Which loan is used specifically for purchasing a large piece of real estate with the intent to subdivide it?

A blanket loan is specifically designed to finance multiple properties or a large piece of real estate that may be subdivided in the future. This type of loan allows a developer or buyer to secure financing for a property that includes more than one parcel of land, which is particularly useful when the intent is to buy a large tract of land, subdivide it, and sell the individual lots. The blanket loan often covers these various properties under a single mortgage, providing flexibility for the borrower to manage the land acquisition and development process as needed.

This approach is beneficial in real estate development as it simplifies the financing process and can often lead to better overall loan terms, compared to securing separate loans for each parcel of land. By having the capability to develop the property in stages, the borrower can also enhance their cash flow and potentially achieve better profits by strategically timing the sale of subdivided lots.

The other options listed, such as mortgage loans, general obligation bonds, and public enterprise revenue bonds, serve different purposes in real estate finance and do not specifically cater to the needs of purchasing and developing larger tracts of land with subdivision intent.