We fund land loans on a case-by-case basis
We are generally conservative with respect to our loan-to-value ratio maximum and the geographic markets that we consider.
Many unimproved vacant-land loans that AIC fund have a plan in place to partition or further develop with a solid exit strategy. In some cases the borrower needs to close quickly to take advantage of a distressed-sale situation but is not necessarily ready to start construction. For these cases, AIC will finance the bare-land with a plan in place to complete the design and permitting process.
Most land loans AIC funds are in the greater Portland area due to the extensive and timely process necessary to receive building permits. AIC can fund a two-step loan providing financing for a portion of the land acquisition. Once the permits are ready, we refinance the land loan into a construction loan.