Arizona Land Loans: What’s the Difference Between Lot Land and Raw Land?

Ready to buy some land for construction? Find out the difference between buying raw land and lot land and learn about Arizona Land Loans that can help you finance both types of land.

If you’re looking into buying land for a construction project, you might think that all land is the same. You’d be wrong. There are actually big differences between raw land and lot land, both in terms of the legal definition and the process by which you can buy them.

To put it simply, all lots are land but not all land is a lot. Let’s break that statement down a bit by taking a look at the differences, starting with lot land:

Lot land is land that’s been prepped to support a building. For the most part, that means that there are utility hookups for the major utilities — electric, water, sewer, gas and/or telephone lines. If the lot doesn’t directly have these hookups, they are nearby and accessible.

Raw land, on the other hand, is land that has not been developed. There are no utilities and the land may be difficult to access or ungraded. It’s land that’s essentially only been sculpted by nature.

Choosing Between Raw Land and Lot Land

Deciding between buying raw land or lot land will depend largely on your intent, experience and access to funding. For most builders, lot land is more attractive. Everything is ready or close to ready for construction. Builders can buy it and start pouring the foundation quickly. This makes banks and lenders more likely to give out Arizona Land Loans.

Raw land involves more time and money to develop, which often makes it less attractive to both builders and lenders. However, because of this upfront cost and work, the competition for raw land is usually lighter and there may be more deals to be had by experienced builders.

Finding Arizona Land Loans

Here at Level 4 Funding, we offer Arizona Land Loans for both raw land and lot land purchases in Arizona. And you won’t find terms like ours elsewhere — we boast loan to value up to 90%, rates as low as 5.99% and no prepayment penalties. Even better, you can get pre-approved in just 24 hours, get funded in days and take advantage of flexible terms from 3 months to 60 months. Give us a ring today to see how we can get you funded.

Dennis Dahlberg
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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