Land Development Financing and Horizontal Improvements

You will often hear commercial construction lenders and commercial property developers use the term horizontal improvements in connection with land development loans.

The horizontal improvements include any zoning changes, the subdivision map, clearing the ground, cutting the roads, installing the utilities (water lines, sewer lines, power lines, cable TV lines, etc.), and paving the roads, sidewalks and gutters.

At this point a land developer will often sell off the homesites or commercial pads.  A pad is a fully-improved site for a commercial building; i.e., it already enjoys streets, gutters, sidewalks, and utilities.

You can find 200 land development lenders on C-Loans.