Asset Class · Land & Construction

Selling a land or construction loan

Land and construction loans carry the highest risk and the closest supervisory attention — the 100%-of-capital construction concentration screen applies here. Lenders sell stalled, over-budget, or non-core construction credits to a buyer who can underwrite completion risk, rather than taking over a half-built project.

Context

Why these credits are hardest

A partially built project has no income, an uncertain completion cost, and real execution risk — the last thing a lender wants to own and finish through a foreclosure. Construction and land loans also pressure the 100%-of-capital concentration screen, giving institutions a direct reason to trim them.

Resolving a construction credit

Send the budget, plans, draw history, and status; a buyer prices completion and exit risk into the bid, then closes all-cash. Standing Bid Capital is a direct principal buyer of CRE loans, discounted payoffs, and REO — $250K–$25M, all-cash, no re-trade, confidential. Request a confidential review.

Common questions
Can I sell a stalled construction loan?

Yes — a buyer underwrites the cost and risk to complete or reposition and prices accordingly; selling transfers the completion risk off your books.

How does construction exposure affect my concentration ratios?

Construction and land development at 100%+ of total capital triggers heightened supervisory analysis — a common reason to sell these credits.

Who buys land and construction CRE loans?

Standing Bid Capital, directly and all-cash, $250K–$25M.

Request a confidential review →