A land flip only works if you can close before the deal walks. We fund the purchase in 7 days with no appraisal, you resell at a profit, and the sale pays us off.
A vacant land flip is simple. An investor finds a parcel a motivated seller will let go below market, buys it, and resells it at market price. The profit is made on the buy. The problem is the buy has a clock on it. The seller who takes 60 cents on the dollar wants to close in a week or two, and if you cannot, the next mailer in his mailbox will. Banks do not lend on raw land to a flipper in 7 days. Most will not lend on raw land at all. Damen Capital Fund does, and that is what land flip financing from us is: a purchase loan sized to the deal, closed in 7 days, paid off when you sell.
We lend on the same land you are already buying. Rural acreage, recreational parcels, infill lots, timber, pasture, desert, mountain. 1 acre minimum, legal access, no parcel that is mostly wetlands or flood zone. The land does not need income or a plan beyond resale. It needs defensible comparable sales, because that is how we set the value with no appraisal.
You send the parcel, the contract price, and your resale number. Within 24 hours you have a written quote. We value the land from recent comparable sales in the county, not from an appraiser who will take 6 weeks and then miss the discount you negotiated. Our loan is up to 65% of that value. Bring 20% down, or pledge another property you own free and clear and finance 100% of the price. Title is ordered on day two and we fund on day seven at a title company or closing attorney you choose.
The loan is interest only for 24 months, but flips do not run that long. You list the parcel, sell it, and the closing agent pays us off from the proceeds. No prepayment penalty beyond the 5 month minimum interest. Most land flips we fund are paid off inside a year.
A borrower found a 5 acre Florida parcel at $72,000, under comparable sales, from a seller who needed cash in 10 days. We approved $57,600 at 16% with 20% down and closed in 7 days. The borrower resold to a retail buyer six months later. Interest for the hold came to $4,608, plus $600 closing and a $1,152 exit fee, $6,510 total for the money. The full breakdown is on the Florida land flip case study. Rate is what people argue about. Cost of capital against the profit on the flip is what matters, and it was a small number here.
Most land flippers sell for cash to a retail buyer. That is the clean exit and it pays the loan off in one closing. The second exit is where we are different from any other lender. Sell the parcel on terms instead. Owner financing brings more buyers and a higher price on vacant land, since retail land buyers rarely have bank financing available. Then sell us the note at closing. We pay 80 to 90% of the note balance, the flip loan is paid from the proceeds, and you walk away with cash on the same day instead of collecting payments for 10 years. One lender funds the buy and buys the paper on the sell. That is the whole cycle under one roof.
The fastest way to stall a land flipping business is to run out of cash for down payments. If you own a parcel free and clear, an earlier flip you kept or a note-free lot, pledge it as cross collateral and we finance 100% of the next purchase. One extra property per loan, not a stack. When the flip sells, both liens release. Your cash stays working on the next deal instead of sitting in a down payment.
Every loan carries 5 months of minimum interest. If you flip in 60 days, you still pay 5 months. On a $57,600 loan at 16% that is $768 a month, $3,840 minimum, plus $600 closing and the 2% exit fee of $1,152. Call it $5,600 all in on a fast flip. Underwrite your deal with that number. If the spread on the flip cannot carry $5,600 in capital cost, the deal is too thin for borrowed money and we will tell you so on the first call.
Business purpose loans to entity borrowers only. $30K to $1M. Vacant land, 1 acre minimum, with legal access. We fund the land purchase only, not entitlements, construction, site work, or soft costs, and no commercial property. We do not lend in California, Arizona, Nevada, New York, New Jersey, North Dakota, South Dakota, or Vermont. Subdividing a larger tract into lots is its own program: see subdivide financing.
Flips die on days, not on points. A broker shops your file, and at day 12 you learn the lender wants an appraisal after all. We lend our own money. One person reads the deal and the quote you get is the deal that closes. If a parcel will not work for us, no access, mostly wetlands, no comps, you hear it on the first call, before you have paid for title work or lost your earnest money.
Related programs: Subdivide Financing · Farmland Bridge Loans · All Land Loans
Yes. Land flip financing is a core part of what we do. We fund the purchase of vacant land that an investor buys at a discount and plans to resell for a profit. $30K to $1M, no appraisal, close in 7 days, business purpose only.
7 days from accepted terms. You get a written quote within 24 hours. Speed is the whole point: discounted land goes to whoever can close, and a bank cannot close raw land in a week.
Yes, with cross collateral. Pledge one other property you own free and clear and we finance 100% of the purchase price. Without cross collateral it is 20% down and 65% max LTV.
You still owe 5 months of interest. That is the minimum on every loan. On a $57,600 loan at 16% that is $3,840 in interest, plus $600 closing and the 2% exit fee, about $5,600 all in. Price the flip with that number, not the monthly payment.
Yes. Sell on terms to reach more buyers and a higher price, then sell us the note at closing. We pay 80 to 90% of the note balance, you pay off the flip loan from the proceeds, and you walk away with cash instead of a 10 year payment stream.
14% for loans of $100K and up, 16% under $100K, interest only, 24 month term, 5 month minimum interest, 20% down or 0% with cross collateral, 65% max LTV, $600 closing, 2% exit fee, $25 per month servicing, no appraisal.
Send the parcel, your contract price, and your resale number. Quote in 24 hours, close in 7 days.
Private lender and direct land note buyer serving land investors nationwide. Featured on REtipster, Legends of Land, and Land Investing Online. LinkedIn →