Short answer:
A land development loan finances the transformation of raw land into ready-to-build lots, covering everything from surveys and grading to utilities and roads. Private lenders play a critical role by offering flexible, fast funding when banks can’t.
Let’s walk through each phase of a land development loan—from dirt to development—and how hard money lending fits in.
When you buy an individual lot, it’s already prepped and ready for construction—utilities are in, roads are paved, zoning is in place.
But land development is about creating those lots from scratch. You’re taking raw land and turning it into something usable, sellable, or buildable. And that takes:
Because of that risk, traditional banks often avoid land development loans, or limit them to major institutional developers.
That’s where private lenders like Silverton Capital step in—especially in active growth markets like Dallas, Tarrant, and Collin counties.
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Here’s what a typical land development project looks like—and how a private loan supports each stage.
This is the “dirt” part.
You find a parcel of land in a promising area—maybe it’s just outside city limits, or it borders a booming suburb. The price is right, and you see potential.
At this stage, you’ll need financing to close fast before someone else grabs it. A private loan from a hard money lender can help you:
👉 Apply with Silverton Capital if you’re trying to secure raw land in North Texas quickly: Apply Here
Once you own the land, the next step is entitlements—getting government approvals for your intended use (residential, commercial, multifamily, etc.).
You’ll likely need:
During this phase, some private lenders will roll your soft costs into the loan or fund a second draw based on progress.
This is where real development begins.
You’ll need to:
This stage is capital-intensive, and many investors hit a wall with bank financing. But private lenders may continue funding draws based on:
Hard money works well here because it moves fast, adjusts to real-world needs, and doesn’t get bogged down in bureaucracy.
Once the lots are developed, you have options:
Private lenders want to know this plan before they fund the deal—so your exit strategy should be clear from day one.
Land development is risky, complicated, and full of unknowns. Banks don’t like that. But private lenders do—if the numbers make sense.
Here’s why real estate investors use hard money for land development:
✅ Speed: Close quickly before land prices rise or competition steps in
✅ Flexibility: Loans tailored to your project timeline and scope
✅ Access to Capital: Funded in phases as the project progresses
✅ Focus on the Property: Not your credit score, tax returns, or W2 job
✅ Works for All Phases: From raw land acquisition to final platting and infrastructure
Silverton Capital helps real estate developers and investors across Dallas, Tarrant, and Collin counties fund land projects at every stage.
Whether you’re acquiring raw acreage, installing infrastructure, or prepping finished lots, our team can help structure the right loan to get your deal moving.
Apply now to see what your project qualifies for.
Land development takes vision—and cash. If you’ve got a strong plan but can’t get traditional financing to cooperate, hard money could be your bridge from raw land to ready lots.
Work with a lender who understands the process and can help you move with confidence, not hesitation.
Need capital for your next land development project?
Apply with Silverton Capital for fast, flexible funding in Dallas, Tarrant, and Collin counties.
This article is for informational purposes only and is not intended to serve as legal, financial, or investment advice. Please consult with a licensed professional before making financial decisions.