Sustainable Land Development Today - September 2008 - (Page 19)

Kyle Poole, Land Finance Group, LLC that particular focus, according to Kyle Poole, director of the investment group. Working with two primary investors that are interested in financing raw land purchases, the company seeks opportunities to offer its funds in exchange for higher rates of return than typical bank financing. One of its primary products is bridge or interim financing for well-capitalized developments. From the borrower’s perspective, the firm offers non-recourse land loans at approximately 50-percent loan-to-value. As all of the funds are private, the firm’s lending practices are not encumbered by the same rules that face regulated institutions and it is self-underwritten. Combined, that leads to faster funding for the developer. In a financial climate that has seen a serious reduction in available dollars from traditional sources, his company has drawn more attention from the market. Private funds are the only sources in some markets as bank financing is hard to come by, not only for raw land but also for horizontal construction. Poole works with a database of 20,000 developers from across the country to whom he offers his services. The number of actual projects coming online has drastically diminished due to the economic slowdown n, but the actual number of people seeking his services has increased. “I must also say that previously, our relatively higher rates for private finance have kept some people away, but now that there is a dearth of bank financing, and borrowers are coming to us in droves,” Poole said. Our underwriting standards have become stricter, but we are still available and to that extent, we are a lifesaver.” Further, from his perspective, it is a good time to finance land deals. “The value of land has deteriorated by 50-percent and we’re lending 50 percent of that discounted value. So in a sense, we’re lending 25 percent of the value at this time,” he said. A generalist in nature when it comes to the types of projects it finances, Poole said that Land Finance Group is interested in getting involved in more sustainable land development deals. He is especially optimistic toward that end because of the political climate in Washington, D.C. expected to occur in the aftermath of the presidential election. No matter who wins, opportunities may present themselves at the governmental level. For example, new laws could pro- vide favorable tax treatment that could change the industry dramatically. “We feel that, in the ‘green’ or sustainability area, there will be some great opportunities under a new administration,” he said. “One can almost sense these opportunities in the air.” SLDT About the author: Frank Hill is a freelance writer and contributor to Sustainable Land Development Today. ASPHALT PERFORMANCE WAT E R Q U A L I T Y The Sustainable Pavement ENERGY & RECYCLING CLEAN AIR & COOL CITIES Asphalt is the sustainable material for constructing pavements. Learn more at PaveGreen.com. From the production of the paving material, to the placement of the pavement on the road, to rehabilitation, through recycling, asphalt pavements minimize impact on the environment. Low consumption of energy for production and construction, low emission of greenhouse gases, and conservation of natural resources help make asphalt the environmental pavement of choice. • What industry is America’s number one recycler? • How can asphalt pavements reduce road noise? • What kinds of asphalt pavements can help manage stormwater? • How can asphalt pavements mitigate the urban heat island (UHI) effect? Visit PaveGreen.com to learn more. Circle 109 • or www.SLDTonline.com/webcard www.SLDTonline.com 19 http://PaveGreen.com http://PaveGreen.com http://PaveGreen.com http://www.SLDTonline.com/webcard http://www.SLDTonline.com

Table of Contents Feed for the Digital Edition of Sustainable Land Development Today - September 2008

Sustainable Land Development Today - September 2008 Contents Our Voice The Bottomline Editorial Board SLDT Resources Digging Deep Oases of Capital Build a Better Business on an Interactive, Virtual Landscape Regulation SLDI in Focus �� SLDI Sponsored Summit �� Workshops �� Bookstore Tee’d Up for Sustainability Retention Solutions Wastewater Redevelopment Industry News Marketplace Products/Services Showcase Advertiser Index The Last Word

Sustainable Land Development Today - September 2008

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