Land development loans provide essential capital for acquiring raw land, securing entitlements, and preparing properties for construction throughout Park City and the surrounding Wasatch Back region. Real estate development begins long before groundbreaking, with significant investment required for land acquisition, due diligence, design, permitting, and site preparation. Our hard money land development lending programs support experienced developers and investors through these preliminary phases with financing structures designed for the unique risks and timelines of development projects.
The land development process transforms undeveloped parcels into buildable lots ready for vertical construction. This transformation requires navigating complex regulatory environments, completing engineering and environmental studies, installing infrastructure, and achieving final plat approval. Each step consumes capital while generating no revenue, creating financing challenges that traditional lenders struggle to address. Raw land and development projects often exceed the risk parameters of conventional banks, leaving developers dependent on specialized lenders who understand the development process and can structure appropriate capital solutions.
Park City's dynamic growth and limited developable land create significant opportunities for well-conceived development projects. From residential lot development in emerging communities to commercial site preparation in growing business districts, land development represents the foundation of the region's continued expansion. However, development in Summit and Wasatch Counties presents unique challenges including mountainous terrain, environmental sensitivity, water rights complexities, and stringent planning regulations. Our land development loans support qualified developers navigating these challenges with capital structures that accommodate extended timelines and phased project delivery.
How We Help
Raw land acquisition financing enables developers to secure development sites before completing full due diligence or achieving final entitlements. This early-stage capital proves essential in competitive land markets where sellers demand quick closings and developers need time to complete feasibility analysis. Our land acquisition loans provide the certainty that sellers require while giving developers the runway needed for thorough project evaluation.
Entitlement phase financing supports the extended process of securing development approvals, including zoning changes, preliminary plat approval, environmental clearances, and permit acquisition. This phase typically spans months or years with substantial professional fees and carrying costs but no revenue generation. Our entitlement loans provide the patient capital that complex approval processes require, with structures accommodating uncertain timelines and milestone-based advances.
Infrastructure installation and site preparation financing covers the substantial costs of transforming entitled land into finished lots ready for home construction or commercial building. Road construction, utility installation, grading, drainage, and landscaping represent significant capital requirements typically funded through development loans disbursed against verified completion. Our development lending programs provide construction-style financing for horizontal infrastructure with draw schedules aligned to engineering milestones.
Land banking and speculative land acquisition serves investors acquiring land for future development or appreciation without immediate development plans. This strategy requires patient capital with extended terms and minimal payment requirements during the hold period. Our land banking loans accommodate long-term land positions with structures designed for investors building land inventories in anticipation of future development opportunities or market appreciation.
Common Challenges
Land developers face significant financing obstacles including the extended timelines of entitlement processes, the absence of cash flow during development phases, and the risk that projects may not achieve anticipated approvals or market conditions. Traditional lenders rarely provide development financing due to these uncertainties and the specialized expertise required to underwrite development risk.
Regulatory delays, environmental complications, infrastructure cost overruns, and market shifts create risks that conventional lending criteria cannot accommodate. Developers often struggle to find capital partners who understand the development business and can provide flexible structures for complex, long-duration projects. Our land development loans address these challenges with experienced underwriting, appropriate risk pricing, and structures designed for the realities of development work.
Our Approach
We approach land development lending with the recognition that these projects require patient capital and specialized expertise. Our underwriting evaluates developer track record, project feasibility, regulatory environment, market conditions, and realistic timeline assumptions. We work with experienced developers who understand the complexities of Park City's development landscape and have demonstrated ability to execute successful projects.
Development loan structures accommodate extended timelines with interest reserves, milestone-based advances, and extension options when circumstances warrant additional time. We maintain active involvement during the development process, verifying progress before releasing funds and providing guidance based on our extensive development lending experience. Our goal is to support successful project completion while managing risk appropriately for all parties.
Serving Our Community
Our land development lending programs serve qualified developers throughout Park City, Heber City, Kamas, Oakley, Coalville, Midway, Francis, Woodland, Wanship, Peoa, Samak, Echo, Rockport, Hoytsville, Silver Creek, Hideout, Snyderville, and Kimball Junction. Each community presents distinct development opportunities and regulatory frameworks, from the complex planning environment of Park City proper to the growth corridors of the Heber Valley and emerging development areas throughout the region.