Welcome to the EN Capital newsletter where we promote different capital sources such as private lenders, family offices and equity funds in addition to general capital markets news. We’re also promoting the alternative investment conference series called Uncorrelated, EN Capital is a partner in certain Uncorrelated events.

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Land Loans Are Back!

For the last few years, “land” was close to a four-letter word with lenders. That's changing — and we're not the ones saying it. Over the past several weeks, lenders have been reaching out to us, unprompted, to say they want land deals: raw and entitled land, pre-development loans, horizontal development, lot development, even land in bankruptcy situations.

A sample of what's crossed our desk recently — real programs, real terms:

• A national institutional bridge lender that just stood up a dedicated land fund — senior loans on entitled land, ~55–65% of cost, nationwide

• A private lender that historically declined every land request and just announced a $4–20M land program — 50–60% LTV, open to pre- and mid-entitlement with a clear exit, closing in 2–3 weeks

• A 35+ year balance-sheet lender that describes itself as one of the country's most active bridge lenders on developable land sites — $2.5–25M+, closings in as little as 5 business days

• A family-office-backed fund that's aggressive on pre-sold lots to homebuilders at up to 85% of cost

• Banks and debt funds with lot development and A&D explicitly back on the menu

Leverage generally runs 50–65% (higher on pre-sold lots), pricing from ~10% at the private end to SOFR + 600s institutionally, terms of 12–36 months. Entitled land gets the best execution; pre-entitlement is financeable with a credible path and exit.

If you're sitting on a land deal you shelved because “nobody's lending on land” — it's worth another look. Acquisition, recapitalization, pre-development, horizontal: send us the basics and we'll tell you quickly whether it fits what these lenders are asking us for.

• We’ve been building this email list since 2017 and we’re up to 43,000+ professionals focused on the capital markets for alternative investments such as commercial real estate, the space industry, renewable energy, LATAM deals and utilizing Data-as-an-Asset. So you’re in good company.

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• EN Capital is NOT a broker dealer and does not sell securities

• EN Capital is capital advisory firm / intermediary and NOT a direct capital source. Seriously, every time we sent out an email someone replies and gets pissy when they realize we’re intermediaries and not direct lenders. It’s clear on our website, LinkedIn and emails. We don’t know how to make it more obvious. Don’t be that guy.

Be sure to connect with EN Capital on Linkedin. and visit our website here.

Nathan Whigham
President
CA DRE Broker License: 01793655

EN Capital Contact Info:
www.encapital.com
[email protected]
Direct Line: 310-465-9253