-value ratios, extensive entitlement requirements, and lengthy approval processes that miss market opportunities. Our land development loan programs are specifically designed for the realities of land investment, featuring higher leverage for entitled parcels, interest reserve structures that accommodate pre-development timelines, and streamlined approval processes that enable quick closings on competitive land acquisitions.
Whether you're a seasoned land developer seeking to expand your holdings in Orange Count' constrained market, a builder looking to secure future building sites, or an investor pursuing the strategic appreciation that well-located land provides, our financing solutions support your objectives. With loan amounts ranging from $250,000 for infill parcels to $20 million for significant development sites, and terms structured to accommodate entitlement timelines and market cycles, we provide the capital foundation for successful land development throughout Anaheim and the surrounding communities.
Service applications
Our land development financing programs serve diverse strategies across the land investment spectrum. For acquisition financing, we provide capital to purchase raw land, entitled parcels, and development sites with varying levels of pre-development work completed. Land acquisition loans feature terms that accommodate the holding period required for entitlement, permitting, or market timing, with interest reserve structures that eliminate payment requirements during the pre-development phase. We can finance land purchases at competitive loan-to-value ratios based on the parce' characteristics, location, and existing entitlement status.
Entitlement financing supports the costly and time-consuming process of securing development approvals, including zoning changes, general plan amendments, tract maps, and environmental clearances. These loans provide capital for soft costs including planning consultants, environmental studies, engineering, legal fees, and community outreach required to move projects through the approval process. We understand that entitlement timelines can extend 18-36 months or longer in complex cases, and structure financing with appropriate terms and reserves to see projects through to approval.
Infrastructure development loans finance the installation of roads, utilities, grading, and other site improvements that transform raw land into buildable lots. This horizontal construction financing requires specialized oversight including engineering review, contractor qualification, and milestone-based disbursements. Our infrastructure loans accommodate the phased nature of land development, providing capital as improvements are completed and individual lots or parcels become ready for sale or vertical construction.
Mezzanine financing and preferred equity structures enable developers to achieve higher leverage on land investments while maintaining control of projects. These subordinate capital solutions supplement senior debt to maximize returns on equity, particularly valuable in competitive land markets where purchase prices reflect high underlying values. For developers with multiple land positions, we offer portfolio financing that consolidates holdings under unified loan facilities, simplifying debt management and providing flexibility for strategic parcel sales or development sequencing.
Common challenges
Land development investors face formidable financing challenges that conventional lenders rarely accommodate. Traditional banks almost universally decline to finance raw land, viewing it as speculative and lacking income generation capacity. Even entitled parcels face significant hurdles, as conventional lenders require extensive documentation, proven development experience, and conservative leverage that fails to reflect underlying land values. The extended timelines associated with land investment, often 2-5 years from acquisition to monetization, conflict with conventional lending frameworks designed for shorter-term, income-producing assets.
Entitlement risk creates additional financing complexity, as the outcome of planning processes significantly impacts land values but remains uncertain until approvals are secured. Environmental issues, including contamination, wetlands, or endangered species habitat, can derail development plans and render land unfinanceable through conventional channels. Market timing presents another challenge, as land values fluctuate with housing market cycles, and financing structures must accommodate holding periods that extend through market downturns. Capital calls for pre-development expenses, including consultants, studies, and carrying costs, strain developer liquidity, particularly when traditional lenders provide no funding for soft costs or interest reserves.
Our approach
Our land development lending approach combines sophisticated real estate expertise with the flexibility that complex land transactions require. We evaluate land opportunities based on intrinsic value drivers including location, entitlement status, market demand, and development feasibility rather than applying standardized criteria designed for income-producing properties. Our underwriting process includes comprehensive due diligence on planning approvals, environmental conditions, infrastructure capacity, and market absorption potential.
We structure land loans to accommodate the unique cash flow characteristics of development projects, providing interest reserves that eliminate payment requirements during pre-development phases, flexible maturity dates that align with realistic entitlement and development timelines, and provisions for loan extensions when market conditions or approval processes warrant additional time. Our draw management systems for infrastructure components ensure capital availability when needed while maintaining appropriate construction oversight.
Throughout the land development process, we maintain collaborative relationships with borrowers, providing market insights, connecting developers with qualified consultants and contractors, and supporting project milestones. We understand that successful land development requires patience, strategic thinking, and adaptive capital structures, and we structure our financing to support these requirements while protecting investor interests.
Service areas
Orange Count' land market presents exceptional opportunities for strategic developers, with Anaheim offering infill parcels near established infrastructure and transportation corridors. The cit' ongoing development initiatives, including the Platinum Triangle transformation and various specific plan areas, create entitled land opportunities with clear development pathways. As buildable land becomes increasingly scarce in coastal Orange County, well-located Anaheim development sites benefit from strong demand from homebuilders and developers seeking to meet the regio' housing needs.
Frequently asked questions
Do you finance raw land without entitlements?
Yes, we provide financing for raw land acquisitions, though terms vary based on the specific parcel and investment strategy. Raw land typically qualifies for lower leverage (up to 50% of value) and shorter initial terms compared to entitled parcels, reflecting the additional risk and timeline associated with securing development approvals. We evaluate raw land based on location fundamentals, zoning potential, access to infrastructure, and market demand. For investors with clear entitlement strategies and appropriate experience, we can structure financing that includes reserves for pre-development costs and extends through the approval process.
What is the typical loan-to-value ratio for land development loans?
Loan-to-value ratios for land development financing typically range from 50-65% depending on the land's entitlement status and investment strategy. Raw land generally qualifies for up to 50% LTV, while entitled parcels with approved tract maps or tentative maps can achieve up to 65% LTV. Parcels with completed infrastructure and finished lots may qualify for higher leverage. We also consider loan-to-cost ratios for development projects, and can structure mezzanine financing or equity participation to achieve higher overall capital stacks when appropriate for the transaction.
How long are the loan terms for land development financing?
Land development loan terms are structured to accommodate realistic project timelines, typically ranging from 12 to 36 months with extension options available. Raw land held for appreciation or future entitlement may warrant longer terms of 24-48 months. Infrastructure development loans align with construction schedules, usually 12-24 months. We build in appropriate extension provisions for projects facing delays in permitting, market conditions, or development sequencing, recognizing that land development timelines often extend beyond initial projections through no fault of the borrower.
Can land development loans include funds for soft costs and carrying costs?
Yes, our land development loans can include funding for soft costs including planning consultants, engineering, environmental studies, legal fees, and other pre-development expenses. We also structure interest reserves that cover debt service payments during the development period, eliminating the need for borrowers to make out-of-pocket payments while the land is not generating income. These reserves are sized based on projected timelines and can be adjusted if entitlement processes extend beyond initial expectations. Including soft costs and carrying costs in the loan enables developers to preserve equity capital for multiple projects.
What exit strategies do you require for land development loans?
We accommodate various exit strategies for land development investments, recognizing that different parcels and market conditions warrant different monetization approaches. Common exit strategies include sale of finished lots to homebuilders, sale of the entitled parcel to developers, ground-up construction followed by sale or lease of completed buildings, and refinancing into permanent financing once cash flow is established. We work with borrowers to develop realistic exit timelines and provide extension options when market conditions justify holding land positions longer than initially projected. Our flexible approach supports value-maximizing strategies rather than forcing distressed sales.