If you have some land sitting empty for lack of money to build on it, you are not alone. Sometimes a good parcel comes along, you buy it, but then money is needed elsewhere in the business, and the land ends up sitting empty. It would be better to build, and that is why the land was acquired, but you may think it is too difficult to raise the money to build.

You may also own land that can be built on for some other reason, like an inheritance or rezoning, and come to the realization that it would be advantageous to build it up, except you don’t have the capital to get started. Many builders have the experience and the know-how to do the job, but lack the start-up money. Many banks will only lend against the value of the land, which may not be enough to finance the building.

This is where spec home construction loans come in, and you can get them from lenders, who specialize in backing builders and know the business. Banks are not necessarily set up to understand the needs of builders. Builders want to get started as soon as possible and know they can turn a profit, as long as they have some financing. With property values rising again, this is a good time to get that land used.

Specialized lenders look for the end value of the project rather than the current value of the land. They are able to move quickly and extend loans that properly reflect the value of what you will have when you complete the building, instead of limiting themselves, and you, to what the land alone can bring in today’s market.

So if you have the land just sitting there, and you have a plan for building on it, now is the time to find a lender, who can help you turn that plan into a nice profit.