How to Pitch to a Bank When Prices Fluctuate

If you’re getting ready to pitch to a bank but land prices are fluctuating like crazy, you’re not alone. 

One of the biggest concerns I hear from aspiring venue owners and land buyers is how to navigate uncertainty and still present a strong, confident plan to lenders.

Just recently, someone asked me this:

“When preparing for a pitch to a bank, land prices are fluctuating like crazy. Do you give them all of the potential properties you are eyeing or just pick one and run with it? We’re looking at a few places in a couple of different towns but hammering out the hard numbers has been a struggle.”

Another variation I get asked all the time is:

“What do I do first — buy the land outright so someone doesn’t scoop it up while I’m waiting on funding, or take my chances and apply for funding to buy the land, and then wait to build?”

It’s the classic chicken-and-egg scenario.

When pitching to a bank: Should you share all the land options or just one?

Here’s my take:

Take an average of the listing prices for the land you’re looking at and apply for that.

I wouldn’t recommend getting in the weeds with all the different properties—especially if you’re looking in different markets. Just take the average and let the bank know you’re looking for land more or less in the budget of X.

This keeps things clean, simple, and bank-friendly.

Pitch to a bank or buy the land first?

The chicken-and-egg dilemma needs a more personalized approach. My advice? Ask yourself this:

What’s your risk tolerance?

• If you have a pretty high risk tolerance, I’d probably go for funding first.
  
• If you’ve fallen in love with a particular property and are afraid to lose it, I’d say buy the land first (assuming you have the funds). Then, use the equity in the land as leverage to roll into a construction loan when the time comes.

My favorite pitch-to-a-bank workaround?

Find an off-market property.

That one move alleviates so much of the stress in both of the above scenarios. You’re not in bidding wars, and you’re more in control of the timeline.

Read my blog about off market deals HERE.

If you know you need funding to take action on your dream of being a venue owner but don’t know where to start—or how the process works—Funding 101™G was created for you.

➡️ Inside the course, I walk through everything from how to pitch to a bank to navigating funding decisions with confidence. If questions like the ones above have been on your mind, check it out HERE to learn more.

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