Loan Program
Land Acquisition Loans in Los Angeles, CA
Hard money financing for raw land, development sites, and land banking opportunities. Secure the dirt before someone else does.
About Land Acquisition Loans
Land acquisition loans represent one of the most specialized segments of hard money lending, providing capital for the purchase of raw land, development sites, and entitled parcels without existing improvements. These loans fill a critical gap in the financing landscape, as traditional lenders rarely lend on unimproved land due to the absence of cash flow and the speculative nature of land investments. For developers, investors, and builders in Los Angeles, land acquisition financing is often the essential first step in creating profitable real estate developments.
The Los Angeles land market presents unique opportunities for those who understand its complexities. From infill development sites in established neighborhoods to hillside properties with development potential, from commercial parcels along major corridors to residential lots in areas zoned for higher density, land represents the raw material for future real estate value creation. However, competition for desirable land is fierce, and sellers typically favor buyers who can close quickly with certainty, exactly what hard money land acquisition loans provide.
Raw land lending requires specialized expertise in evaluating development potential, understanding zoning and entitlements, assessing infrastructure availability, and projecting future value. Our land acquisition loan programs are designed for experienced developers and investors who have clear plans for their land purchases, whether that involves immediate development, holding for appreciation, or entitling for future sale. We understand the Los Angeles entitlement process, the various zoning designations, and the factors that make land developable and valuable.
Unlike conventional land loans that may require 50% down payments and extensive documentation of development plans, our hard money land acquisition loans offer more flexible terms and faster execution. We can close land purchases in 2-3 weeks, allowing you to secure sites before competitors can arrange financing. Whether you're acquiring a single lot for a custom home, assembling parcels for a multifamily development, or securing commercial land for future construction, our land acquisition financing provides the capital foundation for your development strategy.
Program Features
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How Investors Use Land Acquisition Loans
Development Site Acquisition
Secure entitled or entitled-ready development sites with acquisition financing that moves at the speed of the land market. In Los Angeles, quality development sites are scarce and sell quickly when they become available. Our land loans allow you to act decisively when opportunities arise, whether you're pursuing multifamily residential sites, commercial development parcels, or mixed-use opportunities in transit-oriented districts.
Land Banking and Speculation
Acquire land in path-of-growth areas for long-term appreciation or future development. Land banking requires patient capital and the ability to hold properties through entitlement processes and market cycles. Our land loans can provide the holding period financing needed while you secure approvals, wait for market conditions to improve, or assemble adjacent parcels for larger developments.
Infill Development Opportunities
Capitalize on Los Angeles' infill development trend by acquiring underutilized parcels in established neighborhoods. As the city densifies, small infill sites in desirable locations become increasingly valuable for townhomes, small multifamily projects, or mixed-use developments. Our loans accommodate the smaller deal sizes and shorter hold periods typical of infill development strategies.
Entitlement Bridge Financing
Finance land while pursuing zoning changes, variances, or other entitlements that increase development value. The entitlement process in Los Angeles can take 12-24 months or longer, during which you need capital to hold the land and fund entitlement expenses. Our bridge loans provide this holding period financing, with structures that accommodate the uncertain timelines of the entitlement process.
Frequently Asked Questions
What types of land do you finance?
We provide hard money loans for various land types including residential development sites (single-family and multifamily), commercial development parcels, mixed-use sites, industrial land, and entitled or entitlement-ready properties. We consider raw land without utilities, partially improved parcels, and sites with existing structures that will be demolished for redevelopment. Properties must have legal access and generally should not have major environmental issues, though we can work with sites requiring minor remediation. We lend on land throughout Los Angeles County with loan sizes typically ranging from $200,000 to $3 million.
What are the typical terms for land acquisition loans?
Land acquisition loans typically feature interest rates from 10% to 14% depending on land characteristics, location, and borrower experience. Loan terms range from 12 to 36 months with extension options available. We generally provide up to 50% loan-to-value based on current land value, though this can increase if the land has approved entitlements or if construction financing will follow. Origination points range from 3-5 points. Interest-only payments are standard to minimize carrying costs during the holding period. We can structure loans to roll into construction financing when you're ready to build.
Do I need to have development plans ready to get a land loan?
While you don't need fully engineered plans or approved permits to secure a land acquisition loan, we do require a clear statement of your intended use for the property, preliminary development concepts, and a realistic timeline for entitlements and development. For experienced developers, we may approve loans based on a conceptual development program and demonstrated track record. For less experienced borrowers, we may require engagement of an architect or consultant to validate development feasibility. The key is demonstrating that you have a viable plan and the capability to execute it.
How does the appraisal process work for land loans?
Land appraisals require specialized expertise to value development potential rather than just comparable sales. We work with appraisers experienced in valuing land for development purposes who understand the Los Angeles market. The appraisal considers comparable land sales, development potential based on zoning and entitlements, infrastructure availability, and market conditions for the intended use. Appraisal costs for land typically range from $2,500 to $5,000 depending on property complexity. In some cases, we may accept a broker price opinion or desktop valuation for smaller parcels or repeat borrowers.
Can I get a land loan if the property has existing structures on it?
Yes, we frequently provide land acquisition loans for properties with existing structures that will be demolished for redevelopment. The loan is based on land value, and existing structures may actually add value if they generate rental income during the holding period or if they can be salvaged for materials. We evaluate each property based on its highest and best use, which may involve demolition of existing improvements. The key consideration is that the property has development potential that justifies the acquisition price and loan amount.
Explore Other Loan Programs
Residential Property Loans
Hard money loans for single-family homes, condos, and residential investment properties in Los Angeles.
Commercial Property Loans
Fast funding solutions for office buildings, retail spaces, and commercial real estate investments.
Bridge Financing Loans
Short-term bridge loans to secure properties while awaiting permanent financing or sale of existing assets.
Ready to Get Started?
Contact us today to discuss your land acquisition loans needs.
Call (213) 667-4815