Financing Land Development: Land is a tricky real estate asset as it does not produce rents. Therefore, it can be difficult to underwrite, i.e. value. As a result, lenders, e.g. banks, have specific standards for providing loans on non-income producing assets.
Financing Project Development: The transformation of raw land into an income producing real estate product requires project financing. Typically, an acquisition (raw land), development (horizontal construction), and construction (vertical construction), i.e. ADC loan, is required. The underwriting is different from raw land.
Leasing (during development): The true value of real estate is the leases which the physical product attracts. The ability to understand the lease and attract tenants is critical. Often there are requirements, by lenders, to pre-lease during development.