Landowners

Ascend2Housing makes land banking a breeze.

By analyzing real-time data on market trends, Ascend2Housing can help landowners make informed decisions regarding pricing strategies, target demographics, and overall project viability within different regions.

Our expert team uses a comprehensive analysis of home sales and their deep knowledge of the delivery process to minimize risks and avoid delays and uncertainties about whether the market will absorb the product. Our team will help you scale from experience.

Our land-light process allows the team to build cash flow and proceed at the most viable times. As the “land-light” model continues to gain traction and as traditional sources of land development loans remain scarce, land bankers’ creative off-balance sheet strategies are becoming increasingly significant.

Land Light Approach

What is Land Banking?

Land banking involves acquiring and holding land for future construction, providing builders with capital and an off-balance sheet vehicle. Land bankers act as capital partners, offering a debt-like instrument with two primary purposes:

Acquiring paper lots and funding land development
Holding finished lots

Typically, the builder sources land for future development, securing zoning and entitlement. Prior to or upon closing of the land parcel, the builder and land banking partner agree on a development budget, takedown schedule, and price per finished lot. The land banker holds title to the land and earns fees until all finished lots are purchased.

Benefits of Land Banking

Capital Efficiency: Land banking offers greater advance rates compared to traditional A&D loans. It allows builders to control land positions with less capital, freeing up funds to invest in additional land opportunities. Financing is non-recourse, and the takedown obligations are not considered debt by banks, nor are they typically included in credit ratios.

Risk Mitigation: The flexibility of land banking reduces builder risk in fluctuating market conditions. Builders can opt out of the deal by forfeiting the deposit placed with the land banker, minimizing exposure.

Reliable Homesite Delivery: Predefined schedules and pricing ensure cost transparency with lot takedowns matching planned starts.