Yes financing is possible for existing land leased properties. Some of the things a lender will be looking for are:
1. Length of land lease. (The longer the better – at least 30 years preferred)
2. Quality of Tenant (Is it a credit tenant/s/)?
3. NOI produced from tenant leases.
4. Debt Service Coverage.
5. Quality of borrower. (It may require some cross-collateralization).
6. Location of the land. (How dense is the land and what are similar land costs)?
7. Condition of the Asset?
There are other factors as well. However, if these are all positive you should be able to get financing through a good mortgage broker in your respective area.
Good luck Tom.... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: email@example.com
Jan 12, 2011