In-process construction is pretty difficult to evaluate the value of for banks. Often times, the market will value an investment property much higher than a bank will value it, because the banks aren't always in the business of real-estate speculation. a 40% discount on the price of the finished development is sometimes more than the land may be appraised to by a bank.

It comes down to: if you are interested in real estate investment (either renting or flipping), you are going to find the property more valuable than a bank, who isn't as interested and would just auction it off if they had to own it.