The process of turning raw land into developable parcels includes obtaining entitlements and approvals from local governing authorities. Each development project goes through rigorous entitlement process regardless of its geographic location. This process includes reviews by local planning commissions and councils zoning authorities, utility and service providers, state and federal government agencies and local community members.
The lending world views development projects as the riskiest stage of the real estate cycle because there are so many uncontrollable unknowns. After investing years of time and millions of dollars your local government could decline your request because of change in codes or even because of endangered species.
Developers and lenders continue to take this risk because it is typically offers some of the highest returns once accomplished. This being said fees and rates associated with development loans can be expected to be higher based on the risk and reward factor.
We have many debt and equity sources that continue to offer development financing for strong residential projects and commercial projects in optimum locations. Our programs allow for financing during entitlement process as well as infrastructure improvements.