Bridge Loans for Land Acquisition
The best land for new construction does not wait. When a teardown lot in the right neighborhood comes available, or a parcel surfaces that has been off-market for years, the window is narrow. You need to move fast, close with certainty, and figure out the permanent construction financing while the ink is still drying on the purchase contract. Mayflower Venture Partners provides bridge loans for land acquisition for experienced developers who are ready to move on the right opportunity and need capital that can keep pace with them.
Why Bridge Loans for Land Make Sense
Land acquisition presents a unique financing challenge. Conventional lenders are often reluctant to finance raw land or teardown lots without a fully permitted set of plans and a signed construction contract in place. That requirement creates a chicken-and-egg problem: you cannot start the permitting process until you own the land, but the lender wants permitted plans before they will lend on the land. The conventional process essentially forces you to either pay cash for land or wait so long that the opportunity is gone.
A bridge loan solves this cleanly. You use short-term private capital to close on the land quickly, which lets you begin the permitting and design process immediately. Once you have your permits and your construction budget finalized, the bridge rolls into a full construction loan and the build begins. You move at the speed the deal requires instead of at the speed the bank allows.
In competitive markets like Greater Boston, Fairfield County Connecticut, the Rhode Island coast, and the New Hampshire seacoast, the ability to close on land in two weeks instead of sixty days is not a minor operational advantage. It is often the difference between owning the lot and watching someone else build on it.
What We Look For in a Land Acquisition Deal
When we underwrite a bridge loan for land acquisition, we are looking at the same fundamentals as any construction loan: the land value, the neighborhood, the builder’s track record, and the exit. We want to understand your plan for the site even if permits are not yet in hand. We want to know what you intend to build, what it will cost, and what you expect it to sell for. The clearer your vision for the project, the faster we can move.
We are not lending on raw land with no development plan. Our borrowers are experienced builders who have a specific vision for what they are going to create on the site, a realistic budget for doing it, and a track record of having done it before. If that is you, bring us the deal.
The Opportunity in Today’s Market
The market we are in right now is creating interesting land acquisition opportunities for builders who are paying attention. In some premium markets, motivated sellers are more flexible on price than they were two or three years ago. The buyer pool for teardown lots has thinned slightly as some developers have pulled back in response to rate uncertainty. For experienced builders with access to capital, this is a window. Not a wide one, but a real one.
The builders who are moving on the best lots right now are the ones who have a lender relationship that allows them to act quickly. They are not calling their bank and starting a 60-day underwriting process when they find a deal. They are calling their private lender, getting a term sheet the next morning, and making an offer that the seller takes seriously because it can actually close.
That relationship is what we offer. When you find the lot, call us. We will tell you within 24 hours whether we can finance it and on what terms.
Our Land Acquisition Bridge Loan Program
Loan amounts from $500,000 to $5,000,000. Up to 75% of the land acquisition cost. Loan terms of 12 months. Interest only monthly payments on the amount disbursed. Closings in 10 to 14 business days. No prepayment penalty. Direct lender, not a broker.
Bridge loans can roll into full construction financing once permits are in hand, eliminating the need for a second closing and a second set of transaction costs. Ask us about our construction bridge program when you call.
Markets We Serve
We provide land acquisition bridge loans throughout Massachusetts, Connecticut, Rhode Island, New Hampshire, and Maine. We selectively lend in premium markets outside New England for the right deals and the right borrowers.
Ready to Move on Your Next Land Acquisition?
Apply now, email us at lo***@*******er.com, or call 617-553-6781. Term sheets in 24 hours.