When land investors compare a private land lender to a bank, the first thing they look at is the rate. A bank might offer 8-10%. A private lender like Damen Capital charges 14-16%. On paper, the bank wins.
But paper doesn't close deals. Certainty does.
If you've ever lost a deal because your financing fell through at the last minute, or watched a property go to another buyer while you waited weeks for a bank to make a decision, you already know that the interest rate is only one piece of the equation — and usually not the most important one.
The Real Cost of Waiting 30-60 Days
When you apply for a raw land loan through a bank or institutional lender, here's what typically happens. Your application goes to a loan officer, then to an underwriter, then to a committee. They order an appraisal. They request more documents. They ask questions. They request more documents. Weeks pass.
Meanwhile, the seller is getting restless. Other buyers are circling. You've spent money on due diligence, inspections, maybe even earnest money — all while hoping the bank says yes.
And sometimes, after 30, 45, or 60 days of waiting, they say no. Not because the deal was bad, but because it didn't fit neatly into their rigid guidelines. Maybe the acreage was too large. Maybe it was too rural. Maybe the committee just didn't feel comfortable with vacant land. You're back to square one with nothing to show for it except lost time and a dead deal.
What Working with a Private Land Lender Looks Like
At Damen Capital, the process works differently. You submit your deal, and we give you an answer within 48 hours — not a "maybe" or a "we'll get back to you," but a real approval with real terms. We fund from our own bank account. There's no committee. No layers of bureaucracy. No third-party underwriter who's never financed raw land before.
Once approved, we close in as little as 7 days. Your seller gets paid, you get your land, and the deal is done. No drama. No surprises at the closing table.
What Jeff M. Says About Working with Us
"For my subdivide projects, Eric is the only lender I call. Sure, I pay more than I would with a bank, but I'm not stuck waiting two months for an answer. His team processes partial releases quickly and they're easy to work with, which is why I see them as the leader in the vacant land space."
The Comparison: Private Land Lender vs. Bank
| Damen Capital | Bank / Institutional | |
|---|---|---|
| Approval time | 48 hours | 30-60 days |
| Closing time | 7 days | 45-90 days |
| Interest rate | 14-16% | 8-10% |
| Decision maker | Direct — no committee | Committee approval |
| Funding source | Our own capital | Depositor funds / credit lines |
| Appraisal required | No | Yes |
| Raw land experience | Exclusive focus | Minimal to none |
| Denial at closing | Never | It happens |
| Borrower flexibility | All types of buyers | Rigid guidelines |
| Cross-collateralization | Available | Rarely |
You Can't Put a Price on Certainty
The difference between 14% and 8% on a $100,000 loan held for 12 months is about $6,000. That's real money. But consider what it costs you when a deal falls apart:
- The earnest money you put down — possibly forfeited
- The due diligence costs — surveys, inspections, title searches
- The time you spent — weeks or months of back-and-forth with the bank
- The opportunity cost — the next deal you couldn't pursue because your capital was tied up
- The deal itself — someone else bought the property while you waited
For most land investors, one lost deal costs more than a year of interest rate differential. When you get an approval from Damen Capital, your deal will close. That certainty is worth more than a few points on the rate.
We Work with All Types of Buyers
Banks have rigid lending guidelines. They want W-2 income, 740+ credit scores, two years of tax returns, and a property that fits into a neat box. If you're self-employed, buying rural acreage, or doing anything outside the ordinary, you're fighting an uphill battle.
We don't have those restrictions. We work with all types of land investors — first-time buyers, experienced flippers, subdivide operators, and investors building portfolios. We look at the deal, not just the borrower's tax returns. If the raw land makes sense and the numbers work, we'll fund it.
Want to see our loan terms in detail?
View Our Loan Program →When a Bank Makes Sense
We're not going to pretend a private land loan is always the right choice. If you have a long timeline, excellent credit, and a bank that actually lends on vacant land in your area, a bank loan can save you money over a multi-year hold. If you're buying land to build your personal home and you're not in a rush, the lower rate may be worth the wait.
But if you're an active land investor who needs to move fast, close with certainty, and not risk losing deals to slow underwriting — a private land lender built specifically for raw land is the better tool for the job.
The Bottom Line
Rate matters. But it's not the only thing that matters. Speed, certainty, flexibility, and direct access to the decision maker — those are the things that keep your business moving and your deal pipeline full.
Banks are built for mortgages on houses. We're built for raw land. That's all we do, and it's why land investors keep coming back.