The term "shovel ready" can mean many things.
However, most sellers of land will want cash. The terms to reach the full payment can vary based on the Agreement written.
These agreements usually are based on certain things happening during the approval process for the project designated and designed. Usually there can be a relatively long advance period whereby, say $100,000 was at risk. Then supplemental, at risk, payments thereafter, of say $50,000 each for certain points being reached in stages of the development; to allow continuation of the progress for the development.
It is rare for a land owner to take a subordinate position to a construction loan; so this may be the trigger point for full payment.
This type agreement can stretch over one to two years in a project.
Onward and Upward.....
Feb 15, 2013