Private Lending against Finished Lots?

[Scott Scharl]

Anyone have experience lending against finished lots? Our company will be doing a raise soon to help fund a small subdivision deal. We will be buying 8 finished lots on a cul-de-sac from a land developer, then building 8 spec. homes.

I'm interested to hear about investors' experiences lending capital in this niche. Do you like finished lots, or perceive them as higher risk than lending against homes? If I can prove the value with comparable sales, does it matter from your perspective if it's just dirt w/utilities vs. an actual home? Appreciate your thoughts.