Land Loan Closing on Residential Lots

Besides lending on income property of any asset class Nebo has a track (or is it tract?) record of closing land loans on recreational, commercial, and residential land. These land loans have run the gamut from non-entitled un-zoned land to fully entitled sub-divided land. The key issues are a realistic supportable valuation and understanding that a lower loan to value (35% to 60% LTV being a common range) is needed to obtain a land loan. A higher leverage might be do-able with an equity participation and a clear short term business plan to monetize the value of the land or with additional collateral, strong guarantees or a bankable pre-sale.
 
In this recent Nebo closing, the requirement was for a very fast close on bulk finished residential lots for which the majority were pre-sold to multiple builders on a fractional basis.  The rate was single digit in this case.