Is appreciation of land accounted for in LTC?

[Brian Cade]

In the case of a multifamily construction loan, is the land portion of the LTC based strictly on the purchase price (even if multiple years prior), or is it be based on the current market value of the land?

In a nutshell I've purchased land that is unable to be built on until a water shortage is addressed, likely taking 2-5 more years, but possibly longer, and as you would expect that uncertainty has depressed land values. I'm trying to get rough figures in line to make sure I'm ready to hit the ground running once the water moratorium is over.

Thanks!

[Jay Hinrichs]

if you own it for many years they will usually look at todays value. not what you paid for it.

I bought 4 acres in Rohnert park in 95 ish.. was out of the city limits paid 27k for it.. 

well by a stroke of luck and some foresight I like to think I had or have.. it has now been brought into the city and is directly across the street from the entrance to the Graton Casino and zoned mixed use resi.. value today probably about 3 mil. so if I go to develop it I am certainly hoping lender throws the land in at 3 mil not 27k and pretty sure they will.

which community are you waiting out the moratorium.. I cut my teeth selling land in northern CA and have been through many of these moratoriums and waiting out sewer extensions etc.