Where Can I Find Short / Medium-Term Financing for Land?

[Josh Brooks]

Hello,

I hope this post finds you well.

I purchase and sell vacant land using the following method:  1) use direct mail to find people who do not want their property, 2) purchase that property at 15 to 25 cents on the dollar of retail value, 3) sell the property on Seller financing with a down payment that recovers 25 to 100 percent of my cost basis followed by 120 months of monthly payments.

As a way to maintain my ability to continue to purchase more land, I would like to find a lending solution where I was able to borrow an amount that equals the difference between my cost basis, and the amount that I was able to recover on the down.  

In this scenario:  1) I would borrow somewhere between $1,000 and $4,000; 2) Lender would get all of the monthly payments until they were paid back in full (principal and interest); and 3) repayment in full would take between six months and two years.

Of course, such loans would be secured by the property.  

Additionally, I wonder about borrowing a lump sum (ex. $20,000 to do five deals), continue to reuse the principal, and create an income stream for Lender.

My questions:  1) does this idea seem reasonable, 2) what would it cost (interest and / or points), and 3) where would I look to find one or more such Lenders?

Any help is appreciated, Thank You for your consideration.

Josh